Impact Of Illegal Mining, PT Timah Books Losses Of IDR 449.7 Billion

Illustration. (Photo: Doc. Antara)

JAKARTA - PT Timah Tbk (TINS) announced the company's performance throughout 2023. In this note, it is known that TINS posted a loss of Rp449.7 billion.

Director of Finance and Risk Management of PT Timah Tbk, Fina Eliani said the slow recovery of the global and domestic economy as well as pressure on world tin logs in 2023 due to the use of US currencies and weak demand for tin due to the high supply of LMEs had an impact on reducing Indonesia's tin exports since 2022 until now.

Fina also said that the illegal tin mining that occurred in Bangka Belitung due to governance has not improved had a negative impact on the company's business.

"The global and domestic economic conditions that have not improved and the weak demand for global tin metals amid unlicensed mining activities will have an impact on the company's performance in 2023," Fina said in a statement to the media, Saturday, March 30.

In addition to recording losses, PT Timah also recorded a decrease in tin ore production by 5,224 tons to 14,855 tons from 2022 which was recorded at 20,079 tons. The decrease also occurred in lead metal production by 4,485 to 15,340 tons from 2022 of 19,825 tons.

In terms of tin metal sales, it also decreased by 6,420 tons to 14,385 from the previous 20,805 metric tons (MT).

Meanwhile, the average selling price of lead metal is US$26,583 per MT or 84 percent lower than the previous year's US$31,474 per MT.

Until the end of 2023, PT Timah recorded 92 percent of tin exports with 6 large destination countries including Japan 17 percent, South Korea 13 percent, the Netherlands 11 percent, India 9 percent, Taiwan 9 percent and the United States 8 percent.

The company's asset value position in 2023 is IDR 12.8 trillion. Meanwhile, the liability position was IDR 6.6 trillion, an increase of 9.7 percent compared to the position at the end of 2022 of IDR 6 trillion. In addition, bank loans and bond debt at the end of 2023 became IDR 3.5 trillion from the previous IDR 2.8 trillion.

Fina said management compiled strategies and policies to maintain the company's performance through production improvement programs such as opening new locations, increasing primary mining production capacity and mining equipment as well as processing tools, updating existing IUPs, conducting location surveys and land ownership inventory to open new land mines and increase recovery by upgrading again from the remaining processing results as an effort to improve performance.

"In conjunction with efforts to improve tin mining and trading governance by the government, the company is aggressively safeguarding assets and enforcing regulations and collaborating with people's mining to reduce mining without permits in mining concession areas and consistently take strategic steps to improve operational and production performance," he concluded.