Legal and illegal blurred on Indonesia's tin island - 30 June 2009

In November 2008 FinnWatch visited Indonesia's tin mining centre, Bangka Island, to update the makeITfair report (2007) on social and environmental consequences of tin mining for consumer electronics. FinnWatch witnessed severe environmental destruction, unregulated mining operations and unacceptable working conditions of artisanal miners and published the report 'Legal and illegal blurred'.  

During the field visit in Indonesia's tin mining centre, Bangka Island, FinnWatch met many miners, big tin company and local government. Although informal miners have made money out of tin mining, the current financial situation and working conditions of those interviewed were unacceptable. Many small scale miners made only 2-3 euros per day. The people who had benefited most seemed to be land owners, collectors and other middlemen.

The biggest change, when comparing the situation in 2007 with that of the time of the visit, was obviously the looming global financial crisis and its dramatic effect on the global tin price and down the chain to the local economy. Many small scale miners had stopped mining, and only the poorest or those who did not have any other option were left. Their income had dropped by half in six months. Some former miners lived on their savings or through subsistence fishing. 
 
It is estimated that around 30 percent of coral reefs in Bangka's waters have been damaged due to illegal tin mining on the protected coast. FinnWatch witnessed severe environmental destruction such as craterlike pits dotting the island. Most environmental damage is caused by uncontrolled small scale operations. However, big tin companies also add to this problem. In addition, they buy concentrate from informal miners.  

FinnWatch noticed tensions and unclear division of responsibilities between different actors, such as local government, mining companies, artisanal miners and independent smelters. They were blaming each other for the problems. The legal and illegal have become blurred: a plurality of regulations has been implemented, everybody bought tin sand from informal miners and even the navy was involved in the business.  

Indonesia is the world’s second largest tin producer and the largest supplier to the rest of the world. Currently the electronics industry accounts for 44 percent of the world's tin consumption as solder. MakeITfair reported in 2007 that the global electronics industry utilises a significant proportion of many metals such as tin and called on the electronics companies to take responsibility for their supply chain, including the extraction of the metals.

The electronics industry associations EICC and GeSI has established a working group on extractives in 2008. MakeITfair welcomes the work of the EICC and GeSI, but stresses the need for concrete actions. Much more will have to be done in the coming years. This must happen so that changes will be noticeable in those areas where it counts: in the labour conditions of the miners; in the environment around the mines; for the communities that live close to mining areas; and for populations in conflict areas.