Timah to Issue Bonds, No Plans to Divest Units
Jakarta. State-owned tin miner Timah eyes to raise more than Rp 500 billion ($38 million) from a bond issuance in order to finance the company's expansion.
Timah earmarked Rp 1.5 trillion in captal expenditure this year for investment in production equipment this year, as it targets to increase tin production by 30 percent to 30,000 metric tons this year, Agung Nugroho, Timah corporate secretary, said on Monday (09/01).
Apart from tin business, Timah owns subsidiaries which operate property, hospital and ship yard business.
Agung said the company did not plan to sell its subsidiaries to get more cash for the tin business expansion. Instead, Timah would seek to collaborate with other state-owned enterprises in the respective sectors.
Timah is upgrading its metallurgic unit in Mentok, Bangka, in order to increase the efficiency of tin melting process.
In the first nine months of last year, Timah produced 20,870 metric tons refined tin metal, down 23 percent from the same period a year earlier. The company also only sold 18,600 metric tons of the metal in the period, down 18 percent from 2015.
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