Timah

PT Timah Tbk (TINS) is currently seeking for new additional markets of coal following the acquisition of a coal company named PT Tanjung Alam Jaya. The company’s coal production has so far been marketed to Malaysia and the Philippines. Timah conducts diversification by acquiring the company whose coalmine is located in South Kalimantan.

“We acquired the coal company for less than US$10 million. With the acquisition as estimated PT Timah would receive additional revenue from coal production of US$11 million,” said president director of PT Timah Tbk Thobrani Alwi as quoted from Bisnis Indonesia daily.

Timah will also allocate US$5 million for the improvement of infrastructures in effort to increase the coal production. In year 2004 Timah targets an increase of coal production from 300,000 tons to 1 million tons a year. With the production increase Timah expected to earn additional revenue of US$11 million.

“When we made the acquisition the company’s production capacity was only 300,000 tons a year. After having been evaluated, we estimated that the production could increase to 1 million tons a year,” he said prior to a hearing with the national parliamentary commission VIII in Jakarta on Dec. 2.

Next year the production will have increased. At world’s price of US$22 per ton and production capacity of, say, 500,000 tons a year, Timah would earn additional revenue of US$11 million.

Alwi admitted that the coal production from the coalminer--which was acquired by TINS’ affiliate PT Timah Investasi Mineral as part of the corporate diversification program--was not considerably bulky at maximal 1 million tons, but the mine life can be as long as 7 years. *

Sumber : MiningIndo.com

Posted by : David Dwiarto