Executive Interviews

Asian Metal: Hello, Paulo. Welcome to our interview. Please give us a brief introduction to your company.

Paulo: White Solder is a South American refined tin and solder producer based in Brazil, which expanded in 2020 to an installed capacity of 7,200t of tin per year. Founded in 2001, our operations are fully integrated — processing cassiterite tin ore into tin ingots and then into a range of alloy products, mainly solders. We operate plants in Ariquemes, Ribeirao Preto, and the Manaus Free Trade Zone. LME-branded tin, as well as certified tin alloy and solder products, are supplied to international markets.

Asian Metal: What are the main raw materials for tin ingot production in Brazil, and where do they come from? As a resource-rich country, could you please introduce Brazil’s tin ore reserves, regional distribution, grades, and other key indicators?

Paulo: In Brazil, 90% of the raw materials fed into smelters are tin concentrates, while the remaining 10% come from secondary sources provided by cooperative recycling plants — including tin slag from tinplate production, electronic solder slag, and so on. As for the sources of concentrates, they can be divided into four major categories: the CEMAL cooperative in Rond?nia accounts for 55%; small sand mines in Mato Grosso contribute 23%; long-term deposits in the Pitinga mining area in Amazonas make up 12%; and the remaining 10% comes from the Vuanuni mine in Bolivia. According to the latest USGS data, China currently holds 540,000t of tin reserves, accounting for 9.6% of the global total and ranking fourth in the world. Specifically, Rond?nia is dominated by alluvial and tailings deposits, with reserves of 310,000t and grades ranging from 0.2% to 0.9%. The Pitinga rock-type deposit in Amazonas holds 180,000t with an average grade of 0.195%; the quartz vein type in Minas Gerais has about 40,000t with grades between 0.3% and 0.5%; and the residual type in Mato Grosso contains about 10,000t with grades of 0.4%–0.6%. The current national average beneficiation recovery rate is 58%, with 55% in Rond?nia and 68% in Pitinga. The average cash cost is approximately USD 9,400/t of tin — lower than that of San Rafael in Peru but slightly higher than that of Vuanuni in Bolivia.

Asian Metal: What are the current challenges in raw material supply in Brazil, and how can they be addressed?

Paulo: It is undeniable that we face several prominent challenges. First, high-grade alluvial ores are depleting. The average grade in Rond?nia has fallen from 0.9% to 0.35% over the past ten years, and national concentrate production has declined by 4.2% annually. Second, the recovery rate of fine tailings is low — the recovery rate of -20 micron cassiterite is only 32%, and tailings dams still contain around 0.12% tin. Third, the environmental permitting cycle is lengthy — about 38 months, which is 14 months longer than for copper projects in Chile. Fourth, logistics costs are relatively high. The distance from Rond?nia to Manaus is 1,650 km, and the freight cost of concentrate is USD23/t, accounting for about 9% of the selling price. To address these bottlenecks, we have developed a systematic approach. First, the Masangana tailings reprocessing project, in collaboration with Oxico, will be launched in the fourth quarter of 2024, with an annual processing capacity of 2 million tonnes of tailings and metal output of 2,600t, targeting a 55% recovery rate. Once in full operation by 2026, it will cover 30% of our concentrate demand. Second, we are jointly constructing a 1,000-ton-per-day fine flotation pilot plant with CEMAL, expected to increase the overall recovery rate to 68% and yield an additional 650t annually. Third, starting in 2025, 35% of concentrates will be transported by water from Rondonia to Santa Rea, reducing freight costs by USD3.3/t. Finally, we have applied to ANM to be included in the “SLUP 2.0” pilot program, which aims to shorten permit approval times to within 24 months by 2026.

Asian Metal: What is Brazil’s refined tin production in 2024, and what is your projection for the next three years?

Paulo: In 2024, Brazil’s refined tin production reached approximately 19,800t, an increase of 10%. Of this, we contributed 4,300t. Looking ahead, as tailings reprocessing and production expansion at the lower part of the Pitinga formation come online, we expect national output to grow at a compound annual rate of 6.8% from 2025 to 2027, reaching 24,200t by 2027. Brazil’s global market share will thus increase from 5.2% to 6.0%. For us, the goal is to raise our total self-production and processing volume to 7,500t by 2027, increasing our market share from 2.2% to 3.1%.

Asian Metal: What proportion of tin ingots is consumed domestically in Brazil? What are the current constraints, and what policies has the government introduced to boost consumption?

Paulo: Last year, domestic consumption of tin ingots in Brazil was only 2,950t — just 14.9% of national production, far below the global average of 42%.

The main constraints are threefold. First, the continued outflow of electronic assembly capacity: the value of printed circuit board components has declined by an average of 3.2% annually over the past decade, and 40% of production lines in S?o Paulo State have relocated to Mexico and Vietnam.

Second, domestic interest rates remain high — lending rates in Brazil are still around 10.5%, with financing costs for electronics firms at 14%–16%, which discourages raw material stocking. Third, the lead-free transition is lagging: the local penetration rate of Sn-Ag-Cu alloys is only 58%, compared to 78% in China and 85% in the EU. To reverse this situation, the government passed a bill in March this year granting a 5% tax rebate for domestic solder and tin chemical products and establishing a low-interest loan fund of USD 150 million. This is expected to drive average annual domestic demand growth of about 8% from 2026 to 2028. In addition, the “Solar-2035” photovoltaic plan aims to install 30 gigawatts of capacity, with solder strip consumption of 0.42t per gigawatt, corresponding to about 640t of additional tin demand.

Asian Metal: Which countries are the main destinations for Brazil’s tin ingot exports? How does Brazil compare with other South American tin producers such as Peru and Bolivia?

Paulo: In 2024, our exports totaled 16,800t, with the main destinations being the United States (38%), the Netherlands (22%), China (13%), Japan (10%), and South Korea (7%). Compared with neighboring countries, Brazil’s main advantages lie in the longevity of its resources — the Pitinga mine can continue operating for another 31 years, significantly longer than the San Rafael mine in Peru (8 years) or the Vuanuni mine in Bolivia (10 years). Secondly, product quality: the “WS-99.97” brand of the White Solder Group contains less than 70 ppm of iron impurities, superior to Bolivia’s mainstream 99.90% grade. Thirdly, our ESG performance is outstanding — we rely entirely on hydropower, and our Scope carbon emissions of tin are only 1.1 tons of CO?/t, representing just 38% of Peru’s average. Of course, there are also disadvantages: freight costs from northern Brazil to China are USD 32/t, higher than USD 26/t from Peru’s Callao Port; and exchange rate volatility — the real fluctuated by ±21% last year, raising hedging costs for long-term orders by USD 25–30/t. These factors make Brazilian tin ingots slightly more expensive than those from Peru and Bolivia.

Asian Metal: Your company also operates downstream soldering plants. Where is most of the consumption located, and what is your outlook for solder demand in Brazil?

Paulo: Our soldering factory in Ubeba, Sao Paulo State, has an annual capacity of 6,500t — including 4,800t of tin-based products, 3,900t of lead-free, and 2,700t of lead-based solders. In 2024, we sold 5,200t, with 72% supplied to local electronics and automotive wiring manufacturers in Brazil, and 28% exported to Mexico and Argentina. Looking ahead, three major drivers will continue to support demand. First, in the automotive electronics sector, Brazil’s electric vehicle production is expected to grow at a compound rate of 28% from 2025 to 2028, with each vehicle requiring 0.38 kilograms of solder — bringing about 450t of additional annual tin demand. Second, the photovoltaic installation target of 30 gigawatts will create demand for 640t of solder. Third, starting in 2026, the national mandatory lead-free standard will be implemented, raising the penetration rate of Sn-Ag-Cu alloys from 65% to 85%, while the adoption of high-silver formulations will further amplify demand. Our goal is to achieve solder sales of 7,000t by 2027, maintaining a market share of around 35%.

Asian Metal: Please share your forecast for tin prices in the second half of this year.

Paulo: Overall, the probability of the Federal Reserve cutting interest rates by 25 basis points in September has reached 78%. A weaker U.S. dollar generally supports precious metals. From a fundamentals perspective, tin production in Myanmar’s Wa State remains constrained, with annual mine output expected to fall by 12,000t. Although the RKAB approval process in Indonesia has accelerated, exports during June–August fell by 15% month-on-month due to the rainy season, and total refined tin exports for the year may reach only 51,000t — down 6% year-on-year. At the same time, global semiconductor sales rose 18% year-on-year in June, and new photovoltaic capacity is expected to reach 390 gigawatts, keeping solder demand strong. Therefore, our base forecast is that the mid-price in Q4 2025 will be around USD36,000/t, within a range of USD33,000-39,000/t.

Asian Metal: Please introduce the company’s plans for this year.

Paulo: In 2025, we have set four measurable goals. First, refined tin output will reach 5,000t — up 16% year-on-year — while the self-sufficiency rate for tin concentrate will rise from 8% to 18%. The Masangana tailings project will contribute 1,200t of metal. Second, in terms of investment, we plan to invest USD 32 million in the second phase of the tailings reprocessing plant, which will double annual processing capacity to 4 million tonnes once it starts operation in Q1 2026. Meanwhile, USD 800,000 will be allocated to upgrade the Ubereba soldering line, adding 1,200t of lead-free rods and wire capacity, scheduled for production in Q4 2025. Third, on the ESG front, we will release our first compliant carbon disclosure report in December, reduce Scope 1+2 emissions by another 5%, and launch a dry-tailings discharge system to raise water recycling rates to 85%. Fourth, on the market side, the sales target for solder products is 6,000t, increasing our market share in Brazil from 28% to 32%, while continuing to expand distribution in Mexico and Central America.

Asian Metal: Thank you, Paulo, for sharing your insights. We wish your company continued success.

Paulo: Thank you, Asian Metal.