By  Paul Ploumis 29 Jul 2015  Last updated at  07:33:40 GMT

JAKARTA (Scrap Monster): The proposed regulation due to come into effect on August 1st is expected to limit tin exports from Indonesia. Under the new regulation, tin smelters in the country are required to obtain fresh "clean and clear" certification from the Ministry by confirming that the tin ores consumed by them originate from authorized mines.

Based on the per pre-shipment check records, the Indonesian Trade Ministry had notified that the Indonesian Tin shipments continued to rise during the month of June this year. According to data, exports during the month totaled 8,336.7 tonnes, rising sharply by over 33% from 6,263 tonnes exported during May. Tin ingot exports by the country totaled 8,323.5 tonnes during the month, whereas exports of tin solder amounted to 13.2 tonnes. Also, cumulative exports during the first half of the year totaled 38,257 tonnes.

The sales have surged during early-July also. The to-date ICDX sales during July totaled 4,220 tonnes. Sources indicate that there have been no fresh sales since July 15th.

The new regulation is expected to curb illegal mining by implementing stricter supervision of mining licenses. However, delay in licensing mechanism may lead to delay in exports, which in turn may lead to reduced mine production. Consequently, prices may increase, said Jabin Sufianto, president of the Indonesian Association of Tin Exporters (AETI). However, the Association expressed hope that the government would sped up licensing procedures for mines. Surprisingly, many of the smelters do not have new licenses yet. This may affect the tin shipments out of the country for at least 1-2 months.