Timah suffers 39% fall in profit

JAKARTA (JP): PT Timah, the world's largest tin mining company, reported on Monday a 39 percent drop in its 1999 consolidated net profit to Rp 318 billion (US$43.86 million).

As the consequence, the earning per share plunged to Rp 632 in 1999 from Rp 1,031 in 1998.

The company attributed the lower profits to lower tin prices, the strengthening of the rupiah against the U.S. dollar and the decrease in tin production.

Total tin concentrate production fell by 15 percent to 37,076 tons in 1999 from 43,714 tons in 1998; tin concentrate production from offshore operations fell by 12 percent to 16,981 tons while onshore mining dropped by 18 percent to 20,095 tons.

The company attributed the fall in the production of the inland mining operations to "socio-political issues". Of 29 new mines planned in 1999, most of them were not realized because the sites had been utilized by the local communities for other purposes.

The lower tin concentrate production, resulted in a 10 percent drop in tin metal production to 39,030 tons in 1999 from 43,417 tons in 1998.

New tin resources discovered during 1999 amounted to 34,247 tons, which consisted of 9,217 tons inland and 25,030 tons of offshore resources.

The company said reduced new discoveries resulted mainly from landuse conflicts with local communities in some of the inland exploration areas.

Unfavorable political and social conditions in the last two years also hampered the company's diversification efforts, the company said.

Due to uncertainties in security, all non-tin exploration activities in Aceh were suspended. The company further explained that the suspension, initially planned only May to November, has continued as security conditions have shown no improvement.(hen)