PT Timah asks govt to delay royalty payment

Tin mining company PT Timah Tbk has asked the government to delay royalties payment to enable the ailing company survive the financial difficulties, Bisnis Indonesia reported on Friday.

The company?s director Ali Darwin said in Jakarta on Thursday that the royalties which should be paid by the company since August this year reached a total of Rp 7 billion, or about three percent of the tin sales during the period.

"If the royalties payment is delayed, It will bring much help for the company to survive its financial difficulties,? he was quoted as saying. He added that the company had formally proposed for the delay in the royalties payment to the ministry of energy and mineral resources two months ago but it was turned down.

?We need the understanding from the ministry of finance and the ministry of state enterprises to pay more attention to our problem,? he noted.

PT Timah, the world largest tin mining company, is controlled by the government. The company has suffered a severe financial problem during the past several months due the drastic drops in tin prices. (*)