Indonesia's Tin Exports Will Be Even Below Early Forecasts

A recent study suggests that Indonesia's tin exports could plummet during 2015. Total tin exports are projected to be around 61,000 tonnes this year, down nearly 20 percent from an earlier estimate of nearly 76,000 tonnes made by the country's Commerce Department.

Tighter controls on mining in Indonesia could further reduce exports, the study said. In addition, the proposal of the Ministry of Maritime and Fisheries to stop mining activities at sea could adversely affect the volume of tin exports.

Nine manufacturers and many analysts took part in the study. Among them are the two largest tin production companies in the country, PT Timah and PT Refined Bangka Tin. According to representatives of these companies, tin export is likely to be 60,000 - 61,000 tons in 2015.

The Department of Energy and Mineral Resources decided to revise mining from February this year to determine net mining and one that is in violation of the rules. According to the Indonesian Tin Exporters Association, the decision could rather harm mining. This process can reduce the supply of ore, as most of the mines operating in the country are unlikely to qualify as “clean-and-dirty” mines. In addition, the appeal of the Minister of Marine and Fisheries Susi Pudjiastuti to stop mining on the seabed could also significantly reduce ore output.

Nevertheless, market experts are rather skeptical about the implementation of new reforms. If implemented, tin exports from Indonesia will go a long way.