PT Timah will soon announce rescue plan

Publicly listed tin mining company PT Timah hopes it will be able to complete a rescue plan before the company holds its annual shareholders meeting next month, Koran Tempo reported on Tuesday.

Corporate secretary Prasetyo Budi said in Jakarta on Monday that the critical rescue plan, which will save the company from a liquidation measure, would be completed by the end of this week. The plan would be submitted to the government, as the majority shareholder for approval before being announced to the investing public.

?The announcement (of the rescue plan) will be made during the shareholders meeting on March 14,? he was quoted as saying.

PT Timah, the largest tin producer in the world, is suffering an acute financial problem due to a continued drop in tin prices. According to an initial study, the company, with an estimated loss of Rp 50 billion, is only able to survive within three months until April this year if no significant rescue plan is made.

PT Timah?s president Erry Riyana Hardjapamekas said earlier that one of the alternatives of keeping the company to remain afloat is seeking a new strategic partners and raising additional financial source.(*)