Govt waits until Dec before deciding fate of PT Timah

The government as the majority shareholder of PT Timah will wait until December before deciding the fate of the publicly listed tin mining company, Bisnis Indonesia reported on Thursday.

Bacelius Ruru, the secretary of state ministry for state enterprises, said in Jakarta on Wednesday that the tin mining company?s management was still assessing the condition of the company and outlining the most possible way in rescuing program.

?The government waits the management?s report until December about what to do with PT Timah,? he was quoted as saying.

PT Timah, which once became one of the country?s well-performed companies, has been under a severe difficulties during the past several months due to the sharp drop in tin prices in the international market. The company?s management has said that the worst scenario for the company would be to liquidate it.

State Minister for State Enterprises Laksamana Sukardi said that the government had no plan to close down the company, which is based on Bangka island in South Sumatera. He said merging the company with state owned general mining company PT Aneka Tambang might be the most feasible way for PT Timah.

Separately PT Timah reported that it planned to sell its stake in affiliated companies PT Kutaraja Tembaga Raya (42.3%), PT Asuransi Jiwa Tugu Mandiri (20%)and PT Kobatin (25%) in efforts to cope with its financial difficulties.

The company plans also to merge its two subsidiaries PT Timah Investama and PT Timah Eskplomin as part of its major restructuring plan. (*)