Tambang Timah, Aneka Tambang to seek gold
Tambang Timah, Aneka Tambang to seek gold
JAKARTA (JP): Publicly-listed state-owned tin miner PT Tambang Timah will cooperate with state-owned general mining firm PT Aneka Tambang to explore for gold and diamonds in the latter's concession areas.
Tambang Timah president Erry Riyana Hardjapamekas and Aneka Tambang president Darmoko Slamet announced that the agreement will be signed later this month.
Darmoko said his company needs the help of Tambang Timah because Aneka Tambang does not have the financial or human resources to explore its concession areas.
"We are ready to help Aneka Tambang because we have everything it needs. The activity will be part of our diversification program," Erry said at a breaking of the fast gathering at the Directorate General of Mines on Friday evening.
Because of sharp fluctuations in world tin prices, Erry has repeatedly said his firm will diversify its product lines to other minerals, especially gold.
Tambang Timah has long coveted the islands of Sumatra, Kalimantan and Irian Jaya, which have reserves of diamonds, gold and coal.
Tambang Timah has now been granted exploration rights for gold in Natal, North Sumatra. Timah is also conducting preliminary surveys in three areas of Kalimantan where it has applied for gold exploration rights.
Director General of Mines Kuntoro Mangkusubroto said the planned cooperation between Tambang Timah and Aneka Tambang should create synergy between the two companies, with Aneka Tambang owning the concessions and Tambang Timah possessing the expertise in alluvial exploration and mining.
Going public
Kuntoro denied rumors that the cooperation is the first step toward the acquisition of Aneka Tambang by Tambang Timah.
The cooperation will instead prepare Aneka Tambang to go public next year, he said.
In 1994/1995 fiscal year, Aneka Tambang produced 2.3 tons of gold worth Rp 62.6 billion (US$27 million at current rate) and 24.5 tons of silver worth Rp 6.2 billion.
The company forecasts an increase in its gold production to 2.5 tons in each of the 1995/1996 and 1996/1997 fiscal years, and five tons in the two following years until 1999.
Aneka Tambang also mines nickel, ferronickel and bauxite, which are the backbone of the company.
Aneka Tambang recorded a net profit of Rp 21.5 billion in 1994, more than double its 1993 profit of Rp 10 billion. Its revenues reached Rp 232 billion in 1994, most of which came from the exports of nickel, ferronickel and bauxite.
Tambang Timah, one of the world's largest tin mining companies, posted a net profit of Rp 134.5 billion last year, up from Rp 120.2 billion in 1994.
Tambang Timah, which listed in Jakarta and London last October, sold $217.6 million worth of tin last year, meeting 20 percent of global consumption.
Tambang Timah aims to increase its share of the world market in 1999 to 25 percent, or 50,000 tons of tin, from the 20 percent, or 36,040 tons, in 1995. (rid)