The mining regulator in Wa State is said to have renewed licences for select firms for the first time in about two years. - Reuters
YANGON: Tin exports from top producer Myanmar are expected to rise in the coming months, easing supply worries, after local authorities approved the resumption of mining in the conflict-riven region, according to traders familiar with the situation.
The mining regulator in Wa State, an autonomous region in Myanmar controlled by an armed ethnic group, has renewed licences for select firms for the first time in about two years, said the traders, who requested anonymity due to the sensitivity of the matter.
As these companies gradually ramp up operations, more ore is expected to be shipped to China.
A spokesperson for the United Wa State Army did not immediately respond to a request for comment.
Wa State halted tin mining in 2023 to conserve deposits, and then raised export taxes on high-quality ores last year. These moves eventually reduced the amount of tin heading to China, as mines controlled by the United Wa State Army accounted for around a third of the metal’s supply to the country before the mining ban.
Tin prices had surged 30% in the three months through early April due to disruptions in Myanmar and another major producer, the Democratic Republic of Congo. Prices have since fallen, however, as production resumed in Congo and amid a tariff-driven selloff across metals and broader markets.
The global ore shortage also pressured treatment charges for Chinese smelters, according to an executive at Yunnan Tin Co, the country’s largest producer.
In a May interview, the executive said output in both Congo and Myanmar is expected to return to normal levels by year-end. - Bloomberg
