PT Timah expects to obtain loans from Singaporean banks

State owned tin mining company PT Timah is considering to raise loans from two Singaporean banks to help finance the company?s diversification programs, Koran Tempo reported in Jakarta on Monday.

President Director of the Bangka-based tin producer, Thobrani Alwi, said in Jakarta late last week that PT Timah needed between US$20 million and US$25 million in cash to finance the diversification projects into non-tin activities.

He said that the company had to diversify into other business activities because the existing tin reserves which were estimated to last only for the next two years could no longer enough to maintain the company?s long-term operation.

According to him, two banks from Singapore have expressed their interests to take part in the extension of loans to PT Timah. But he refused to unveil the names of the two banks.

Thobrani said that raising loans from overseas banks would be the most feasible at present due to their low interest rates. He added that issuing bonds to finance the company?s diversification projects would be more costly. (*)