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)