Timah net profit soars on strong tin prices

Audited net profit at the world's biggest integrated tin miner, PT Timah Tbk, surged last year to 76.4 billion rupiah ($8.9 million) from 13.4 billion a year earlier, mainly boosted by higher world prices for the commodity.

Average tin prices received by the state-run firm during 2003 were 15 percent higher at $4,817 per ton compared to a year earlier, Timah said in a statement on Tuesday.

Sales volumes of tin metal in 2003 were 45,373 tons, up six percent against 42,832 tons in the previous year.

Timah said its operating profit jumped 91 percent from a year earlier to 226.5 billion rupiah.

"The combination of higher sales volume, improvement of tin prices, the strengthening of the rupiah against the dollar as well as efforts to improve the company's internal conditions resulted in the 2003 financial performance," it said.

Last year's sales rose to 1.95 trillion rupiah against 1.67 trillion rupiah.

Timah said global price gains looked sustainable with demand exceeding supply, although it could also trigger smuggling of tin concentrates to the international market.

Faced with widespread unlicensed exports, Indonesia banned shipments of concentrates in 2002.

Timah said last year's output was 45,906 tons of refined tin against 43,528 tons in 2002.

The firm has said annual output this year was seen lower at around 42,000 tons due to difficulties in getting ore, which it processes into concentrates and refined tin. (*)