Although two further tin export licences have been issued by Indonesia’s Ministry of Trade recently, officials expect the volume of exports to fall this year.
A trade ministry official told Reuters yesterday that it had issued a 17th licence. Hartojo Agus Tjahjono, director of exports of mining and industrial products at the trade ministry, said the government has approved an export license for PT Bangka Timah Utama Sejahtera. Previously PT Bangka Kudai Tin had become the 16th company, and 14th independent smelter, to be granted a licence at the end of January.
However the ministry does not expect the 15 independent smelters to be major exporters in 2008. Director General of Foreign Trade at the Department of Trade Diah Maulida told Bisnis Indonesia at the end of last week that the total export volume of tin ingot this year is estimated at 85,000 tonnes, down from 118,555 tonnes in 2006 and approximately 92,000 tonnes in 2007. She added that PT Timah would export 60,000 tonnes, PT Koba Tin 15,000 tonnes, and small smelters only 10,000 tonnes. “Therefore, the total export will reach around 85,000 tonnes or lower than last year.”
Meanwhile a minister has told a parliamentary commission that PT Koba Tin’s use of sub-contractors has been banned. Minister of Energy and Mineral Resources Purnomo Yusgiantoro told a hearing: “The government has issued a stipulation on February 5 to revoke the sub-contract licensing system adopted by Koba Tin.” Bangka police are currently investigating allegations that a Koba sub-contractor had been mining illegally in a protected forest area.
