INTRODUCTION: Producers of most of the world's tin supplies have been meeting in the Malaysian capital, Kuala Lumpur, to try to agree on a new international price.
KUALA LUMPUR AND NEARBY, MALAYSIA (VISNEWS - YOONG PIN LAM)
GV ZOOM IN SCU Malaysian Industries Minister speaking 0.14
SVs Australian, Indonesian, Zairean, Nigerian, Bolivian delegates with name plaques (MUTE) (3 shots) 0.28
GV PAN Ministers arriving at a gravel pump tin mining site (2 shots) 0.43
GV PAN Mining site (2 shots) 1.00
SV Ministers discussing tin mining 1.09
GV PAN Tin mine 1.23
GV Ministers walking round site (2 shots) 1.38
SV PULL BACK GV Workers on site 1.46
SPEECH (TRANSCRIPT): DATO' PAUL LEONG KHEE SEONG: (SEQ 1): "We hope to receive co-operation from the United States on tin matters in the sixth international tin agreement."
Background: INTRODUCTION: Producers of most of the world's tin supplies have been meeting in the Malaysian capital, Kuala Lumpur, to try to agree on a new international price. By Friday night (16 October), there had still been no sign of an agreement. However, members had pledged to continue talking during the weekend in a bid to achieve a solution. The major tin consuming nations also attended the talks, which began on Wednesday (14 October), with a speech of welcome by Malaysia's Minister of Primary Industries, Dato' Paul Leong Khee Seong, and a request for co-operation from the major tin consumers.
SYNOPSIS: Malaysia produces one-third of the world's tin. Together with six other major producers, it belongs to the International Tin Council, (ITC), which regulates prices. For the past five years, the ITC has been successful. This year, there is deadlock. The producers want to increase prices by ten per cent. But the consumers -- the United States, the European Community, Japan and the Soviet Union -- only want a 4.5 per cent rise.
As the conference got under way, the ministers of the seven countries toured a big tin mine near Kuala Lumpur. Much of Malaysia's tin comes from open cast mining. Then, to prevent waste, the old workings are sifted again for surplus deposits. Known as Gravel Pump Mining, the system is so effective that 50 per cent of the country's tin is produced this way.
The system is technologically innovative. But like all businesses it must survive economically. The Malaysians say the present world price of tin is too low. they say 100 mines have closed during the past year. And unless the present prices of 27.28 Malaysian dollars (62.37 US dollars) to 35.47 Malaysian dollars (81.10 U.S dollars) a kilogramme are raised, there will be more closures still. Several producers, particularly Bolivia, say the United States is partly responsible for the crisis by dumping tin stockpiles on the world market. Meanwhile, the talks continue.
InitialsBB Script is copyright Reuters Limited. All rights reserved