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ITRI Bangka Forum discussed progress in tin trade and sustainability

Posted on 26 Dec 2013

The Indonesia Tin Forum hosted by ITRI in Pangkalpinang, Bangka attracted more than a 100 local and international delegates. Attendees included industry, authorities and civil society in this unique event which provided an opportunity for a wide range of interests to be considered and discussed. Participants were in general agreement that tin is an important resource that should be exploited for the maximum benefit of the people of Bangka Belitung and Indonesia, but that the current situation of limited transparency of source and control on production must be addressed.

A presentation by ITRI set the scene by explaining the continuing importance of Indonesian tin production to the international market, as well as the current situation with the ICDX exchange, and this was supplemented by a presentation by Budi Prastowo, Assistant Head of the Bangka Belitung Provincial Bureau of Statistics (BPS) providing information on the trends in the economic contributions of a variety of sectors in the Province, including tin mining and smelting.

From the downstream end of the tin supply chain, Carolyn Duran, Materials EHS Manager of Intel Inc highlighted the growing requirements for transparency in supply chains of end product manufacturers and why tin users intend to drive improvements in the materials production sectors to satisfy increasing expectations from investors, consumers and NGOs alike. Issues of particular interest are not only health and safety, absence of child labour and environmental management but also good business management systems and integrity.

The complexity of the regulatory systems at the national, provincial and district levels was presented by consultant Dyah Paramita who highlighted areas of overlapping requirements and confusion that reduce the possibilities for good governance and enforcement and lead to difficulties in understanding the position of, and opportunity for formalisation of unconventional miners – of which there are many thousands in Bangka Belitung.

There appeared to be general agreement with the point of view presented by Marwan Batubara of the Indonesian Resources Studies Centre (IRESS) that the value of the unrenewable tin resource should be maximised by proper application of governance and laws, that while the legality of many unconventional artisanal miners is questionable, strict and rapid enforcement measures would not be an appropriate response until further success in building alternative opportunities for income generation had been achieved.  Many were therefore encouraged by the medium to long term objectives of the local planning system presented by Yan Megawandi of the Regional Development and Planning Agency (BAPPEDA) which aims to take actions that will supplement income from sustainable tin mining, with increased tourism and fishery revenue, as well as infrastructure to support economic growth.

Local Indonesian speakers, including Pius Guiting from WAHLI and consultant Erwiza Erman, provided their perspective on the impacts of tin mining in Bangka Belitung; both the positive economic benefits and growth in a range of associated businesses, as well as environmental and social changes and concerns. One key issue of concern appeared to be the limited extent of land reclamation observed at the moment, whether this was a result of repeated re-mining of the same areas, or to the lack of contributions to the cost of reclamation from unconventional small scale miners. The discussions brought forward several ideas in this regard including a suggestion by Johan Murod of ASTRADA that exporters should pay Rp 200,000 per tonne into a new reclamation fund possibly organised through ITRI and the ICDX.

In summing up, Kay Nimmo, Manager of Sustainability and Regulatory Affairs at ITRI, listed a number of suggestions arising from the discussion such as for education or co-operation initiatives (for example relating to community and supervisor awareness of the legal situation), as well as other follow up activities and further research (for example on accident rates among TI miners).

While there can be no rapid change to the circumstances of tin mining in Bangka Belitung that have such a long history, all the staff of ITRI who have been visiting the province for several years are very encouraged by recent discussions with a range of stakeholders recognising the need to change and keen to work together to achieve that, as well as the strong actions from the Indonesian Government to drive improvements in the sector. ITRI plans to continue their engagement with all stakeholders and support positive changes in the coming months.