On March 31 Indonesia’s state-controlled tin producer PT Timah reported new annual profit and production records. The company’s net profit rose by 757% from the previous year to Rp 1,785 billion (US$ 196 million) for 2007. Meanwhile refined tin production increased by 30.5% to 58,325 tonnes and tin-in-concentrate output rose 12.0% to 58,086 tonnes. Despite rapidly rising costs of production the company’s margin per tonne was $4,974 in the year as a whole and $6,415/tonne in the final quarter.
In a statement Timah welcomed the efforts of the Indonesian authorities to control small-scale mining, which have contributed greatly to the resurgence in its performance.
“The company believes that the current condition – whereby the law is being enforced – as a process towards a better tin mining industry climate. The company expects that the Government will continuously and consistently implement such enforcement from time to time, so that utilization of national tin resources will produce an optimum value addition to overall national economy, create a healthy and fair business climate, and nurture a competitive and responsible tin mining industry socially and environmentally.”
Last year most of Timah’s inland production of tin-in-concentrate (46,078 tonnes) was purchased from small scale operators. The company is now emphasising its goal of working in partnership with independent miners and contractors to raise operating, environmental and safety standards. It is also aiming to rapidly expand its offshore production, which fell slightly to 12,008 tonnes last year due to bad weather and maintenance shutdowns of some of its dredges.
“The company has been and will be continuously implementing order and legal enforcement to mining activities conducted within the company’s mining rights areas in improving the security of its mining areas by establishing extensive security posts. In addition, the company continues to invest in exploration activities to discover new resources, to improve efficiency, to develop high-value-added products, and to diversify into non-tin businesses within the company’s competence in order to maintain its long term business sustainability.”
