PT Timah to operate new smelting plant in Riau

State owned tin mining company PT Timah will operate one more smelting plant later this month as part of the company's cost efficiency program. The smelter which is now under construction on the Karimun island, Riau will have a processing capacity of about 7,000 tons a year.

Speaking at the company's annual shareholders meeting Thursday, PT Timah's president Thobrani Alwi said that the construction of the new smelter would cost the company about Rp 35 billion.

He said that the operation of the new smelter would increase the number of the company's tin smelting plants to eight, with combined processing capacity of 49,000 tons a year.

According to him, the operation of the new plant would significantly reduce the transportation cost of the tin ore produced in Kundur island, which is located near Singapore, one of the main buyers of the company's tin.

"At present, all of the tin ores from Kundur island should be shipped to Bangka island for further processing before being exported," he said.

Thobrani said that PT Timah booked net profit of Rp 177.9 billion in 2004, an increase of 397 percent from Rp 36.5 billion in 2003, thanks to the strengthening of the rupiah and the rise in the tin metal price in the world.

He said that about 50 percent of the net profit would paid as dividends. Investors will receive a cash dividend of Rp 162.2 for every share they hold. (Godang)