Tambang Timah plans greater efficiency

Tambang Timah plans greater efficiency

LONDON (Reuter): Indonesian state-owned tin miner PT Tambang Timah plans to continue to drive production costs lower to maximize profitability, company officials said.

Production costs currently stand at around $4,310 a ton.

"These will be down to $3,800 by the year 2000," president- director Erry Riyana Hardjapamekas said at a press briefing here yesterday.

International cash tin prices now stand at around $6,370 on the London Metal Exchange (LME).

"Estimated additional demand from new uses of tin is 20,000 to 30,000 tons by end-1996 or early 1997," Erry said.

"That will of course boost the price. Based on CRU International forecasts we project a tin price of $8,000 by the year 2000," Erry added.

Timah aims to invest some of the proceeds from its listing on the London Stock Exchange next month to increase efficiency. Timah will list 35 percent of its enlarged share capital.

Twenty-five percent will be government stock, the proceeds of which will be used mainly to reduce Indonesia's overseas debt, company officials at the briefing said.

The remaining proceeds going to the company "will be used for the tin mining business, improving efficiency, raising output and continuing exploration," Erry said.