Timah's net profit to surge sevenfold

The Jakarta Post, Jakarta

Net profit of state-owned PT Timah, the world's largest integrated tin miner, may skyrocket this year mostly on higher tin prices and sales volume, a senior official said on Tuesday.

Timah president Thobrani Alwi said the company had estimated its net profit by the end of this year to jump to around Rp 80 billion (US$9.4 million) from Rp 11.28 billion in 2002, on estimated sales of around $200 million.

"The increase is still small compared with the Rp 331 billion profit we booked in 2000," said Thobrani in a hearing with House of Representatives Commission VIII for mining and energy.

He explained that the increase in profit was triggered by the increase in the price of tin on the international market, which as of the third quarter of this year was traded at an average of $4,758 per ton, from around $4,100 a year earlier.

Timah expects world tin prices to trade above $5,500 per ton next year on improved demand from the electronics and automotive industries, he said.

The company has projected that world tin demand may grow by 5 percent to 10 percent next year.

Timah recorded a nine-month profit of Rp 63.9 billion, compared with a loss of Rp 38.7 billion over the same period last year.

The company operates tin mines on several islands in the country, including Bangka and Karimun, and in coastal areas of Sumatra. The company produces three types of tin under the Bangka, Mentok and Bangka Low Lead brands.

The better-than-expected news, however, failed to lift the price of Timah shares on the local bourse as they ended lower by Rp 25 at Rp 1,625, on profit-taking.