Tin: the forgotten critical mineral

Despite recent economic challenges, tin’s increasing demand from the electronics sector is pushing the limits of global production due to the lack of investment by large miners – a situation made all
the direr by recent coronavirus outbreaks disrupting output, particularly in Indonesia and Malaysia.

Long-term sentiment among the small number of analysts covering the tin market remains bullish based on this anticipated short supply which a realisation from global manufacturers has underpinned that tin is a critical manufacturing component – primarily used as solder in all electronics — that will be holding a whirlwind of new M2M, IoT and AI products already applying pressure to stockpiles around the globe.

Interestingly, tin is already classified as a critical mineral in the United States but is interestingly not yet in the European Union. However, the fact that China has been stockpiling tin for some time is a stark
a wake-up call for everyone else.

Following ore sorting testwork returning 98% recovery, Sky Metals CEO Oliver Davies is understandably keen to continue drilling his Company’s Tallebung bulk tonnage tin project in New South Wales, focussing on exploration upside to increase tonnage throughput for production in the coming years.

His Company hopes to produce between 2000 and 4000 tonnes of tin concentrate per annum, with continuing exploration a significant determining factor of the final expected throughput.

Sky Metals Tallebung bulk tonnage tin project in NSW.

And signs on the upside are good, with recent exploration confirming more than 1.6km of tin-tungsten mineralisation extending along the strike in both directions.

Mr Davies said the most recent results raise more questions than it gives answers, with no apparent geological reason why the mineralisation will not remain consistent along strike.

“Constrained historical workings most likely being the main reason for the discontinuation.

“We are finding mineralisation outside that area of historical working, showing us that the old timers didn’t find everything.

“How much is there and what drilling is needed to realise this extensive resource remains unclear.

The size of this remains an exciting proposition, particularly with the tin grade quality remaining consistent and enormous cost-saving benefits likely from ore sorting for a future bulk tonnage operation, shedding two-thirds of sorted material before downstream processing.

There is a vast potential production cost saving already ultra-competitive by world standards at around $1 a tonne.

And as exploration and project development unfold, Sky is also working hard in the background on logistics and marketing arrangements, having already discussed smelting options with
external providers overseas.

It is a part of the business Sky is keen to progress because the premium price of 55% to 65% tin concentrate commands well above 90% pay abilities while reducing freight costs.

“We are less than 60 kilometres from the nearest train line, which could take it to a port,” Mr Davies said.

“So, we are close to the infrastructure required, and already onsite, we have a lot of infrastructures we can tap straight into.”

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