Tambang Timah maintains target output

JAKARTA (JP): Publicly listed tin mining company PT Tambang Timah will not reduce its initial production target of 47,000 tons this year despite the drop in tin prices since early this year, the company said yesterday.

Company president commissioner Haposan Silalahi said at the company's headquarters in Pangkal Pinang, South Sumatra, tin prices in international markets had decreased by an average US$500 per ton to about $5,600 per ton this year, compared to last year's prices.

Based on the production target of 47,000 tons, Tambang Timah would lose Rp 50 billion ($19.2 million) in potential revenues this year due to the price drop, he said.

"Still, Tambang Timah's workers need not worry about it. Instead, they should make it a stimulus to improve the company's efficiency in competition against other tin producers," Silalahi was quoted by Antara as saying.

Tambang Timah, which claims to be the world's most competitive tin mining firm, produces 20 percent of the world's tin. Ninety- six percent of its tin is exported to the United States, Europe and Asia. Its mines are located in Bangka, Belitung, Karimun and Kundur islands in southern Sumatra.

The company is listed on the local and London Stock Exchanges.

Last year, it produced 40,337 tons of processed tin, 28,680 tons of which is branded Branka, 9,805 tons Mentok, 1,840 tons tin anode and the rest tin alloys.

It recorded the 10-year highest profit (before tax and "special post expenses") of Rp 220 billion last year, a 33.7 percent increase from Rp 164.5 billion in 1995.

Tin prices ranged between $5,800 and $6,200 a ton throughout the year.

The tin price fell $22 per ton last week to 5,623 per ton at the London Metals Exchange (LME).

Malaysia's tin prices, however, rose 18 U.S. cents a kilogram to a new five and a half month high of $5.42 a kilogram yesterday. But analysts believe the tin price rise was mainly because the Malaysian ringgit continued to weaken against the U.S. dollar, Reuter reported. (jsk)