The new joint venture under which China’s Yunnan Tin Group will take a 50% stake in Metals X’s Tasmanian tin assets will come into effect on 1 March 2010. YTG will pay A$50 million for the 50% stake in Bluestone Mines Tasmania Pty Ltd and has the option to take a further 10% at a price to be determined by operating performance in the next 12 months.
Metals X reported that the Renison concentrator produced 1,426 tonnes of tin-in-concentrate in the quarter to end December, slightly up on the 1,404 tonnes produced in the previous quarter. Output in calendar year 2009 amounted to 5,630 tonnes. The operations produced a positive cashflow (EBITDA) of $3.62 million in the latest quarter. A high proportion of recent production has come from the Mt Bischoff open pit, which produced 810 tonnes of contained tin in the quarter, 35% higher than forecast.
In separate announcements Metals X and Macmahon Holdings said that the two companies have signed a letter of intent for the latter to undertake a two-year, A$65m contract for Bluestone Mines Tasmania to carry out the mining activities at its Renison underground mine The contract will see Macmahon undertake underground production and development works, as well as the overall management and maintenance of the mine owner’s mobile plant assets. It is anticipated that Macmahon will commence work on site in mid-March.
