Timah's net profit to surge sevenfold

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.