Tantalum Scrap: Profit Below the Radar
Recycling can do more than save the environment... at least when tantalum is involved. In this industry scrap can mean profit.
Recycling can do more than save the environment... at least when tantalum is involved. In this industry scrap can mean profit.
Motorola Solutions, Inc. (NYSE:MSI) reports it has launched a project to source conflict-free tantalum from the DRC.
The re-opening of the Wodgina tantalum mine in Australia by Global Advanced Metals is a major development in the tantalum market. Also, the EU mulls over its own version of the Conflict Minerals Act.
A lot of attention was focused on conflict minerals sourced from the Democratic Republic of Congo. This attention focused investors on the growth potential in this market. Prices have been growing on strong physical demand, and the reduction of supply from Congo. The outlook for tantalum is strong in 2011.
The supply of tantalum from non-conflict sources is stretched thin. Prices may rise as increased demand for electronics pushes electronics manufacturing companies' stockpiles to the limit. Tantalum prices have already jumped over the last year, and may continue their rise by 50 percent through 2011 as scrap for the metal is running out.
In an exclusive interview with Tantalum Investing News, Mike Davis of Global Witness explains the humanitarian conditions on the ground in the Democratic Republic of Congo, and the steps needed to ensure the security of civilians and an end to ‘conflict minerals’ exploitation in the region.
Recent reports on the global electronics industry show steady growth continuing in 2010 and onwards as emerging economies drive demand for electronic products.
The largest application for tantalum is in the electronics capacitor industry, totaling approximately 68 percent of global demand. Although tantalum consumption in the United States in 2009 was estimated to decrease by about 5 percent from the previous year, a large manufacturer of passive electronic components sees a very strong demand for tantalum caps in general, but in particular for the tantalum net capacitor.
Tantalum miner Noventa (AIM:NVTA) announced this week that its sidelined Marropino mine in Mozambique will once again be churning out tantalum concentrate.
The global economic downturn has disrupted the supply/demand fundamentals in the tantalum market in a way that may prove very beneficial to junior miners operating in conflict-free zones.
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