Tambang Timah to open gold mine in N. Sumatra

JAKARTA (JP): The state-owned tin mining company PT Tambang Timah will list 25 percent, or 125.8 million, of its shares on the London Stock Exchange on Oct. 19.

It also plans to open a gold mine in Natal, North Sumatra, the company's president said yesterday.

Erry Riyana Hardjapamekas said that the company, which will also list 10 percent, or 50,3 million, of its shares on the Jakarta and Surabaya stock exchanges on the same day, had obtained a concession license from the government.

"The exploration needs an investment of US$1.5 million. It will be started next year and will be completed within two years," Erry told reporters.

He said that the exploration is a part of the company's plan to diversify its business and to increase its profit.

The company's net profit reached Rp 82 billion (US$36.8 million) in the first nine months of this year and is expected to reach Rp 125 billion for all of 1995, up slightly from last year's Rp 120 billion.

Erry said that the company's shares were offered at Rp 2,900 each, or $12.73 per Global Depository Receipt (which is equivalent to 10 shares). It reported an average of 250 percent oversubscription on the domestic market and 400 percent oversubscription on the international market.

He said that most of the international investors ordering shares are 'resources investors' that are well informed in the mining industry and that the remainder are country fund managers.

Meanwhile, Minister of Mines and Energy I.B. Sudjana said that Tambang Timah will not be affected by the expected increase in supplies as a result of the Association of Tin Producer Countries' plan to revoke the tin quota next June.

Sudjana said that most of the countries grouped in the association had failed to fulfill their quota due to low production and an increase in market demand.

Erry said that PT Timah will be able to export only 33,000 tons this year. (04)