Latest mine production statistics released by Peru’s energy and mines ministry on Tuesday show that production at Minsur’s San Rafael mine, the country’s only tin operation and the world’s largest, was 1,622 tonnes of tin-in-concentrate. While this was down by 14.3% compared to May 2014, monthly output has been very stable at around 1,650 tpm in each of the last four months. Cumulative production in the first five months of the year amounted to 7,852 tonnes, down by 13.8% compared to January-May 2014.

ITRI View: In a release accompanying its first quarter financial results Minsur explained lower Q1 mine production as being due to planned maintenance work earlier in the year and a decline in the average head grade to 2.16% Sn. However the company believes that the recent decline in grades has now stabilised at close to the reserve grade. Production guidance for 2015 was last given at 20,000 – 22,000 tonnes, which will be achieved by a continuation of average monthly production at the level achieved since February.