Stonehenge suspends tin operation

A sharp fall in the tin price has forced West Perth-based Stonehenge Metals to suspend its operations in Tasmania and review exploration activities.

The company has placed its Heemskirk tin treatment facility on care and maintenance in light of the deterioration in tin and base metal prices and ongoing uncertainty in capital markets.

On the London Metal Exchange, the spot price of tin last traded at around $US15,145 per tonne, off its highs reached earlier this year of around $US25,000/t.

Stonehenge said operations issues at the facility was also a factor.

"The commissioning of the Heemskirk treatment plant has been frustrated by ore handling problems, relating to feeding the wet clay ore into the plant, which necessitated the blending of Granville ore with low grade alluvials and tailings," Stonehenge said.

"Installation of a new feed bin at the end of October has improved ore handling however the directors believe that further processing is not warranted given the current tin price and economic conditions."

The directors said it will continue to evaluate the company's options regarding the project.

Shares in Stonehenge were steady at four cents at 15:00 AEDT.