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