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TEDCaseStudies:MALAYTIN:HistoricalTinMininginMalaysia

TEDCaseStudies:TinMiningInMalaysia
PresentAndFuture
TinMiningInMalaysia

IDENTIFICATION
LEGALCLUSTERS
GEOGRAPHICCLUSTERS
TRADECLUSTERS
ENVIRONMENTCLUSTERS
OTHERFACTORS

I.Identification
1.TheIssue
Thetinminingindustrywasonceamajorcontributortothe
Malaysianeconomy.Indeed,KualaLumpurhasitsoriginin
tinmining.In1979,malaysiawasproducingalmost63,000
tonnes,accountingfor31percentofworldoutput.Itwasthe
world'sleadingproducerandemployedmorethan41,000
people.By1994,thecountry'sproductionhadfallento6,500
tonnes,withonly3,000peopleemployedintheindustry.
Whilst,Malaysia'sproductionfellby90percentoverthelast
15years,globaloutputfellbyonly20percent.Today,the
countryhardlyexportstinasproductionisusedmostlyfor
thedomesticelectronicandtinplatingindustries.Thecollapseofthetinindustryisduetoexhaustionof
tindeposits,thelowtinpricesandthehighoperatingcosts.Butperhapstoomuchwasdonetoprotectit
ratherthantoobseletetheindustry.

2.Description
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A)HistoryOfTinMiningInMalaysia
TinminingisoneoftheoldestindustriesinMalaya.Thetinminingstartedsince1820sinMalaysiaafter
thearrivalofChineseimmigrants.TheChineseimmigrantssettledinPerakandstartedtinmines.Their
leaderwasthefamousChungAhQwee.Theirarrivalcontributedtotheneededlabourandhencethe
growthofthetinminingindustry.By1872,therewereabout40,000minersinMalaysia,mostly
CantoneseandHakka.InSelangor,tinminingstartedin1824.Therewereabout10,000Chineseinthe
state.ThemajorityofthemwereHakka.KualaLumpur,likeSelangorwassimilarlydevelopedbythe
hardworkingminers.
TinwasthemajorpillarsoftheMalaysianeconomy.Tinoccurschieflyasalluvialdepositsinthe
foothillsofthePeninsularonthewesternside.ThemostimportantareaistheKintaValley,which
includesthetownsofIpoh,Gopeng,KamparandBatuGajahintheStateofPerak.Infact,alluvialtinis
minedinabeltofcountrystretchingfromKedahintotheKintaValleyandalongthefoothillsofPerak,
SelangorandJohore.ThispartofthetinbeltandincludesthecapitalofMalaysia,KualaLumpur,which
isthecentreofanotherrichtinminingarea.
Theexpansionoftinminingbeganinthe1870s,withthecommencementofpitworkingoftinladen
sandsinvalleysallthewaydowntheWestCoastregionofthePeninsular.IntheWesternPeninsular,
chaoticpoliticalconditionsinvolvingwararosebetweenorganizedChineseminers,Malaysultans,minor
rulersandvillagers.ThischaoswastheformalprecipitatingcauseoftheBritish"forwardmovement"in
thePeninsular,whichculminatedintheestablishmentofcolonialcontroloverthemaintinminingMalay
statesin1874.StablepoliticalconditionsthenenabledafewlargeChineseentrepreneurstoestablish
themselvesmuchmoresecurely,recruitedlabormorereadilyandimportedpumpingmachineryto
facilitatewhatwasstillessentiallyamanualindustry,diggingholesandextractingtheorebyhand.
Growingindustrialdemandfortin,coupledwiththediscoveryoflargeandrichtindepositsinLarutand
KintainthestateofPerakintheearly19thcenturyledtothedisputesamongtheMalayrulers,large
scaleimmigrationofChineselabourwhichinturngaverisetoChineseinvestment,Britishintervention
anddominationandfinally,injectionofforeign,mainlyBritishcapitalandtechnologyintothe
Peninsular.
TheBritishlaterdirectedSirAndrewClarketodevelopacommunicationsystem,hencestateroadswere
constructedbetweentheprincipalminingtowns.Thebigstepintoamodernsystemofcommunication
wastakenin1885whena12.8kmstretchofrailwaylinewaslaidfromTaiping,whichwasthe
distributioncentrefortheLaruttinfields,anditsportPortWeld.ThefirsttrunkroadinPeninsular
MalaysiawasroutedthroughthemaintinminingtownsofSeremban,KualaLumpur,IpohandTaiping.
ThusitcanbeseenthatthepioneeringworkofdevelopingMalaysiawascarriedoutthroughtinmining.
Themainpurposeofbuildingthecommunicationsystemwasthetransfertinandotherresources
gatheredfromthestatestoports,whichwilllaterbeshippedbacktotheUnitedKingdom.
Tinwhichistheentrepottradeofthecolonyhavebeenthesourceoftheprosperityofitsupperclasses
andthehomeinvestorsandtheseownershipissharedprimarilybetweentheBritishandtheChinesewith
theformerholdingthemajorshare.TowardstheendofthelastcenturytheBritishbeganbreakinginon
themonopolyoftinbytheChineseandthetrendhasbeenincreasinglytowardBritishcontrol.Beforethe
war,theBritishcontrolledonlyaquarterofthetin,butwiththeintroductionofthecolossaldredging
machineafterthewarBritishproductionbegantomountsharplyuntilin1929whichismorethanhalfof
thetotal.By1931ithasrisento65%ofthetotal.ThehandworkedopencastinChineseminesare
unabletocompetewiththeBritishdredges.UnderthespurofcompetitiontheChinesehavemade
considerableadvanceinmerchandisingtheirmines,buttherarelackofcapitalfortheinstallationof
dredges.From1928to1933,thelaborforceengagedintinminingwascutfrom119,550to51,980.This
declineisduetotheintroductionofdredges.However,thelaborforceroseagainto64,183in1934.
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By1883,Malaysiahadbecomethelargesttinproducerintheworld.Bytheendofthe19thcentury,it
wassupplyingabout55%oftheworld'stincomparedwiththe1992about30%.
B)UsesOfTin
Tinisanimportantcommodityininternationaltrade,butitdoesnotnaturallyasametal.Tinisusedin
hundredsofindustrialprocessesthroughouttheworld.Tiniswidelyusedinmanyindustriessuchasin
foodpackaging,culinaryequipment,electronics,tinchemicals,plumbingsolders,engineeringalloys,
pewterandbronzeinmusicandthearts,dentalamalgams,anticorrosionandengineeringcoatings,wine
capsulesandfireretardants.
Foodpackagingandculinaryequipment
Tinplateistheprimarymaterialforfoodcanningandsharesthebeveragecanmarketwithalluminium.It
isalsocommonlyusedinbakewareandfoodstoragecontainerssuchasbiscuittins,teacaddiesetc.Until
theadventofstainlesssteel,muchfoodpreparationmachinerywastinplatedtopreventcorrosionand
adulterationfromthebasemetalsandeventodayitemssuchascopperpansandhandmincersarestill
heavilytinnedforthesamereasons.
Electronics
Theprincipalusedoftininelectronicsisintheusedofsoldersforthejoiningofelectroniccomponents.
Buttherearemanyothervariedusesinthegeneralelectronicsfield.
Tinchemicals
TheusedoftinchemicalsisasPVCstabilisers,butbesidesthistheyareusedinaverywiderangeof
applications,forexampleaspolymerisationcatalystsinsiliconeresinsandpolyurethanefoam
manufactureandinceramicpigments.
Plumbingsolders
Plumbingsolderscontainingleadarebeingreplacedbysafetinsilver(usually96.5percenttin/3.5
percentsilver)ortincopper(97to99percenttin/1to3percentcopper)alloys,particularlyfordrinking
watersystems.
Engineeringalloys
Tin'suniquepropertiesisusedasanalloywithothermetalsmakeitausefulmaterialforawiderangeof
engineeringapplications.
Pewterandbronzeinmusicandthearts
Pewter(analloycontainingabout92percenttinwithsmallamountsofothermetalsaddedforstrength)
haslongbeenknownforitsdecorativeapperanceandeaseofworkingasacraftmetal.Tinbronzes
(alloysofcopperwith520percenttin)arerenownedfortheiruseinartcastingsandasbellmetals.
Dentalamalgams
Dentalamalgamcontainsabout13percenttinbyweighttogetherwithsilverandmercury.Morethan
7000milliondentalfillingsusingthisamalgamareimplantedintheUSAeveryyear.Mercuryfree
alternativedentalfillingmaterialswithdoubletheamountoftinareunderdevelopment.
Anticorrosionandengineeringcoatings
Tinandtinalloycoatingsarewidelyusedinthemanufactureofbearingsandinmanykindsof
machineryandfabricatedpartsbothfortheiranticorrosionandlubricantproperties.
Winecapsules
Atincoatingactedasabarrierlayerintraditionalleadbasedcapsulestopreventcontactbetweenthe
leadandtehwine.Tinleadcapsulesarenowbeingreplacedwithothermaterialsbutthemostprestigious
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andclosestinfeeltothetraditionalcapsules,aremadefromalmostpuretin.
Fireretardants
Thesmokesuppressionpropertiesoftinintheformofzincstannatesmakeitadesirablereplacementfor
fireretardantagentssuchasantimonytrioxide.
Tinisimportantintheproductionofthecommonalloysbronze(tinandcopper)andsolder(tinandlead).
Tinisalsousedasanalloywithtitaniumintheaerospaceindustryandasaningredieentinsome
insecticides.TheUnitedStatesimportsmorethanonefifthoftheaverageannualworldproductionoftin.
Mostoftheworld'stinisproducedbyMalaysia,Brazil,Indonesia,Thailand,BoliviaandAustralia.
C)TheMalaysianTinIndustry
Thetinminingindustrywasonceamajorcontributortothenationaleconomy.In1979,Malaysiawas
producingalmost63,000tonnes,accountingfor31percentofworldoutput.Itwastheworld'sleading
producerandemployedmorethan40,000people.By1984,competitionfromnewlowercostminesin
BrazilhadalreadyledtoasharpreductioninbothMalaysianandIndonesianoutput,buttheworldprice
wassustaineduntilOctober1985,whenitcrashedby50percent.TheMalaysianindustrythenshrank
rapidly,surpassedin1988byIndonesia,whichcontinuedtosupportitsmineswithlargesubsidies.
Malaysianproduction,however,hasdeclinedfurtherand,forthefirsttime,tinminingratesnomention
inthecurrentnationalplan.
In1993,thetinindustrycontinuedtobethedepressingwhenthecountrysufferedfurthercontractionin
tinproduction,duetothelowpriceoftin,depletionofeconomicreservesandcontinuingesclationof
overheadcosts.Theaveragetinpricelevelin1993whichstoodatRM13.09perkg.isstillfarbelow
evencostsofmostMalaysiantinmines,evenaftertheimplementationofdrasticcostcuttingmeasures
andincreasedoperatingefficiency.Thenumberofmineshasalsodeclinedsharplyfrom852unitsin
1980to43unitsasattheendof1993andexpectedtoreducefurtherin1994.
In1993,thedomesticproductionoftinalsodroppeddramatically.Thetotaltinmetalexports,which
includedexportoflocaltinandreexportofforeigntin,alsodroppedandthetotalexportvalueoftin
metalin1993amountedtoRM488.9million.Themainexportdestinationsin1993continuedtobe
Japan,SouthKoreaandNetherlands.
TheIndustrialMasterPlan(IMP),launchedbytheGovernmentin1986,theTinIndustry(R&D)Board
hasbeenentrustedtopromotethedevelopmentofthedowmstreamtinbasedmanufacturingindustryin
Malaysia.Inthiscontext,theMalaysianTinProductsManufacturers'Association(MTPMA)wassetup
inearly1989topromoteandprotecttheinterestsofthedowmstreamtinbasedmanufacturingsectorin
Malaysia.
Today,thetinofpricehasdroppedtoalowofapproximatelyUS$1314perkgcomparedtoahighof
US$29perkgduringitsheyday.Thispriceisnolongereconomicalformostminestooperate,
contributingtothedemiseofthetinindustryinMalaysiaasawhole,withtheexceptionofafew
relativelylowcostoperators.(Cheang,K.K(1998),"TheAsiaPacific'sEnergyandMiningMagazine",
May1998,p.7073)
Atpresent,thetinbasedmanufacturingindustryinMalaysiaconsistsofthreemainproductsectors
namelysolder,tinplateandpewter.Domesticconsumptionoflocallyrefinedtinmetalincreasedfrom
4,569tonnesin1992to5,196tonnesin1993.Despitesomeprogressmadeinthelocaldownstreantin
basedmanufacturingindustryasreflectedbythemodestgrowthinthedomestictinmetalconsumption,
theindustryisatpresentstillrelativelysmallintermsofitscontributiontothenation'smanufacturing
valueaddedactivities.However,potentialfortheadvancementoftheindustryisconsiderable,especially
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inthefieldoftinchemicals.
D)TheInternationalTinAgreement
Ofallcommodities,tinisprobablytheonewhereconditionsaremostconducivetothesuccessofa
commodityagreement.Therearerelativelyfewmajorexporters,tinisimportanttoallofthem.
Thebulkoftheworld'stinisproducedbyMalaysia,Indonesia,ThailandandBolivia.Thelargest
producerisMalaysia.ThecountrymostdependentontinisBolivia.Themostimportantusesoftinarein
cansandinsolder.Substitutes,suchasplasticsandaluminum,havebecomemoreandmoreimportantfor
containers,whiletheresmeltingoftinscraphasincreased.
Internationalattemptstoregulatethetinmarketbeganbackinthe1920sbecauseofthedepressedprices
causedbyanoversupplyoftinafterWorldWarI,themainproducingfirmsestablishedvoluntary
productionquotas.Themembersoftheagreementaccountedforabout90%ofworldoutput.The
agreementwassuccessfulinsupportingprices,butthissuccessinducedexpandedoperationsby"free
riders",tinproducerswhodidnotparticipateintheagreementeventhoughtheybenefitedfromthe
higherpricesitbroughtabout.(ChristopherL.Gilbert,'InternationalCommodityAgreements')
Everyfiveyears,anewagreementcameintobeing,withthemostrecentbeingthe1981Sixth
InternationalTinAgreement,whichincluded22producingandconsumingnations.Theagreementset
floorandceilingpricesandprovidedforaCounciltooverseeoperations.Therewasabufferstock
(usuallyabout15%ofworldproduction),whosemanagerboughtandsoldtintokeeptheworldprice
betweenthefloorandceiling.TheCouncilalsosetexportquotasandleviedfinesonmemberswho
violatedthem.Thefloorandceilingpriceshadtobechangedrepeatedlyandthebufferstockhadbeen
depletedseveraltimes.Nonetheless,therewasmodestsuccessinlimitingpricefluctuations.(Christopher
L.Gilbert,'InternationalCommodityAgreements')
Intheearly1980s,thepriceoftinbeganalongdownwardslide.Consumersweretemptedtosubstitute
fortin.ProductionexpandedgreatlyinBrazilandChinawhileMalaysiatinproductionisstartedto
decline.
E)MethodsofMining
Malaysiahasusedseveraltypesofminingmethodsinthetinminingindustry.Therearedredging,gravel
pump,opencast,dulangwashingandundergroundmining.
Dredgingisoneofthemorecommonmethodoftinmining.Itcanbeappliedonlowlyingareaswith
alluvialtindeposits.Adredgeisalikeplatformwhichfloatsonanartificiallake.Dredgingcanbeused
tominedepositsfoundnearthesurfaceinareaspronetoflooding.Itisanefficientmethodofmining
aluvialtinandisveryexpensive.
GravelPumpisthemostcommonmethodofextractingalluvialtindepositinMalaysia.Thismethod
involvessprayinghighpressurejetsofwateronrockscontainingtinoreandbreakingthemup.Thetin
bearingmaterialisthenwasheddowmadepressioncalledasump.Apumpbringsthematerialupa
palong,agentlyslopingwoodenstructurewhichseparatestinfromothermaterials.Theprocedureof
extractingtinissimple.Asthetinbearingmaterialsflowdownthepalong,woodenbarsacrossthe
palong,calledrifflestrapstheheavierironore,leavingtherestofthematerialtobedumpedastailings.

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Opencastminingisamethodofdiggingthetinbearingmaterialfroma
surfacewithmechanicalshovels.Thistypeofminingissuitablefor
miningtininstonygrounds.In1994,therewere9suchminesinPerak.It
contributedtoabout21%ofitstotalproduction.

DulangWashingispractisedbysmallminesinPerak,mostofthemare
runbyafamilywithoutemployees.Thisisasimplemethodofextractingalluvialtininstreamsby
panning.Adulangisawoodenpanofdiameter50cm.tinbearingmaterialfromunderthestreamis
scoopedintoadulangandthedulangistwirledjustbelowwaterlevel.Thelightersandparticlesare
washedovertheedgeofthedulangwhiletinoreremainsatthebottom.Thedulangwashersnormally
selltheirproductstolargermines.
Undergroundminesareestablishedinareaswithpromisingoredeposits.Theshaftistheprimary
verticalchannelthroughwhichpeopleandorearetransportedinandoutofthemine.Theminers'
elevatoriscalledacage,andtheorereachesthesurfacesviaacarcalledaskip.Aventilationsystem
nearthemainshaftensuresthattheminersreceivefreshairandpreventstheaccumulationofdangerous
gases.Asystemofcrosscutsconnectstheorebodytothemainshaftatseverallevels,andtheselevels
are,inturnconnectedbyopeningscalledraises.Stopesarethechamberswheretheoreisbrokenand
mined.`
Year
1970
1975
1980
1989
1990
1991
1992
1993
1994

Dredge
23,931
20,329
18,222
11,963
10,267
9,515
6,072
3,522
1,355

%
32.4
31.6
29.7
37.3
36.1
45.9
42.3
33.9
21.0

Gravel
Pump
40,739
35,183
34,484
13,263
12,216
6,476
3,886
3,426
2,438

%
55.2
54.7
56.2
41.4
42.9
31.3
27.1
33.0
37.8

Open
Cast

2,504 3.4
2,535 3.9
2,705 4.4
2,905 9.1
2,173 7.6
1,754 8.5
1,592 11.1
1,653 15.9
1,375 21.3

Under
ground
2,254
1,894
1,085
103
102
71
71
48
72

%
3.1
2.9
1.8
0.3
0.4
0.3
0.5
0.5
1.1

Dulang
Washing
2,828
3,081
3,246
2,835
2,601
2,065
1,640
1,059
721

%
3.8
4.8
5.3
8.8
9.1
10.0
11.4
10.2
11.2

Others
1,539
1,342
1,662
965
1,109
829
1,078
676
497

Total

2.1
2.1
2.7
3.0
3.9
4.0
7.5
6.5
7.7

73,795
64,364
61,404
32,034
28,468
20,710
14,339
10,384
6,458

(Tablequotedfrom:http://www.geocities.com/RainForest/8643/methods.html)
MiningmethodsinMalaysiahardlychangedintermsofpopularity.Gravelpumpminingstillminesthe
majorityofthetinproducewhileopencastminingrosefromfourthin1970tosecondin1994.
F)TinMiningHazards
TinminingactivitiesareusuallycarriedoutinpopulatedareaslikeKlangValleyandtheKintaValleyin
Malaysia.Furthermore,tinsmeltingisalsocarriedoutinpopulatedareaslikePenangandButterworth.
Thisiswhytinminingaffectspeoplelivinginsuchareas.Themainproblemscausedbyminingare
namelyformationofwasteland,damagetonaturaldrainage,pollutionandthedestructionofnatural
habitats.
Theenvironmentalproblemscausedbytinmininghasbeenlessenedwiththehelpofgovernmentsin
manycountries.Theypassedlawswhichrequiredtinminingcompaniestocarryoutrestorationwork
aftertheyhaveminedaparcelofexcavatedland.Dischargeofwastefromminesintotheriversare
reducedtopreventtheextentofdamageontheenvironment.
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OldminesinMalaysiaarehavebeensuccessfullyconvertedintohousingestates.Alsowiththegrowth
oftourism,oldminesareopenedtoallowtouristtogetthetasteoflifeintheoldendays.Oldmines
thereforedonotgotowaste.Instead,theyaregivenanewprofitableuse.
G)CollapseOfTinMiningIndustryInMalaysia
Thedownfallofthetinindustryisnotjustaresultofthepricedrop,butalsoduetotheescalatingcosts
ofenergy,skilledmanpower,environmentalconstraintsandlandavailabilityincomparisonwithother
industries,whichmaygetahigherpriorityfordevelopmentovermining.Examplesincludethe
construction,electronics,manufacturing,informationtechnologyandagriculture.Tinhavelostits
glamourwithinthelastdecadebecausetinisbeingtarnishedeasilycomparedtogold.Goldisfast
regainingsomeofitsglitter.
Collapseoftinminingindustryisdueto:
1)Fallingintinprices
2)Inthefoodpackagingindustry,substituteslikealuminium,paperandplasticwereusedinstead
oftin.
3)People'sawarenessofenvironmentalproblemsledthemtorecycletinscrapsandthisfurther
reducedthedemandoftin.
4)Therisingcostofproduction.
5)Risingenergycostraisedthecostofminingtomakeitlessprofitable.
6)Hightaxeswereimposedontheamountoftinproduced.
7)Littlelandsetasideformining.
8)Fewerareasweresetasideforminingbecauseofcompetitionfromprofitableuseofland.
Thetinstartdeclinein1988whichis4.9percentdeclineoftheoutput.However,thetinoutputgrew
about3.8percentto32,034tonnesin1989.Malaysiaisstilltheworld'slargestproduceroftin,butoutput
isunlikelytoeverregainthe1980'slevelof61,404tonnesannually.Incooperationwithothertin
producers,Malaysiaagreedtolimititsexportsaspartofaprogramtoassistthemarket'srecoveryfrom
the1985collapseoftheInternationalTinCouncil.Highertinpricesandfallingstocksmaybringanearly
endtotherestrictions.(http://www.abisnet.com/malaysia_1.htm#Mining)

3.RelatedCases
GEDDES:CanadaCopperMining
MiningInPapua(NewGuinea)
BoliviaGoldMining
BrazilGoldMiningandEnvironment

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4.DraftAuthor:RebeccaLauWuanChin,July1999
EMAILME

II.LegalClusters
5.DiscourseandStatus:
AgreementandComplete

6.ForumandScope:
MalaysiaandUnilateral

7.DecisionBreadth:
1(BritishEmpire)

8.LegalStanding:
Law

III.GeographicClusters
9.GeographicLocations
a.GeographicDomain:Asia
b.GeographicSite:EastAsia
c.GeographicImpact:Malaysia

10.SubNationalFactors:
No

11.TypeofHabitat:
Tropical
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IV.TradeClusters
12.TypeofMeasure:
Regulatorystandardsonimportandexport

13.Directv.IndirectImpacts:
Direct

14.RelationofTradeMeasuretoEnvironmentalImpact
a.DirectlyRelatedtoProduct:Yes
b.IndirectlyRelatedtoProduct:No
c.NotRelatedtoProduct:No
d.RelatedtoProcess:Yes

15.TradeProductIdentification:
Tin

16.EconomicData
TABLE:TINSTATISTICSOFMALAYSIA

Item

Tin(Tonnes)

1970

1980

1989

161,023
1,121,318
219,095
1,202
n.a
3,274
n.a
n.a

2,049,876
920,356
199,486
114,222
n.a
46,324
n.a
145,475

2,859,549
355,174
520,147
101,471
118,196
108,347
9,500,000
508,618

n.a

n.a

12,686,306

73,795

IronOre(Tonnes)

4,420,083

Gold(raw)*(Grammes)

Ilmenite(Tonnes)
Bauxite(Tonnes)

CopperConcentrates(Tonnes)

Coal(Tonnes)

Kaolin(Tonnes)

Limestone(Tonnes)

SilicaSand(Tonnes)
Silver(Grammes)

61,404

371,186

32,034
99,773

1990

1991

1992

1993

1994

2,594,526
398,180
530,237
101,931
94,229
152,972
11,042,649
641,474

2,762,600
376,418
308,061
98,313
54,861
186,699
3,407,102
574,917

3,540,053
330,593
56,453
111,593
74,483
244,573
3,684,446
536,426

4,462,686
68,824
57,501
104,802
263,604
249,852
2,362,622
335,459

4,086,067
161,919
811
106,468
173,740
252,628
2,748,271
230,756

12,555,654

13,439,533

15,325,265

14,007,591

13,061,416

28,468

293,206

20,710

354,869

14,339

314,819

10,384

222,848

6,458

202,602

Fromthetable,tinnolongerplaysanimportantinMalaysia'slocalproduce.In1970,tinwasranked4th
inproductionsbutin1994,itfelltoanannualproductionofonly6,458tonnesbehind7otherproducts.
ThissignificantdropmeantthattinwasnolongeranimportanteconomyforMalaysia.
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Domesticproductionoftindroppeddramaticallyto10,384tonnesin1993ascomparedto14,339tonnes
in1992and20,710tonnesin1991,waybelowthepostwarpeakof73,795tonnesin1970.
TABLE:THEFLOWOFTINMININGINDUSTRYINMALAYSIA

Year

Production
(Tonnes)

1970
1975
1980
1989
1990
1991
1992
1993
1994

73,795
64,364
61,404
32,034
28,468
20,710
14,339
10,384
6,458

Import
(Tonnes)

Export
Tonnes)

AveragePrice
(RM/kg.)

No.of
Mines

Employment

13,726
18,476
8,422
23,857
21,732
30,536
33,264
27,277
35,574

92,631
77,940
69,498
49,480
52,703
42,425
45,149
35,545
35,327

10.99
15.94
35.72
23.09
16.45
15.05
15.25
13.09
14.14

1,083
910
852
255
141
92
63
43
39

49,453
39,736
39,009
12,695
8,508
6,594
4,672
2,296
2,006

ThistableshowsthattheimpacttinmininghasonMalaysia'seconomy.Inthe1970s,tinmining
employed49,453peopleintotalbutin1994,thatamountdroppedtoamere2,006employees.
Meanwhile,Malaysiaalsostartedimportingmoreandmoretinfromothercountriesuntilfinallyin1994,
itsimportoftinexceededitsexportoftin.
Theyear1993continuedtobethedepressingoneforthetinindustrywhenthecountrysufferedfurther
contractioninitstinproduction,duetothelowpriceoftin,depletionofeconomicreservesand
continuingesclationofoverheadcosts.Theaveragetinpricelevelin1993whichstoodatRM13.09per
kg.isstillfarbelowevencostsofmostMalaysiantinmines,evenaftertheimplementationofdrastic
costcuttingmeasuresandincreasedoperatingefficiency.Totaltinmetalexports,whichincludedexport
oflocaltinandreexportofforeigntin,droppedfrom45,149tonnesin1992to35,545tonnesin1993.
Totalexportvalueoftinmetalin1993amountedtoRM488.9million.Themainexportdestinationsin
1993continuedtobeJapan(8,288tonnes),SouthKorea(4,627tonnes)andNetherlands(4,285tonnes).
(Tablesquotedfrom:http://www.geocities.com/RainForest/8643/case.html)

17.ImpactofTradeRestriction:
18.IndustrySector:
19.ExportersandImporters:Manycountries

V.EnvironmentClusters
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20.EnvironmentalProblemType:
Themainproblemscausedbytinminingarenamelyformationofwasteland,damagetonatural
drainage,pollutionandthedestructionofnaturalhabitats.
i)FormationofWasteland
Miningoftensdamageslandsandcreateswastelands.Wastelandsarelandswhicharenotabletosupport
crops,unstabletobuildindustries,factorieson,unsuitablefortransport....inshort,unuable.
Miningaffectsthelandduringmining,largeamountsofvegetationsareremovedtopreventobstaclesto
tinminingmachinerieswhichmayhinderworkprogress.Subsequently,soilerosionoccursandthisleads
totheformationoflargegapingholesinthegroung.Rainwaterfillsupthisholeandminingpoolsare
formed.Thisminingpoolcontainslargeamountsoftailingsleftbehindbyalluvialminingwhichhave
beencompletelyleachedofmostplantnutrients.Thesepoolsarethereforeunabletosupportanyforms
oflivingthingsandareaslikethisbecomesbarren.
ii)FloodingandDisruptiontoRiverFlow
Disruptiontoriverflowreferstohowarivercannotcontinueitsoriginalflowbecauseofobstaclesalong
theway.Thisresultsinfloodingintheareawhereitoccurs.
Whenthereisheavyrainfallatanabandonedmine,thetailingsarewashedintoriverstogetherwiththe
rain.Theriversthenbecomesilted.Thisleadstofloodinginrivervalleysdownstream.
Inhillyareas,whentherainfallsongreatheapsoftailings,thehillslopesbecomeunstableand
landslidesoccur.Becauseofthis,largeamountsofsoilandrockfallintoriverbeds,decreasingtheriver
capacityandcausingflooding.
iii)Pollution
Pollutioncausedbytinmininghappensintwodifferentways:
a)Whentailingsfromtinminesarewashedintoariver,theriverbecomespolluted.Thepollution
resultsinthewaterbeingunpureandunsuitableforconsumingpurposes.
b)Duringthesmeltingoftin,fuelsareburntforheatenergy,thusaddingpollutantsintothe
atmosphere.
iv)DestructionofNaturalHabitats
Plantandanimalhabitatsareoftendestroyedtoo.Anexampleofthisishowmangroveandcoralhabitats
havebeendamagedinpartsofMalaysia,possiblyasaresultoftinminingnearthatarea.
Landdamagedbyminingcanberestored.Therestorationworkcanbedevelopedintodifferentsections.
Firstly,gapingholescanbefilledupcompletelywithnonpoisonouswaste.Ifminingpoolshavealready
formed,thentheycanbeshallowerandthenconvertedtolakesorpondsforrecreationalpurposes.An
exampleofthisisClearwaterSanctuaryClubinPerak,Malaysiawhichwasconvertedfromaformertin
mine.
Secondly,theheapofminingwastemustbelevelled.Someofthenonpoisonoussoilisusedtofillup
gapingholesformedintheground.However,soilwhicharepoisonousmustbetreatedwithchemicals.
ThisprocessknownasChemicalTreatmenttreatsthesoilbyaddingacidicsubstancesintothesoilto
neutralizetheeffectofalkalineonit.
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Thirdly,vegetationisreplantedtoprotectthesoilagainstwindandrain.Fertilizersarealsoaddedto
fertilizethelandforfarmingpurposes.

21.Name,Type,andDiversityofSpecies
Name:N/A
Type:N/A
Diversity:N/A

22.ResourceImpactandEffect:Regulatory
23.UrgencyandLifetime:
24.Substitutes:

VI.OtherFactors
25.Culture:
26.TransBoundaryIssues:
27.Rights:
28.RelevantLiterature
http://www.geocities.com/RainForest/8643/history.html
http://www.geocities.com/RainForest/8643/uses.html
http://www.geocities.com/RainForest/8643/methods.html
http://www.geocities.com/RainForest/8643/case.html
http://www.geocities.com/RainForest/8643/hazards.html
http://www.geocities.com/RainForest/8643/recover.html
http://www.geocities.com/WallStreet/1369/Recreat.htm
http://www.geocities.com/WallStreet/1369/Invest.htm
http://www.cwsgolf.com.my/cws/history.html
http://www.abisnet.com/malaysia_1.htm#Mining
http://www.kpu.gov.my:1025/commodities/txmine.html
http://www.unu.edu/hq/unupbooks/80893e/80893E04.htm
http://www.unu.edu/hq/unupbooks/80893e/80893E03.htm
http://www.suash.com/malaysia.html
http://www.miningjournal.com/mj/MJ/16apr99.htm
http://www.asiawind.com/pub/forum/fhakka/mhonarc/msg00835.html
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http://www.asiawind.com/pub/forum/fhakka/mhonarc/msg00836.html
Cheang,K.K(1998),"TheAsiaPacific'sEnergyandMiningMagazine",May1998,p.7073
ChristopherL.Gilbert,'InternationalCommodityAgreements

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