Stellar project lights up tin market

The May edition of Paydirt reports that despite the challenges tin producers and explorers are facing in the market, many remain bullish the sector will bounce back ‘with history suggesting a tin price recovery is on the cards’.

One explorer and developer ‘prepared for the fight’ is Stellar Resources, who article author, Mark Andrews, describes as a ‘potential rising star in the game’.

Earlier this year Stellar conducted a metallurgical optimisation study at its Heemskirk Tin project in Tasmania, which revealed better tin recoveries (up 7.4% to 79.5%) from the Severn deposit were possible, while average recoveries across all deposits improved by 4.5% to 72.8%. An increase in recoveries has also boosted production potential to 4,520t, resulting in a PFS valuation for the Heemskirk Tin Project of $160 million.

Commenting on Stellar’s credentials as Australia’s best emerging tin producer, Managing Director Peter Blight said, “There is growing interest within the tin industry itself as to where the next sustainable production is going to come from. What the industry is looking for is investible projects and I think we stack up pretty well on the list.”

The article also reports on the big focus for Stellar this year; starting a DFS at Heemskirk, with Andrews suggesting “further metallurgical improvements and resulting cost optimisations will no doubt help Stellar’s pursuit for cash”, with the company looking to secure $10 million.

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.

Article unavailable online.

Lower sales predicted for fourth quarter: Indonesian smelters polled

Bloomberg recently carried out a poll among Indonesian smelters assessing future exports. The results indicate an expected median export of 16,000 tonnes for the fourth quarter of 2014. Lower prices and stricter controls are cited as drivers behind the prediction.

However, ITRI predicts Q4 exports between 20,000 and 25,000 tonnes, though does concede that “controls on illegal mining do appear to be getting tighter and the new export regulation will greatly reduce exports of tin in non-ingot form”.

ITRI’s predicted export rate would still place annual exports at around 80,000 tonnes, the lowest since 2007.

Over the past few months, Indonesian police have been cracking down on illegal tin mining – particularly in protected areas – and these tightened controls combined with dropping prices and new export regulations are likely to have contributed to lower sales.

The new regulations will come into effect from November 1 and are likely to impact the price of tin.

Source: ITRI