Timah to pay 2000 dividend next year

Moch. N. Kurniawan, The Jakarta Post, Jakarta

Publicly listed tin mining firm PT Timah Tbk. announced on Thursday it had decided to delay the payment of the remaining dividend for 2000 totaling Rp 59.85 billion (US$5.98 million) until next year.

Timah newly-installed president Thobrani Alwi said the company would pay the dividend in two tranches, in June 2003 and in May 2004.

"We have received approval from the government about this decision," he told a press conference after a shareholders annual general meeting and the extraordinary shareholders general meeting.

He added the company would announce further details about the dividend policy in the coming days.

Timah, the world's second largest tin producer, has proposed to its shareholders to allow the state-owned company not to distribute the dividend to avoid bankruptcy amid business difficulties.

But the government, who controls the majority of Timah's share, had earlier rejected the proposal and asked the company to pay the dividend.

The government argued that despite the current business downturn, Timah still enjoyed a net profit of Rp 331.5 billion in 2000.

Elsewhere, Thobrani said that the company would pay 2001 dividend amounting to Rp 12.5 billion.

"We will pay it in June this year," said Thobrani.

Timah's net profit stood at Rp 32.3 billion last year, a drastic drop from the previous year.

Timah has blamed the fall in net profit to widespread illegal mining output in the country which sparked oversupply in the world tin stock.

The company has asked the government to curb the illegal tin mining since last year to help reduce tin supply in the world market.

For this year, Timah has said its profit outlook would remain gloomy year as the oversupply problem in the world tin market would likely to continue due to current global economic slowdown.

It forecast tin price to stay low at about US$4,000 per ton, almost similar to last year's average price of $4,408, but still far below 2000 tin price of $5,520.

Timah expected to produce about 30,000 tons of tin metal this year.

Timah's exports to Asia account for 46 percent of the company's total sales. A total of 39 percent goes to Europe, and a further 10 percent to the U.S. The remaining five percent is sold locally.

The Thursday shareholders meeting approved a change in Timah's board of directors and commissioners.

Thobrani, who was previously director for exploration and operation, was named as the new president replacing Erry Riyana Hardjapamekas.

The meeting also named three new directors.

Wahid Usman, former manager for planning and operation control, is promoted to hold the position of finance director, replacing Ali Darwin who has retired.

Surawardi is appointed as the director of human resources and development, filling the post of Ari Fauzi, who was named as the new director for exploration and operation.

Meanwhile, Wimpy S. Tjetjep, the director general for geology and mineral resources, has been appointed as chairman of the board of commissioners.