Source: ITRI Ltd
ITRI International Tin Conference round-up (26 May 2010)
Over 180 delegates participated in ITRI’s International Tin Conference held in Vancouver on 17-19 May. Thirty speakers presented papers on production, consumption, investment, trade and regulations. There was a general up-beat sentiment about the current state of market fundamentals – although this was tempered by concerns about the possible negative impact of the Euro zone financial crisis.
Some key points and themes which came out were:
• China continued to provide massive support to tin and other metals markets. China has transformed from a large net exporter to a net importer of tin. India has great potential to lift its per capita usage of tin.
• Tin consumption has bounced back in 2010. Global solder shipments in Q1 2010 were over 50% higher than Q1 2009. However, tin usage may be affected by strong risks of substitution in PVC stabilisers and growing regulatory pressure on many applications.
• Investment in new mine capacity is patchy.
• Artisanal mining and “conflict minerals” remained in the spotlight.
DRC exports hit by buyers’ pressures (26 May 2010)
Exports
of cassiterite and coltan from DR Congo plunged in 2009. The fall
reflects the ever-increasing pressure on buyers regarding transparency
and good governance. Local sources claimed the very survival of the
industry is at stake.
China to begin new crackdown on illegal mining (26 May 2010)
Chinese
authorities are due to carry out a new six-month campaign against
illegal mining in June in Yunnan, Guangxi and Hunan provinces. This is
a continuation of on-going activity which has been taking place since
2007.
Timah moves offshore (24 May 2010)
PT Timah,
Indonesia’s largest tin producer, plans to increase mining of deposits
in the sea as illegal miners encroach on its lands. Offshore
production accounted for 48% of its 2009 mine production. The company
plans to borrow Rp 1.5 trillion (US$162 million) to buy five new
offshore tin dredges in 2011.
South Crofty expects 2-3 years to start up (24 May 2010)
Western
United Mines plans to re-open the South Crofty mine in Cornwall, UK, in
about two to three years. However, the company needs to raise another
UK£10 million to complete a feasibility study on the project, after
which an IPO of shares is likely. The company is targeting ore with a
net value of US$150 a tonne, which coupled with expected output of
around 1 million tonnes of ore a year, should give a healthy profit
margin.
Indonesian exports revive in April (21 May 2010)
Preliminary
data shows 7,926 tonnes of tin metals were checked prior to export in
April, up from 6,576 tonnes in March and 30% higher than in April
2009. The increase was due to improved weather condition and the
economic recovery.
Mt Lindsay study shows higher returns (21 May 2010)
ASX-listed
Venture Minerals has reported the discovery of broad, near-surface,
high grade tin and tungsten mineralisation, within the Main and No.2
skarns from a new scoping study at its Mt Lindsay polymetallic
tin/tungsten project in Tasmania.
The company is now planning an
operation mining one million tonnes of ore a year, with a capital
expenditure of A$130 million. Based on an assumed 50:50 debt:equity
ratio, the project is expected to generate an annual cashflow of A$80
million and an internal rate of return of 55%. Venture will now
commence a pre-feasibility study and is continuing an active
exploration drilling programme.
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