Elementos Locks in €3.6M Option for Half of Spanish Tin Smelter

Strategic Acquisition Advances EU Tin Supply Chain

Elementos Limited (ASX – ELT) has taken a decisive step towards establishing a fully integrated tin supply chain within the European Union by executing a binding five-year option agreement to acquire up to 50% of Iberian Smelting SL. This Spanish company owns and operates the Robledollano Tin Smelter, located in Extremadura, approximately 220 kilometres from Elementos’ Oropesa Tin Project.

The €3.625 million deal, structured with phased payments and subject to conditions precedent, positions Elementos as a pioneer in the EU’s primary tin production landscape. By integrating mining and smelting operations, Elementos aims to become one of the few global companies capable of delivering mine-to-metal tin, a significant value-add in a market traditionally reliant on Asian smelters.

Operational and Environmental Advantages

The Robledollano facility is currently operational and fully licensed to process tin, lead, antimony, and silver. It is undergoing substantial upgrades to its smelting and refining equipment, which are critical conditions for the finalisation of the acquisition. These enhancements are expected to increase throughput capacity to at least 12,000 tonnes of tin concentrate annually and improve the purity of refined tin ingots to 99.99%.

Importantly, this localised smelting solution significantly reduces the environmental footprint and costs associated with shipping tin concentrate to Asia for processing. The proximity to the Oropesa mine and the ability to supply European and North American markets directly aligns with growing regulatory and sustainability demands, including the EU’s Critical Raw Material Act, which encourages domestic production and recycling of critical minerals.

Market Implications and Premium Pricing

Elementos’ Managing Director Joe David highlighted the strategic importance of this deal, noting the premium European and North American buyers pay for refined tin ingots sourced closer to home. These markets currently offer delivery premiums ranging from US$900 to US$1,450 per tonne above London Metal Exchange prices, reflecting a preference for reliable, lower-carbon supply chains.

The partnership with CRM Synergies, the majority owner of Iberian Smelting, also brings synergies in recycling and downstream processing, enhancing Elementos’ position in the circular economy. CRM’s established customer base in automotive, aerospace, and electronics sectors complements Elementos’ mining operations, creating a vertically integrated platform that could capture more value across the tin supply chain.

Governance and Future Outlook

The shareholders’ agreement includes detailed governance provisions to manage decision-making and potential deadlocks, reflecting a balanced partnership between Elementos and CRM Synergies. The phased option structure provides Elementos with flexibility to complete due diligence and regulatory approvals before fully committing to the acquisition.

Looking ahead, the successful integration of the smelter with Elementos’ mining operations could set a new benchmark for sustainable and secure tin supply in Europe. However, the final acquisition hinges on completing equipment upgrades and securing all necessary permits, milestones that will be closely watched by investors and industry observers alike.