News

Geopolitical risks of tin
In a world increasingly dependent on technology and innovation, tin plays an important role, especially in the electronics and technology sector. Its presence is indispensable in a wide range of products, from everyday electronic devices to critical components in communication infrastructures and renewable energy systems.

Despite its unrivalled and irreplaceable value, the global tin market is remarkably small. This combination of factors underscores the urgent need for new, responsible sources of production to meet ever-increasing demand.

In this context, let us look at some of the key points regarding tin’s geopolitical risks.

Tin’s role in technology and electronics
Tin plays an indispensable role in the electronics industry, being mainly used in soldering to connect components on circuit boards. This function is crucial for the assembly and functionality of a wide range of devices, from smartphones and computers to sophisticated data storage systems. Tin-based solders ensure secure electrical connections, critical to the reliability of devices and the overall efficiency of the technology industry.

World tin production and main mining regions
Tin production is highly concentrated in regions such as China, Indonesia and Peru, which poses significant geopolitical risks to its supply chain. Over-reliance on these geographic areas increases vulnerability to political disruptions, trade conflicts or natural disasters that could negatively affect global tin supply.

In recent years, China has been the largest producer, with major mining operations in Yunnan province. Indonesia, particularly the Bangka and Belitung islands, is another important source, despite facing environmental and social challenges due to intensive mining activities. Peru also contributes significantly to the global tin supply.

Production statistics and trends
World tin production has been increasing, with China and Indonesia contributing significantly to this increase. For example, in 2006, China produced around 114,300 metric tonnes of tin, while Indonesia produced approximately 117,500 metric tonnes. Other major producers such as Peru and Malaysia contributed 38,470 metric tons and 2,398 metric tons, respectively. These figures underline the concentration of tin mining activities in Asia and South America.

Environmental and social considerations
Tin mining has a significant impact on the environment and local communities. Problems such as land degradation, deforestation and water pollution are common in major tin mining areas. In Indonesia, tin mining has led to ecological disruption, affecting both terrestrial and marine environments. Social implications include labour challenges and impacts on the livelihoods of local communities, especially in regions dependent on artisanal mining.

Applications beyond electronics soldering
While soldering in electronics is a primary use of tin, its applications are diverse. Tin is used in various alloys, corrosion-resistant coatings and in the production of window glass. The metal’s properties, such as its malleability, corrosion resistance and non-toxic nature, make it suitable for a wide range of industrial and technological applications.

In short, tin plays a fundamental role in the technology and electronics industry, being essential for the manufacture of a wide variety of devices and systems.

As such, its highly concentrated production in a few regions of the world, coupled with the environmental and social challenges associated with tin mining, poses significant risks to the stability of global supply. Given this reality, it is imperative to promote responsible mining practices and seek diversification of supply sources to mitigate geopolitical risks and ensure sustainable access to this vital resource.

Source: McClintock Group