Elementos’ (ASX:ELT) is working with several potential partners on both tin smelting and mining in Spain as it progresses its proposed acquisition of a 50% interest in Iberian Smelting, which owns Robledallano Tin Smelter located 220km from the Oropesa Project.
Speaking to Mining.com.au, Managing Director Joe David says there will be some likely major updates regarding utilisation and timing soon.
“We delivered our Oropesa Definitive Feasibility Study (DFS) and permitting submissions during the start of Q2 this year, so are now rapidly progressing on both licencing and project delivery fronts – updates will be coming on both these two items,” David says.
David says Elementos, which has a market capitalisation of $30.9 million, is investing into a tin smelter to ensure that it delivers Europe’s only domestic supply of tin.
“It just so happens that tin deliveries in Europe attract a significant premium, more than US$1,000 per tonne, above the London Metals Exchange tin price – greatly supporting the project’s economics,” he says.
As reported by this news service, Elementos’ downstream strategy to deliver the only mine-to-metal tin supply within the entire European Union (EU) to service the EU and North America is one that is resonating with interested parties.
“We are working with some significant partners on securing equity, debt, and offtake to deliver the project, having recently hosted a number of parties on site visits,” David tells Mining.com.au.
The DFS, based on a 1.4-million-tonne-per-year open cut mining project, estimates the Oropesa Project will produce an average 3,405 tonnes of contained tin per year, as tin ingot, for sale into the global market from Europe.
At the Cleveland Tin Mine in Tasmania, David says the company has resource updates and further metallurgical work streams planned.
Tin not rattled
David adds that tin has been the best performing base metal during H1 2025, representing a 16% increase, outperforming higher profile commodities such as copper.
“Tin, which is only 2% of the copper market in tonnage but over 3x the price, has been subject to under-investment over the last 4 decades and supply is starting to get challenging,” he says.
Europe and North America have zero primary tin supply, while Australia only produces about 3%. Europe is currently highly exposed to the global tin market dynamics, with about 85% of its tin metal demands being imported mostly from Brazil, China, Indonesia, Malaysia, and Peru.
Over the past two years, supply disruptions in the Democratic Republic of the Congo, Indonesia, Myanmar, and Peru are straining the market from being able to meet demand.
David notes that global stockpiles are at multi-year lows and Chinese smelters, which dominate the industry, were operating at less than 50% capacity last month.
“Tin, which is only 2% of the copper market in tonnage but over 3x the price, has been subject to under-investment over the last 4 decades and supply is starting to get challenging”
According to the Shanghai Metals Market data, China’s refined tin production in January 2025 decreased by 4.62% month-on-month. A tightening supply of tin ore and scrap has led to a downward trend in domestic tin ingot production this month.
In Yunnan in particular, the continued low volume of tin ore imports from Myanmar, paired with a decline in imports globally, has posed challenges to raw material supply for local smelters.
“The tin market has all eyes on Myanmar as the industry watches to see if they can finally recommence material levels of mining, following mining bans, changes to regulation and taxation and the recent devastating effect of the earthquake to the people and supply lines,” David says.
“The market is also looking for further greenshoots in demand, with most tin being used as solder in general electronics. As interest rates drop, and cost of living pressures recede, the demand for general consumer electronics should move back to usual levels.”
Elementos is a tin explorer and developer with two mature tin assets in Spain and Australia.
Write toAaliyah Rogan at Mining.com.au
Images: Elementos
