Timah welcomes govt plan to cut tin exports

JAKARTA. State-owned PT Timah is happy with the government’s move to cut tin exports to try and prevent illegal mining, the company’s executive has said. Regulation 33/2015 introduced changes concerning trade in the mineral.

"The tightening tin export regulation will affect the price. This will push the tin price up," said Sukrisno at the Indonesia Investor Summit 2015 in Jakarta on Tuesday.

Tin prices, presently trading at US$15,000 per ton, could rise. Sukrisno projected that next year, the price of tin would rise to around US$20,000 per ton.

The regulation adjusted the kind of tin that can be exported. Previously, tin exports were grouped into four clusters: pure tin bars, pure tin not bars, tin solder and tin alloy solder.

"This regulation only allows tin ingots to be traded, either by export or domestic sale, through the Indonesia Commodity and Derivative Exchange (ICDX)," Sukrisno said.

The origin of tin ore, which is used as raw material for tin ingot, must come from a certified clean and clear (CnC) mining license (IUP). Exported tin solder must include proof that the raw material was bought on the ICDX, Sukrisno said.

"IUP owners are not allowed to produce tin solder, only tin ingot. That is, the tin solder should be produced by another company’s business license," he added.

He said this regulation will boost the downstream tin industry.

To support the downstream industry, Sukrisno said that its subsidiary, PT Timah Industry, produced tin solder and tin chemical. This rule was made due to the impact of illegal tin mining.

According to the Forum for Environment (WALHI) Indonesia, tin mining has caused tremendous damage to Indonesia’s environment, destroying 65% of the forests on Bangka Island and more than 70% of coral reefs around Bangka Island. In addition, 15 rivers have been contaminated by tin waste and access to clean water is increasingly difficult for more than half the population on Bangka island.