Jakarta, CNN Indonesia - The Indonesian Association of Exporters of Timah (AETI) said Indonesia no longer needs the addition of tin smelters to date. This is because the utilization rate of smelter tin alone is only 21 percent.
According to the Chairman of Jabin AETI Sufianto, this is the lowest utilization rate since 2000. Jabin itself did not dismiss these conditions the influence of some developers decided to hold mine tin production because demand is slowing.
"Yes, it's all right. Surely everything is looking for how fit to lose baseball. But also not excessive to destroy the market too, "said Jabin in Bali, Monday (19/9).
This figure is the result of an audit conducted by the Ministry of Energy and Mineral Resources (ESDM). According to him, the capacity of smelter in Indonesia is able to produce tin products up to 268 thousand tons.
"So baseball need no more wake-up smelters. But it turns out only 21 percent of utilisasinya, "he added.
Despite being the lowest figure since 16 years ago, but Jabin is still optimistic that this utilization rate will increase again. But certainly, to grow the tin industry itself, Jabin hoped that the export of tin leaks that still continue to occur until now can be resolved.
"I think, more hope that the export is now leaking into the production of Indonesia. If the leak is not royalty paid. State loss. So, I'm more hoping there. So I expect Indonesia's production to rise because the leaking it into the production of Indonesia, "he explained.
According to him, this small amount of utilization is also caused by the lack of tin sand. Where is the possibility that it happened because of the leak of tin exports. Thus, he concluded that the amount of tin sand today should be more.
"If you can say, we now lack sand. Yes the leak may be yes, so we lack of sand, "he concluded.
Earlier, Energy and Mineral Resources found a tin smelter company that still uses the raw material tin sand from the holder of the Mining Business License (IUP) which does not have the certification of Clean and Clear (CNC).
Inspector General of the Ministry of Energy and Mineral Resources Mochtar Husein said it was seen from the audit conducted on 27 of 49 smelter companies in Bangka Belitung Province.
The audit succeeded in inventorying 755 IUPs, of which 498 IUPs or 65.96 percent, were recorded to have CNC certification. Meanwhile, the remaining 257 IUPs are listed as non-CNC IUPs.
The raw material of the IUP allocated to 27 companies smelter with production reaching 70 612 tonnes in 2015, or 20.78 percent of the maximum capacity of 340 630 tonnes in the same period. (Gear)
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