Indonesia moves to control rampant illegal tin mining: Report

Indonesia has moved to control rampant illegal tin mining which has driven down the world price and caused major environmental destruction, AFP reported.

The Industry and Trade Ministry said Thursday a decree has been issued requiring tin ore miners to get export licences.

The decree is effective for three months and a source at struggling state mining firm PT Tambang Timah said it would pave the way for a complete ban on tin ore exports, as distinct from processed tin.

"The issuance of the decree is very positive. We think it is one step (towards) an export ban," the source was quoted as saying on Thursday by AFX-Asia, an AFP-owned financial newswire.

The decree did not specify whether the ruling was aimed at gradually banning tin ore exports.

"It is just a matter of wording. It is basically the same as a transition period. And it is in line with our proposal to the government to implement a three-month transition period," the source said.

Tambang Timah has blamed the thousands of illegal miners for flooding the tin market and causing world prices to plunge.

It also said that illegal mining has caused unchecked environmental damage.

The company has said that there were thousands of illegal miners operating in the tin producing areas of Bangka and Belitung, islands off the east coast of south Sumatra.

The illegal miners were flooding the market with between 40,000 tonnes and 60,000 tonnes of tin a year, according to the estimates of Tambang Timah which produces some 40,000 tonnes a year.

Tambang Timah saw its profits plunge 92 percent to 2.5 million dollars in the first nine months of 2001 amid plunging world prices for the commodity, high operating costs and competition from the illegal miners.

The company has previously said it may be forced to lay off 70 percent of its 5,200 workers. (*)