Timah recorded loss in H1 2002

State tin producer PT Timah Tbk, the world's largest integrated tin miner, on Friday reported a first half net loss of Rp.53.8 billion rupiah (US$ = 9,015), the company's first loss in 10 years.

It recorded a profit of Rp. 126.2 billion in the same period last year.

Timah said the loss was due to several reasons including depressed world tin prices, adding the average price it had received for the commodity in the period had fallen almost 20 percent to $4,116 per tonne.

"The loss is attributed, in general, to the depressed tin market...(and) the weakening of the U.S. dollar against the rupiah during the second quarter of the year," the company said in a statement.

The loss came even though Timah's production costs fell 21.11 percent in the period.

Timah, which has also been hit by rampant illegal mining, said ailing world demand for tin was also impacting the company's financial performance.

It said sales volume of tin metal in the first half of 2002 fell 15 percent to 13,933 tonnes on the year while production fell 7.4 percent to 16,990 tonnes.

In a move aimed at reducing illegal mining, Indonesia earlier this year implemented an export ban on tin ore and concentrates but some exporters said the ban had caused problems and urged Timah to buy stocks that had been building up. (*)