Timah to stop operating 12 dredging vessels, suspend employees
Wednesday, November 7 2001 - 01:52 AM WIB
The state-owned tin mining company PT Timah would have to stop operating 12 of its 13 dredging vessels in Bangka island starting today, and will soon suspend 1,200 employees in a bid to save cost amid deteriorating financial condition.
The Media Indonesia daily quoted company public relations chief Anhar Romli as saying that if condition remained adverse during the first nine-month period of 2002, Timah would have to be liquidated.
The company has previously said that a drop in tin mining price has sent the company?s net profit in the nine-month period of this year tumble by 92 percent to Rp 25 billion (US$1=Rp 10,840) compared to the same period last year.
It said that the rampant illegal mining activity both in Bangka and Belitung islands have contributed to factors causing the drop in tin price to around US$3,600 per ton.(*)