Tambang Timah's net profits jumps 16.4%

JAKARTA (JP): Publicly listed tin mining company PT Tambang Timah announced yesterday a 16.4 percent increase in its net profit to Rp 156.6 billion (US$65.3 million) last year from Rp 134.5 billion in 1995, or an increase to Rp 311 a share from Rp 267 a share.

PT Tambang president Erry R. Hardjapamekas said the increase was mainly because of a rise in sales volume and a drop in production costs.

He estimated net profits would increase by about 16 percent this year.

Last year's profits before tax and before "special post expenses" increased 33.74 percent to Rp 220 billion from Rp 164.5 billion in 1995.

"Our operating income increased by 30 percent last year compared to that of 1995," Erry said, adding that 1996's profits were the highest in the company's 10-year history.

PT Tambang finance director Ali Darwin said total sales increased 21 percent to Rp 607.9 billion in 1996 from Rp 502.2 billion in 1995, while the sales volume rose 14 percent to 41,400 tons in 1996 from 36,040 tons in 1995.

The company's unprocessed tin production reached 42,142 tons last year, 20,813 tons of which came from its 21 offshore mining sites and the rest came from its 285 land mining units.

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

The company produces 20 percent of the world's tin and 96 percent of its tin is exported to Asia, the United States and Europe.

The company, which listed on local and London stock exchanges early last year, said worker productivity rose greatly to 7.2 tons a person last year from three tons a person in 1992.

In the early 1990s, the company sacked many people to improve its efficiency.

PT Tambang claims it is the world's largest tin miner and one of the world's most efficient tin producers.

Its mines are on Bangka, Belitung, Karimun, and Kundur islands near southern Sumatra. Its offshore mining areas cover over 8,000 square kilometer off the four islands.

Erry said his company had began taking significant steps to diversify into mining other commodities like gold, pearls, and coal. (02/09)