Indonesia Must Halt Tin Sales to Aid Price, Bangka Governor Says

Bloomberg’s Dwi Sadmoko, Yoga Rusmana and Eko Listiyorini report on Indonesia’s plans to halt overseas tin shipments in an effort to raise prices. Indonesia is the world’s biggest tin exporter, accounting for 48 percent of global tin production. However, tin prices across the world keep falling as supplies from other countries, like Myanmar, continue to increase. There is an obvious need for cooperation from all smelters.

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Shanghai Futures Exchange plans to launch tin contract soon

The Shanghai Futures Exchange (SHFE) is set to expand, with the launch of a new tin future contract. The application has already been lodged with the China Security Regulatory Commission.

SHFE already has 12 futures contracts available for trading including copper, aluminum and steel. SHFE’s expansion into tin trading makes a great deal of sense – China is currently the world’s largest tin producer and consumer.

The tin industry in China has responded positively to the listing of SHFE’s futures contract as tin price transparency will be improved and investment demand for tin will be stimulated.

At one tonne, the tin contract lot size will be markedly smaller than other traded metals at SHFE but the contract will prospectively trade interminably once it is launched.


Stellar has plans for Zeehan tin mine

The Advocate’s Sean Ford writes of Stellar using findings from the German Federal Institute of Geosciences and Natural Resources to support the need for investments in its Heemskirk tin project. The company is expected to complete financing for the project in 2016 and start tin mining in 2017.

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ICDX previews new trading initiatives for tin sellers

According to ITRI a proposed new Bulletin Board system will enable tin sellers to deal with individual customers directly outside of the current auction system. This initiative is being spearheaded by the Indonesia Commodity and Derivatives Exchange (ICDX) to boost participation by international tin buyers.

The Small-to-Medium (S/M) End-User membership scheme is aimed at users of tin who purchase less than 250 tonnes per annum, provide details of their planned purchases and have been subjected to onsite inspections. Qualifying buyers will be exempt from the exchange’s regular $30,000 joining fee and their membership charges will also be reduced.

The S/M users can organise one-on-one deals via the Bulletin Boards and will have a special system for purchasing tin from individual suppliers subject to a yearly maximum volume.

Depending on the subsequent feedback of S/M End-Users, these new trade initiatives have the potential to be adopted by other exchange companies and change the way in which tin is bought and sold globally.


Burmese Exports Dent Hopes for Tin Sector

The Australian’s Robin Bromby writes of the tough conditions in the tin mining sector in 2014, but outlines the opportunities for relatively low-cost investments in tin. Stellar Resources is listed as one such opportunity due to its high-grade tin resource and its Heemskirk Tin Project in Tasmania.

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Tin Annual Conference highlights future demand and current issues

Tin_exploration_miningNo need for a crystal ball as leading professionals discussed the future of tin at the second annual tin conference in Melbourne on Wednesday 5th November. International Tin Research Institute (ITRI), MetalsX, Stellar Resources amongst others presented findings on tin’s performance this year and future outlook.

Peter Kettle was the keynote speaker from ITRI and has been involved in tin research for over 30 years. Kettle’s view on the long term is that the story remains unchanged, stating that there is a high probability of supply shortages developing in the next five years. But that in the short term the supply surges from Myanmar and Indonesia, coupled with the weakness in key demand sectors, are contributors to setbacks in the tin price. Having said that Kettle went on to say that US$19,000/tonne (the current price level) represented the low point for tin prices as marginal producers are unprofitable at this level.

Kettle also spoke about the positive changes for tin use and production in the future. Where tinplate and solder were the past hero applications, using tin for chemicals, energy purposes and lead and steel alloys is set to increase significantly in the next ten years. He also predicted that changes in the locations of major mines will see a shift from Indonesia, Peru and China to sites in Africa, Australia and Russia.

Interestingly, Metals X’ Peter Cook stated that the Renison Bell tin mine had made great progress in improving its production performance. However, in valuing all of assets in Metals X “tin” was a freebie.

Other presentations by Kasbah and Venture Minerals were bullish about tin’s future and that the supply issues will become critical. They also agreed that patience was required as the tin price needed to be at least $25,000 per tonne in order to attract funding for projects.

The presentation by Stellar Resources was led by the managing director Peter Blight who has been with the company for seven years, after previously working for UBS, UC Rusal and Rio Tinto.

Blight discussed Stellar’s promising Heemskirk and St Dizier resources. Heemskirk is the highest grade undeveloped ASX listed tin resource and is one of only seven known tin projects that BGR – German Federal institute of Geosciences and Natural Resources (mandated to report on future supply of critical metals to government and industry) – claimed has a good chance to go to operation by 2020.

Heemskirk, combined with St Dizier, has 85 kilotonnes of tin. Following very positive prefeasibility results in July 2013, Stellar plans to target its first production in 2017.

In terms of future exploration these sites in Tasmania have outstanding potential, especially with their unexplored halo of silver-lead veins.

ITRI’s seminar is also presented in Brisbane, Sydney and Perth.

To view Peter Kettle’s presentation click here.