Timah to increase capital expenditure next year

State tin miner PT Timah Tbk said that it planned to increase capital expenditure (Capex)for next year to Rp 800 billion (1US$ = Rp 9,420) from Rp 300 billion of this year, a company official said.

Timah is to buy six dredges, build one tin chemical plant, two tin solder plants and one asphalt extraction plant next year, as parts of efforts to raise profitability, Timah President Director Wachid Usman said on Wednesday.

"Regarding financing, we prefer to get loans from banks but we might also provide some funds from internal rsource," he said.

The company said on Dec. 4 it expected its profit to grow by 20 percent next year from an expected Rp 1.5 trillion this year due to strong prices of the metal.

Timah produces 46,925 tons of refined tin during Jan-Sept period of 2007, or 49% higher than that of the same period in 2006 of 31,530 tonnes.

Earlier, according to Timah?s Commissioner R. Sukhyar, the company planned to increase production to up to 60,000 tons in 2008 from 54,000 ? 55,000 ton this year.

Timah is also seeking to acquire several coal mining firms as the deposit of its coal mining unit PT Tanjung Alam Jaya (TAJ) is depleting, he said on Sept, 2007. (godang)