In an announcement of second quarter consolidated results today, Minsur SA reported that its first half 2014 tin production rose by 8% year-on-year to 14,792 tonnes, with its Peruvian and Brazilian operations both reporting the same percentage increases. Production at the San Rafael mine and Pisco smelter in Peru increased to 12,588 tonnes, while in Brazil the Pitinga mine and Pirapora smelter produced 2,204 tonnes.

Tin sales revenue was further boosted by a continuing stock optimisation plan resulting in total H1 sales of 16,893 tonnes (14,650 tonnes from Peru, up 20%, 2,243 tonnes from Brazil, up 14%). The concentrate pipeline in Peru was also rationalised, offsetting a decline in average ore grades from 2.72% Sn in the first half of last year to 2.53% this year. The volume of ore treated at San Rafael rose by 5% to 489,891 tonnes in H1 2014. Tin cash costs per tonne in Q2 were reported at $8,511 in Peru and $21,165 (net of by-product niobium and tantalum revenues) in Brazil.

First half tin sales value rose by 23% to $402.6 million, while total Minsur mining division sales increased by 11% to $485.1, with gold and niobium and tantalum sales falling by 20% and 17% respectively. The mining division generated cash flow (EBITDA) of $203.9 million, up 6% and a net profit of $84.7 million, down by 1% year-on-year.

Minsur’s exploration spending in the first half rose by 37% to $32.6 million, with a focus on prospects near the Peruvian tin and gold operations and the Marcobre copper project. Capex in the period amounted to $44.1 million, including work to expand tailings dam capacities at both the Peruvian and Brazilian tin mines.