love those indonesians

I have been saying for quite a while now that it seems as though the Indonesians will do what ever it takes to keep tin prices high. Their whole industry is controled by the govt. with the largest tin producer being govt owned. The country's tin exports have been decreasing steadily over the last few months, while their revenues have been rising.... Clever cats, they finally worked out their pricing power.

Article from basemetals...

Thomson Financial News
Indonesia plans to limit 2008 tin production to no more than 100,000 tons
06.10.08, 8:29 AM ET


JAKARTA (Thomson Financial) - The Indonesian government has drafted a stipulation that will set an upper limit for national tin production, an energy official said on Tuesday.

'We (the government) want to set the upper limit for tin production this year to a range of 90,000 tons to 100,000 tons per annum,' Simon Sembiring, director general for coal and mineral development at the Energy and Mineral Resources Ministry, told reporters.

He said the upper limit of tin production will be reviewed every year.

Once the volume of total national production is set, each tin producer will be given a maximum production quota.

Indonesia is one of the world's largest tin producers.

Analysts have said the government's move is aimed at supporting the global price of tin, as a supply glut on the world market can deflate prices.

Tin rose to $22,050 a tonne on the London Metal Exchange on Monday from $21,800 a tonne on Friday. At the end of last year, tin was trading at $16,525 a tonne.