Resource Stocks’ Antony Barich writes of the dramatic turnaround in Australian tin mining after many years of stagnation. Due to external circumstances, such as economic slowdown in China and the criminalisation of mining sector in Congo, the Australian tin industry is finally recovering and is expected to stay on top despite falling commodity prices. In fact, tin has made the greatest gain since 2010 as several factors have been working in its favour. Persistent deficit will push tin prices higher, although Chinese exports could still interrupt the trend. Analysts believe lowering the tin prices would make the industry less sustainable in the long term – the situation in Indonesia is a perfect example of this. Furthermore, many Indonesian mining companies are not ready to comply with the new regulations banning unprocessed minerals which might weaken mining sector in Indonesia. As a result, Stellar Resources, with its flagship Heemskirk project, is entering a positive phase of economic growth.
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