While some of the larger tin mines in Guangxi province have re-opened recently, smelters in China remain very concerned about raw material supply constraints. Smaller mines in Guangxi are still awaiting permission to re-start, while drought and other environmental issues could have an increasing adverse impact on production in Yunnan. The two provinces accounted for 53% of reported mine production in China last year.

The mines in Nandan county, Guangxi, were all closed after Spring Festival because of cadmium pollution by two zinc smelters. The big two tin mines in the area – Gaofeng and Tongkeng, which belong to China Tin group – were also closed for more than one month. While these two mines have been allowed to restart recently, other mines and smelters are still out of action and wait for the government’s permission. Production at the Gaofeng and Tongkeng mines is around 9,000 tonnes per year.

Meanwhile Yunnan province is facing a very serious drought. The local mines and processors have been affected due to lack of water. If the drought does not ease in the next few months, local companies will also face power restrictions, because most electricity in Yunnan is hydro power. In addition, the local government is clamping down on mines and processors in order to reduce environmental pollution. It is estimated that more than 60 small mines and processors are closed currently.

China’s refined tin and mine production in February were 11,844 tonnes and 5,000 tonnes, up by 3.4% and zero year-on-year respectively, according to China National Bureau of Statistics. China produced 21,569 tonnes of refined tin and 12,000 tonnes of tin-in-concentrate in January-February, both all down by 4.2% and 7.7 % y-o-y respectively.