Sea Minerals Limited (SML) is an offshore tin mining company with 99.99% control and working interest held by THL. Currently, SML has a large offshore lease area under Mining Lease Application (MLA). The Application area is in the Andaman Sea about 30 km off the Phangna coast, north of Phuket Island.
The MLA covers an area of approximately 8,000 hectares and contains around 163 million cubic meters of cassiterite (tin oxide) bearing sediments. Based on extensive exploration results, the quantity of contained tin has been estimated at around 41,460 tons at a cutoff grade of 0.15 kg cassiterite per cubic meter, making it one of the largest unexploited tin deposits in the world.
Mining of the deposit is considered technically viable by a leading world class dredging company based on recent advances in technology for deep-water mining up to 150 meters depth. Also, the Ministerial Regulation on Tin Royalty rates has confirmed a lower Tin Royalty rate of about 6%. At today’s price of USD 17,200 per ton, which would definitely provide a healthy return to SML.
Key Project Data
Location |
Approximately 25 km. offshore in the Andaman Sea off the Phangna Coast |
Water Depth |
61 m. averaging (Range 40 m to 70 m) |
Sediment Thickness |
Average 3.3 m. (Range 1 m to 12 m) |
Cut off Grade |
0.15 kg cassiterite per cubic meter |
Average Grade |
0.25 kg cassiterite per cubic meter |
Volume of Sediments |
163 million cubic meters |
Area of mining Leases |
8,000 Hectares |
Contained Tin |
41,460 Tonnes (depending on cutoff) |
Present Tin Price @ 29th Feb 2008 |
USD 18,695 per tonne |
Target Annual Tin Production |
4,000 Tonnes |
Operating Methods
Current mining plans are to use large pumps fitted with externally mounted cutter agitators. The pumps are electrically powered and are mounted on remotely controlled crawler units, or positioned and moved by cranes mounted on the dredging vessel. The dredged ore would then be transported to a floating heavy mineral concentration plant utilizing a series of screens and jigs applying gravity concentrating methods to extract the tin minerals. No chemicals would be added to the natural environment in this process.
The heavy mineral concentrate will be periodically transported to a shore based separation plant where the cassiterite, and other economically mineral sand types such as rutile, ilmenite, monzanite, and zircon, would be concentrated separated out. The concentrates would then be shipped for refining.
The dredging & concentrating plant will work for around 250 days per year as . dredging cannot be safely done during the monsoon season. The operating crews will be accommodated on a separate vessel.
Potential
With production at 2,000 tonnes per year (per operating dredge) of contained tin, and a value of (USD) 17,200 per tonne, gross revenue would be (USD) 28,000 per year. With annual operating costs estimated at about (USD) 11,000, revenue before taxes would be about (USD) 17,000 per year, and with mine life expectancy of at least 12 years. Given the buoyant tin prices which are expected to remain high for the foreseeable future, (as well as for related accessory minerals), the project is financially attractive for the Company.
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