https://www.internationaltin.org/confiscated-smelters-handed-over-to-pt-timah-amid-mining-crackdown/
Very interesting news on tin from Indonesia. The government there has been on an illegal mine shutdown spree and they have nationalized six tin smelters which account for half the country's tin refining capacity, due to environmental concerns (or so they justify it). Indonesia is THE tin producer so this signals stronger tin fundamentals. Although now that these refiners are in state hands, Indonesian tin exports have been increasing so maybe there is sort of pent-up supply coming to the tin market.
Another thing I want to point out is the attention they are putting on environmental reclamation in the mining sector. Indonesia is also the country that has flooded the market with nickel in recent years, and as Rick Rule has often recounted the environmental damage caused by their nickel mines is breathtaking. So I would view this news as very positive for nickel fundamentals as well. I have been buying nickel miners as of late and I think nickel may finally have found a bottom.
A third thought comes to my mind after these tin nationalizations: if this is Indonesia's stance on resource nationalism, will they eventually make a move on Grasberg? I don't think it should be a base case assumption but there is probably a higher likelihood of increased taxes and royalties for Freeport in the years ahead.
