Tin royalty must be paid in mining sites: Legislator

A member of the House of Representatives (DPR) has asked the government to collect royalties from tin producers at mining sites to ensure that exporters and refiners would not avoid royalty payment, Kompas reported on Tuesday.

Legislator Basuki Tjahya said in Jakarta on Monday that the collection of tin royalty at mining sites would be quite effective in coping with the royalty evasion. He said that many exporters and refiners did not pay royalties because it was difficult to control their activities.

He said that the royalty rate for tin production should be also increased from 3 percent at present in line with the estimated reclamation costs of the mining sites. At present, of the total royalty payment, 16 percent goes to the central government, 20 percent to the provincial administration and 32 percent to regency administration and another 32 percent for the surrounding areas of the mining sites.

Separately Trade Minister Mahendra Siregar said that his office had proposed for a number of restrictions in the tin trade. The government, for example, proposed to prohibit exports of tin metal with less than 99.85 percent tin content, he said, adding that such a restriction would be needed to support the local tin downstream industry.

According to the Trade ministry data, tin exports fell to 7,013 tonnes in May from 9,708 tonnes in April. The fall caused a decline in tin export revenues to $197.6 million in May from $292.3 million in April. (*)