Indonesia has approved tin export permits for two more smelters, including PT Koba Tin, taking the number of tin exporters to five, a senior trade ministry official said on Wednesday.
The market has been keenly waiting for Koba Tin's licence, as sales from Indonesia's second-biggest producer could shore up global supplies of the metal used in electronics and plating. The other smelter allowed to export is CV Duet Pouter Bangka, a small, privately owned firm.
Tin has gained more than 25 percent this year on worries about supplies from Indonesia, the world's second largest producer, after dozens of independent smelters ceased business following a government crackdown on illegal mining last October.
Koba Tin, 75 percent owned by Malaysian Smelting Corp, has suspended tin shipments since February following a police investigation into alleged illegal mining. Malaysian Smelting has denied its Indonesian unit obtained tin ore illegally.
Aang Kanaan Adikusumah, director of mining exports at the trade ministry, said police has submitted a recommendation to allow Koba Tin to resume exports despite the legal problem.
"Export permits for the two companies have been issued on April 17 and they can start exporting tin. So far, five companies have already registered as tin exporters," Adikusumah told Reuters. Police have detained three Kobe Tin directors, including president director Anwar Sidek, on suspicion of illegally obtaining tin ore and operating outside its mining area.
The world's largest integrated tin miner, PT Timah TDK, owns 25 percent of Kobe Tin. The company has received an export permit and is not affected by the government's crackdown.
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