TANTALUM

Tantalum concentrate

Pure tantalum is characterised by its high melting point, its exceptional resistance to chemical attack, its capacity to store and release electrical charge and its corrosion resistant properties. These unique properties have led to its widespread use in the electronics and aeronautics industries and in the making of specialist surgical appliances.

The main use of tantalum is in the manufacture of electrolytic capacitors, used in mobile phones, laptop computers, still and video cameras, automotive electronics and sophisticated high performance electronic devices. Additional uses are found in super alloys for turbine engines, precision optical lenses and high temperature applications.

The major producers of tantalum concentrate are Australia, Brazil and Canada. The world’s largest tantalum mine is Wodgina in Australia with annual production capacity of 1.3 million lb of Ta₂O₅ followed by smaller mines in Brazil, Canada, Ethiopia and China with individual annual production capacity ranges of 100,000 – 200,000 lb of Ta₂O₅. Total annual primary production for 2007 is estimated to have been about 3.2 million lb of Ta₂O₅.

Tantalum is not traded on a recognised trading exchange like other metals and commodities, and generally a contract price is established by negotiation of an off-take agreement between producer and consumer based on product specification, volume and contract duration. Historically the contract price has been higher than the spot price. Tantalum consumption has grown at a compound rate of 5% pa since 1990 and is expected to continue growing at between 4 - 6% pa for at least the next five years. Expansion plans by existing producers and known new development projects are not sufficient to meet the growth in demand and it is expected that the price of tantalum will continue to strengthen. The spot price for tantalum concentrate increased from $30 in January 2007 to the current level of around $45 per lb.

A significant portion of Noventa’s Marropino production is accounted for in terms of a long-term off-take agreement.