The Ministry of
Trade is committed to preserve the environment from illegal mining of tin ores.
Minister of trade, Rachmat Gobel, in Jakarta, on Wednesday (May 20), said that
the government tightened export of tin as an effort to reduce illegal export
practices. The policy was set out in the Minister of Trade Regulation No.
33/M-Dag/PER/5/2015 which is an amendment to the previous regulation, i.e.
Regulation No.44/M-Dag/PER/7/2014 on export of tin. The mew regulation is
effective from August 1 this year.
Rachmat said that the new regulation
contains five provisions. First, there are only three kinds of tin products
that can be exported, i.e. pure tin bars with Sn 99.9%, tin solder with Sn
99.7%, and other articles of tin with Sn 96%. Second, the Ministry of Trade
requires tin ingots to be traded through the country and trade activities in
the country.
And, the third is recommendation for
registered exporters (ET) of tin bars which was previously issued by the coal
governor, is transferred to the Ministry of Energy and Mineral Resources.
Mining Business License (IUP) can only be used to obtain ET recommendation if
it has met the clean and clear (CnC) requirement. Fourth, pure tin bars can
only be exported if the tin ore raw material is obtained from IUP with CnC
status, and it has paid royalty payment. Fifth, export recommendation for ET of
tin solder and ET of other articles of tin Is issued by the Ministry of
Industry.
Meanwhile, Jabin Sufianto, Chairman
of Indonesian Tin Exporters Association (AETI) said that his party is
optimistic about the tightening of tin export that may have a positive impact,
both to minimize damage to the environment around the mine and the boost the
selling price. Unfortunately, according to him, the long period of time, i.e.
until August 1, 2015, could provide opportunities for illegal miners to boost
export volumes.
AETI projected production of tin
bars this year to be down around 8% to 10% compared to the realization in 2014
at 71,151 tons. Jabin said that his party projected this production this year
to reach about 65,000 tons. In addition to the drop in prices, changes in
policy in Minister of Trade Regulation No.44/2014 also affect the decline in
tin exports.
He said that in Minister of Trade
Regulation No. 44/2014, the government classifies tin products into four types,
namely pure tin bars with stannum (Sn) content at least 99.9%, non-bar pure tin
with the lowest Sn content of 99.93%, tin solder with the highest Sn content at
99.7%, and tin alloy non-solder with Sn content maximum 96%. Throughout 2014,
Timah posted metal tin ingot production at 27,550 tons. This volume is up
16.15% compared to the previous year’s production volume at 23,718 tons.
It is said that companies who want
to export pure tin bars should have registered exporters (ET) of pure tin bars
and it should be implemented through a futures exchange. He explained that
exports of tin solder and other items made from tin are allowed if they are
made of pure tin bars raw materials purchased in the Tin Exchange, an
international tin market in Indonesia, which is part of the Future Exchange.
Therefore, pure tin bars to be exported or sold domestically must first be
traded at the Tin Exchange.
Tin traded at he Tin Exchange must
come from a company bearing status as Registered Exporter of Pure Tin Bars. In
the previous regulation, the requirement of trade at the Tin Exchange is only
applied only to pure tin bars to be exported, whereas those to be traded I
domestic market are not subject to such requirement. (E)
Business New - May 22, 2015
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