Former PT Timah Operations Director Alwin Albar was presented as a witness in the alleged tin corruption trial with defendant Harvey Moeis on Wednesday (30/11). During the trial, Alwin was asked to explain why PT Timah involved the community in community mining activities and collaborated with private smelters to process tin ore. In fact, mining is carried out in areas that are still included in the Mining Business Permit (IUP) area owned by PT Timah.
In general, Alwin explained, there are two reasons why there are a number of mining areas that PT Timah is not working on itself even though these areas are in its IUP area. The first is the issue of land ownership, the second is the issue of efficiency.
In land matters, Alwin explained, there are areas whose land ownership status is under legal community ownership even though they are included in the PT Timah IUP area. In order for mining in this area to be carried out, PT Timah must first free up land from the community in order to comply with Clear and Clear (CnC) principles.
Alwin was then asked why PT Timah didn’t just free the land from the community. “The problem is, do people want to sell (their land) or not? They don’t necessarily want to sell it,” he said.
PT Timah answered this challenge by partnering with land-owning communities to carry out mining. From there, a policy emerged so that cooperation with artisanal miners was carried out through a legal entity in the form of a CV with a partnership pattern. CV was founded by community land owners in the PT Timah IUP area.
With this partnership pattern, community miners and land owners under the auspices of a legal entity in the form of CV, carry out mining, the results of which are purchased by private smelters who have collaborated with PT Timah.
Through this pattern, a more organized ecosystem is created so that tin mined by the community in the PT Timah IUP area is not traded illegally. On the other hand, land owners located in the PT Timah IUP area still have economic rights to the land they own.
Next, Alwin explained the reasons why PT Timah at that time collaborated with private smelters to process tin ore produced by small-scale miners. “Because the processing costs are cheaper,” he said.
Alwin’s statement is in line with witness statements in several previous trials. Where it was previously revealed, the total cost that PT Timah had to pay to private smelters was actually US$ 4,000/tonne. These costs include smelting, transportation and other costs.
Meanwhile, for the same cost components, the total costs that PT Timah must incur to carry out production are US$ 6,000/ton.
Meanwhile, Alwin emphasized that all business activities and decisions taken by the directors and officials of PT Timah at that time were in accordance with applicable regulations and under the supervision of the authorized institution, in this case the Financial Audit Agency (BPK).
“Essentially in 2022, all the findings are (in accordance). Except for 3 receivables from PT Timah and its subsidiaries. The rest are in accordance with BPK recommendations,” he added. (Can/I-2)
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**Interview with Alwin Albar: Exploring PT Timah’s Community Mining Approach**
**Editor:** Welcome, Alwin. Thank you for joining us today to discuss the recent court proceedings and the community mining approach employed by PT Timah. Can you start by explaining why PT Timah decided to involve local communities in mining activities?
**Alwin Albar:** Thank you for having me. The primary reason we engaged communities is twofold: land ownership and operational efficiency. There are sections within our IUP area where the land is legally owned by local communities. Before we can mine, we need to address land ownership issues in accordance with the Clear and Clean (CnC) principles.
**Editor:** That sounds complicated. Can you elaborate on the challenges you faced with land ownership?
**Alwin Albar:** Absolutely. Often, community members aren’t willing to sell their land, which complicates the process. Instead of forcing this issue, we opted to collaborate with them. By forming partnerships within a legal framework, we created opportunities for community members to participate in mining operations while retaining their land rights.
**Editor:** This partnership model you mentioned involves creating a legal entity. How does this benefit both PT Timah and the local miners?
**Alwin Albar:** By establishing a CV, which is a form of legal entity, we empower local miners to conduct mining activities while ensuring they operate within legal bounds. The tin mined by these communities is then purchased by private smelters affiliated with PT Timah. This creates an organized ecosystem that helps prevent illegal trading and supports responsible mining practices.
**Editor:** It sounds like this approach fosters both community engagement and sustainability. In your opinion, what are the long-term benefits of this strategy for PT Timah and the communities involved?
**Alwin Albar:** It creates a win-win situation. For PT Timah, we enhance our operational efficiency and maintain a positive relationship with the communities. For the local miners, they gain access to resources and support that may not have been available otherwise. Ultimately, this strategy helps ensure sustainable mining practices and community development.
**Editor:** Thank you for sharing these insights, Alwin. It’s fascinating to see how PT Timah is adapting its operations to include and benefit local communities.
**Alwin Albar:** Thank you for the opportunity to discuss this important topic. It’s crucial to keep the dialogue open as we work towards better practices in the mining industry.
