Indonesia, the world's third-largest tin producer, plans to limit production of the metal starting 2009 in a move that could keep the price high in international markets.
Simon Sembiring, director general for coal, mineral resources and geothermal energy at the Energy and Mineral Resources Ministry, said Monday the ministry would cap the country's annual tin production at between 90,000 and 100,000 tons.
"Even though the regulation will start in 2009, we will review the quota every year, if we need to change it, we will," Simon said.
Last year, the country produced 93,735 tons of tin bars, lower than 118,555 tons in 2006. However, because of soaring prices, last year's production was valued at US$1.3 billion, higher than $913 billion in 2006.
Data from the Trade Ministry shows May's tin export value rose 3.47 percent to $160.75 million, from $155.35 million in April, owing to record prices that peaked May 15, and despite export shipments falling 9 percent to 7,150 tons from 7,857 tons over the same period.
Exports in the January-May period this year reached 33,711 tons, with a value of $585.66 million.
The government's move to tighten regulations on exports has contributed to the rise in the price of the commodity.
Last year, in a bid to clamp down on illegal producers, the government passed a regulation stipulating that tin bars and tin sand must contain a minimum 99.85 percent tin, and that all export activities must be surveyed to be verified for standard compliance.
There are currently 17 registered tin exporters.
According to data from Bloomberg, the price of tin has gained 28 percent from the beginning of the year.
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