Indonesia’s energy and resources minister has dismissed talk that the government may impose a quota on tin exports. The denial followed a comment made by an official in the ministry last week that the country may attempt to support prices through the imposition of a quota system to limit supplies.
"There’s no quota," Prof. Purnomo Yusgiantoro told Reuters on Saturday
"Prices have improved to $12,000-$13,000. I think this is good enough. We hope prices will stabilise and we can push up production in the future. Therefore, the government can collect more revenues," he said.
To date the trade ministry has issued new export licences to two companies, including the large state-controlled company PT Timah, but six or seven further applications are currently under consideration.
Yusgiantoro also said there was no plan to close PT Koba Tin, despite allegations of illegal tin ore sourcing.
"I believe production should go on as usual. We have to uphold the presumption of innocence," he said. "Even if the court decides Koba is guilty, we have to see whether (this) is committed by individuals or is a corporate crime."
Malaysian Smelting Corporation has denied its Indonesian unit obtained tin ore illegally. Koba Tin has suspended tin shipments following police investigations.
