Tin prices have soared to eight-month highs following the temporary closure of the Bisie tin mine in the Democratic Republic of Congo (DRC), highlighting concerns about potential disruptions to global tin supply due to escalating conflict in the region.
Alphamin Resources announced the suspension of operations at its Bisie mine in North Kivu Province, citing unrest in the area.
The news prompted a sharp increase in tin prices on the London Metal Exchange (LME), reaching US$36,000 per metric tonne, the highest level since July.
Emanuel Datt, Chief Investment Officer at Datt Capital, expressed concern about the situation’s impact on global tin supply.
“The DRC is a significant global producer of tin, contributing approximately 8 per cent of global supply,” Datt stated.
He emphasised the critical nature of tin in electronic applications, particularly computer chips, where demand is inelastic.
The Bisie mine, which produced over 17,000 tonnes of tin last year, accounts for approximately 6 per cent of global tin supply.
Its closure could have significant repercussions for the global tin market, given the mine’s importance to both local communities and the DRC government.
Recent advancements by M23 rebels, reportedly backed by the Rwandan government, have captured substantial territory in eastern DRC.
The proximity of these advances to the Bisie mine has raised concerns about potential appropriation or operational disruption.
With global supply chains already under strain, the situation presents opportunities for alternative producers.
Datt highlighted Metals X (ASX: MLX) as the sole listed Western producer of tin, operating the Renison mine in Tasmania.
The company is well-positioned with several growth projects and a strong financial position.
The conflict in the DRC not only threatens tin production but also impacts other valuable minerals in the region.
The country is a major producer of copper, cobalt, gold, and diamonds, with the mining industry playing a crucial role in its economy.
As the situation continues to evolve, industry experts and investors are closely monitoring developments in the DRC and their potential implications for global commodity markets.
