PT Timah offers subsidiary to Phelps Dodge

The management of state-owned tin company PT Timah has offered 41.87 percent of its shares in copper mine operator PT Kutaraja Tembaga Raya (KTR) to Pehlps Dodge Australasia Inc, which is based in Arizona, the United States, Bisnis Indonesia reported on Tuesday.

Prasetyo Budi Saksono, the corporate secretary of the tin mining company, said in Jakarta on Monday that the divestment of the company?s ownership in PT Kutaraja was part of several measures to cope with PT Timah?s financial difficulties.

?The offer to sell the ownership in PT Kutaraja was made during a recent meeting with senior executives of Phelp,? he was quoted as saying. He added that PT Timah had also offered to sell its 20 percent stake in PT Asuransi Tugu Jiwa Mandiri.

Kutaraja, which operates copper mining area in Aceh is now at the stage of exploration. PT Timah owns 41.87 percent in the company while its partner Phelps Dodge owns the remainders.

Earlier, the finance director of PT Timah Wahid Usman said that the company would only divest its shares in Kutaraja and Asuransi Tugu in its consolidation measures to come out from its financial problem. Its ownership in PT Koba Tin (25 percent), and at Plimsoll Corporation Pte Ltd (37.5 percent) will be maintained. (*)