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I. Identification
The tin mining industry was once a major contributor to the Malaysian economy. Indeed, Kuala Lumpur has its origin in tin mining. In 1979, malaysia was producing almost 63,000 tonnes, accounting for 31 percent of world output. It was the world's leading producer and employed more than 41,000 people. By 1994, the country's production had fallen to 6,500 tonnes, with only 3,000 people employed in the industry. Whilst, Malaysia's production fell by 90 percent over the last 15 years, global output fell by only 20 percent.
Today, the country hardly exports tin as production is used mostly for the domestic electronic and tinplating industries. The collapse of the tin industry is due to exhaustion of tin deposits, the low tin prices and the high operating costs. But perhaps too much was done to protect it rather than to obselete the industry.
Tin was the major pillars of the Malaysian economy. Tin occurs chiefly as alluvial deposits in the foothills of the Peninsular on the western side. The most important area is the Kinta Valley, which includes the towns of Ipoh, Gopeng, Kampar and Batu Gajah in the State of Perak. In fact, alluvial tin is mined in a belt of country stretching from Kedah into the Kinta Valley and along the foothills of Perak, Selangor and Johore. This part of the tin belt and includes the capital of Malaysia, Kuala Lumpur, which is the centre of another rich tin-mining area.
The expansion of tin mining began in the 1870s, with the commencement of pit-working of tin laden sands in valleys all the way down the West Coast region of the Peninsular. In the Western Peninsular, chaotic political conditions involving war arose between organized Chinese miners, Malay sultans, minor rulers and villagers. This chaos was the formal precipitating cause of the British "forward movement" in the Peninsular, which culminated in the establishment of colonial control over the main tin mining Malay states in 1874. Stable political conditions then enabled a few large Chinese entrepreneurs to establish themselves much more securely, recruited labor more readily and imported pumping machinery to facilitate what was still essentially a manual industry, digging holes and extracting the ore by hand.
Growing industrial demand for tin, coupled with the discovery of large and rich tin deposits in Larut and Kinta in the state of Perak in the early 19th century led to the disputes among the Malay rulers, large scale immigration of Chinese labour which in turn gave rise to Chinese investment, British intervention and domination and finally, injection of foreign, mainly British capital and technology into the Peninsular.
The British later directed Sir Andrew Clarke to develop a communication system, hence state roads were constructed between the principal mining towns. The big step into a modern system of communication was taken in 1885 when a 12.8km stretch of railway line was laid from Taiping, which was the distribution centre for the Larut tin fields, and its port - Port Weld. The first trunk road in Peninsular Malaysia was routed through the main tin mining towns of Seremban, Kuala Lumpur, Ipoh and Taiping. Thus it can be seen that the pioneering work of developing Malaysia was carried out through tin mining. The main purpose of building the communication system was the transfer tin and other resources gathered from the states to ports, which will later be shipped back to the United Kingdom.
Tin which is the entrepot trade of the colony have been the source of the prosperity of its upper classes and the home investors and these ownership is shared primarily between the British and the Chinese with the former holding the major share. Towards the end of the last century the British began breaking in on the monopoly of tin by the Chinese and the trend has been increasingly toward British control. Before the war, the British controlled only a quarter of the tin, but with the introduction of the colossal dredging machine after the war British production began to mount sharply until in 1929 which is more than half of the total. By 1931 it has risen to 65% of the total. The hand-worked open-cast in Chinese mines are unable to compete with the British dredges. Under the spur of competition the Chinese have made considerable advance in merchandising their mines, but ther are lack of capital for the installation of dredges. From 1928 to 1933, the labor force engaged in tin mining was cut from 119,550 to 51,980. This decline is due to the introduction of dredges. However, the labor force rose again to 64,183 in 1934.
By 1883, Malaysia had become the largest tin producer in the world. By the end of the 19th century, it was supplying about 55% of the world's tin compared with the 1992 about 30%.
B) Uses Of Tin
Food packaging and culinary equipment
Tin chemicals
Plumbing solders
Engineering alloys
Dental amalgams
Anti-corrosion and engineering coatings
Wine capsules
Fire retardants
C) The Malaysian Tin Industry
In 1993, the tin industry continued to be the depressing when the country suffered further contraction in tin production, due to the low price of tin, depletion of economic reserves and continuing esclation of overhead costs. The average tin price level in 1993 which stood at RM13.09 per kg. is still far below-even costs of most Malaysian tin mines, even after the implementation of drastic cost cutting measures and increased operating efficiency. The number of mines has also declined sharply from 852 units in 1980 to 43 units as at the end of 1993 and expected to reduce further in 1994.
In 1993, the domestic production of tin also dropped dramatically. The total tin metal exports, which included export of local tin and re-export of foreign tin, also dropped and the total export value of tin metal in 1993 amounted to RM 488.9 million. The main export destinations in 1993 continued to be Japan , South Korea and Netherlands.
Open cast mining is a method of digging the tin-bearing material from a surface with mechanical shovels. This type of mining is suitable for mining tin in stony grounds. In 1994, there were 9 such mines in Perak. It contributed to about 21% of its total production.
|
Year |
Dredge |
% |
Gravel
|
% |
Open
|
% |
Under-
|
% |
Dulang
|
% |
Others |
% |
Total |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
1970
|
23,931
|
32.4
|
40,739
|
55.2
|
2,504
|
3.4
|
2,254
|
3.1
|
2,828
|
3.8
|
1,539
|
2.1
|
73,795
|
II. Legal Clusters
III. Geographic Clustersa. Geographic Domain: Asia
b. Geographic Site: East Asia
c. Geographic Impact: Malaysia
IV. Trade Clustersa. Directly Related to Product: Yes
b. Indirectly Related to Product: No
c. Not Related to Product: No
d. Related to Process: Yes
|
Item |
1970 |
1980 |
1989 |
1990 |
1991 |
1992 |
1993 |
1994 |
|---|---|---|---|---|---|---|---|---|
|
Tin (Tonnes)
|
73,795
|
61,404
|
32,034
|
28,468
|
20,710
|
14,339
|
10,384
|
6,458
|
Domestic production of tin dropped dramatically to 10,384 tonnes in 1993 as compared to 14,339 tonnes in 1992 and 20,710 tonnes in 1991, way below the post war peak of 73,795 tonnes in 1970.
|
Year |
Production
|
Import
|
Export
|
Average Price
|
No.of
|
Employment |
|---|---|---|---|---|---|---|
| 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 |
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 |
The year 1993 continued to be the depressing one for the tin industry when the country suffered further contraction in its tin production, due to the low price of tin, depletion of economic reserves and continuing esclation of overhead costs. The average tin price level in 1993 which stood at RM13.09 per kg. is still far below-even costs of most Malaysian tin mines, even after the implementation of drastic cost cutting measures and increased operating efficiency.Total tin metal exports, which included export of local tin and re-export of foreign tin, dropped from 45,149 tonnes in 1992 to 35,545 tonnes in 1993. Total export value of tin metal in 1993 amounted to RM 488.9 million. The main export destinations in 1993 continued to be Japan (8,288 tonnes), South Korea (4,627 tonnes) and Netherlands (4,285 tonnes).
V. Environment ClustersName: N/A
Type: N/A
Diversity: N/A
VI. Other Factors