Illegal miners threaten Timah?s existence
Wednesday, October 31 2001 - 09:26 AM WIB
?In addition to low tin prices, Timah is also concern with the issue of unconventional or illegal mining and increasing pressure poses by unfair competition from collectors and smugglers of tin-in concentrate. As a result the company was forced to pay higher compensation for its inland tin-in-concentrates. Consequently, this has not only affected the company?s bottom line but has also threatened the company?s liquidity and even the sustainability of its business,? said the company in a statement.
Timah said it was facing a critical moment should the current condition prolonged and unresolved.
Illegal miners which were reportedly backed by Singaporean businessmen and security personnel had flooded the market, contributing to pressure on the price of the commodity, which has already been badly hit by the world's economic recession.
Timah said it had put forth several strategic and operational courses of actions.
It had coordinated with the Integrated Team for the Mitigation of Illegal Mining and the security and law enforcement agencies; to register illegal miners working within the company?s mining rights; to assess the possibility of taking legal action against the accomplice of illegal mining; and to take a concerted effort with PT Koba Tin,
The company had also urged provincial government as well as regencies and municipality within Bangka and Belitung islands to restore order in the tin mining industry on the islands.
Internally, the Company has implemented integrated cost cutting measures in all aspects of its operations; delayed capital expenditures; and halted the operation of uneconomical or high cost dredges and inland mining. (alex)