The governor of Indonesia’s Bangka-Belitung islands said on Monday he may propose Jakarta sets a lower 2009 tin production quota on fears of slowing demand. The province may propose limiting production to as low as 60,000 tonnes for 2009, down from an earlier proposal of 90,000 tonnes, as recent weakness in the global economy may slow demand for the metal, Eko Maulana Ali told Reuters.
Under a proposed quota scheme which has been under discussion since early last year, the Ministry of Energy and Mineral Resources may set overall annual limits on production of tin and other metals. Once the total figure is fixed in a ministry regulation, allocation of tin quotas to individual companies is determined by the provincial government. The quota system will reinforce the export licensing system operated by the Ministry of Trade since February 2007.
"We have to see the global conditions. We may propose a quota of between 60,000-75,000 tonnes in 2009," Ali said. "But of course the decision is in the hand of the minister," he said, referring to the energy and mines minister Purnomo Yusgiantoro.
