PT Timah to diversify its business

PT Timah to diversify its business

JAKARTA (JP): The publicly-listed tin mining company PT Tambang Timah announced yesterday that it has paid deposits of Rp 17.8 billion (US$7.6 million) to the Ministry of Mines and Energy to start gold and diamond exploration in South Kalimantan.

"We expect to get the licenses for five blocks of exploration areas totaling 1.8 million hectares in the province," Tambang Timah's president Erry Riyana Hardjapamekas said after an annual meeting of the company's shareholders.

He said that the deposit would be returned once the ministry was satisfied with Timah's "seriousness" in carrying out the proposed exploration.

Erry also explained that another state-owned mining company, PT Aneka Tambang, has signed an agreement with Tambang Timah to join the exploration.

"But we have yet to decide on the format of our cooperation after the completion of the exploration," he said.

Yesterday's meeting, according to Erry, approved the management's proposal to pay a dividend of Rp 65 per share. The total payout will be Rp 33 billion.

Tambang Timah's net profits rose by 12 percent to Rp 134.5 billion last year, while its sales revenues increased by 15 percent to Rp 502 billion.

Erry said the volume of tin metal sold last year declined by 3 percent to 36,040 tons.

The company's financial performance, according to Erry, was supported mainly by the combination of a sustained recovery in tin prices and the company's improved efficiency.

Average realized tin prices were US$6,199 per ton in 1995 as compared to $5,413 in 1994. (08)