World’s Biggest Tin Exporter Cuts Output

The largest tin producer in Indonesia, which is the world’s top exporter, is cutting output by as much as 50 per cent. PT Timah will produce 1,500 metric tons to 2,000 tons of refined tin a month starting in April, below this year’s target of 2,000 tons to 3,000 tons.

In a report for Bloomberg, Yoga Rusmana and Dwi Sadmoko write that tin is “used in everything from cans to smartphones”, but PT Timah is seeking to stem the decline in price of the metal by restricting output while the Indonesian government tightens export and trading rules to limit shipments.

As producers cut back, the price of tin is expected to rise, which is good news for developers and explorers such as Stellar Resources. With further disruptions and restrictions to the Indonesian tin market, developers and explorers in stable countries such as Australia could receive more good news as buyers hunt for long-term stable supplies of tin.

To read the full article please visit: http://www.bloomberg.com/news/articles/2015-04-22/world-s-biggest-tin-exporter-cuts-output-after-price-rout

Shortage of supply will strengthen tin price in coming years

At the recent Prospectors and Developers Association of Canada conference, corporate advisory firm Hallagarten & Co’s principal and mining strategist, Chris Eccleson, spoke of how tin’s muted performance in 2014 obscured the potential for price rises and robust margins in the coming years. Eccleson revealed that most commentators and market participants believed that current prices represented a trough, and concluded that “overall, we have things set up for a pretty bullish-looking scenario in tin for the next few years.”

Discussing the global tin market, Eccleson noted how Indonesia, Malaysia and China were currently closed markets, and Bolivia and Burma were attached with high political risks. He said that there had been some interest in the old Australian regions, which is positive news for developers and explorers such as Stellar Resources.

To read more about this story featured in Mining Weekly, click on the link below:

www.miningweekly.com/article/shortage-of-supply-will-stoke-tin-price-higher-in-coming-years-2015-03-09

Indonesian Tin Smelters Vote for Monthly Export Quota to Boost Price

Journalists from across the globe have reported that a group of Indonesian tin smelters have put in place a three-month self-imposed quota to cap tin exports at 2,000 tonnes per month, hoping that the move will boost the metal’s price. Jabin Sufianto, chairman of the Association of Indonesian Tin Exporters, said that producers will review sales volumes every month depending on market demand.

Bloomberg’s Yoga Rusmana and Eko Listiyorini also report that Indonesian tin had not performed well on the London Metal Exchange over the last year, as suppliers faced increased competition from countries including Myanmar and Australia. However, with Indonesia having such a short-term tin strategy, reviewing their export quota month-by-month, buyers may look more at Australia for long-term stable supplier of tin – which could be beneficial to developers and explorers such as Stellar Resources.

To read more about this story featured in Mining Weekly, click on the link below:

http://www.miningweekly.com/article/indonesian-tin-smelters-vote-for-monthly-export-quota-to-support-prices-2015-02-17

Stellar Resources: 2014 Year In Review

As 2014 draws to a close, we reflect on the year that has passed and the broader tin market.

This year has proven to be an exciting time for Stellar Resources with several important advances for the Heemskirk Tin Project:

  • Metallurgical testing to refine and validate the processing circuit has demonstrated potential for improved recovery.
  • Diamond drilling down-plunge of the Queen Hill deposit has shown that ore-grade tin mineralisation is present at depth.
  • Work commenced on the satellite St Dizer tin prospect to determine its role in the overall project.
  • Permitting commenced with submission of a Notice of Intent to the Tasmanian Environment Protection Authority.

In addition, we won the support of a major new investor in Capetown S.A, a Luxembourg-based company with a long association with the tin industry and a desire to see Stellar take Heemskirk into production.

There are a number of tin projects in the world competing for access to a tightening tin market. BGR (German Geological Institute) has studied many of these projects and concluded that Stellar’s Heemskirk project is one of seven that are likely to be developed before 2020.

Within the global tin market, 2014 saw demand continue to recover from a low base set in 2012. However, that did not translate into higher prices as expected, due to increased supply from unreported sources in Myanmar and Indonesia. The current tin price of $20,300 per tonne is at a low point in the cycle and represents a price at which 10% of the industry is unprofitable. Supply is adjusting to the current price and should continue to adjust in 2015.

Looking forward, the common opinion from industry experts is that a gap between supply and demand will emerge and grow as depletion affects production from traditional sources. As this scenario emerges, prices are expected to rise above the US$25,000/tonne level required to encourage new production.

In 2015, Stellar Resources will continue to expand its activities around its Heemskirk Tin Project to realise its goal of becoming the second largest tin producer in Australia.

We thank you for your continued support and look forward to keeping you up to date in the New Year.

Regards,

Peter Blight
Managing Director, Stellar Resources

Tin: A lesser-known fire fighter

Australia is well-known for its scorching hot summers. While many of us trudge through winter awaiting the warming feeling of the sun’s rays, this weather can also mark a period of potential high risk. Fires are undoubtedly dangerous and ruthless disasters that occur during those hot summer months. That’s why researchers have spent countless hours determining the best and most cost-effective fire retardants available.

Although a wide range of chemicals have been used as fire retardants over the years, many have been found containing inherent toxic elements, and therefore have negative impacts on the environment. Researchers and the general public have raised concern about these harmful chemicals, and have sought the market for other alternatives.

During the mid-1980s, The International Tin Research Institute (ITRI) had begun development of novel tin-based additives that could be used as a safer, more effective fire retardant. This development has proven a great success, and nowadays, these compounds are being marketed world-wide. As we can see, the application of tin in everyday instances has gone on to benefit the environment and the public globally.

Yet despite clear technical benefits, including non-toxicity and excellent smoke suppression, markets for tin compounds have been somewhat limited due to their relatively high price compared to many other flame retardants. This has seen recent research focussing on tin additives being used as synergists with other flame retardants and on developing more cost-effective systems.

Tin has certainly proven to be an element offering several advantages over many conventional flame retardants. The development and application of tin continues to be analysed in terms of its potential benefits to our society as a whole and consequently, the use of tin is expected to grow in the immediate future. Australians are armed with a firefighter that can help them out if needed.

Source: ITRI

Tin Deficit in 2014 Seen Lower as Myanmar Ore Supply Gains: ITRI

Bloomberg news has reported a global shortfall of ore supplies, while ore supplies from Myanmar to Chinese smelters have increased.

The deficit has been reported to drop to 7,000mt this year from the estimate of 10,800mt last year. However Myanmar ore output has grown from 20,000mt in 2013 to 25,000mt in 2014, reports ITRI China chief representative, Cui Lin.

The market is expected to remain in deficit in 2014 with Indonesia’s new export policy due to take effect in November. This policy may reduce production during the rest of the year. The low tin price may further curb high-cost production in Indonesia.

This year, China exported an average of 9,000mt of tin in metal, between January and August. During an interview conference in Suzhou, eastern China last week, Cui cited industrial data outlining expectations that exports would fall during the rest of the year, as Chinese prices moved above London Metal Exchange rates.

Indonesia is the largest shipper of tin, with China its biggest consumer.

Indonesian smelters setting their own tin price

Bloomberg reported that trade on the Indonesia Commodity and Derivatives Exchange (ICDX) was weak due to the country’s tin producers holding out for sales above the benchmark spot rate in London to try to counter a decline in prices.

Citing almost a USD$400 premium, smelter members on the ICDX were offering prices between USD$500 – USD$600 a metric ton above the contract on the London Metal Exchange.

The opinion from Peter Kettle of International Tin Research Institute (ITRI) was that Indonesian sellers were not prepared to follow the London Metal Exchange price down.

David Lennox, a resource analyst at Fat Prophets commented that the Indonesian members could be testing the market and if the reaction was positive then maybe there was some underlying strength in the market.

The Bloomberg article also said smelters don’t want to sell cheap because ore prices are very high and prefer to build up stockpiles, on expectations that the price will rise to a decent level, probably at USD$23,000 a ton.

The decision was defended by Jabin Sufianto, chairman of Association of Indonesian Tin Exporters, stating that the weak trade on the ICDX was simply because of the price.

Trade on the ICDX totalled 4,855 tons in August, 3,810 tons in July and 4,660 tons in June, exchange data show. On September 11 cargoes of the metal were sold above the London price and prior to that the last trade was on August 27, when the PB300 contract, the most active, was at $22,080 a ton. That was $398 above the LME spot price that day, Bloomberg calculations show. Inventories tracked by the LME climbed 4.4 per cent to 12,295 tons in August. The reserves dropped 1,085 tons to 10,210 tons yesterday, the lowest since May, according to LME data compiled by Bloomberg.

Implemented by the Indonesian government, the minimum price for tin contracts is decided by an exchange committee in the ICDX daily. Sales made through an auction system can’t be made below this daily rate, which is officially known as the Suggested Opening Bid.

According to BNP Paribas SA, it is reported that the global demand for tin will outstrip supplies for a fifth year in 2014. The market will have a global deficit of 13,000 tons this year and 10,000 tons in 2015.

Source Bloomberg: Tin Smelters in Indonesia Holding Out for Premiums to LME

Stuff tin stocks in a drawer

The Australian’s Barry Fitzgerald writes of the building interest in tin mining despite a fall in price. In fact, Macquarie Group believes the current price weakness is a good opportunity to invest longterm as the key factors behind the fall are likely to abate.

Stellar Resources is one of four pure tin plays in the market. Its Heemskirk Tin Project has great potential to develop and puts Stellar in a strong position to reap the benefits. While a number of junior companies keep experiencing losses, some players, like Redbank Copper, return to trade as investors are moving back into the mining sector.

To read the full article, click on the link below. Please note a paywall may appear. To continue reading the article, follow the prompts.

http://www.theaustralian.com.au/business/opinion/stuff-tin-stocks-in-a-drawer/story-fnciil7d-1226641492554