Large numbers of metal enterprises, including mines, concentrators and smelters in Hechi city, Guangxi province are closed after Spring Festival as a consequence of cadmium pollution in the Longjiang River. Although the main tin producer in Guangxi, China Tin, still operates its tin smelter – since it located in another city of Guangxi – the company’s tin mines and concentrators in Hechi have been closed. There are some small tin smelters in this area which have also been closed.
Guangxi is one of the most important tin production areas in China. Refined tin and mine production were 26,953 tonnes and 18,111 tonnes in 2011 respectively, accounting for 17% and 19% of total China production, according to data from China Nonferrous Metals Industry Association (CNIA). Although the smelting scale in this area is not large, most of tin mines in Guangxi are located in Nandan county, Hechi city. As a result, the shutdowns should have a bigger direct impact on tin concentrate supply than on refined metal.
There is no clear information on when the companies could reopen in this area. The situation will support the current soft China tin market which has been affected by a large build-up of tin inventory recently.
