SUPPLY NEWS - Thaisarco signs tin conc off-take with Australian miner

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Vivian Teovivian.teo@fastmarkets.comJoint News Editor - Asia

Singapore 31/08/2016 - Thailand Smelting and Refining Company (Thaisarco) has signed a tin concentrate off-take agreement with Australia’s Elementos Limited paving the way for the latter to move its Cleveland tin, copper and tungsten project in northwest Tasmania into production.

The non-binding memorandum of understanding signed between the parties provides for a minimum 100 tonnes per month purchase of 55-percent tin concentrate from Elementos’ Cleveland tin project, the latter said in a filing to the Australia Stock Exchange this week.

This supply to Thaisarco will start as soon as production at Cleveland comments. Both companies intend to go into a formal off-take agreement “as part of the ongoing development activities and strategy of advancing Cleveland towards production,” Elementos said.

“AMC and Thaisarco evaluate most planned tin projects and we are excited to be working with Elementos to assist in the development of a low sovereign risk, long mine life project like Cleveland,” Andrew King, group business development director at AMC, said in the filing.

Thaisarco is managed and operated by majority shareholder Amalgamated Metal Corp (AMC) of the United Kingdom.

Elementos had said in July that a number of companies were undertaking due diligence and/or site visit at its project. The company said it wants to secure a funding and/or off-take partner for the project, and avoid a high level of shareholder dilution whilst its shares traded at low prices amid a depressed commodity market which had made raising new equity difficult.

Elementos is aiming to start production at its Cleveland tailings project in the fourth quarter of 2017 with output at 5,200 tonnes per year of tin in concentrate (51-percent tin) and 1,200 tonnes per year of copper in concentrate (18-percent copper).



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