PT Timah, the world’s second-biggest tin mining company, said profit last year dropped by about a fifth as production costs rose and output fell, according to preliminary figures from President Director Wachid Usman reported by Bloomberg today.
Unaudited net income in 2008 fell by 21% to Rp 1.4 trillion (US$123). “In 2008, profit fell because of higher costs to secure and monitor ore shipments,” Usman said in a hearing with parliamentary members in Jakarta. This suggests that the state-controlled company made a loss in the last quarter of the year.
Timah produced 49,029 tonnes of refined tin last year (down 16% year-on-year) and sold 46,438 tonnes, Usman told the hearing. “The crisis since September led to drop in prices and demand,” he said. Final audited figures are expected to be released in late March.
