PT Timah Expects Higher Income in First Semester 2011

JAKARTA, KOMPAS.com - Tin mining company PT Timah Tbk has predicted its income in the first semester of 2011 will increase from the same period last year on high tin prices in the global market.

"Although tin production tends to drop our financial performance will improve," PT Timah President Director Wachid Usman said here on Wednesday.

Wachid said PT Timah’s tin production in the first half of 2011 was expected to a range of 17,000 and 18,000 tons from 19,000 tons in the same period last year.

However tin prices surged to US$25,000 metric tons in the January-June 2011 period from 19,900 metric tons in the same period last year. Wachid refused to elaborate on the forecast of the company’s income in the first half of 2011, arguing he still had to wait for the results of audit.

"Tin price fluctuated but on average, it showed an upward trend," he said.

He expressed hope the company’s production in the second semester of 2011 would increase to 40,000 tons. To that end, the company was exploring the possibility of developing offshore mining, he said.

"We will continue to increase the contribution of offshore mining to up to 70 percent," he said.