JAKARTA. Publicly listed state-owned tin mining firm PT Timah (TINS) claims that illegal mining in Bangka Belitung Islands has declined thanks to the soft approach taken by the firm.
Timah finance director Emil Ermindra said the firm had speeded up the payment method for individual miners with Kartu Tambang (mining cards). With the cards, individual miners can redeem their payments in just a few hours for a fair price in accordance with global tin prices.
"In the past, illegal mining was rampant because miners got paid as long as they opted to sell it to middlemen at a low price," he said at a public briefing on Tuesday.
"We dont practice the tough approach by asking the police to catch them. We practice the soft approach by seeing to their welfare," he added.
Emil added that indications of declining illegal mining practices could be seen through observation. "From an aerial view, you can see less of it."
On the same occasion, PT Timah announced its financial performance.
As of March, its revenue increased by 53.8 percent annually to Rp 2.04 trillion (US$153.62 million) and net profit surged to Rp 65.8 billion after a loss of Rp 138.9 billion in the same period last year.
Improved tin prices led to the positive growth. Prices increased by 17 percent on average to $19,820 per ton in the first quarter from $16,989 per ton. (Stefani Ribka)