New tin export rules will hinder shipments

JAKARTA. Changes to tin export rules slated to take effect in Indonesia in three months would hurt shipments of the solder material, an official at the country’s biggest tin company, PT Timah Tbk, said on Wednesday.

In a bid to halt illegal mining and give the government greater control over prices, regulations were passed a year ago that required all tin ingot shipments to trade via local platforms before being exported. The law exempted solder from the new regulations until January 2015, according to Reuters.

Tin exports initially plunged after the rule was introduced, but was soon followed by a sharp rise in solder exports. The government has since sought ways to close loopholes.

Late last month, the trade ministry announced plans to separately categorize exporters of pure ingot, solder, pure non-ingot and tin alloy starting on Nov. 1. The new law would force integrated tin miners to establish separate subsidiaries and register for separate export licenses.