Tantalum deficit, electronic devices may cost more
2009-06-18 13:55:00
Commodity Online
BRITISH COLUMBIA: The cost of cellphones, laptops, digital cameras, airbags and other electronic devices may go up – as one of the rare metals, tantalum, used in micro-electronic capacitors is in short- supply worldwide.
Tantalum is also used for specialty applications in the aerospace, medical (trabecular, metal implants) and nuclear power industries. Tantalum is a specialty metal that has the highest capacitance (ability to hold and release electricity) known to science.
Demand for tantalum has increased at the rate of 5% since 1990 as more micro-electronic devices are being consumed by expanding global economies. Tantalum supply has been under stress during the past six months as the three largest suppliers have either shut down or exhausted their supplies. This includes Talison from Australia which suspended its Wodgina operations due to rising production costs, Noventa in Mozambique and The United States Defense Logistics Agency, the second largest supplier of tantalum (2001-07, 500,000 pounds per year).
Since most of the world’s supply has been shut out, the majority of tantalum is now coming from the Democratic Republic of Congo where it is mined as “coltan,” produced in unethical and inhumane ways, and the profits of which fund the ongoing wars that have plagued the country for years.
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Another rare metal, Niobium, is also in short supply. It is used as an alloy in the production of steel and super alloys. It is used, for example, in the construction of bridges, buildings and oil and gas pipelines.
The significant deficit in tantalum and niobium is encouraging firms like Canadian-based Commerce Resources Corp. to develop new sources of supply of these rare metals. Commerce, now exploring for tantalum and niobium in central British Columbia informed Commodity Online that considerable progress has been achieved by the company at its Blue River project. “Commerce’s Blue River project is in the development stage and we are working towards becoming a stable, ethical and reliable source of tantalum supply for the world market.” the company said.
The Blue River project is a 1000 sq km property located 10 km north of the town of Blue River which was acquired by Commerce Resources in 1999. It is prospective for carbonatite hosted niobium and tantalum mineralization. Currently, Australia accounts for 30% of primary production of tantalum while Africa accounts for 37%, Brazil 14%, Canada 4%, Russia 3% and China 8%. Pricing of tantalum and niobium is normally established in long-term contracts between miners and processors. Current market volatility has not affected the long-term contracts. Current prices are: concentrate US $60/lb, Tantalum oxide (K2TaF7) US $140/lb, capacitor-grade tantalum power US $350-$400/lb.
