THE DIRT: Robin Bromby | July 24, 2009 Article from: The Australian.
TIN is one of the least fathomable base metals market at present, due partly to recent Chinese stockpiling of the metal.
The metal’s price, say some analysts, is way ahead of where it should be based purely on the demand factor.
But China is laying in heavy stocks of tin against future demand.
Now a good chunk of Australia’s present and future tin output is being tied up by Chinese buyers.
The country’s only tin producer Metals X is selling 60 per cent of its Tasmanian operations – the Renison Bell underground mine and the Mt Bischoff open pit mine along with the tin concentrator – the Yunnan Tin Group, the world’s largest tin producer.
MLX will be getting $60 million in cash for the transaction, a sum of money sufficient to turn the head of any medium sized company. The decision by the Australian miner should also be seen against the background of the other focus at Metals X - tungsten.
The company also owns 48 per cent of Aragon Resources which is forming an alliance with up and coming tungsten play Vital Metals. And, back in February, Metals X was talking to Icon Resources about involvement in the latter’s Mt Carbine tungsten deposit. That $60 million will go a long way building other assets for MLX.
In another development this week, Consolidated Tin Mines said it had begun talks with potential Chinese off-take partners for its Mt Garnet tin project near Cairns.
The writer implies no investment recommendation and this report contains material that is speculative in nature. Investors should seek professional investment advice.
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