Mynanmar emerges as new tin frontier as Indonesia loses ground

Myanmar is emerging as the new frontier in the tin industry as Indonesia, the biggest exporter, seeks to restrict supply and boost prices.

Output in Myanmar will rise 12 per cent to 28,000 tonnes next year, giving it 10 per cent of the global market, according to ITRI, a British-based industry group.

Tin has retreated 13 per cent on the London Metal Exchange this year, the biggest loser on the bourse, as supplies increased even after Indonesia tightened rules on exports.

The glut will persist until 2016, with rising shipments from Myanmar and elsewhere thwarting Indonesia's efforts to raise prices, according to Macquarie Group.

Production would keep increasing partly because Myanmar Pongpipat planned to expand its Heinda mine, in Tanintharyi, in the south of the country, managing director Kriangkrai Chavaltanpipat said.

"Myanmar is the new tin frontier as the spotlight will shift from Indonesia," he said. "Five years ago Myanmar exported so little to China, but that has changed significantly in the past two years. We've seen more and more Chinese investment after Indonesia tightened its regulations."