Up to seven tin producers may be granted export licences by the Indonesian Trade ministry on Friday. Diah Maulida, Director General for foreign trade at the ministry, told Dow Jones Newswires today that applications were currently being evaluated and that export licences would be granted on February 23 if the companies met new criteria.
The new criteria include production of tin of a minimum purity of 99.85%, proof of links to legal mining activities and payment of royalties.
State-controlled producer PT Timah expects to be among the first companies to be granted a licence, which will avoid any disruption of scheduled shipments to its customers.
Timah executives have indicated that the company’s production will rise to 48 – 50,000 tonnes this year, although purchases from small scale producers may be scaled back in the second quarter. Since last October the company has been buying more ore, in order to maintain order in the local market following the closure of more than 20 independent smelters.
