Illegal mining threatens international tin market

Illegal mining threatens international tin market

Thirty thousand freelance tin miners have taken over a
mineral-rich island in Indonesia and are threatening an
environmental crisis while seriously damaging the commercial tin
market, the world's largest tin producer warned last Thursday.

PT Timah told an industry meeting in London that appeals to
the Jakarta authorities to put a halt to the operations had
fallen on deaf ears.

The price of tin has plunged on world markets from US$4,900
per ton to below $3,680 amid reports of illegal output in
Southeast Asia.

Industry suspicions were confirmed by PT Timah officials who
were in Britain for London Metals Exchange week.

They estimate that Bangka island's unlicensed miners could be
producing nearly one third of all new tin flooding on to the
market.

Anthony Turner, who represents the world's second largest tin
mining group Minsur of Peru, said: "Major producers are deeply
concerned about these illegal activities which are causing
extreme environmental damage while having a severely depressing
effect on tin prices."

Paul Atherley, managing director of another precious metals
group, Murchison United, said: "We operate at the Renason Bell
tin mine in Tasmania to the highest standards of environmental
care and health and safety. Actions in Indonesia are making it
very hard to reinvest for the future."

The industry believes that problems on Bangka stem from the
devolution of power from Jakarta to the regions and regulations
imposed by central government being ignored by local authorities.
--Guardian