Timah's First-Half Profit Rises on Higher Tin Prices

By Naila Firdausi

Aug. 29 (Bloomberg) -- PT Timah, the world's second-biggest tin miner and refiner, said first-half profit rose 42 percent as higher prices helped counter lower production.

Net income rose to 1.1 trillion rupiah ($120 million) in the six months ended June 30, from 780.8 billion rupiah a year earlier, the company said in a statement published in the Jakarta Post today. Sales increased to 4.2 trillion rupiah from 4.08 trillion rupiah.

Tin rose to a record $25,500 a metric ton on the London Metal Exchange on May 15 and averaged 52 percent higher in the first half compared with a year earlier. Prices rose on concern Indonesia and China, the two largest makers of the metal used in soldering, may curb exports.

Timah couldn't produce as much as last year, president director Wachid Usman said in a text message on Aug. 15 citing ``stiff competition with ingot collectors.''

The company's second-half output may be similar to first- half production of 24,000 tons, Usman said in an interview Aug. 21. He estimated full-year production of about 60,000 tons on June 24.

Tin for delivery in three months on the LME averaged $20,165 a ton in the first half compared with $13,268 a ton a year earlier, according to Bloomberg data.

To contact the reporter on this story: Naila Firdausi in Jakarta at nfirdausi@bloomberg.net.