Government plans to lower tin export cap

The government is considering lowering tin export cap from 100,000 tons currently in order to stabilize the price amid the sharp decline in the tin demand in the world.

The Energy and Mineral Resources? Director General for Mineral, Coal and Geothermal Bambang Setiawan said that the measure would be needed to cope with the decline in the demand in the world market and also in a bid to stabilize the prices.

He did not mention the total volume of tin that could be exported. ?There will be a cut in the tin export cap. We are still discussing the plan,? he said.

In a normal situation, the demand for tin in the world reaches 300,000 tons a year. With the current economic crisis, the demand is estimated to drop to between 240,000 to 250,000 tons a year, he added.

In coping with the decline in the demand, the local government of Bangka and Belitung province, the country?s largest tin producer, has asked tin producers in the province to reduce their production. (Bernard)