PT Timah to expand to Vietnam, Malaysia, Myanmar
Tuesday, March 27 2001 - 04:00 AM WIB
Anticipating its depleting tin reserves in Bangka and Belitung islands, state tin miner PT Timah plans to explore for tin reserves in a number of neighboring countries, including Vietnam, Malaysia and Myanmar.
Timah director Ali Darwin said on Friday (March 23) that Vietnam would be the first target. Timah plans to expand its operation to Vietnam in the next three months.
Ali said that his party had signed a memorandum of understanding with the Vietnamese authorities to explore for tin reserves in that country. He added that Timah and the Vietnamese authorities were currently negotiating over the split of income from tin exploitation in that country.
"We also prepare similar cooperation framework with Malaysia and Myanmar (to explore for tin reserves). All sites we will explore are located offshore, not onshore," Ali said.
He added that Malaysia gave enough tin reserves in the location Timah would explore. But Timah needed to check it again.
He noted that exploration of tin reserves in the overseas locations was badly needed as Timah's reserves in Bangka and Belitung islands were continuously depleting.
Last year, for instance, Timah's output dropped to 35,550 metric tons from 39,030 metric tons recorded in 1999. "And it is predicted that it will continue to drop in the coming years due to depleting reserves."
"Our reserves sooner or later will finish. We have prediction that over the next 5 to 7 years our reserves (in Bangka and Belitung islands) will economically and commercially finish. We must now look for new reserves. And therefore, we must expand to overseas markets," Ali told Sriwijaya in Palembang.
Besides the declining output, Timah continued to book profits, thanks to the strengthening U.S. dollar to the rupiah as 95 percent of Timah's products are destined to export markets.
Last year, Timah booked a total sales value of Rp 1.636 trillion and a net profit of Rp 331.567 billion. In 1999, Timah's net profit was Rp 318.039 billion. In 1998, Timah booked a huge total sales of Rp 2.034 trillion, and a net profit of Rp 518.828 billion, and in 1997, sales reached only Rp 691 billion and net profit Rp 177.813 billion. (*)