Data released by the China Nonferrous Metals Association (CNIA) yesterday shows that although capital spending in the non-ferrous metals sector continues to boom, investment in tin mines and smelters is growing relatively slowly.
CNIA reported that fixed assets investment in the whole non-ferrous metals sector in China increased by 48.6% to 29.4 billion yuan (US$ 3.83 billion) in January-April, but investment in tin mining grew by only 1.7% to 417 million yuan ($54 M), while capex in tin smelting grew by 13.1% to 171 million yuan ($22 M).
The relatively slow growth may partly reflect stricter conditions for investments in tin, tungsten and antimony introduced by the National Development and Reform Commission (NRDC) at the start of this year, as well as the focus of larger Chinese tin companies on consolidation, diversification and overseas investments.
Latest Chinese tin production figures for January-May published by the National Bureau of Statistics show a slow down in growth of refined tin production last month and a fall in mine production in the year to date. Refined tin production in May was provisionally reported at 12,862 tonnes, 0.4% down on May 2006, although output in the year to date was up 14% to 60,744 tonnes. Mine production, which is only partially reported, fell by 0.9% in January-May.
