Indonesia, the world's number two tin producer, exported an estimated 5,461 tonnes of refined tin in June, a drop of nearly 50 percent from a year ago when it exported 10,684 tonnes, trade ministry data showed on Friday. The country exported 7,150 tonnes of refined tin in May. Total exports for the first half of the year were estimated at 46,321.54 tonnes, the ministry said.
Tin exports slowed a year ago following a clampdown on illegal mining in the Bangka-Belitung islands, the main source of tin in Indonesia. The trade ministry did not give a reason for the fall in exports. A government crackdown on illegal tin mining in the Bangka-Belitung islands since late 2006 has led to the closure of several small smelters.
Following the crackdown, the government issued stringent rules for tin exports, including a government regulation stipulating only exports of refined tin would be allowed. Previously tin ore could also be exported. An official in the main tin-producing region area said that higher fuel and ore costs had hurt production.
Small independent smelters in the tin-producing Bangka-Belitung islands have been operating at about 60-70 percent of capacity following a surge in the price of tin ore, said Ismiyardi, commissioner of PT Bangka-Belitung Timah Sejahtera, a consortium of seven smelters. "We just wait and see because tin prices are still volatile. We don't dare to buy too much raw material as it is still expensive," he said.