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Sustainability and down-streaming policies for tin mining
Despite having abundant tin reserves, most of the tin products, in the form of tin ingots, are still exported without being processed further domestically.
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Miners work in a tin mining site in Bangka Belitung in this undated photo. (Tribunnews.com/File)
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ndonesia, with its rich natural resources, especially tin, has long been a key player in the global mining industry. According to available data from the United States Geological Survey (USGS) 2023, Indonesia ranked second after China in tin reserves, with 8.2 billion tonnes (17 percent of total global reserves) or equivalent to 2.5 million tonnes of tin metal. With an annual production of 52,000 tonnes, Indonesia is the third largest producer in the world after China with 68,000 tonnes and Myanmar with 54,000 tonnes. Indonesia’s tin reserves, mostly in the Bangka and Belitung islands and in West Kalimantan and North Sulawesi, are expected to last for more than 20 years, even with potential new discoveries from ongoing exploration activities.
However, despite abundant tin reserves, most tin products in the form of tin ingots are still exported without being processed further domestically. This indicates a significant untapped potential to increase the added value of the domestic tin industry. Therefore, the main challenge for Indonesia is how to manage tin commodity sustainably to provide maximum benefits for the national economy while also taking into account environmental, social and governance (ESG) factors.
Tin plays a strategic role not only in the domestic industrial sector, but also as a critical raw material in the ongoing global energy transition. As stated in Law No. 16/2012 on the Defense Industry, tin is classified as a critical mineral needed in various strategic industries, including the steel industry, transportation and electric vehicles, telecommunications and high-tech, aerospace and renewable energy. Therefore, tin management should not only focus on economic aspects but also on national resilience and Indonesia’s role in securing global tin supply.
One of the necessary steps is to increase the capacity of tin processing industries within the country. Currently, most tin products that are exported are still in the form of tin ingots, which are semi-finished products. To produce higher value-added goods, Indonesia needs to develop more advanced tin processing industries, such as the production of tin plate, solder wire and special alloys, which have a high demand in the global market. This will not only create new job opportunities but also reduce dependence on raw material exports and enhance the competitiveness of Indonesian tin products in international markets.
To ensure the sustainability of the tin supply, Indonesia needs to encourage the diversification of its tin processing industries. This includes the development of more efficient and environmentally friendly refining and extraction technologies. In this regard, adopting eco-friendly technologies is crucial, as the tin mining and processing industries often have negative environmental impacts, such as ecosystem damage and pollution. Therefore, it is important to develop technologies that are not only efficient in extraction but also consider their ecological impact.
The development of these technological capacities must be accompanied by efforts to strengthen the domestic supply chain, which can help reduce the risk of dependency on imported raw materials or processing equipment. This will further strengthen Indonesia’s independence in the tin industry, which benefits not only the national economy but also contributes to the stability of global supply chains.
