Times article text13 May 2026 18:20
Should you buy shares in Cornish Metals?
The price of tin has risen 45 per cent this year and China has a stranglehold on supplies, so the return of tin mining to Cornwall generates excitement
John Ficenec
Tuesday May 12 2026, 4.20pm, The Times
Recent scientific analysis has shown that tin mined in Cornwall was used in bronze across the Mediterranean 3,000 years ago. Today, Cornish Metals is making good progress on bringing the mine at South Crofty back into production for the first time since 1998. Listed on London’s junior Aim market, this is a high-risk prospect but one that has some serious backers.
The project has recently been gathering pace. An equity raise of £57 million at the start of last year brought in £18.1 million from Vision Blue Resources, which now holds 29 per cent, and was anchored by the UK National Wealth Fund, which committed £28.6 million for a 28 per cent stake.
Vision Blue Resources is the investment fund headed by Sir Mick Davis, who was the boss of the mining group Xstrata before it was sold to Glencore in 2013. His focus is now on all minerals and resources required for renewable energy and battery power. Tin is an essential ingredient in the solder required for nearly all electrical equipment.
China currently has a stranglehold on world tin mining, as there is no production in North America or Europe. The price of tin has risen nearly 45 per cent so far this year, to $55,000 a tonne, and is more than three times the $18,000 a tonne it was six years ago. The mine at South Crofty struggled after the tin price collapsed to about $4,000 a tonne in 1985, where it remained for the next two decades.
It is hoped that the mine could start production in mid-2028 and when fully operational it should produce 4,700 tonnes a year and at an operating cost of $13,400 a tonne, according to Fawzi Hanano, Cornish Metals’ chief development officer. The current investment case has been made with a tin price of $33,900 a tonne, and a mine life of 14 years. But Hanano believes the useful life could be extended well beyond that as mining begins and new reserves are found.
Large-scale mine investments are always fraught with risk for equity investors. The struggles of the Sirius Minerals potash development in North Yorkshire, now owned by Anglo American, live long in the memory.
That said, the opportunity here is not as speculative as it seems — the permits to remove water from the mine are agreed and pumping is well under way. Mining permits are agreed until 2071 and local interests are also aligned, with Cornwall council providing a grant for £4.2 million towards stores and workshop buildings that are due to be completed on site in June. It is hoped the project could directly employ up to 300 people and bring more than 1,000 much-needed jobs to the area.
The next few months will be critical as the project needs to raise a further $161 million, or about £120 million, from investors.
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