Latest news from Indonesia is that the government will implement an ample tin production quota for 2009, although the arrangements for next year still have to be formalised in a ministerial decree. Following the establishment of a national total by the federal government, allocations by company will be handled at provincial level.
"We have proposed a (production) quota of 100,000 tonnes but the decree has not been issued yet," said Bambang Gatot Ariyono, director of mineral and coal enterprises at the ministry of energy and mineral resources, told Reuters today. The main tin-producing islands of Bangka-Belitung may be allowed to produce up to 90,000 tonnes, while the neighbouring province of Riau may produce up to 10,000 tonnes of refined tin, said another source at the mines ministry. PT Timah and one independent company operate smelters in Riau.
Tin exports under the existing trade ministry export licencing scheme are likely to be less than 90,000 tonnes in 2008 and declining prices, reduced investment by major companies and falling small-scale mining activity point to a lower volume of production in 2009.
