Spokesmen for the leading consortium of Indonesian independent tin smelters told Reuters today that the group’s smelters remain closed as a result of a shortage of ore supplies. Many small mines have stopped operating recently as a result of increased police activity against illegal mining from late August and religious holidays. The seven affected smelters are members of tin consortium PT Bangka-Belitung Timah Sejahtera.
"It’s difficult to tell when we will start operations because the situation is still uncertain," Johan Murod, director of the consortium told Reuters. The consortium only has between 20-30 % of its monthly requirement of 2,000 tonnes of tin ore sourced from the consortium’s own mines, Murod said.
Another official at the consortium said it could take some time for smelters to resume normal operations due to security and supply issues. "We may only be able to operate at 30 % of our full capacity when we resume operation," Ismiyardi, the consortium’s commissioner, said. "If we can secure enough tin ore, we may operate above that," he said. Meanwhile, mining activities had not yet fully recovered since some small miners were still wary of the police crackdown.
Iindonesia’s main producers, PT Timah and PT Koba Tin, have not been affected by the current situation and all producers in the main tin-producing areas confirmed last week that their operations had not been impacted by the earthquake in Sumatra. PT Timah’s President Director Wachid Usman told Bloomberg on 1 October that Indonesia had been on course to produce 100,000 tonnes of tin in 2009, but second half output could be lower than previously expected as a result of the new efforts against illegal mining.
