Why Invest In Tin?

Tin is a critical mineral essential for the electrification of the planet.

Tin Demand

The demand for tin is poised for exponential growth, driven by the accelerating shift towards clean energy. Forecasts indicate a significant uptick in demand, particularly from sectors such as solar panels, energy storage solutions, electric vehicles (EVs), computing, and semiconductors. Presently, soldering constitutes approximately half of all tin usage, serving as the vital adhesive that connects electronic components.

As the global transition towards cleaner energy sources intensifies, the reliance on tin for various applications within the electronics industry increases. Its pivotal role in soldering underscores its indispensability in facilitating the functionality of electronic devices essential for modern living. This dual dynamic of growing demand from clean energy sectors and the indispensable role of tin in electronics underscores its pivotal position in driving future market growth.

Tin demand from the energy transition and increased electrification

Source: Bloomberg NEF, Rho Motion, Macquarie Strategy, September 2023

Tin Supply Shortfall

2023 Tin Concentrate Production

CountryProduction (t)
China69,500
Indonesia59,573
Myanmar39,900
Peru26,231
Brazil21,793
DR Congo18,982
Bolivia18,516
Australia9,532
Malaysia6,274
Nigeria5,797
Others15,702
Total291,800
Source: 2024 International Tin Association. All rights reserved.

2023 Refined Tin Production

CountryProduction (t)
China177,000
Indonesia68,710
Peru25,287
Malaysia20,722
Brazil15,394
Bolivia14,899
United States10,000
Belgium9,508
Thailand9,180
Poland4,222
Others18,413
Total373,355
Source: 2024 International Tin Association. All rights reserved.

A significant portion of the world’s tin production originates from regions fraught with instability, including China, Indonesia, Myanmar, Peru, and the Democratic Republic of Congo. In 2023, these jurisdictions collectively accounted for approximately 70% of global tin supply.

Recent developments in key producing areas have added strain to the global tin market. For instance, tin mining in Myanmar’s Wa State was suspended entirely as of August 2023, while Indonesia imposed a ban on all unrefined tin exports in June of the same year. The prolonged delays in licensing approvals suggest that exports from Indonesia may continue to be restricted, exacerbating the supply shortage. In 2023, there was a significant shortfall between concentrate and refined tin production of 22%, without Myanmar and Indonesia’s supply for 2024 it could cause this shortfall to inflate to over 50% between concentrate and refined tin production.

Additionally, dwindling reserves and declining ore grades in existing mines have led to a reduction in tin production. This trend, coupled with minimal investment in tin exploration, has resulted in a lack of viable projects to offset the forecasted tin deficit. As a consequence, the global tin market faces mounting pressure as geopolitical uncertainties and production challenges converge to strain the already delicate supply chain.

Tin Market Deficit

Source: Macquarie Bank research | Reuters, February 2024

The current demand and supply dynamics for tin is expected to create extended deficits in the tin market and is anticipated to swing into a deficit during 2024. There are a limited number of projects in Tier 1 Jurisdictions with low ESG risk that will be able to fill the growing supply gap.

Stellar Resources is well placed to be able to fill the looming tin supply gap with its high-grade Heemskirk Tin Project located in Zeehan, Tasmania.