tin news

04 May 2011 High prices boost PT Timah results
Although its sales fell by 18% year-on-year in volume terms in the quarter to end-March, Indonesia's PT Timah reported a 150% increase in net profit in the period as a result of high prices. The company's average selling price in January-March 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 start of this year. Refined tin production declined 8% year-on-year to 8,503 tonnes, while mine production of tin-in-concentrate was up 10% to 8,129 tonnes. The latter rise was entirely due to higher offshore production, which jumped 61% to 3,476 tonnes while onshore production fell slightly to 4,653 tonnes.

04 May 2011 More physical metal ETCs launched

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

The launch of metal-backed securities initially sparked concerns investors will crimp supply already under stress in some metals from falling ore grades and rising industrial use, ultimately adding inflationary pressure, Reuters noted, but, so far take-up of the initial three has been slow. Tin warrants currently held amount to 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. Relatively high costs of storage have been identified as one of the main drawbacks of the base metals physical ETCs.
03 May 2011 Renison production revives from March

In its latest quarterly release Metals X reported a bounce-back in production at the Renison mine in Tasmania, following a difficult period at the end of last year and in January-February 2011. Quarterly production of tin-in-concentrate in January-March was 29% lower than in the same period of 2010, but production in March and April has been running at a higher rate.

In a statement MLX, which owns 50% of the joint-venture with Yunnan Tin Group and other investors, described the recovery as follows: "Tin production for the quarter was 1,244 tonnes of tin contained in concentrates compared to the previous quarter of 1,217 tonnes. Production at the mine continues to improve with 40% of the production for the quarter being derived in March. Mine production in January and February was affected by localised geotechnical issues in the Lower Federal zone, which required additional access development and upgrading of existing ground support before recommencing full production. In addition a planned 99 hour process plant maintenance shutdown was undertaken in February. Production levels were restored to planned levels early in March and continued success in April is anticipated to produce approximately 550 tonnes of tin in concentrates for the month."

Cash operating costs in the current quarter were reported at A$14,993/tonne of tin, and are forecast to fall in the current quarter. The operation generated a cash flow (EBITDA) of A$15.3 million in the period. Mine economics will now be helped by the newly started commercial production of copper concentrates, with planned production of contained copper rising from 600 tonnes in 2011 to 1,200 - 1,500 tonnes in 2012.
03 May 2011 Bolivia drops nationalisation plans

Bolivia's government has not pursued plans to take over several privately operated mines in the country, including Glencore's Colquiri zinc-tin operation. It had been anticipated that President Evo Morales would announce this during 1 May labour day celebrations, but the move - supported by unions representing workers at state companies - was opposed by other unions. The Colquiri mine, operated by Glencore's local subsidiary Sinchi Wayra, produces over 2,000 tpy of tin-in-concentrates.

Vice President Alvaro Garcia Linera pointed to serious differences within Bolivia's estimated 100,000 mine workers for the turnaround, Dow Jones reported. "Unfortunately, eight other syndicates of miners have petitioned against it," Mr. Garcia told state miners at a rally in which Mr. Morales spoke only briefly. Last week, the Federated Syndicate of Bolivian Mine Workers, which represents miners employed in the private sector, threatened to strike. "We are not going to permit the state to take control of those mines", said union leader Cesar Lugo.
02 May 2011 Traxys acquires stake in Global Advanced Metals

Traxys Tantalum LP, a member of the Traxys Group, has agreed to acquire a 20% interest in Global Advanced Metals (GAM). The acquisition is subject to Australian Foreign Investment Review Board approval. The Luxembourg-based privately owned Traxys Group is a global leader in trading and financing metals and minerals. GAM, formerly Talison, is an ITRI member which up to 2007 produced tin as a by-product of its Greenbushes operation in Western Australia. As part of the agreement the two companies will establish a new trading company, GAMTRAX, as a wholly owned subsidiary to trade tantalum products.

GAM CEO Mr Bryan Ellis welcomed Traxys's investment and stated that GAM and GAMTRAX are committed to the responsible supply of tantalum to the market and will only trade in "non-conflict" products ensuring its customers receive quality, reliable and ethical products.

GAM's tin production ranged between 400 and 1,000 tonnes per year of metal from its own smelter up to 2007 and the company hopes to resume production in the near future. In March it announced plans to double lithium production at the recently re-opened Greenbushes operation.