UPDATE 2-Indonesia's June tin exports drop 50 pct from yr ago

(Adds detail, table of exports)

JAKARTA, July 4 (Reuters) - Indonesia, the world's number
two tin producer, exported an estimated 5,461 tonnes of refined
tin in June, a drop of nearly 50 percent from a year ago when it
exported 10,684 tonnes, trade ministry data showed on Friday.

The country exported 7,150 tonnes of refined tin in May.

Total exports for the first half of the year were estimated
at 46,321.54 tonnes, the ministry said.

Tin exports slowed a year ago following a clampdown on
illegal mining in the Bangka-Belitung islands, the main source
of tin in Indonesia. The trade ministry did not give a reason
for the fall in exports.

A government crackdown on illegal tin mining in the
Bangka-Belitung islands since late 2006 has led to the closure
of several small smelters.

Following the crackdown, the government issued stringent
rules for tin exports, including a government regulation
stipulating only exports of refined tin would be allowed.
Previously tin ore could also be exported.

An official in the main tin-producing region area said that
higher fuel and ore costs had hurt production.

Small independent smelters in the tin-producing
Bangka-Belitung islands have been operating at about 60-70
percent of capacity following a surge in the price of tin ore,
said Ismiyardi, commissioner of PT Bangka-Belitung Timah
Sejahtera, a consortium of seven smelters.

"We just wait and see because tin prices are still volatile.
We don't dare to buy too much raw material as it is still
expensive," he said.

Indonesia raised fuel prices by an average of nearly 30
percent in May.

The recent hike in fuel prices has prompted small tin miners
to slow mining activity, curbing raw material supply.

Indonesia exported 78,744 tonnes of refined tin in 2007, a
fall of 35 percent from 121,172 tonnes in 2006.

Following are details of June tin exports and destinations:

EXPORT Jan-June 2008

Destinations (tonnes)
---------------------------------------------

Singapore 39,171.40

Malaysia 3,920.28

Korea 1,223.00

Japan 1,045.31

Hong Kong 523.14

Taiwan 340.19

India 98.21
---------------------------------------------
(Reporting by Fitri Wulandari, editing by Sara Webb)