When the Mine Goes Dark: How Conflict in Congo is Rewriting the Tin Market

When the Mine Goes Dark: How Conflict in Congo is Rewriting the Tin Market

Mar 25, 2025

In early March, Alphamin Resources—the operator of the world’s most productive tin mine—announced the suspension of operations at its Bisie mine in eastern Democratic Republic of Congo (DRC). The decision followed the rapid advance of the M23 rebel group into North Kivu province, placing the mine within an active conflict zone. While the humanitarian consequences are significant, the suspension also triggered immediate dislocation in the global tin market—both in terms of price and supply chain continuity.

The Bisie mine accounted for approximately 6% of global tin production in 2024 and was expected to exceed 20,000 tonnes in 2025. Its closure pushed tin prices on the London Metal Exchange to nearly $36,000 per tonne, with traders pricing in fears of prolonged supply disruption in an already tight market.

A Critical Supply Disruption in a Fragile Market

Tin is a cornerstone of modern electronics and renewable technologies, primarily used as solder in circuit boards and photovoltaic cells. While it receives less attention than lithium or copper, its role in the global manufacturing system is no less critical. What makes the current situation particularly acute is that the tin supply chain is geographically concentrated and increasingly exposed to geopolitical instability.

Beyond Congo, Myanmar—another major supplier—has seen its output constrained due to internal conflict and regulatory crackdowns. Indonesia has tightened export regulations. China, despite being a leading refiner, is increasingly reliant on imported concentrate. These dynamics have left the market vulnerable to single-point disruptions—and Bisie has proven to be one.

Corporate Risk Management: From Reactive to Strategic

The current crisis is accelerating a shift in how companies manage commodity risk. Where tin was once treated as a relatively stable industrial input, it is now being reevaluated through the lens of geopolitical exposure, logistics fragility, and long-tail disruption scenarios. Companies across the electronics, manufacturing, and clean tech sectors are responding in several key ways:

  1. Hedging Price Risk

    With tin prices spiking and volatility increasing, firms with direct exposure to tin costs—such as electronics manufacturers and solder suppliers—are expanding their use of futures and options contracts to lock in input costs. While traditional hedging was once reserved for large metals traders, more mid-market firms are now adopting structured hedging programs to gain predictability in a volatile environment.


  2. Diversifying Supply Sources

    Procurement teams are actively searching for secondary or alternate sources of refined tin and tin concentrate. Some are turning to smaller producers in South America, while others are looking to recycling streams. However, these alternatives are often limited in volume and higher in cost, underscoring the market’s structural fragility.


  3. Inventory and Stockpile Strategies

    In contrast to the lean, just-in-time inventory models that have dominated global manufacturing for decades, many firms are now building “strategic inventories” of key inputs like tin. While this ties up working capital, it provides a buffer against near-term shocks—especially when logistical or political risks are difficult to forecast.


  4. Supply Chain Mapping and Scenario Planning

    More firms are investing in deeper visibility across their upstream supply chains, including mapping not just Tier 1 suppliers but also smelters and miners. Advanced scenario planning—integrating geopolitical risk data—is becoming a core function within supply chain and procurement departments.


  5. Localization and “Friendshoring”

    Long-term responses include reshoring or “friendshoring” production closer to politically stable and allied nations. For example, the UK’s investment in reviving the South Crofty tin mine in Cornwall—backed by nearly £29 million in public-private capital—is part of a broader European strategy to reduce dependency on politically unstable regions.

A Broader Recalibration of Commodity Risk

The implications of the Bisie shutdown extend well beyond tin. It has become a vivid case study in how localized geopolitical instability can cascade into global economic disruption. In this environment, risk management is no longer just about price—it is about continuity of access, strategic resilience, and the ability to adapt in real time.

Firms that previously relied on stable and opaque commodity supply chains are now embracing a more sophisticated and proactive approach. Commodity risk is being reframed not as a cost center, but as a strategic competency—one that combines financial tools, real-time intelligence, and operational flexibility.

Conclusion

The conflict in Congo has once again made visible the fragile threads that bind global markets to local realities. Tin, a metal most consumers never think about, is now at the center of a broader rethink in how companies—and even governments—manage critical inputs in a world shaped increasingly by geopolitical volatility.

What’s emerging is a new paradigm: one where commodity markets are not just shaped by supply and demand, but by war, regulation, and strategy. In this context, risk management is no longer optional. It’s existential.

As companies reevaluate their exposure to critical materials like tin, the need for automated, intelligent hedging solutions has never been clearer. That’s where Pillar comes in—helping businesses quantify their commodity risk, design tailored hedging strategies, and execute trades automatically, so they can stay resilient in the face of global shocks like this one.

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Disclaimer:
Commodity Interest Trading involves risk and, therefore, is not appropriate for all persons; failure to manage commercial risk by engaging in some form of hedging also involves risk. Past performance is not necessarily indicative of future results. Stratos Labs, Inc. is a registered Commodity Trading Advisor (CTA) and a member of the National Futures Association.

Pillar

We're proud members of

©2024 Stratos Labs Inc.

Disclaimer:
Commodity Interest Trading involves risk and, therefore, is not appropriate for all persons; failure to manage commercial risk by engaging in some form of hedging also involves risk. Past performance is not necessarily indicative of future results. Stratos Labs, Inc. is a registered Commodity Trading Advisor (CTA) and a member of the National Futures Association.

Pillar

We're proud members of

©2024 Stratos Labs Inc.

Disclaimer:
Commodity Interest Trading involves risk and, therefore, is not appropriate for all persons; failure to manage commercial risk by engaging in some form of hedging also involves risk. Past performance is not necessarily indicative of future results. Stratos Labs, Inc. is a registered Commodity Trading Advisor (CTA) and a member of the National Futures Association.