PT Timah to invest US$30m in asphalt mining operation

JAKARTA (JP): Publicly listed tin mine operator PT Timah Tbk will invest between US$20 million and $30 million to develop an asphalt mining operation in Boton, Southeast Sulawesi.

Timah director Ari Fauzi said on Saturday some of this money would be used to build and upgrade such infrastructure as roads and seaport facilities.

Ari said Buton regency had given its full support to the tin mining company's expansion in the area. "The local regent has given us the green light to commence the operation," he told The Jakarta Post.

Buton Regent H Saidoe said Timah had been awarded several asphalt concessions in the regency, covering almost 100,000 hectares.

The concession areas are located in Lawela, Siontapina, Winto, Walala and Kabungak districts.

The regent said the local administration expected annual revenue of about Rp 7 billion ($588,235) from Timah's asphalt operation.

Ari said Timah would produce 300,000 tons of asphalt a year from Buton's mines, beginning next year.

The asphalt will be exported to a number of countries, including China, Malaysia and Australia, he said.

Ari said the company was confident the asphalt production would benefit the company. "We hope to increase Timah's profit by about 30 percent with this asphalt production."

Timah, one of the world's largest tin producers, has placed an emphasis on expanding its operations. The company has already secured a number of licenses to mine gold, nickel and other mineral resources.

PT Timah booked consolidated net income of Rp 331.6 billion in 2000, a 4.25 percent increase from Rp 318 billion the previous year despite a drop in the company's gross profit.

The company, which produces about 40,000 tons of tin concentrate a year, has obtained six exploration permits for gold exploration covering a total area of 51,992 hectares and one exploration permit for coal exploration which covers 53,920 hectares.

The gold exploration permits are for areas in Aceh, West Kalimantan and East Java, while the coal permit covers an area in East Kalimantan. (05)