“Is Cornish Metals making the right move by focusing on South Crofty and stepping back from Nickel King? Let’s dive into the details to understand the strategic decision behind this shift in priorities.
In a strategic move, Cornish Metals has decided to shift its focus from the Nickel King nickel-copper-cobalt asset to South Crofty, while still keeping an eye on the potential future success of Nickel King. The recent results of a preliminary economic assessment (PEA) for the UK project have shed light on the value of South Crofty, being one of the highest-grade tin resources globally, estimated to be worth over $200 million.
The calculation was based on a tin price of $31,000 per tonne, which is slightly lower than the current valuation of $32,408 per tonne. This decision seems to be a strategic one, aligning with the company’s goals and objectives moving forward.
Reviving South Crofty
South Crofty tin mine, located in the UK, has been a key focus for Cornish Metals since 2016. This former operation, which ceased production in 1998 after more than 400 years of continuous operation, holds significant historical and economic value. Despite several attempts by different companies to revive the mine between 2001 and 2013, poor market conditions led to the assets being put into administration.
Cornish Metals’ plans to reopen the historic mine include building new processing facilities and necessary site infrastructure. With permissions in place for underground mining until 2071 and environmental permits for dewatering the mine, the company is making strides towards revitalizing this critical tin resource.
Tin holds a significant place on the UK’s critical metals list and is recognized for its importance by various governments, including those in the European Union, the US, and China. The strategic focus on South Crofty aligns with the growing importance of tin as a vital resource in the global market.
Conclusion
As Cornish Metals shifts its focus to South Crofty and plans for the reopening of the historic tin mine, the company is strategically positioning itself in the market. By recognizing the value of tin as a critical resource and the potential for success at South Crofty, Cornish Metals is making calculated decisions for its future growth and sustainability.
It will be interesting to see how this strategic move plays out in the coming years and how it impacts the company’s overall success. Only time will tell if this shift in focus proves to be the right decision for Cornish Metals in the long run.”
