Timah still interested on Berau Coal

The state-owned tin mining firm PT Timah is still interested to acquire a 60 percent stake in coal mining firm Berau Coal despite financial battering due to a sharp drop in international tin prices.

Timah president Erry Riyana Hardjapamekas said that his company had sent a letter of interest to Berau Coal and it had also appointed financial consultant BNP Paribas Peregrine in August to help the company in the acquisition process.

Timah has been badly hit by the plunge in tin international prices, sending company third quarter profit to drop to Rp 25 billion from Rp 296 billion in the same period last year. The company is even mulling to lay off more than 3,000 employees to be able to survive.

Timah is facing competition from BHP Billiton in the plan acquisition of Berau Coal, a unit of heavy equipment conglomerate PT United Tractors which is seeking cash to repay debts maturing by the end of this year.(Amoros)