Indonesian tin miner PT Timah has been granted clearance by the government to resume tin shipments following a halt when new rules for exporting the metal were implemented at the beginning of August. The new regulations are intended to address environmental damage and smuggling in the Indonesian tin industry and ensure the payment of royalties and taxes due on all tin shipments.
According to the Indonesian trade ministry, the state owned miner is currently the only tin company in the country to have received an export permit, which will be valid for the next six months. Timah’s Corporate Secretary Agung Nugroho repeated statements made by a senior official at the company last week that it aims to resume tin shipments in early September but will not recommence spot sales until the tin price rises to above US$ 17,000 a tonne. 500 tonnes of the metal was traded by the company on the Indonesia Commodity & Derivatives Exchange (ICDX) on Monday, the first tin transaction through the exchange since July 15th.
ITRI View: The implementation of the new Clean and Clear regulation has resulted in a cessation of Indonesian tin exports for virtually all of August. Whilst PT Timah is now able to resume shipments, it may be some time until private tin companies are able to do so, for whom obtaining the necessary documentation remains a struggle.