Minsur has reported that combined tin production at its operations in Peru and Brazil in 3Q14 has decreased 1% to 6,852 tonnes compared to 3Q13, primarily due to lower grades at the San Rafael tin mine in Puno, Peru.
The combined production of tin since the start of the year was 5% higher than 2013, at 21,644 tonnes, due to greater tin sales resulting from optimisation of tin stocks. However, it is anticipated that the total tin produced in 2014 will be similar to 2013 due to reduced production in Q3 and Q4.
Tin production at San Rafael has dropped 7%, compared to 3Q13, to 5,446 tonnes despite an expansion of plant capacity from 2,500tpd to 2,900tpd. This was due to a fall in ore head grade from 2.78% in 3Q13 to 2.39% in 3Q14 and a 12 day shutdown of the associated Pisco smelter for maintenance and connection with a new gas distribution pipeline. Compared to 3Q13, these factors have contributed to a 10% increase in the cash cost of tin from San Rafael, to US$8,618 per tonne.
In a conference call with analysts, Minsur said that it is making encouraging progress on a plan to commence tailings re-treatment, which could produce 5,000 to 6,000tpy of tin annually. A pilot test program for the tailings operation is currently underway as part of a Pre-Feasibility Study to be completed by mid-2015.
At the Pitinga tin mine in Brazil, tin production for the quarter increased by 33% to 1,406 tonnes. By-product production of niobium-tantalum alloy has also increased by 5% to 781 tonnes as a result of process optimisations. However, net-of-by-product cash costs for tin have increased by 44% to US$16,846 due to a drop in price for niobium-tantalum alloys. The development and expansion of the open pit, currently at the feasibility stage, is expected to double current tin production. A new flotation plant is also planned that will improve tin recoveries as part of a capital investment program at Pitinga.
Minsur’s overall exploration expenditure was 3% higher than 3Q13. This is partly due to investment in the San Rafael Tailings Project and ongoing exploration near existing operations. Capex of US$15.3 million during the quarter included expansion of the concentration plant at Pitinga and an increase in tailings capacity at both Pitinga and San Rafael.
