Indonesia benefits economically from production of one-third of the world’s mined tin each year. Main sourcing areas are the two islands Bangka and Belitung. Environmental and social of tin production is severe and need to be addressed urgently.

In 2013 the Sustainable Trade Initiative (IDH) convened members of the Electronic Industry Citizenship Coalition® (EICC®) and Friends of the Earth (FoE) to form the IDH Indonesian Tin Working Group. The group was joined later by the international tin industry association (ITRI) and additional corporate members from the electronics and tinplate industries.

The Working Group aims to address the sustainability challenges of tin mining and smelting in Bangka and Belitung while recognizing the economic benefits of the sector.

The private members of the IDH Indonesian Tin Working Group are: Alpha, Arcelor Mittal, ASUS, Apple, BlackBerry, Dell, HP, LG Electronics, Microsoft, Philips, Samsung, Sony, Tata Steel, Huawei. These companies aim to support their supply chain partners to continue sourcing tin from Indonesia in a responsible way.

Non-profit members of the Working Group are EICC, ITRI and Friends of the Earth.

The program focuses on driving the implementation of a roadmap for responsible tin mining in Indonesia.

Next to that, the program is creating the necessary incentives that midstream and downstream tin users (Tin Working Group private members) can implement to support a lasting tin industry transformation.

Situational Analysis

To better understand the situation and the potential ways for downstream companies to take constructive action to improve sustainable tin mining practices in Bangka-Belitung, in 2013 the IDH Indonesian Tin Working Group commissioned a situational analysis and sustainability assessment. The analysis and assessment has aided the Group’s understanding of the local situation as a starting point for exploring ways to support sustainable growth through responsible sourcing.

Developing a responsible tin mining industry

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Together with local stakeholders the TWG developed the Roadmap of Sustainable Tin Mining Operations in Indonesia. This 4-year plan towards more sustainable tin mining, includes programmatic interventions with the following goals:

Collaborate with the Government of Indonesia (GoI) towards harmonizing the legal and policy framework as the foundation of good governance, particularly to address the challenges around artisanal and small scale miners.
Develop and implement guidelines or standards of responsible mining industry practices as well as assurance mechanisms
Work towards improved equitable revenue governance from tin mining to support responsible practices, including land management during reclamation and community capacity strengthening.
Work towards environmentally responsible mining and smelting, minimizing the environmental impact from mining and smelting.
Enable the socioeconomic development of the community in Bangka Belitung Province through responsible business practices, and to lessen their dependency on tin.

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Government endorsement

The TWG received official written endorsement of relevant Indonesian Ministries to start the engagement with the local industry (Ministry of Trade, Mining and Mineral Resources, Marine affairs and fisheries, Environment and Forestry). A significant part of the Indonesian mining industry is under direct control of the government (public companies), therefore this government endorsement is crucial.

Incentive Guide

Mining is a matter of supply and demand, and there is an increasing demand for responsible mining. To encourage the sustainable tin mining economy, mining companies and countries are exploring business models and regulations that go beyond a focus on extraction only, including also environmental and social aspects.

After outreach from downstream companies via the IDH TWG, tin mining and smelting companies in Indonesia are now working on the implementation of a roadmap, a long-term plan to transform the Indonesian tin industry into a more environmentally and socially responsible business.

Companies that use tin in their products (tin users) can add value to that plan, and incentivize its implementation, by making their contribution and future role more explicit.

The TWG Incentives Guide lists different incentives that midstream and downstream tin users can implement to support a lasting tin industry transformation.

The goal of these incentives is to support, engage and drive the upstream industry in Indonesia towards more responsible practices, in addition to and in support of the efforts already underway within the roadmap. In this document the term “responsible mining” is used to cover a broad scope of mining related activities, including mining, smelting, as well as pre- and post-mining activities including land rehabilitation.

The different approaches to create incentives are grouped under three headings

1. Approaches for international coordination and support
2. Approaches for supply chain policy and transparency
3. Approaches for direct management.

Where applicable a distinction between mid & downstream industry has been made to reflect the different approaches available to companies depending on their position in the supply chain.

For each approach we indicated whether it is an incentive that can be implemented by all TWG members, or whether it is an incentive that might not be applicable or feasible for each of the TWG members due to the nature of their business, products, supply chain or other reasons.

The members of the TWG have endorsed the principles of this incentives guide and are committed to a shared direction to aspire too and implementing below approaches in their company and supply chain in a way that is appropriate and feasible taking into account each company’s unique characteristics. In February 2016 the TWG consists of the following members: Alpha, Arcelor Mittal, ASUS, Apple, BlackBerry, Dell, HP, LG Electronics, Microsoft, Philips, Samsung, Sony, Huawei, Tata Steel.

Delegations

The TWG delegation met with key players in Jakarta, Bangka and Belitung during two field visits in 2015. The first visit, in April 2015 was key to build a coalition between international TWG members and local influencers to start the collaboration. The second visit, in December 2015 was pivotal for agreeing on the 2016-2020 roadmap.

 

Elea Papaemmanuel

Program Officer

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