What is the Oropesa Tin Project?
Project Overview and Location
Located in Cordoba Province, Andalucia, Spain, the Oropesa Tin Project represents a significant development in European mineral resource security. Owned by Australian mining company Elementos through its Spanish subsidiary Minas de Estaño de España (MESPA), the project is strategically positioned to become the European Union's only mine-to-metal vertically integrated tin operation.
The project's location offers several advantages, including proximity to major transportation networks, established infrastructure, and access to a skilled mining workforce. Andalucia has a rich mining heritage dating back centuries, providing Elementos with favorable conditions for development and community support.
Resource and Reserve Estimates
The Oropesa project boasts impressive resource figures, with a maiden ore reserve estimate of 15.9 million tonnes (mt) at 0.36% tin. This reserve was derived from a previously reported mineral resource estimate (MRE) of 19.6mt at 0.39% tin, representing an exceptional 81% conversion rate from resource to reserve—significantly higher than the industry average for similar projects.
Geological studies indicate that the tin mineralization at Oropesa is predominantly cassiterite (SnO₂), which is ideal for processing as it typically yields higher recovery rates than other tin-bearing minerals. The deposit's relatively consistent grade distribution and near-surface location contribute to favorable mining investment strategies.
What Did the Definitive Feasibility Study Confirm?
Technical and Economic Viability
The recently completed Definitive Feasibility Study (DFS) has comprehensively confirmed the technical, environmental, and economic viability of the Oropesa tin project. This milestone achievement aligns perfectly with recent environmental and mining licence permit applications, establishing a clear development pathway.
The DFS incorporated extensive mining feasibility studies, geotechnical assessments, and environmental studies, all confirming that the project can be developed using conventional mining and processing methods while meeting stringent European environmental standards. Independent technical reviews validated the study's findings, providing additional confidence to potential investors and financiers.
Mining and Production Details
The DFS outlines a 1.4mt per annum open-cut mining operation utilizing conventional drill, blast, load, and haul methods. The operation is expected to produce approximately 3,405 tonnes of contained tin as ingot annually over a 12-year mine life.
The processing circuit will employ gravity separation and flotation to produce a high-grade tin concentrate, which will then be smelted on-site to produce tin metal ingots meeting LME Grade A specifications. This vertically integrated approach minimizes supply chain risks and maximizes value capture.
Over its operational life, the project is expected to generate A$996m ($629.6m) in EBITDA, with an average life of mine (LOM) all-in-sustaining-cost (AISC) of $15,000/t tin metal. This positions Oropesa as a potentially low-cost producer in the second quartile of the global tin cost curve.
Capital and Operating Costs
The DFS details estimated capital costs of €149m ($156m), which includes a conservative 10.4% contingency to account for potential cost overruns. Significantly, approximately 60% of the total capital cost is covered by a lump-sum turn-key price developed in partnership with Spanish engineering and construction firm Duro Felguera.
This early contractor involvement agreement reduces execution risk and provides greater certainty on project delivery timeframes. The capital cost estimate includes all mining equipment, processing plant, infrastructure, and pre-production development costs.
Operating costs benefit from Spain's well-developed infrastructure, reasonable energy prices, and skilled labor force. The project's location within the EU also eliminates potential import tariffs that might affect competing tin supplies from Asia or South America.
How Profitable Will the Oropesa Project Be?
Economic Assessment at Base Case
The DFS economic model uses a long-term London Metal Exchange (LME) referenced tin price of $30,000/t, which is conservative compared to historical 10-year averages. At this base case price, the pre-tax ungeared net present value (NPV) at an 8% discount rate is A$270m, with a pre-tax internal rate of return (IRR) of 26%.
The projected payback period of 2.7 years is particularly attractive for a mining project of this scale, indicating strong cash generation in the early years of operation. These figures assume no debt financing; however, the robust economics suggest that project finance should be readily available on favorable terms.
Sensitivity analysis conducted as part of the DFS shows that the project remains economically viable even with a 20% reduction in tin prices or a 15% increase in operating costs, demonstrating its resilience to market fluctuations.
Economic Assessment at Current Market Prices
When evaluated at the current spot LME tin price of $38,575/t, the project's economics become even more compelling. At this higher price point, the pre-tax ungeared NPV increases dramatically to A$587m, while the pre-tax IRR rises to an exceptional 42%.
The payback period under current market conditions reduces to just 1.7 years, potentially allowing Elementos to rapidly reinvest cash flows into exploration and expansion activities. Industry analysts note that tin prices are likely to remain strong due to growing demand from electronics manufacturing, renewable energy technologies, and advanced engineering applications, coupled with constrained global commodities market insights.
What Recent Developments Support the Project?
Permit Extensions and Regulatory Progress
In March 2025, MESPA secured a crucial extension of its rights over the key Oropesa tin project tenement, reinforcing the regulatory security of the project. This extension builds on the company's existing investigation permit for the area, providing sufficient time to complete all necessary development activities.
The company has recently submitted comprehensive environmental and mining licence permit applications, drawing on extensive baseline studies conducted over several years. These applications reflect the project's design optimizations aimed at minimizing environmental impact while maximizing economic returns.
Spanish regulatory authorities have demonstrated their support for resource development projects that adhere to strict environmental standards and provide economic benefits to local communities. The Oropesa project's emphasis on sustainable mining practices, water management, and community engagement has positioned it favorably in the permitting process.
Regional government officials have publicly acknowledged the project's potential contribution to economic development in an area that has experienced industrial decline in recent decades. This political support, combined with the technical strength of the permit applications, increases confidence in timely regulatory approvals.
What Makes the Oropesa Project Strategically Important?
European Tin Supply Security
The Oropesa project will primarily target the European market for tin supply, addressing a critical vulnerability in the EU's resource security. As the only mine-to-metal vertically integrated tin operation in the European Union, Oropesa will play a vital role in reducing Europe's near-complete dependence on imported tin.
The EU's Critical Raw Materials Act specifically identifies tin as strategically important for European industrial resilience, particularly for the electronics, renewable energy, and defense sectors. Domestic production from Oropesa aligns perfectly with the EU's strategy to reduce dependency on imported critical minerals.
Currently, the EU imports nearly all its tin requirements, predominantly from Indonesia, Malaysia, Bolivia, and Peru. This dependency exposes European manufacturers to supply disruptions, price volatility, and potential geopolitical leverage. The development of Oropesa represents a significant step toward supply chain security for this critical metal.
Beyond simple security of supply, the vertically integrated nature of the operation—from mine to metal—ensures product traceability and compliance with Europe's increasingly stringent sustainability and responsible sourcing requirements. This advantage may command premium pricing from European industrial consumers seeking to demonstrate ESG credentials.
The project also aligns with several mining industry predictions regarding increased emphasis on local sourcing of critical minerals and the implementation of digital mining innovations to optimize operational efficiency.
FAQ About the Oropesa Tin Project
What is the expected annual production capacity?
The project is designed to produce 3,405 tonnes of contained tin as ingot annually over its 12-year mine life. This represents approximately 1% of global tin production but could supply up to 15% of Europe's annual tin consumption, significantly reducing import dependency for this critical metal.
What is the estimated capital expenditure for the project?
The capital costs are estimated at €149 million ($156 million), including a 10.4% contingency. Approximately 60% of this total is covered by a lump-sum turn-key arrangement with Duro Felguera, providing cost certainty and reducing execution risk. The capital intensity of approximately $45,000 per annual tonne of tin production compares favorably with other developing tin projects globally.
How does the current tin price affect project economics?
At the current spot LME tin price of $38,575/t (compared to the base case of $30,000/t), the project's pre-tax NPV increases by over 117% to A$587 million, with IRR rising to 42% and payback period shortening to 1.7 years. Market analysts project continued strength in tin prices due to growing demand from electronics and renewable energy sectors, coupled with limited new supply coming online globally.
What is the project's timeline for development?
While specific development timelines weren't provided in the source material, the company has recently submitted environmental and mining licence permit applications, indicating the project is advancing toward the development phase. Based on typical permitting timeframes in Spain, construction could potentially begin within 12-18 months, with first production approximately 24 months after construction commences. This timeline positions Oropesa to potentially begin supplying the European market by 2028, coinciding with projected supply deficits in global tin markets.
Want to Profit from the Next Major Mineral Discovery?
Don't miss out on potential investment opportunities like the Oropesa Tin Project—subscribe to Discovery Alert's proprietary Discovery IQ model for instant notifications when significant ASX mineral discoveries break. Explore how historic discoveries have generated substantial returns by visiting our dedicated discoveries page and begin your 30-day free trial today.
