Indonesia Orders Tin Miners to Register for Exports (Update2) By Claire Leow Jan. 23 (Bloomberg) -- Indonesia, the world's second-biggest tin producer, ordered miners to register within one month for the right to export the metal, the latest move by the government to curb illegal mining and smelting. Only companies with mining licenses and who have paid royalties can export refined tin with a minimum purity of 99.85 percent, Diah Maulida, director general of foreign trade at the Ministry of Trade, said today by phone. Tin, used in electronic soldering, has risen 62 percent in the past year as Indonesia has cracked down on illegal producers. The contract for delivery in three months gained as much as $310, or 2.6 percent, to $12,100 a metric ton on the London Metal Exchange today, the highest since at least 1989. ``There's clearly a strong government effort to curb illegal mining and illegal smelting,'' PT Mandiri Sekuritas mining analyst Ahmad Solihin said. ``Up to now, everybody can export tin ingots without regulation,'' Maulida said. ``Last night, we decreed that a month from now, exports of tin ingots of 99.85 percent purity can only be by registered exporters. They must have mining licenses and must show proof they have paid the royalty.'' The Indonesian government closed 20 smelters in October to investigate allegations they used illegally mined tin ore. ``Starting Feb. 23, they have to follow the rules,'' Maulida said of the new regulation, which gives exporters one month grace period to comply. Reduced shipments from Indonesia may affect smelters in China, Thailand and Malaysia that use crude tin as raw material. Positive Move State-linked PT Timah was the world's second largest tin producer in 2005, according to London-based metals consulting company CRU. The stock was unchanged at 5,750 rupiah, having more than tripled in six months on the Jakarta Composite Index. ``It will be positive for Timah and positive for tin prices,'' Solihin said. He reinstated coverage of Timah on Jan. 18 with a `buy' rating and a 12-month target price of 7,650 rupiah. Tin may average $11,000 a metric ton this year, he added, compared to $8,734 a ton in 2006. ``Illegal mining and smelting in Indonesia has been hampering tin prices for two years,'' he said. ``Tin prices have been lagging behind the other metals because of supply from Indonesia.'' About half of the tin exported from Indonesia is illegal, costing the government about $18 million in lost royalties last year, he estimated. The government charges 3 percent royalty of the average tin price in the past month, Solihin said. To contact the reporters on this story: Claire Leow in Jakarta at [EMAIL PROTECTED] . Last Updated: January 23, 2007 05:40 EST --------------------------------- Never miss an email again! Yahoo! Toolbar alerts you the instant new Mail arrives. Check it out.