Elementos acquires stake in Spanish tin smelter to build EU supply chain

Elementos Limited has entered a binding agreement to acquire a 50 per cent stake in Iberian Smelting SL, operator of Spain's Robledollano tin smelter, in a deal that aims to establish a vertically integrated supply chain for the critical mineral within the European Union.

Deal Structure

The Australian mining company will acquire its interest through a five-year option agreement valued at €3.625m. The transaction positions Elementos to bypass Asian processing routes, directly supplying refined tin to European and North American markets where premium prices have emerged for locally processed materials.

Strategic Rationale

The acquisition reflects growing efforts by western companies to establish regional supply chains for critical minerals, reducing dependence on Asian processing infrastructure. By integrating smelting operations with its mining activities, Elementos seeks to lower transportation costs and environmental impacts associated with shipping tin concentrate to Asia for refining before re-export to western markets.

European and North American buyers have demonstrated willingness to pay premium prices for tin processed within allied jurisdictions, driven by supply chain security concerns and environmental, social and governance considerations.

Market Position

Elementos, which operates in the mining and metals sector with a focus on tin production, has seen its share price rise 235.7 per cent year-to-date. The company currently carries a market capitalisation of A$69.35m. Analyst coverage on the stock includes a buy rating with a price target of A$0.30.

Tin remains classified as a critical mineral by major economies due to its essential role in electronics manufacturing and renewable energy technologies, with supply concerns intensifying amid geopolitical tensions.