Govt urged to allow tin ore exports after prices up

The government has been asked to allow again tin ore exports when the world price of the commodity has increased to expected levels.

Karimun regent Husrin Hood made the request on Friday when he met in Jakarta with Minister of Industry and Trade Rini Soewandi.

Karimun, an island regency, is part of Riau Province and is located near Singapore. It produces and exports tin ores, like the islands of Bangka and Belitung in the newly created Babel Province.

Many local residents on the islands have been involved in the tin mining business, albeit illegally. Meanwhile, state tin mining company PT Timah Tbk operates on the islands.

Husrin told reporters after his meeting with the minister some Karimun investors had even spent no less than Rp6 billion (US$=Rp 9800) on tin ore production and exports shortly before the government made public its plan to ban tin ore exports.

Tin ore export ban will become effective on June 15, and surely it will pose a heavy blow to such entrepreneurs, the regent said.

The government had originally planned to ban tin ore exports on May 6. But the plan was delayed to June 15 so as to give local tin producers to find new forms of livelihood.

In the future, tin ore exporters should team with state tin miner PT Timah Tbk to sell the item to foreign buyers, according to Husrin.

The government?s policy of banning tin ore exports aims to boost world tin prices.

Oversupply of tin ore on the world market had caused PT Timah nearly bakrupt. (Leo)