Tin prices have reached a two-year high following the suspension of operations at the Bisie mine due to unrest from the M23 rebel group. This has exacerbated global tin shortages, marking a price increase of approximately 25% this year. The DRC government is considering direct negotiations with the rebels, although previous resistance has been expressed.
Recently, tin prices soared to a two-year peak following the suspension of operations at Alphamin Resources’ Bisie mine in the Democratic Republic of the Congo (DRC). The mine ceased operations due to unrest in the North Kivu province, particularly the advance of the Rwanda-backed M23 rebel group, which has occupied key nearby towns. As a result, tin prices in London reached $37,100 per tonne, their highest since June 2022, before settling at $36,280 per tonne. This surge represents a significant increase compared to previous days.
Alphamin reported an 8.4% stock price increase in Toronto, bringing its market capitalization to $443 million. The prolonged suspension of mining activities, compounded by similar halts in Myanmar’s Wa State, has intensified the global tin ore shortage, with an estimated 25% increase in tin prices this year alone. The Bisie mine, critical for the tin supply chain, produced around 17,300 tonnes in 2024, approximately 6% of global tin supply.
The geopolitical turmoil in the DRC continues to exacerbate the situation, particularly as the M23 rebels have captured two major cities since January. In an effort to address the escalating conflict, Angola’s presidency announced plans for direct discussions between the Congolese government and the M23 rebels. These negotiations, if confirmed, would be unprecedented. However, previous statements from President Félix Tshisekedi indicate resistance to direct talks, leaving the situation uncertain.
In summary, the recent surge in tin prices can be attributed to the operational suspension of Alphamin Resources’ Bisie mine amid rising political unrest in the Democratic Republic of the Congo. This, compounded by mining disruptions in Myanmar, has significantly strained global tin supplies. The upcoming talks between the DRC and the M23 rebels may shape the future of the mining industry in the region, yet the complexities of political dialogue linger. Thus, ongoing monitoring of this situation is imperative for stakeholders in the tin market.
Original Source: www.mining.com
