Timah, local govts seek to end illegal mining<\/p>\n
Moch. N. Kurniawan, The Jakarta Post, Jakarta<\/p>\n
Publicly-listed state tin mining firm PT Timah and local
\ngovernments on Bangka and Belitung islands are studying measures
\nto end the illegal mining activities on the islands that have
\nbeen troubling the firm for years and brought it to the brink of
\nbankruptcy.<\/p>\n
Company spokesman Prasetyo B. Saksono said that, during
\nmeetings with the company's management, local government
\nofficials had expressed their commitment to end the illegal
\nmining.<\/p>\n
But the company would continue preparing \"emergency plans\" in
\ncase it and the local governments were unable to find a solution
\nto the problem.<\/p>\n
The emergency plans include cutting a forecast 3,750 jobs or
\nabout 70 percent of the company's 5,200 workforce and closing all
\nof its inland operations.<\/p>\n
\"We will continue to watch the situation closely. If there's
\nno improvement by January, we will have no other choice but to
\nimplement the plan to save the company,\" he told the Jakarta Post
\non Friday.<\/p>\n
Timah recently blamed the illegal mining for a drop in the
\nworld tin price and a fall in its revenue.<\/p>\n
Its profits fell 92 percent to Rp 25 billion ($2.4 million) in
\nthe first nine months of 2001, from Rp 296 billion in the same
\nperiod last year.<\/p>\n
The illegal mining had significantly depressed the world tin
\nprice due to the large amount of tin extracted by the illegal
\nminers and sold at low prices.<\/p>\n
At present, Prasetyo said, the company had suspended the
\noperation of several high cost excavators.<\/p>\n
Prasetyo said no agreement had been reached between Timah and
\nthe local governments but the latter had suggested that they
\nwould allow only Timah, PT Kobatin, a firm owned by the
\nprovincial administration, and several other private firms to
\ncontinue operating on the islands.<\/p>\n
\"Thus, they (the local authorities) will limit illegal mining
\noperations,\" he said.<\/p>\n
In addition, Prasetyo said, the local governments suggested
\nthat they would review the bylaw, issued early this year, that
\nallows companies to export tin despite not having mining
\nconcessions on the islands. This bylaw was blamed for the rise in
\nillegal mining.<\/p>\n
He also said Timah and other tin mining companies would help
\ndevelop unlicensed miners operating in their respective areas.<\/p>\n
According to Timah, there are 6,000 groups of illegal miners
\non the islands with a total output of 30,000 tons of contained
\ntin per year compared with Timah's annual output of 40,000 tons.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/timah-local-govts-seek-to-end-illegal-mining-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}