Toyota Tsusho Corp. (8015), the trading house part-owned by Toyota Motor Corp. (7203), Japan’s largest automaker, plans to buy a stake in the Achmmach tin project in Morocco from Kasbah Resources Ltd. (KAS), the two companies said.
Toyota Tsusho has an option to acquire as much as 20 percent of the project, Kasbah said in a filing to Australia’s main stock exchange today. The company will pay a total of A$16 million ($16.9 million) after signing the agreement and completing a pre-feasibility study, Kasbah said.
Tin has gained 19 percent this year, the best performer among six base metals on the London Metal Exchange, after declining 29 percent last year. The metal fell 1.9 percent to $22,810 a metric ton at 11:11 a.m. in Tokyo.
“We aim to secure stable supplies from mines in a market that is facing concerns of a shortage,” Toyota Tsusho spokesman Morimasa Konishi said today. The company expects the project to produce 10,000 tons of concentrate a year, he said.
Toyota Tsusho trades about 8 percent of the global tin market and more than 50 percent of all tin consumed in Japan, the filing said.
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