Small smelter plants able to produce 41,200 tons of tin per year

State-owned tin miner PT Timah Tbk, the world?s top integrated tin producer, and PT Koba Tin are facing increasing competition from small smelter plants at its home island of Bangka, the Kompas daily reported Thursday.

According to an official at Mentok regency Syamsudin Saleh, about 13 small smelter plants that had been granted government licenses to conduct mining and smelting activities have been able to produce around 41,200 metric tons of tin per year, or similar to PT Timah?s production level.

Syamsudin said the companies spent about Rp 200 million up to Rp 8.4 billion to build each tin smelting plant. ?Two smelter plants are in construction stage,? Syamsudin added.

The government has banned the exports of tin ores to eliminate illegal tin mining activities in the country, particularly on Bangka island where most of the tin deposits are found.

Tin is used in the electronics, plating and chemical sectors. Its use as a lead-free substitute in solder and shot has significantly boosted global demand. (*)