Indonesia's Tin exports likely to see 20% dip from earlier estimate

JAKARTA (Scrap Monster):  The recent survey carried out by Bloomberg suggests that tin exports from Indonesia may fall drastically during 2015. The survey predicts the total tin exports to struggle around 61,000 tonnes during this year, nearly 20% lower when compared with the earlier estimates of nearly 76,000 tons by the Trade Ministry.

Tighter mining controls in the country may dent the exports, the survey noted. Also, proposal from the Maritime and Fishery Ministry to halt offshore mining activities could adversely affect export volumes of Tin.

Nine producers and analysts took part in the survey. This includes PT Timah and PT Refined Bangka Tin- the two largest Tin processors in the country. According to PT Timah, the exports are likely to total 60,000 tonnes in 2015. Meantime, PT Refined Bangka Tin estimates the tin exports fdrom the country to total 61,000 tonnes.

The Energy and Mineral Resources Ministry had recently decided to review mining operations from February this year to identify clean-and-clear mines and those which breach regulations. According to Association of Indonesia Tin Exporters, the decision may likely hurt mining operations. The entire process may reduce ore supply as most of the mines operating in the country are unlikely to qualify as ‘clean-and-clear’ mines. Additionally, the Maritime and Fishery Minister Susi Pudjiastuti’s letter to halt mining on seabed may also cut ore supply significantly.

However, the market is quite skeptical about implementation of the new reforms. If implemented, it will regulate tin exports from Indonesia in a big way.