Source:  ITRI Ltd

High prices boost PT Timah results     04 May 2011    

Although PT Timah’s sales decrease by 18% year-on-year in volume terms in the quarter to end-March, the Indonesian tin mining company reported a 150% increase in net profit in the period due to the high prices. PT Timah’s average selling price in the first quarter was US$29,695/tonne, 75% higher than in the same period of 2010. Net profit was Rp 354.7 billion (US$39.7 million). Average margin per tonne of tin more than doubled compared to Q1 2010 to $6,970, despite a 66% year-on-year rise in average delivered cost per tonne to $22,725.

The fall in refined tin sales to 9,770 tonnes in the quarter was a function of seasonal factors and the fact that Timah carried lower stocks of metal and raw materials at the beginning of this year. Refined tin production was at 8,503 tonnes, a declined of 8% year-on-year. Tin-in-concentrate production increased by 10% to 8,129 tonnes. The latter rise was mainly due to higher offshore production, which rose by 61% to 3,476 tonnes while onshore production decreased to 4,653 tonnes.

More physical metal ETCs launched     04 May 2011    

ETF Securities listed physically backed exchange-traded commodities (ETCs) for aluminium, zinc and lead on the London Stock Exchange recently. Launched on 10 December 2010, the physically backed industrial metal ETCs, follow previous listings of copper, nickel and tin.

The launch of metal-backed securities had sparked concerns investors will crimp supply already under stress in some metals from falling ore grades and rising industrial use, ultimately adding inflationary pressure. However, take-up of the initial three has been slow. Tin warrants currently totaled 405 tonnes, equivalent to about 2% of total LME stocks, while holdings of copper and nickel are equivalent to less than 1% of total warrant holdings. There has been no change in tin holdings since early February. High costs of storage is one of the main drawbacks of the base metals physical ETCs.


Renison production revives from March     03 May 2011    

Metals X reported a rebound in its production at the Renison mine in Tasmania, following a problematic period at the end of last year and in January-February 2011. Production of tin-in-concentrate in the first quarter was 29% lower than in the same period of 2010, but production in March and April has increased.

Tin-in-concentrates production for the quarter was 1,244 tonnes compared to 1,217 tonnes recorded during the previous quarter. Production improved much, with 40% of the production were being derived in March. Mine production in January and February was affected by localised geotechnical matter in the Lower Federal zone, which required additional access development and upgrading of existing ground support before full production could commence. A 99 hour process plant maintenance shutdown was undertaken in February. Production levels were backed to planned levels in early March and continued in April. It is expected to produce some 550 tonnes of tin in concentrates for the month.

Cash operating costs in the current quarter were A$14,993/tonne of tin, and are expected to fall in the current quarter. The operation generated a cash flow (EBITDA) of A$15.3 million in the period. Mine economics will be backed-up by the newly operated commercial production of copper concentrates. It is expected that production of contained copper will increased from 600 tonnes in 2011 to 1,200 – 1,500 tonnes in 2012.


Bolivia drops nationalisation plans     03 May 2011    

Bolivia’s government will not continue with its plans to take over several privately operated mines in the country, including Glencore’s Colquiri zinc-tin operation. The move which was supported by unions representing workers at state companies was, however, opposed by other unions. The Colquiri mine produces over 2,000 tpy of tin-in-concentrates and is operated by Sinchi Wayra, Glencore’s local subsidiary.


Traxys acquires stake in Global Advanced Metals     02 May 2011    

Traxys Tantalum LP, a member of the Traxys Group, has agreed to buy a 20% interest in Global Advanced Metals (GAM), subjected to Australian Foreign Investment Review Board approval. The Luxembourg-based privately owned Traxys Group is a world leader in trading and financing metals and minerals. GAM, formerly known as Talison, produced tin as a by-product of its Greenbushes operation in Western Australia up to 2007. The two companies will form a new trading company called GAMTRAX, as a wholly owned subsidiary to trade tantalum products.

GAM’s produced some 400 to 1,000 tonnes of tin annually from its own smelter up to 2007 and hopes to continue its production in the near future. The company recently announced plans to double lithium production at the recently re-opened Greenbushes operation.

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