Tin prices hit two-year high as Congo mine halt worsens shortage

Tin prices surged to their highest level in more than two years on Friday following the suspension of the Bisie mine in the Democratic Republic of the Congo (DRC).

Canadian miner Alphamin Resources (TSXV: AFM) announced Thursday it would temporarily cease operations at the mine due to unrest in North Kivu province.

The Rwanda-backed M23 rebel group has recently advanced westward toward the mine’s location, occupying the town of Nyabiondo on March 9. The rebels then took control of Kashebere, located 13 km further west, on March 12.

Tin, used to coat containers and solder circuits, climbed to as much as $37,100 per tonne in London, its highest since June 2022, before paring gains to $36,280 per tonne as of 12:25 p.m. local time. This follows a 7.4% surge on Thursday. In Shanghai, tin futures hit their daily 10% limit.

“It’s hard to evaluate how long the suspension will last, but it’s definitely going to worsen the existing global tin ore shortage,” First Futures Co. said in a note to Bloomberg.

“This comes at a time of relatively low LME tin stocks, with LME on-warrant stocks totalling 3,500 tonnes on Thursday, down by 27% from 4,800 tonnes at the end of 2024,” BMO Capital Markets said in a note.

Alphamin’s stock rose 8.4% on Friday morning in Toronto, giving the company a market capitalization of $443 million.

Congo weighs talks with M23

Political turmoil in the DRC is compounding the impact of a halt to mining in Myanmar’s Wa State, helping to lift LME tin prices by about 25% so far this year.

The Bisie mine produced 17,300 tonnes of tin ore in 2024, accounting for approximately 6% of global supply.

The M23 rebels have seized two of eastern Congo’s largest cities since January, escalating a long-running conflict rooted in the spillover from Rwanda’s 1994 genocide and the struggle for control over Congo’s vast mineral resources.

On Wednesday, Angola’s presidency announced that direct talks between Congo and M23 would begin in Luanda next week. If confirmed, it would mark the first direct negotiations between Congo’s government and the M23 rebels.

However, Congo President Félix Tshisekedi has previously rejected direct talks, and the government has yet to officially confirm its participation.