House ready to help Timah resolve illegal mining problem: Legislator<\/p>\n
Dadan Wijaksana, The Jakarta Post, Jakarta<\/p>\n
The House of Representatives is ready, if needed, to help
\nstate-owned tin mining giant PT Timah seek ways of resolving
\nrampant illegal mining activities at its mining sites on Bangka
\nand Belitung islands.<\/p>\n
Legislator Ramson S. of House Commission VIII overseeing
\nenvironmental, science, and technology affairs said that the
\ncommission would invite Timah to discuss the problem.<\/p>\n
\"We (the House) can then set up a coordination system with
\nboth central and local administrations to put an end to those
\nillegal practices,\" Ramson told The Jakarta Post over the
\nweekend.<\/p>\n
However, he did not provide details as to when the meeting
\ncould take place, saying it was for Timah to decide.<\/p>\n
His comment followed a recent remark made by the company
\nbefore an industrial meeting in London that appeals to the
\ngovernment to halt the illegal operations had fallen on deaf
\nears.<\/p>\n
Timah, which is also a publicly listed company, said that
\nrampant illegal tin mining had contributed to pressure on the
\nprice of the commodity, which has already been badly hit by the
\nworld's economic recession.<\/p>\n
The international price of tin is currently hovering at
\nUS$3,800 per ton, which is far below the ideal price of $5,500 to
\n$6,200 per ton.<\/p>\n
According to Dadang Yogi Barata, Timah's chief of marketing
\noffices for the U.S. and Europe, there are over 30,000 illegal
\ntin miners in Bangka and Belitung.<\/p>\n
As reported by Antara, Dadang said: \"They could produce as
\nmuch as 40,000 tons per year, which is around the same as PT
\nTimah's yearly production.\"<\/p>\n
That huge amount of production would weigh heavily against the
\ninternational price, Dadang went on.<\/p>\n
The price for tin posted a 30-year low in August when it
\nreached $3,630 per ton.<\/p>\n
\"Illegal mining activities also occur in other places, but not
\nas severely as in Indonesia. In Brazil and China, they have
\nmanaged to keep the number of illegal operations low thanks to
\ntheir strict measures against those responsible,\" Dadang said.<\/p>\n
\"That's what Indonesia is lacking at the moment.\"<\/p>\n
Timah was in London to participate in an informal forum, the
\nLondon Metals Exchange week, which was concluded on Oct. 25.<\/p>\n
Apart from PT Timah, the world's largest tin producer, the
\nforum was also attended by other top companies, including PT Koba
\n(an Australian-Indonesian company), Murchison United of Australia
\nand Minsur of Peru.<\/p>\n
During the meeting, participants called on the Indonesian
\ngovernment to speed up efforts to put an end to rampant
\nunlicensed operations in the islands.<\/p>\n
Elsewhere, Ramson also said that concrete action needed to be
\ntaken to curb illegal mining activity in order to maintain
\nforeign investor confidence in entering the country's mining
\nsector.<\/p>\n
\"We need to find an immediate solution to this mess because it
\nwill damage our image even further,\" he said.<\/p>\n
Last month, Timah president Erry Riyana Hardjapamekas
\npredicted a serious nosedive in net profits for this year as well
\nas possible big losses next year if the government failed to
\nresolve the problem immediately.<\/p>",
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"sponsor": "Okusi Associates",
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