Government rules out fund injection into PT Timah
Thursday, November 8 2001 - 02:13 AM WIB
The government has no plan to inject fresh funds into PT Timah although the state tin company was suffering financial difficulties following the downfall of tin prices in the world market, Bisnis Indonesia reported on Thursday.
Director General of Geology and Mineral Resources Wimpy S. Tjetjep said on Wednesday that the tin mining company could use financial resources from local or foreign banks to strengthen its financial liquidity.
?The government will not inject fresh funds into PT Timah. We don?t have the money for such a purpose,? he said.
Separately Minister of Energy and Mineral Resources Purnomo Yusgiantoro acknowledged the need of new measures to help PT Timah cope with its financial problem, saying that the tin production in the world should be cut down in order to prop up the tin metal prices.
?Just like oil, the prices dropped due to the over supply,? he added. (*)