Govt to impose export tax on tin ore

The government will impose export tax on tin ore, which has been exempted from export tax, Sudar S.A. the director general of foreign trade said.

Without restriction and control exports of tin ore including by illegal miners especially in Bangka is feared to lead to extensive environmental damage, Sudar said.

The present policy has caused big losses to the state in royalty or export tax, he said.

Illegal miners and smugglers of tin ore from Indonesia have been partly blamed for weak tin prices in the world market.

The world's largest tin mining company PT Timah is the hardest hit by uncontrolled operations of illegal miners in Bangka and Belitung.

Erry Riyana H., the president of stated-owned PT Timah, said the company will not last longer than March in 2002 unless the government takes drastic measures to save the ailing company, which reported heavy losses in 2001. (*)