Timah to retain workers after global tin price rise

President of tin mining company PT Timah, Erry Riyana Hardjapamengkas, has said the company will not lay off workers as previously planned.

Earlier, Erry himself said the company might have to lay off its 2,500 workers, as it could not survive until after March 2002 under pressure of large losses as a result of falls in tin prices in the world market.

"Now the price has improved reaching around US$4,000 a ton. The price rise will save the company," Erry said Tuesday.

Erry even expressed optimism that the price could climb further to US$6,000 per ton this year.

At present as the company has not fully recovered, the management has to improve efficiency and take other steps to safe the company, he said.

He said among the steps the company will take include diversification of business by developing coal and gold mines in Kalimantan expected in 2006.(*)