Historic Renison mine sees record quarterly output
The historic Renison tin mine in Tasmania has seen its most productive quarter on record, with 2,506 t tin produced, yielding a rolling 12-year total production of over 10,000 t for the first time in the mine’s history.
In its 2024 Q2 operations report, Bluestone joint venture partner Metals X announced that despite mining and processing challenges in April and May, higher grade feed (2.11% Sn compared with 1.74% Sn in Q1) from Area 5 balanced 4% lower processing rates and a 5% decline in average recovery, for a 10.3% increase in tin-in-concentrate production from the previous quarter.
The company specifically cited difficulties processing wet and fine material at both the crusher and mill, as well as reduced efficiencies due to mechanical repairs. While access to the high grade Area 5 ore benefitted overall production, higher silicate levels from the magnesium silicate-rich gangue caused weaker performance at the tin flotation collector. Additionally, equipment failure and repair delays restricted development progress at Area 5, CFB, and the Leatherwood stopes.
While Metals X’s 50% share of Renison tin concentrate shipments to YTC and MSC fell 3% to 1,198 t contained tin, 24% higher average tin prices resulted in a 35% increase in Metals X’s imputed revenue to A$123 million (US$81.1 million), and imputed EBIDTA increased 64% to A$57.9 million (US$38.2 million).
A 13% increase in cash production costs was attributed to elevated mining costs relating to additional required backfill and underground development, as well as a variety of increased processing costs. The company’s all-in sustaining cost also increased 2% to A$33,232/t (US$21,909/t), while all-in cost decreased 1% to A$33,771/t (US$22,264/t).
Alongside updates on geotechnical, hydrogeological, and pyrometallurgical testing, Metals X announced it has initiated a strategic and economic review into the feasibility of dividing the ‘Rentails’ tailings project with flotation at Renison and fuming at another location, which may substantially reduce capital expenditure and streamline the permitting process.
After the quarter-end, the company announced an updated mineral resource at Renison Bell of 20.2 Mt at 1.45% Sn for 291,000 tonnes contained tin at 31 March 2024, representing an overall 5% decline in contained tin from one year earlier.
In July, Metals X acquired an approximate 23% stake in tin explorer First Tin for a total investment of A$4.64 million (US$3.06 million). Metals X also expressed its ongoing position to evaluate potential acquisitions in tin, other base metals, and gold.
In spite of operational challenges, record tin production is a significant achievement for the Renison operators. We are pleased to see continued development at Renison Bell, and look forward to seeing new feasibility studies on Rentails—a key future supply project holding reserves of 98,000 t contained tin.
