Venture Minerals is planning to start tin production, from its Mount Lindsay project in Tasmania in 2013, as increased tin prices have resulted in market demand.

Venture Minerals managing director Hamish Halliday told Reuters that the firm is in talks with Chinese smelters that could lead to a supply offtake agreement with respect to mine development and provide up to $160m in construction costs.

“There’s a sweet spot in the tin market between now and around 2020, when little new supply in the world will come online,” Halliday said.

To support development of the mine, iron and copper will be produced as by-products to tin.

The mine will produce about 2,500t of tin a year and will have an expected mine life of eight years.