By Paul Ploumis 18 Sep 2015 Last updated at 03:08:11 GMT
Minsur fears that tin production from the Peruvian Pitinga mine is likely to fall by 33% over the next nine to twelve months.
LIMA (Scrap Monster): The recent statement issued by Peru-based Minsur predicts sizable cut in tin output from the mine over the next nine to twelve months. This is on account of the emergency repair works being carried out at the mine. The repair works has caused major setback to the company’s plans to boost its output from the mine in 2015 by nearly 20%-30%.
The company now estimates the output to fall drastically by one-third during the next 9-12 month period.
According to industry sources, Minsur had eyed significant production boost from the mine during the year, prior to detection of water leaks at the hydroelectric plant. The production at the mine was temporarily suspended during the month of August. The mine production had later resumed at low operating rate, as the power plant was capable to operate at half capacity. The hydroelectric plant provides energy to all of the mine activities.
The recent statement issued by the company clarifies that output from the mine will be cut further. The delay in restoring plant operations to normal state may jeopardize the company’s plans to double production over the next 4-5 years by implementing a pipeline of new investments.
Incidentally, the company had reported increased tin output from its Pitinga mine during the first half of the year. The tin-in-concentrate output from the mine during the initial six months of the current year totaled 3,256 tonnes. This is almost 25% higher when compared with the output during the corresponding six-month period in 2014. The cost of production at the mine has dropped drastically by 18% year-on-year to $14,481 per tonne during the first half of 2015. The Pitinga mine had produced 5,532 tin-in-concentrates during the entire year 2014.