Geopolitics of Minerals II Flashcards
Tin properties
Symbol: Sn Atomic number 50 Atomic mass 118 Properties: Soft, pliable, silver white metal Uses: Solder, alloys, tin plate Tin cans
Industry tin use
Consumer electronics and packaging is largest use
Solder is largest
Producers and production costs
Fluctuations in market share
China and Indonesia are current largest producer
Tin prices against mining cost
Underground mine $155 a tonne, $95 for a pit - open pits are more cost effective
Tin geology
Found in granite
Placer deposits - erode granite, tin found in shallow lagoon systems, dredge river beds, extract at low costs
How do we get tin to production site?
Need a market - London metal exchange
Supply, market, demand, international tin council cartel
Why have a metal exchange
LME = If no market, industrial consumers would have to find individual supplier and negotiate a price = difficult
Limited opportunities to discover cheaper alternatives
Industry can place orders for future and avoid dependence on single supplier
Speculators
Make extensive use of LME to profit from accurate forecasting of fluctuations in metal prices
Ability to buy and sell contracts which leads to speculation and a LME gambling house
Cartels and International Tin Council
Prevent tin-glut and collapse of tin
Prevent overproduction and maintain price
Dissolved in 1990
1956 New international tin agreement
Forum for both consumers (importance of metal and stable price) and producers
International council deal with surplus production - floor and ceiling price
Collapse of world tin market
Oct 1985, price of tin halved - when supply and demand broadly in balance
High tin stockpile value enabled BSM to borrow funds, US dollar declined 1985, sterling value of stockpile collapsed
BRE-X 1993 - small canadian mining company
Buys Busang site in Indonesia
Major producer
Brazil over past 25 years with mining costs as low as $2.5 per kg
