Timah may seek strategic partner

The state-owned tin mining company is considering seeking strategic partner and external funding sources as alternative measures to bailout the company, according to its president Erry Riyana Hardjapamekas.

Erry said Friday that the bailout plan was currently being drafted and was expected to be completed by the end of this month.

?The two (above) measures are being considered to be part of the bailout plan, which will be completed by the end of this month,? he said.

He said that Timah?s financial condition was in a very bad shape last year. He gave not figures, but said that the company had been suffering deficit cash flow of up to Rp 51.7 billion per month on average as monthly working capital requirement had been much larger than monthly revenue stream.

Timah is in the brink of bankruptcy as massive illegal mining at its sites in the Bangka-Belitung province had caused tin commodity pries to plunge to record levels.(Amoros)