IMPORTANCE OF THE PRODUCTION OF TIN

Exploring the Importance of the Production of Tin to the Malaysian Economy

Exploring the Importance of the Production of Tin to the Malaysian Economy

Introduction

Tin industry was once a major contributor to the Malaysian economy. Indeed, Kuala Lumpur has its origin in the extraction of tin. In 1979, Malaysia in the production of nearly 63,000 tons, which accounted for 31 percent of world production. He was a leading global manufacturer and employs more than 41000 people. By 1994, the country's production has decreased by 6500 tons, and only 3000 people employed in the industry. Although the Malaysian production declined by 90 percent over the past 15 years, world output fell by only 20 per cent. Today, the country is unlikely to export tin production is used mainly for the domestic electronic and tinplating industries. The dissolution of the tin industry due to the exhaustion of deposits of tin, low price of tin and the high transaction costs. But perhaps too much has been done to protect it, rather than on an outdated industry.

Main Body

Tin mining is one of the oldest industries in Malaysia, which has been rapidly developed since the 1820's with the arrival of Chinese immigrants. Tin is the main pillar of the Malaysian economy. The most important is the Kinta Valley, which includes the cities of Ipoh, Gopeng, Kampar and Batu Gajah in Perak state. In fact, alluvial tin is mined in the belt of countries stretching from Kedah in the Kinta Valley and along the foot of Perak, Selangor and Johor.

Tin mining was one of the key to the national economy. In 1979, Malaysia in the production of nearly 63,000 tons, which accounted for 31 percent of world production. He was a leading global manufacturer and employs over 40,000 people. Malaysia uses several types of mining in the tin mining industry. There are dredging and gravel pump, quarry, dulang laundry and underground mining. Mining practices in Malaysia has not changed in terms of popularity. Gravel mining continues to pump most of the tin mines produce at open-cast mining has increased with the fourth most used method in 1970 to second place in 1994.

In 1984, competition from new low-cost mines in Brazil has already led to a sharp reduction in both the Malaysian and Indonesian production, but the world price was stable until October 1985 when he crashed 50 per cent. His industry has declined and then quickly surpassed in 1988 in Indonesia, which continued to maintain their mines with large subsidies. Malaysian production, however, continue to decline and, for the first time, the extraction rate of tin not to mention the current national plan.

In 1993, the tin industry continues to be disappointing, when the country suffered further decline in the production of tin, because of the low price of tin, the depletion of reserves and the continuing escalation of the economic overhead. In 1993, the average price of tin at RM13.09 per kg, which is still far below even the cost ...