Timah suffers 39% fall in profit

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)