Timah suffers loss of $30 million in six months

Publicly listed tin mining company PT Timah Tbk is estimated to suffer a net loss of about US$300 million in the second semester of this year due to falling tin prices in the world market, and illegal mining.

The company?s president Erry Riyana said in Jakarta late last week that PT Timah?s loss was projected to reach an average of $5 million per month in six-month period.

"In a bid to cope with the problem we will try to reduce operating cost from US$3.800-US$3900 per ton at present to US$3.200 before 2002,? he was quoted as saying by Bisnis Indonesia on Monday.

At the same time, the company is also seeking approval to delay the payment of dividend and royalties to the government.

In addition, the company would also sell its non-core assets to raise about Rp 338 billion in cash to cope with the problem, Erry said, adding that the sale of the company?s 20 percent stake in PT Asuransi Jiwa Tugu Mandiri (AJTM) would be a priority.

Besides PT AJTM, PT Timah also owns 41.87 percent stake in copper mining company PT Kutaraja Tembaga Raya, 37.5 percent in Plimsoll Corporation Pte Ltd, and 25 percent in PT Koba Tin.

"After the divestment in AJTM, we will also sell the stake in Koba Tin, Plimsoll Corporation, and Kutaraja which is now in stage of operating,? Erry said. (*)