Small firms in Bangka build tin smelting plant

A number of small companies in Bangka island, South Sumatra have built tin smelting plants following the government?s decision to ban exports of tin ore from the country, Neraca reported on Tuesday.

One of the small companies which had built the smelting plants is CV Donna Kembarajaya which started the operation of its tin smelting plant two months ago.

The company?s executive Ernawan Rebuin said that the company had spent about Rp 300 million to build the tin smelting plant which has a capacity to process about 1.5 tons of tin ore a month.

The government has banned the exports of tin ores to eliminate illegal tin mining activities in the country, particularly in Bangka island where most of the tin deposits are founded. The ore tin exports have caused an oversupply in the tin market.

Publicly-listed state owned mining company PT Timah, which is now in a serious financial problem due to the falling tin prices, was the sole producer of tin processed products on the island. At present hundreds of illegal or licensed companies operate tin mining areas on the island. Their presence has caused an oversupply of tin ores on the international market. (*)