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Tin in the News
LME tin ended last week at $21,250 on a 3-month basis, with LME stocks at 2,955 tonnes. The tin gains over the last few weeks have been a surprise to us, coming following reports of increased refined tin production by China and exports from Indonesia. Tin's strong performance can partly be explained as part of the general price rally of the last few weeks across the base metals. We understand this rally to be a response to recent positive economic data, which has resulted in increased risk appetite and movement of hot money into the base metals complex.This week we present Q3 results reported by Minsur and PT Timah as well as news that a contract has been signed for construction of a new processing plant at the Colquiri Mine in Bolivia. Recent tin purchases by the South Korean PPS are also reported.Tom Mulqueen - Analyst, Markets |
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Minsur reports Q3 rise in Peruvian production
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7 November: Minsur's individual Q3 results, released at the end of October, reveal a 25% improvement in refined tin production from its Pisco smelter to 5,186 tonnes, and a 5% increase in tin-in-concentrate production from the San Rafael Mine to 5,114 tonnes, compared to Q3 2015.The increased performance was explained both by lower production in September 2015, due to scheduled maintenance carried out at the Pisco smelter, and also the commissioning of the company's new Ore Sorting plant during Q3 2016, which is treating low-grade ore stockpiles at the San Rafael Mine.For the year-to-September, output from San Rafael fell 3%, while refined tin production from Pisco rose 4% to 14,550 tonnes, relative to the same period of 2015. A fall in head grades from 2.09% for the first 9 months of 2015 to 2.04% in 2016 has been offset by a 30% increase in the volume of ore treated at the mine.The Q3 cash cost of production from San Rafael, per tonne of ore treated, fell 50% year-on-year to US$60. This reduction was mostly due to the inclusion of 257,103 tonnes of stockpiled ore treated using the new ore sorter, alongside 235,451 tonnes sourced directly from the mine treated through the main processing plant. The ore stockpile currently being utilised in expected to be depleted by 2017, with an increase in costs likely at this time. The cash cost per tonne of refined tin in Q3 also fell 12% YoY to $7,569 due to the increased production and cost savings at the plant.Minsur will release consolidated results for its operations in Peru and Brazil on 14 November.
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Contract signed for new Colquiri plant
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4 November: The Bolivian state mining company, Comibol, has signed a US$75M contract for construction of a new tin and zinc processing plant at the Colquiri tin-zinc mine, according to local news sources.The 2,000tpd plant will be built by the Bolivian company Ziegler and will double processing capacity at the mine, which currently treats 900 to 1,200tpd of tin and zinc ore, at recoveries of above 75%. The project has been funded by the US firm Nalex International by way of a ten-year loan. The Ministry of Mining has previously suggested that the new plant will allow an increase in production to just less than 7,500 tonnes of tin and 40,000 tonnes of zinc each year.Bolivian President Evo Morales, who attended the signing, stated: "We trust the company will meet its commitments... We hope to be here celebrating the new Colquiri plant in three years' time." Comibol also opened the US$12M, 2km, Blanca Norte ramp at the site, which provides ore haulage trucks with access to the mine.ITRI View: The government has indicated that it plans further upgrades to Colquiri with Morales pledging additional funds for development; ITRI has previously learnt that following construction of the new facility, the existing ore dressing plant may be optimised for treating tailings from day-to-day operations and from the tailings ponds, where tin content is estimated at some 0.5% Sn. Total production from Colquiri in 2015 totalled 4,229 tonnes of tin and 15,700 tonnes of zinc.We anticipate that total mine output in Bolivia will grow steadily in the medium term to long term, as a result of ongoing expansion projects in the Bolivian tin industry, including the planned new plant at Colquiri.
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Timah production recovers in Q3
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31 October: Indonesia's state-controlled tin company, PT Timah, has reported strong operational and financial results in Q3, aided by the rising tin price, although total production for the first 9 months of the year still lags behind 2015 levels.Q3 mine production rose 9% year-on-year and by 20% relative to the previous quarter to 6,865 tonnes of tin-in-concentrate, primarily due to a doubling of production from onshore mining operations since Q2. Refined tin production fell 2% year-on-year to 6,475 tonnes, but was up 22% on the previous quarter. Despite a strong performance in Q3, mine production totalled 15,973 tonnes and refined tin production totalled 15,995 tonnes for the first 9 months of the year, with both totals representing a 23% reduction in output compared to the same period of 2015.PT Timah reported a profit of Rp 50.64 billion (~US$3.8 million) for the quarter, despite an 9% reduction in revenues compared to the same period of last year. The cost of revenues also fell 12% year-on-year. Total tin inventory rose marginally relative to Q2 to 13,846t, with a 17% increase in ore stocks to 1,973t (Sn content) offsetting a 35% reduction in refined tin stocks to 3,790 tonnes, Tin inventory in slags remained broadly static at 8,083 tonnes.The company press release outlined plans to modernise and modify mining techniques both onshore and offshore with the addition of new mining vessels and shelving of inefficient production facilities. An intensified exploration programme is also underway to address concerns about depleting reserves and resources. Also under consideration is the construction of a fuming plant at the company's Muntok smelter, with the intention of increasing recoveries by reducing the quantity of tin discarded in slags.Update: Metal Bulletin reported on Friday that PT Timah plan to raise tin production by 33% or more next year to at least 32,000 tonnes as a result of higher prices, following talks with Corporate Secretary Agung Nugroho during LME Week.
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South Korea adds to stockpile purchases
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31 October: South Korea's Public Procurement Service bought 200 tonnes of refined tin by tender on 26 October, bringing its total purchases to 700 tonnes in 2016, well down on typical levels of some 2,000 tpy in recent years.The PPS bought 100t of Indonesian metal via Posco Daewoo at a cif premium of $575/t to the LME price and 100t of Thaisarco tin through LG International at a premium of $685/t. The tin is due to be delivered to the port of Busan by 25 November.This was the fourth tender held this year by PPS, which provides a purchasing and stockpiling service for small and medium-sized enterprises in Korea. Previous tenders were held in March, June and July.
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ITRI Asia Tin Week less than two weeks away
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21 - 24 November 2016, Sheraton Shanghai Hongqiao HotelThe programme for the fourth and final session of the ITRI Asia Tin Summit, which focusses on consumption and new tin applications, has now been finalised and features a mix of Chinese and international industry experts and leaders.The conference session will begin and end with presentations by ITRI analysts on the latest demand data and long-term threats and opportunities as a result of changes in technology.Valentijn Van Velthoven of Alent will be speaking on changes in tin applications in the electronics industry, where threats from miniaturisation and solderless technologies may be offset by growing automotive and industrial uses. Chen Zhiping of Tianneng Batteries Group will be covering the rapidly changing lead-acid battery business, where the e-bikes market may be saturated but new opportunities in other new energy areas are emerging. Looking further into the future, Prof. Wang Xiang of Nanchang University will be considering the role of tin catalysts in environmental protection and green energy production.Click here to view the full program and registerAsia Tin Week comprises two main formal sessions, both featuring simultaneous translation in English and Mandarin: The ITRI Asia Tin Summit, focussing on industry and market issues, and the China International Solder Technology Forum. Visits to the Shanghai Future Exchange or Yu Gardens are included as part of the event programme.
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