Two tin dredgers revamp in Malaysia

Two tin dredgers revamp in Malaysia

KUALA LUMPUR (AFP): Malaysia Mining Corp. Bhd. (MMC) has announced plans to revamp ailing associate Berjuntai Tin Dredging Bhd. and subsidiary Kramat Tin Dredging Bhd., as depressed tin prices push many miners to quit.

Kramat Tin, a 79-percent owned unit of MMC, will link up with an Indonesian timber concession, MMC chairman Abdul Sukor Shahar was yesterday reported as saying in local newspapers.

Kramat, which stopped mining in November 1988, is to acquire a 31.86 percent stake in integrated wood-based PT Artika Optima Inti (AOI), which in turn will buy 25 percent of Kramat Tin.

"We are now conducting a six-month study on the proposal before we make any decisions," he said.

The deal provides for a minimum consolidated after-tax profit guarantee of US$127.32 million a year for Kramat Tin for the next three years.

AOI is engaged in logging, wood product manufacturing, as well as trading.

For Berjuntai, MMC is evaluating several options, Sukor said, declining details. Berjuntai Tin, in which MMC has 28 percent stake, ceased mining operations in December 1993 and had since disposed of all its tin stock before the end of April 1994, company officials said Tuesday.

It incurred a pre-tax loss of 4.65 million ringgit ($1.86 million) on a turnover of 10.13 million ringgit for the year ended April.

MMC itself diversified out of tin in May last year as the industry remained in the doldrums plagued by high surplus stocks, low prices and lackluster demand.

The conglomerate now concentrates on exploration, engineering, investment and mining of other minerals.

Malaysia, once the world's largest tin producer, excavated some 76,830 tons a year at its peak in the 1970's.

In 1993, tin production was 10,384 tons, 28 percent less than a year earlier. Output for 1994 is expected to shrink further to 8,000 tons, officials said.