Some private smelters in Indonesia are reported to have stopped production this week following a number of arrests made by authorities last week. Sources quoted by Metal Bulletin say that only the major integrated companies, PT Timah and PT Koba, continue to operate normally.
Seven people – smelter owners and mine workers – were arrested last week on illegal mining charges as Indonesian police started a crackdown on Bangka and Belitung islands, the centre of Indonesia’s tin mining Since the crackdown, private smelters have temporarily stopped production for fear of investigation by the police on their sources of tin ores, said Johan Murut, director at the consortium of seven private smelters Bangka Belitung Timah Sejahtera (BBTS). Independent tin miners have also stopped mining, because they can’t sell their ores to private smelters that have refused purchases for now, he said.
It is not clear from the initial reports how severe or sustained the latest “crackdown” will be. Over recent months Indonesia’s trade ministry has granted eight new export licences. Last week BBTS commissioner Ismiryadi told MB that he expected the consortium’s production would rise over the next month, as migrant workers at small mines work extra hours ahead of religious holidays in late September.
