niobium market outlook to 2017

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Niobium: Market Outlook to 2017

Twelfth Edition, 2013

Copyright © Roskill Information Services Ltd. ISBN 978 0 86214 592 7

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Table of Contents

Page

1. Summary 1

2. Introduction 5

2.1 Properties of niobium 5

2.2 Occurrence of niobium 6

2.3 Reserves and resources of niobium 7

2.4 Mining and processing of niobium minerals 8

2.5 Processing of niobium products 11

2.5.1 HSLA-grade ferroniobium 11

2.5.2 High-purity niobium oxide 13

2.5.3 Vacuum-grade ferroniobium and nickel-niobium 15

2.5.4 Niobium metal, alloys and intermediates 15

2.5.5 Other niobium compounds 17

2.6 Production costs 19

3. World supply of niobium to 2012 21

3.1 Niobium minerals 21

3.2 HSLA-grade ferroniobium 22

3.3 Other niobium products 23

4. Summary of niobium producers, processors and projects 25

4.1 Mine producers 25

4.2 Processors 28

4.3 Potential new sources of niobium supply 29

5. Review of niobium production, processing and projects by country 33

5.1 Angola 33

5.2 Argentina 33

5.3 Armenia 33

5.4 Australia 33

5.4.1 Niobium resources 33

5.4.2 Niobium projects 34

Alkane Resources 34 5.4.2.1

Hastings Rare Metals 35 5.4.2.2

Lynas 35 5.4.2.3

Others 35 5.4.2.4

5.5 Austria 36

5.5.1 Niobium processors 36

Plansee 36 5.5.1.1

Treibacher Industrie 36 5.5.1.2

5.6 Belgium 37

5.7 Bolivia 37

5.8 Brazil 38

5.8.1 Niobium reserves and resources 38

5.8.2 Production of niobium minerals and products 38

5.8.3 Exports of niobium 40

Exports of niobium minerals 40 5.8.3.1

Exports of ferroniobium 41 5.8.3.2

Exports of high-purity niobium oxide 42 5.8.3.3

5.8.4 Niobium producers 42

Anglo American Brasil (Catalão) 42 5.8.4.1

Companhia Brasileira de Metalurgia e Mineração (CBMM) 43 5.8.4.2

LSM Brasil 46 5.8.4.3

Mineração Taboca 47 5.8.4.4


MBAC Fertilizer 48 5.8.5.1

5.9 Burundi 48

5.10 Cameroon 49

5.11 Canada 50

5.11.1 Niobium reserves and resources 50

5.11.2 Production of niobium minerals and products 50

5.11.3 International trade in ferroniobium 50


Niobec 51 5.11.4.1


Avalon Rare Metals 53 5.11.5.1

Cache Exploration 53 5.11.5.2

Commerce Resources 53 5.11.5.3

Crevier Minerals 54 5.11.5.4

DIOS Exploration 55 5.11.5.5

GéoMégA Resources 55 5.11.5.6

Houston Lake Mining 55 5.11.5.7

International Bethlehem Mining 55 5.11.5.8

Matamec Explorations 56 5.11.5.9

Niocan 56 5.11.5.10

Nuinsco Resources 57 5.11.5.11

PhosCan Chemical 57 5.11.5.12

Quest Rare Minerals 57 5.11.5.13

Rare Earth Metals 58 5.11.5.14

Sarissa Resources 58 5.11.5.15

Taseko Mines 58 5.11.5.16

5.12 China 59


Minning Tantalum-Niobium Mining Development 59 5.12.1.1

Yichun Tantalum 60 5.12.1.2

Other 60 5.12.1.3


Conghua Tantalum & Niobium Smeltery 62 5.12.2.1

Duoluoshan Sapphire Rare Metals 62 5.12.2.2

Fogang Jiata Metals 62 5.12.2.3

F&X Electro-Materials 62 5.12.2.4

Jiujiang Jinxin Nonferrous Metals 63 5.12.2.5

Jiujiang TaNbRe Smelter 63 5.12.2.6

King-Tan Tantalum Industry 63 5.12.2.7

Ningxia Orient 64 5.12.2.8

Zhuzhou Cemented Carbide Works 64 5.12.2.9

5.13 Colombia 64

5.14 Congo Brazzaville 64

5.15 Democratic Republic of Congo (DRC) 65

5.16 Egypt 66

5.17 Estonia 67


Molycorp Silmet 67 5.17.1.1

5.18 Ethiopia 69


Kenticha 69 5.18.1.1

5.19 Finland 70

5.20 France 70

5.21 Gabon 71

5.22 Germany 72

5.22.1 International trade 72


GfE 72 5.22.2.1

Freiberger NE-Metall 73 5.22.2.2

H.C. Starck 73 5.22.2.3

WC Heraeus 73 5.22.2.4

5.23 Ghana 73

5.24 Greenland 74


Ram Resources 74 5.24.1.1

Hudson Resources 74 5.24.1.2

5.25 Guyana 75

5.26 India 76

5.26.1 Niobium production 76


5.27 Japan 77



5.28 Kazakhstan 77

5.28.1 Niobium reserves 77



Ulba Metallurgical Plant 78 5.28.3.1

5.29 Kenya 79

5.30 Kyrgyzstan 79

5.31 Malawi 80


Globe Metals and Mining 80 5.31.1.1

5.32 Malaysia 81

5.33 Mongolia 81

5.34 Morocco 81

5.35 Mozambique 81

5.36 Namibia 82

5.37 Nigeria 84

5.37.1 Niobium production and exports 84

5.38 Portugal 85

5.39 Paraguay 85

5.40 Russia 86



5.40.3 Niobium producers and processors 88

Lovozero Mining-Concentrating Combine 88 5.40.3.1

Solikamsk Magnesium Works 88 5.40.3.2

Technoinvest Alliance 88 5.40.3.3

Other 89 5.40.3.4

5.41 Rwanda 90

5.42 Saudi Arabia 90

5.43 Sierra Leone 91

5.44 Somalia 91

5.45 South Africa 92

5.46 Spain 93

5.47 Tanzania 93


Panda Hill Mines 93 5.47.1.1

Peak Resources 94 5.47.1.2

5.48 Thailand 94

5.49 Uganda 94

5.50 Ukraine 95

5.51 UK 95

5.52 USA 96




NioCorp Developments 99 5.52.3.1


ATI Wah Chang 99 5.52.4.1

GAM Technology 100 5.52.4.2

H.C. Starck 101 5.52.4.3

5.53 Venezuela 101

5.54 Zambia 101

5.55 Zimbabwe 102

6. International trade in niobium minerals and products 103


6.2 Ferroniobium 104

6.3 High-purity niobium oxide and niobium metal 107

6.4 Trade controls 108

7. World consumption of niobium 109

7.1 World consumption of niobium to 2012 109

7.2 Consumption of niobium by form and application 110

7.3 Consumption of niobium by region/country 111

8. Use of niobium in steel 115

8.1 Alloy steels 116

8.1.1 Strengthening mechanisms for steel 117

Grain refinement 117 8.1.1.1

Precipitation hardening 118 8.1.1.2

8.1.2 Use of niobium in-high strength, low-alloys steels (HSLA) 120

Structural applications 125 8.1.2.1

Automotive steels 127 8.1.2.2

Linepipe steels 129 8.1.2.3

Pressure vessel steels 133 8.1.2.4

High-strength steel castings 133 8.1.2.5

8.2 Stainless and heat-resisting steels 134

8.2.1 Types of stainless steel 134

8.2.2 Stainless steel production and markets 140

World production of stainless steel 140 8.2.2.1

World consumption of stainless steel 142 8.2.2.2

8.3 Other steels 144

8.3.1 Interstitial-free steels 144

8.3.2 Tool steels 145

8.3.3 Rail steels 146

8.3.4 Cast iron 147

9. Use of niobium in non-ferrous alloys 148

9.1 High-performance alloys 148

9.1.1 Types of high performance alloys 151

Nickel-based alloys 151 9.1.1.1

Cobalt-based alloys 153 9.1.1.2

Iron-based alloys 153 9.1.1.3

9.1.2 Markets for high-performance alloys 153

Aerospace applications 155 9.1.2.1

Non-aerospace applications 158 9.1.2.2

9.2 Titanium alloys 159

9.3 Zirconium alloys 161

9.4 Other alloys 162

10. Use of niobium metal and niobium-based alloys 164

10.1 Use of niobium-based alloys in superconductors 164

10.1.1 Superconductor technology development 164

10.1.2 Manufacturers of niobium superconductors 166

10.1.3 Applications for superconductors 168

Magnetic resonance imaging (MRI) 168 10.1.3.1

High-energy physics 169 10.1.3.2

Electricity generation, storage and transmission 170 10.1.3.3

Nuclear fusion research 171 10.1.3.4

Magnetic levitation and propulsion systems 172 10.1.3.5

Industrial cyclotrons and synchrotrons 172 10.1.3.6

High-intensity magnetic separators 173 10.1.3.7

Electronics 173 10.1.3.8

10.2 Use of niobium-aluminium alloys 173

10.3 Use of niobium-titanium alloys 175

10.4 Use of niobium-zirconium alloys 175

10.5 Use of niobium-hafnium alloys 177

10.6 Use of other niobium alloys 177

10.7 Use of niobium metal 178

10.7.1 Cathodic protection 178

10.7.2 Surgical implants 178

10.7.3 Body jewellery 179

10.7.4 Electronic devices 179

Capacitors 179 10.7.4.1

Other electronic devices 180 10.7.4.2

10.7.5 Furnaces and other high-temperature manufacturing equipment 180

10.7.6 Coinage 181

10.7.7 Radioisotopes 181

11. Use of niobium chemicals 182

11.1 Optical glass and enamels 183

11.2 Electronics and optoelectronics 183

11.3 Other uses for niobium chemicals 186

12. Niobium prices 190


12.2 Ferroniobium 191

12.3 Other niobium products 194

12.4 Price forecasts to 2017 195

13. Niobium outlook to 2017 197

13.1 Outlook for world niobium supply 197

13.1.1 Niobium minerals 197

13.1.2 Ferroniobium 198

13.1.3 Other niobium products 199

13.2 Outlook for world niobium demand 200

13.2.1 Drivers and limiters of niobium demand 200

Global economic and market trends 200 13.2.1.1

Incidence and intensity of ferroniobium use 207 13.2.1.2

Relative pricing and risks of substitution for ferroniobium 209 13.2.1.3

Stockpiles 211 13.2.1.4

13.3 World niobium demand forecast 211

13.3.1 Ferroniobium 211

13.3.2 Other niobium products 212

13.4 Forecast niobium supply-demand balance 213

List of Tables

Page

Table 1: Physical properties of niobium 5

Table 2: Oxidation and temperature resistance of niobium 6

Table 3: Principal niobium-bearing minerals 6

Table 4: CBMM: Commercial grades of ferroniobium and nickel-niobium 13

Table 5: CBMM: Specifications for commercial niobium oxides 14

Table 6: Cabot: Specifications for commercial niobium oxides 15

Table 7: Properties of niobium beryllides, boride and nitride 18

Table 8: Specifications for lithium niobate 18

Table 9: World: Mine production of niobium by country, 2007 to 2011 22

Table 10: World: Processors’ shipments of niobium for non-steel applications,

2000 to 2012 24

Table 11: World: Summary of the principal mine producers of niobium 25

Table 12: Summary of the principal processors of niobium 28

Table 13: World: Summary of the principal niobium mine projects 30

Table 14: Austria: Imports of ferroniobium and other niobium products,

2007 to 2012 36

Table 15: Belgium: International trade in ferroniobium and other niobium products,

2007 to 2012 37

Table 16: Brazil: Reserves of pyrochlore, 2005 38

Table 17: Brazil: Production of niobium products, 1990 to 2011 40

Table 18: Brazil: Exports of niobium-bearing ores and concentrates, 2007 to 2012 41

Table 19: Brazil: Exports of ferroniobium by principal destination, 2005 to 2012 41

Table 20: Brazil: Exports of high-purity niobium oxide, 2007 to 2011 42

Table 21: Anglo American Brasil: Niobium reserves (2009 model) 42

Table 22: Anglo American Brasil: Niobium reserves and resources (new model) 43

Table 23: Anglo American Brasil: Production of niobium, 2009 to 2012 43

Table 24: CBMM: Reserves and resources of niobium 44

Table 25: Burundi: Production of niobium minerals, 2003 to 2011 49

Table 26: Reported imports of tantalum and niobium minerals from Burundi,

2000 to 2012 49

Table 27: Canada: International trade in ferroniobium, 2005 to 2012 51

Table 28: Niobec: Production of niobium, 2009 to 2012 52

Table 29: Niobec: Niobium resources and reserves, as at 31st December 2010 52

Table 30: Niobec: Niobium reserves and resources under the block caving scenario 52

Table 31: F&X Electro-Materials: Production capacity for tantalum and niobium

products, 2011 and 2012 63

Table 32: Reported imports of tantalum and niobium minerals from the DRC,

2007 to 2012 66

Table 33: Molycorp Silmet: Specifications for niobium and tantalum raw materials 68

Table 34: Estonia: International trade in niobium and tantalum products, 2007

to 2012 68

Table 35: Reported imports of tantalum and niobium concentrates from Ethiopia,

2007 to 2011 69

Table 36: France: International trade in ferroniobium and other niobium products,

2007 to 2012 71

Table 37: Germany: International trade in ferroniobium and other niobium products,

2007 to 2012 72

Table 38: India: International trade in ferroniobium and niobium minerals, 2007

to 2012 76

Table 39: Japan: Imports of ferroniobium, 2007 to 2012 77

Table 40: Kazakhstan: Principal deposits of tantalum and niobium-bearing ores 78

Table 41: Kazakhstan: Imports of tantalum-niobium minerals, 2007 to 2012 78

Table 42: Kyrgyzstan: Summary of identified niobium and tantalum occurrences 80

Table 43: Namibia: Summary of tantalum and niobium minerals resources 82

Table 44: Nigeria: Production of tantalum and niobium minerals, 2007 to 2011 84

Table 45: Reported imports of tantalum and niobium minerals from Nigeria, 2007

to 2012 85

Table 46: Russia: Principal deposits of tantalum- and niobium-bearing ores 87

Table 47: Russia: International trade in ferroniobium and niobium minerals, 2007

to 2012 87

Table 48: Reported imports of tantalum and niobium minerals from Rwanda, 2007

to 2012 90

Table 49: South Africa: Imports of tantalum and niobium minerals, 2007 to 2012 93

Table 50: UK: International trade in niobium products, 2007 to 2012 96

Table 51: USA: International trade in niobium, 2007 to 2012 98

Table 52: USA: Imports of tantalum and niobium minerals by country of origin,

2007 to 2012 98

Table 53: China: Reported imports of niobium-bearing minerals, 2005 to 2012 104

Table 54: Brazil and Canada: Exports of ferroniobium by principal destinations,

2007 to 2012 105

Table 55: North America: Imports of ferroniobium, 2007 to 2012 106

Table 56: Europe: Imports of ferroniobium, 2007 to 2012 107

Table 57: Asia: Imports of ferroniobium, 2007 to 2012 107

Table 58: USA: Imports of niobium oxide, 2005 to 2012 108

Table 59: USA: Imports of niobium metal, powders and alloys, 2005 to 2012 108

Table 60: World: Consumption of niobium, 2002 to 2012 109

Table 61: World: Average annual growth in niobium consumption, 2002 to 2012 110

Table 62: Summary of applications for niobium 110

Table 63: Summary of applications for steels containing niobium 115

Table 64: Properties influenced by microstructure and strengthening mechanisms

for steel 117

Table 65: Principal precipitation-hardening mechanisms for steel 119

Table 66: Effects of niobium and vanadium additions on yield strength 120

Table 67: Summary of major purchasers of ferroniobium for HSLA steel production 121

Table 68: Typical composition of dual-phase steel 123

Table 69: Alloying additions and properties of ASTM grades of HSLA steels 124

Table 70: Niobium-containing hot-rolled and cold-rolled HSLA steels 125

Table 71: Niobium-containing full-alloy structural steels 127

Table 72: Typical HSLA steel automobile parts in Japan and Europe 128

Table 73: World: Production of passenger vehicles, 2004 to 2012 129

Table 74: Development of linepipe steels 130

Table 75: Composition of electric-resistance welded linepipe steels 131

Table 76: World: Gas pipeline construction by region, 2006 to 2012 132

Table 77: Niobium-containing maraging steels 137

Table 78: Composition of niobium-bearing heat-resistant steels 139

Table 79: Summary of major purchasers of ferroniobium for stainless steel

production 140

Table 80: World: Production of crude stainless steel, 2002 to 2012 141

Table 81: World: Production of stainless steel by region and series, 2012 142

Table 82: World: Consumption of stainless steel, 2002 to 2010 143

Table 83: Composition of Nippon Steel interstitial-free steel 145

Table 84: Composition of niobium-containing rail steels 147

Table 85: Composition of niobium-containing superalloys 149

Table 86: Specifications for niobium materials used in superalloy manufacture 151

Table 87: World: Leading manufacturers of aircraft engines 156

Table 88: Niobium-containing titanium alloys 160

Table 89: Producers and fabricators of zirconium/Zircaloy for nuclear applications 161

Table 90: Development of metallic and ceramic superconductors 165

Table 91: Critical values for niobium-based superconductors 165

Table 92: World: Major superconducting wire producers 167

Table 93: Producers and suppliers of niobium compounds and carbides 182

Table 94: Selected properties of lithium niobate 184

Table 95: Properties and applications of niobate ferroelectric materials 185

Table 96: Catalytic applications of niobium compounds and complexes 186

Table 97: Applications for surface niobium oxide phases in catalysis 187

Table 98: Basic physical properties of selected carbides 188

Table 99: China: Average quarter-end prices of niobium and tantalum

concentrates, 2008 to 2013 191

Table 100: China: Average quarter-end prices for niobium oxide, 2009 to 2013 195

Table 101: USA, Germany, Japan and China: Year-end average CIF import value

of ferroniobium, 2012 and forecast to 2017 196

Table 102: Reported imports of tantalum and niobium concentrates from selected

countries, 2007 to 2012 198

Table 103: World: Forecast ferroniobium capacity, 2013 to 2017 199

Table 104: World: Crude steel production growth, 1990 to 2020 201

Table 105: World: Forecast production of crude stainless steel by region, 2013

to 2017 202

Table 106: World: Major inter-regional gas pipeline projects 204

Table 107: Potential for substitution of ferrovanadium for ferrovanadium 210

Table 108: World: Forecast demand for niobium in non-steel applications, 2012

to 2017 213

List of Figures

Figure 1: World: Forecast ferroniobium capacity utilisation to 2017 3

Figure 2: Processors’ shipments of ferroniobium and average annual US import

value, 2000 to 2012 4

Figure 3: World: Most likely resource base for tantalum minerals 8

Figure 4: Solvent extraction of tantalum and niobium compounds 10

Figure 5: Oxalate crystallisation process 11

Figure 6: Aluminothermic production of ferroniobium 12

Figure 7: Niobium production by the aluminothermic reduction process 16

Figure 8: CBMM, Anglo American Brasil and Niobec: Grade of ore mined and

estimated production cost 19

Figure 9: World: Mine production of niobium, 1990 to 2012 21

Figure 10: World: Shipments of ferroniobium, 2000 to 2012 23

Figure 11: Brazil: Mine production of niobium, 1991 to 2011 39

Figure 12: World: Imports of ferroniobium by region, 2007 to 2012 106

Figure 13: Estimated consumption of ferroniobium by application, 2012 111

Figure 14: World: Estimated consumption of ferroniobium by region/country, 2012 112

Figure 15: Selected countries: Apparent consumption of ferroniobium in 2012 and

average annual growth in consumption 2000 to 2012 113

Figure 16: Use of niobium in high-strength steel 116

Figure 17: World: Projected gas pipeline construction by region, 2013 133

Figure 18: World: Share of crude stainless steel production by region, 2002 to 2012 141

Figure 19: World: Share of stainless steel consumption by region, 2002 and 2010 143

Figure 20: World: Use of stainless steel by market segment, 2012 144

Figure 21: World: Estimated division of the high-performance alloys market by

region, 2012 154


application, 2012 154

Figure 23: World: Estimated aerospace raw material demand, 2012 155

Figure 24: Estimated aerospace raw material demand by air transport sector, 2012 157

Figure 25: World: Jet airplane and engine deliveries, 1996 to 2012 158

Figure 26: World: Gas turbine power generation orders, 1980 to 2011 159

Figure 27: USA: Average annual value of ferroniobium imports, 1990 to 2012 192

Figure 28: USA: Average monthly value of ferroniobium imports, 2009 to 2013 193

Figure 29: US average annual value of ferroniobium imports and Brazilian exports

of ferroniobium, 2005 to 2012 194

Figure 30: Niobium chemicals, alloys and metal: Production capacity and

processors’ shipments in 2012 199

Figure 31: World: Correlation between crude steel production and ferroniobium

consumption, 2000 to 2012 200

Figure 32: USA and China: Forecast growth in construction, 2012 to 2021 201

Figure 33: World: Forecast share of construction spending by region, 2015

and 2020 202

Figure 34: USA: Growth in consumption of advanced high-strength steels in

automobiles, 1995, 2005 and 2015 203

Figure 35: World: Forecast jet airplane and engine deliveries, 2013 to 2020 205

Figure 36: World and China: Forecast air travel demand, 2012 to 2032 205

Figure 37: World: Aerospace raw material demand, 2012 to 2020 206

Figure 38: World: Gas turbine production, 2012 to 2020 206

Figure 39: Selected countries: Estimated intensity of use of ferroniobium in crude

steel, 2007 to 2012 208

Figure 40: Selected countries: Comparison of crude steel production and estimated

intensity of use of ferroniobium, 2012 209

Figure 41: Comparison of ferroniobium and ferrovanadium prices, 2000 to 2012 210

Figure 42: World: Forecast demand for ferroniobium, 2012 to 2017 212

Figure 43: World: Forecast ferroniobium supply-demand balance, 2012 to 2017 213

List of Appendices (See attached CD)

Appendix A: International trade statistics

List of Symbols and Abbreviations

Symbols

p Preliminary

e Estimated

r Revised

ø Under half of one unit

… Not available

- Nil

Abbreviations

bbl Barrel

B Billion

cif Cost, insurance and freight paid by the shipper

cm Centimetre

fob Free on board (including all charges prior to loading)

ft Foot

g Gramme

kg Kilogramme

km Kilometre

kWh Kilowatt hour

l Litre

lb Pound

m Metre

M Million

mg Milligramme

ml Millilitres

m3 Cubic metre

Mt Million tonnes

ppm Parts per million

sg Specific gravity

sh.t Short ton

t Tonne

tpd Tonnes per day

tpm Tonnes per month

tpy Tonnes per year

µm Micron

wt Weight

USGS US Geological Survey (formerly USBM - US Bureau of Mines)

BGS British Geological Survey

MEC Market Economy Country

OECD Organisation for Economic Co-operation and Development

FSU Former Soviet Union

Equivalent values kg lb kg 1 2.204662 t 1,000 2,204.62

Niobium: Market Outlook to 2017, 12th edition 2013 Page | 1

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1. Summary

Niobium supply outlook

Deposits of niobium, which almost always occurs with tantalum and often in conjunction

with other elements, are widespread. The principal mineral, pyrochlore, is mined by

CBMM and Anglo American in Brazil and by Niobec in Canada. The reserves being

exploited by these companies are very large and are sufficient for decades or even

hundreds of years at current rates of production. All three companies convert their mine

output to downstream products prior to sale; Niobec and Anglo American to ferroniobium

and CBMM to ferroniobium and a wide range of other niobium products, such as niobium

oxides, metal and alloys.

CBMM is by far the largest ferroniobium producer and accounted for 83% of the 53,500t

(contained Nb) produced globally in 2012. It has considerably increased its production

capacity in recent years and will continue to do so. Anglo American and Niobec are also

increasing capacity and additional greenfield capacity is expected to come on-stream

towards the end of the forecast period. In 2017, total ferroniobium capacity will be an

estimated 123,000tpy Nb, an increase of 38% from the level at the start of 2013. Further

new capacity is expected to come into production after 2017.

A small part of the global market is supplied by minerals other than pyrochlore. These

include columbite, mined mainly for the niobium values, and columbite-tantalite or

tantalite, which are of commercial interest mostly for the tantalum but contain niobium

that is often recovered during processing. Most production is by artisanal or semi-

industrial methods and it is largely confined to Central Africa, South America and Asia.

Although fairly small in tonnage terms, these sources of supply are a mainstay of the

non-steel niobium processing industry and make up most of the international trade in

niobium ores and concentrates.

A number of potential new niobium sources are in the project pipeline. None compares

in size to the existing pyrochlore producers (at least, not in light of their expansion

plans). Those based largely on the niobium values have perhaps the best chance of

coming to commercialisation and several of them are expected to. Others depend more

on the market economics for other products, such as tantalum, zirconium and rare

earths. Their prospects are generally weaker and probably only a few will come into

commercial production in the foreseeable future, if at all. Little greenfield niobium mine

capacity is expected to come on-stream in the period to 2017. That is, however, unlikely

to have an impact on security of niobium supply.

Niobium demand outlook

Global niobium demand peaked in 2008, at nearly 60,000t Nb before slumping to

41,000t in 2009 in line with the global economic downturn. It recovered to the peak level

in 2011 and stayed at that level in 2012.

Asia is the largest ferroniobium-consuming region, at 46% of the world total in 2012.

China alone accounted for a quarter of total demand. Europe, where Germany is by far

Page | 2 Niobium: Market Outlook to 2017, 12th edition 2013

Roskill


the largest consumer, contributed a further 28% to world demand in 2012, and North

America, principally the USA, 18%. Brazil is the only significant consumer of

ferroniobium in South America. The developing economies, particularly those in Asia,

have accounted for most of the growth in ferroniobium consumption that has taken place

in recent years.

The consumption of niobium in other market segments, such as superalloys, is

concentrated in the USA, western Europe and Japan.

The demand for niobium is driven largely by two sets of factors. In its major application

– steel – niobium is used in high-strength, low-alloy (HSLA) steels and, to a lesser

extent, in certain grades of stainless steel. This market segment represents about 90%

of total niobium consumption and was responsible for most of the 8.8%py growth in

niobium consumption between 2002 and 2012.

Niobium is not used in all types of steel. Steel, while very widely used, is a relatively

expensive material, with hot-rolled carbon steel plate exported from China being about

US$550/t in April 2013. The addition of niobium at the rate of fractions of a per cent by

weight, and at a cost of only a few dollars per tonne of steel, greatly increases the

strength of steel. This is of benefit in structural applications, where large structures can

be built using less steel, in automotive applications, where weight savings and thus

reductions in exhaust emissions can be achieved, and in high-pressure natural gas

pipelines, where thinner gauges of steel can be used to make pipelines with very

demanding strength specifications. In most market segments, ferroniobium faces little

competition from other ferroalloys, such as ferrovanadium.

Outside the steel industry, niobium is used mainly in superalloys for aerospace and land-

based power generation. Trends in all these markets typically follow overall economic

trends very closely and future growth in demand for niobium will mirror that of the global

economy.

The other factor is the intensity of niobium use in steel. This driver could prove to be

more important in future than economic trends. The incidence of niobium use in steel is

geographically very uneven. On a global basis, approximately 55g of niobium (FeNb

basis) are consumed for every tonne of crude steel produced. In the established

industrial economies the average is much higher, sometimes over 100g/t. In a number

of other countries, however, the incidence of use remains very low and there is

considerable latent demand for niobium. China, India and Russia, for example, have

very large steel industries but consume relatively little niobium (20-35g/t). As the steel

product mix in such countries gradually moves to higher-quality steels, which it

undoubtedly will, their consumption of niobium will increase.

Global demand for ferroniobium is conservatively estimated to grow from about 53,500t

Nb in 2012 to 64,300t in 2017. With an increase in intensity, it could reach 76,000t.

Over the same period, demand for niobium in other applications will increase from 6,800t

to 10,200t.


Roskill


Niobium supply-demand balance outlook

In assessing the niobium supply-demand outlook, the balance for ferroniobium is of the

greatest commercial relevance. As outlined above, global production capacity for

ferroniobium, and for the extraction of minerals used to make ferroniobium, has been

increased in recent years and will be expanded further, at existing operations and from

the start-up of new ones. In the latter case, only a relatively small amount of new

capacity is expected to be put in place in the period to 2017.

Demand for ferroniobium will also increase. With no change in current intensities of

ferroniobium use, capacity utilisation over the forecast period will be no more than 65%

and could be as low as 50%. Intensity of use is expected to increase, however. Figure

1 below illustrates a hypothetical situation, in which China, India and Russia are

anticipated to incrementally move to near the current global average intensity by 2017.

Even at that level of consumption, which is probably at the upper end of what could

happen in the next five years or so, total demand for ferroniobium would not exceed

70% of production capacity. There is little risk of ferroniobium supply moving into deficit,

unless there is a major external influence, such as a war or catastrophic natural disaster.

Figure 1: World: Forecast ferroniobium capacity utilisation to 2017

6062

65

5254

52

64

69

58

62 62

0

10

20

30

40

50

60

70

80

2012 2013 2014 2015 2016 2017

Ca

pa

cit

y u

tilis

ati

on

(%

)

Stable intensity scenario Intensity growth scenario

Source: Roskill

Niobium prices outlook

Niobium prices have historically been very stable. In real terms they fell from 1990 until

the mid-2000s. It was at that time that demand for ferroniobium began to increase

rapidly, largely because of successful efforts by CBMM to promote its benefits in

steelmaking. It was also at that time that CBMM initiated a large step-increase in

niobium prices (Figure 2). The price increase was not a response to growing demand


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but a correction to address the structural under-valuing of niobium. Prices stabilised

again at the new benchmark and have shown themselves to be demand-inelastic. The

slump in demand for ferroniobium during the global economic collapse of 2009 had

relatively little effect on prices and they have since returned to what is expected to be a

gentle but steady upward trend. Growing at a rate of 3%py, the average annual value of

US imports will rise from US$42.91/kg Nb in 2012 to US$49.74 in 2017. The trend will

be mirrored in other parts of the world.

Prices of other niobium products, such as niobium oxide, are less predictable than those

of ferroniobium but are forecast to remain at an average of 1.3 times those of

ferroniobium on a contained Nb basis.

Figure 2: Processors’ shipments of ferroniobium and average annual US import value,

2000 to 2012

0

10

20

30

40

50

60

0

5

10

15

20

25

30

35

40

45

50

2000 2002 2004 2006 2008 2010 2012

00

0t N

b

US

$/k

g N

b

000t Nb US$/kg Nb

Sources: T.I.C.; US International Trade Commission; Roskill


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2. Introduction

2.1 Properties of niobium

Niobium (Nb) is a member of the group of VA transition elements. It is soft and ductile

and characterised by high melting and boiling points. It is used mainly as an alloying

addition to steel in the form of ferroniobium (FeNb).

Most niobium is obtained from deposits of the mineral pyrochlore, which can be directly

converted to ferroniobium or used to produce niobium pentoxide (Nb2O5), which is the

starting point for most other niobium end-products. These include nickel-niobium (NiNb)

master alloys used in high-performance alloys; alloys and intermediates of niobium with

zirconium (Nb-1Zr), titanium (Nb-44Ti) and other elements; various grades of pure

niobium metal; lithium niobate and other niobate crystals; and a range of other niobium

compounds.

Niobium was discovered by Charles Hatchett in 1801. It was originally given the name

columbium and the chemical symbol Cb. In Europe, the name niobium was adopted in

1844, although it was not until 1950 that it became the official international name. The

term columbium is still sometimes used in the USA.

The name niobium is used throughout this report but the terms columbite and columbite-

tantalite are used to describe certain niobium minerals, in accordance with industry

practice and in preference to the less-common niobite. The term niobium oxide

generally (and throughout this report) refers to the pentoxide, Nb2O5.

Table 1: Physical properties of niobium

Atomic number 41 Atomic weight 92.906

Melting point (C) 2,468

Boiling point (C) 4,927

Density (g/cm3) 8.57

Neutron absorption cross section (barns/atom) 1.15

Ductile-brittle transition temperature (C) -140

Coefficient of thermal expansion (10-6

/C) 7.1

Thermal conductivity (W/m C) 20C 52.2

Recrystallisation temperature start C 950

(annealing time 1 hour) end C 1,300

Hardness (20C, HV10) recrystallised sheet 60

cold worked sheet 180

Tensile strength (20C, MPa) recrystallised sheet 250

cold worked sheet 600

Elongation at rupture (20C, %) annealed sheet 50

cold-worked sheet 5 Elastic modulus (GPa) 110.32 Source: Reference and industry sources

The oxidation and temperature resistance of niobium in various atmospheres is

summarised in Table 2.


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Table 2: Oxidation and temperature resistance of niobium

Atmosphere

Oxygen-containing gases 230C oxidation causing embrittlement

Dry hydrogen 250C hydrides cause embrittlement

Moist hydrogen 250C hydrides cause embrittlement

Dry cracked ammonia 340C hydride/nitride embrittlement

Inert gas Stable to melting point (2,468C)

Nitrogen 300C nitrides cause embrittlement Source: Metals & Materials

2.2 Occurrence of niobium

Niobium almost always occurs together with tantalum (Ta), which has a much higher

market value, and often also in conjunction with titanium, zirconium and rare earths. A

large number of niobium-tantalum minerals are known but only a few are of commercial

importance. The niobium and tantalum content varies widely from mineral to mineral.

Those of most commercial importance are shown in Table 3. The compositions shown

are for the mineral and not the host rock. The niobium content of ore mined will be much

lower than shown below.

Table 3: Principal niobium-bearing minerals (%)

Mineral General formula Nb2O5 Ta2O5 TiO2 Fe MnO SnO2

Pyrochlore NaCaNb2O6F 40-65 0-2 1-6 0-2 … …

Struverite (Ti,Ta,Nb,Fe)2O6 12-13 12-13 56-57 … … 5

Columbite (Fe,Mn)(Nb,Ta)2O6 40-75 1-40 0.5-3 10-20 2.6 2

Columbite-tantalite (Fe,Mn)(Nb,Ta)2O6 25-60 20-50 0.5-3 10-20 2.6 2

Tantalite (Fe,Mn)(Nb,Ta)2O6 2-40 42-84 0.5-3 10-20 2.6 2

The mineral pyrochlore makes up by far the largest part of niobium supply. The ore

currently being mined contains up to 2.5% Nb2O5. The tantalum content is negligible

and it is not recovered. Production of pyrochlore is from the Araxá (CBMM) and Catalão

(Anglo American Brasil) mines in Brazil and from Niobec (IAMGOLD) in Canada. There

is also some small-scale pyrochlore production in Africa and possibly elsewhere.

Pyrochlore mined in Brazil and Canada does not enter international trade in the mineral

form. All mine production from Catalão and Niobec is converted to ferroniobium by the

producers prior to sale. At Araxá, it is converted to ferroniobium, along with alloys,

niobium metal and oxide products.

The non-pyrochlore part of the niobium supply chain is much smaller in volume terms

but is of importance as it is the supply base for downstream processors such as H C

Starck, GAM Technology (formerly Cabot Supermetals) and Ningxia Orient. It

comprises ores that are mined mainly for their tantalum values (usually termed tantalite),

ores mined principally for the niobium (columbite), ores mined with tantalum and niobium


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as co-products (columbite-tantalite), and tin slags. The major processors produce both

tantalum and niobium products (metal, alloys and compounds).

According to the Tantalum-Niobium International Study Center (T.I.C.), columbite sold

in the international market generally contains a minimum of 50% Nb2O5. The value is

based on the combined Nb2O5+Ta2O5 content payable entirely as Nb2O5, there is no

premium for the Ta2O5 content. Tantalite typically contains a minimum of 30% Ta2O5

and the T.I.C. states that the niobium content is usually ignored. Columbite-tantalite,

which is often called coltan in Africa, can contain approximately equal proportions of

both tantalum and niobium. Tin slags contain only very small amounts of niobium but

are a significant source of tantalum.

To put the tonnages in broad context, the 2011 supply figures published by the T.I.C.

show the following:

Pyrochlore/columbite – 90,278t contained Nb2O5

Other Nb sources (tantalite, struverite and tin slags) – 353t contained Nb2O5

Tantalum from all sources – 715t Ta2O5

In the past, when niobium prices were much lower than they are now, it was uneconomic

for downstream processors to recover niobium from tantalum concentrates with low Nb

values. For example, there was little interest in attempting to recover niobium from

tantalum concentrates supplied by the Wodgina mine in Australia. At about 5%

contained niobium, it was probably not viable for most processors to recover the niobium

from Wodgina ore and it was not payable. The same is most likely true of other pure-

play tantalum producers, such as Noventa, in Mozambique (although a technical report

from Noventa indicates that it produces and sells a tantalum-niobium concentrate).

As niobium prices have risen considerably in recent years, it has become more attractive

for processors to recover niobium from tantalum concentrates even where it is present in

only small concentrations and some are now doing this. It also appears that some

miners, such as Kenticha in Ethiopia, have begun to charge for the niobium contained in

the tantalum concentrates they sell. In addition, it seems that processors in China

recover niobium from the columbite-tantalite purchased from Central Africa but that they

pay only for the tantalum.

While the non-pyrochlore segment of the supply chain will remain comparatively small in

tonnage terms, it is of interest and relevance to the non-steel niobium processors. For

this reason, Roskill has included in this report coverage of producers and projects that

seem mainly or entirely geared to tantalum.

2.3 Reserves and resources of niobium

The USGS reports world economic reserves of niobium as more than 4Mt contained Nb.

That figure is an underestimate as reserve figures are provided for only two countries

(Brazil and Canada). The limited data coverage is of little practical importance. Known

reserves in Brazil alone are sufficient to satisfy global demand for many, perhaps


Roskill


hundreds, of years, and current reserves at Niobec could sustain production at the mine

for an estimated 40 years or more.

The vast majority of the world’s niobium resources are contained in pyrochlore, which is

mined almost entirely in Brazil and Canada and is mainly converted directly to

ferroniobium by the companies that mine it, although some is used as a starting material

for other niobium products. Brazil and Canada account for about 99% of total reported

niobium production and their share of the true total is probably little different.

With regard to minerals other than pyrochlore, most attention is focused on minerals that

are mainly of interest for tantalum. Figure 3 shows the estimated global distribution of

tantalum resources but it also gives an indication of how non-pyrochlore niobium

resources are distributed.

Figure 3: World: Most likely resource base for tantalum minerals

S. America40%

Australia21%

China/SE Asia10%

Russia/M. East10%

Europe1%

Central Africa9%

Other Africa7%

N. America2%

Source: T.I.C. Note: The Most Likely Resource Base is a measure that balances the strictness of Known Resources (Indicated +

Measured) with the broader availability of Inferred Resources and ‘advanced exploration targets’. The large figure that would be provided by the latter is reduced by ignoring early exploration projects and discounting other resources according to level of exploration, mineralogy and grade quality, while including operating (or currently closed) mines or those having reached feasibility study status.

2.4 Mining and processing of niobium minerals

Pyrochlore ore is mined by mechanised open-pit methods, by underground stoping, or

by a combination of both. All mining in Brazil is by open-pit methods, while in Canada

underground mining by a large-diameter blasthole method is used. The ore is finely

ground and beneficiated by flotation and high-intensity magnetic separation (to remove

iron minerals). Apatite may be removed by treatment with nitric acid, and in Brazil a


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chloride leach process is used to reduce the barium, phosphorus and sulphur content.

Physical processing of pyrochlore yields a concentrate grading 55-60% Nb2O5.

Niobium oxide is recovered from pyrochlore concentrates by dissolving the feedstock in

hydrofluoric acid, followed by liquid-liquid extraction with methyl-isobutyl-ketone (MIBK).

The development of this process, by CBMM in the early 1980s, had an important effect

on the niobium industry, reducing demand for the columbite ores and concentrates that

had previously been the only source of high-purity niobium oxide. Most pyrochlore

concentrates, however, are converted directly to ferroniobium, for use in applications

where the impurities retained by this method can be tolerated.

Columbite and columbite-tantalite ores are mined by many methods, according to the

scale of operation and the type of deposit, from simple pick-and-shovel operations

exploiting small pegmatites to hydraulic monitors or floating dredges at placer deposits.

At small mines, crushing takes place before separation of the ore from waste by hand-

picking or sluice boxes. On larger dredges, screening and gravity separation of waste

rock, gravel and by- or co-product minerals are part of the dredging operation. High-

intensity magnetic separation may also be used.

Historically, niobium oxide has been recovered from columbite, columbite-tantalite and

tin slags mainly by decomposition with hydrofluoric acid followed by the addition of

potassium hydroxide or carbonate. This produces a mixed solution of potassium

niobium oxyfluoride (K2NbOF5) and potassium fluorotantalate (Ka2TaF7), often called K-

salt, which is partially cooled to crystallise-out the tantalum compound. The remaining

solution, containing the more soluble niobium compound, is decanted and treated with

ammonia to precipitate the niobium as niobium oxide.

Figure 4 shows the flow sheet for the hydrometallurgical processing of niobium and

tantalum ores used by plants in China. All of the plants in China now use a mixture of

hydrofluoric and sulphuric acids to decompose the ores. Sulphuric acid (H2SO4) lowers

the partial pressure of hydrofluoric acid (HF), thereby reducing volatilisation loss and

acid consumption. The addition of H2SO4 also enhances the digestion process,

improving Nb-Ta recovery.

MIBK is still used for Nb-Ta extraction in China, although 2-octanol is now used in

several plants. 2-octanol has low solubility in water and low volatility, is widely available

and is relatively inexpensive.

The crystallisation of potassium fluorotantalate involves the heating of fluorotantalic acid

to 85C, adding HF and KCl and then cooling to form crystals of K2TaF7. In 1991,

Ningxia Smelter in Shizuishan City developed a cold crystallisation process. The low

temperatures and low acidity reduce corrosion and limit the impurities in the K2TaF7.

The process has been used at Ningxia (now Ningxia Orient) since 1993.

Ningxia has also developed a continuous spray precipitation process for niobium and

tantalum oxide production. The process produces low fluorine oxides with large flake

size and low water content.


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The Beijing General Research Institute developed an oxalate crystallisation process for

high-purity niobium oxide production in 1985. The process, as shown in Figure 5,

produces niobium oxides with zero fluorine content.

Figure 4: Solvent extraction of tantalum and niobium compounds

Source: Hydrometallurgical Extraction of Tantalum & Niobium in China, T.I.C. Bulletin N93, March 1998

Grinding

Digestion

Extraction

Acid washing

Nb stripping

Ta stripping

Crystallisation

Filtration

Drying

K2TaF5

Filtration

MIBK or 2-octanol

Acid Solution

sludge water wash liquor Stripping Solution

Precipitation

NH3

DI water NH3

Precipitation

DI water

Filtration

Filtration

DI water

Drying

Calcination

Nb2O5

Drying

Calcination

Ta2O5

HF, KCI

Ta-Nb concentrate water

HF, H2SO4


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Figure 5: Oxalate crystallisation process

Source: Hydrometallurgical Extraction of Tantalum & Niobium in China, T.I.C. Bulletin N93, March 1998

2.5 Processing of niobium products

2.5.1 HSLA-grade ferroniobium

HSLA-grade ferroniobium (or standard-grade) used as a steel additive is generally

prepared directly from pyrochlore concentrates using an aluminothermic reduction

process. Historically, this was a batch process, although CBMM now uses a continuous

process for ferroniobium production. The niobium recovery in most plants is 87-97%,

Hot dissolution

Hot filtration

Cooling & crystallisation

Centrifuging

Crystals

Washing

Centrifuging

Re-dissolution

Hot filtration

Re-crystallisation

Centrifuging

Crystals

Calcination

Nb2O5 products

Oxalic acid Nb(OH)5

Raffinate


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with larger reactors generally giving the best recovery rates. Ferroniobium typically

contains 66.5% Nb (Table 4).

In the basic aluminothermic process (Figure 6), a 1-10t mixed charge of pyrochlore

concentrates, iron oxide, aluminium powder and slagging agents is reacted in a

refractory-lined vessel resting on a lined bed of silica sand. Lighting a small quantity of

the fuse mixture produces temperatures as high as 2,400ºC, and the reaction time varies

from two to 25 minutes. The slag that forms as a separate layer on top of the molten

ferroniobium contains most of the impurities in the charge, although small quantities of

tantalum, tin, lead, bismuth and other elements remain in the ferroniobium. After cooling

for 12-30 hours, the ferroniobium is separated from the slag, crushed and sized ready for

shipment.

Figure 6: Aluminothermic production of ferroniobium

Source: Fabrication Industry of Niobium in China, TIC Bulletin N95, September 1998

Ferroniobium can also be produced by reduction in an electric furnace. CBMM began

using this process in the mid-1990s. The same reactants are used as in the

aluminothermic process but the additional energy input from the electric furnace allows

some of the aluminium to be replaced by other (less expensive) reductants, such as

ferrosilicon. Because the total heat input can be better controlled in an electric furnace,

the niobium recovery rate may also be higher.

Nb Concentrates

or Nb2O5 Al

powder Fe3O4

powder

Slag-former

Burden

Mixing

Pressing

Charging

Ignition

Reduction

Ferroniobium Slag

Heat-generating agent


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Table 4: CBMM: Commercial grades of ferroniobium and nickel-niobium (%)

Composition Standard-grade FeNb Vacuum-grade FeNb Vacuum-grade NiNb

(%) Specification Typical Specification Typical Specification Typical

Nb 63.0 66.5 63.0 63.0 65.0

Al 1.5 0.5 1.5 1.5 0.8

Fe balance 30.0 balance 0.8 0.2

Ni … … 0.1 0.01 balance 33.5

(%) (%) (ppm) (ppm) (ppm) (ppm)

Ta 0.2 0.1 2,000 1,500 2,000 1,500

Si 3.0 2.0 2,500 1,500 2,500 1,500

P 0.20 0.08 100 50 100 50

Pb 0.12 0.04 50 <10 50 <10

S 0.10 0.06 100 50 100 50

C 0.15 0.08 500 100 500 100

O 1,000 500 1,000 500

N 200 150 200 50

H 100 50 100 50

Ti 1,000 100 1,000 100

Mn 500 100 500 100

Cu 100 50 100 50

Bi,Co,Cr,Sn,W,Zn 50 <10 50 <10

Ag,As,B,Mo,Sb,Se,Te,Tl 10 <5 10 <5 Source: CBMM literature Note: Particle size 1-50mm (2-16 mesh); shipped in pallets of six 250kg new steel drums

2.5.2 High-purity niobium oxide

Niobium oxide (Nb2O5) is the second-most important niobium product, after ferroniobium.

Its main use is as a starting material in the manufacture of other niobium products, such

as niobium metal and alloys, vacuum-grade ferroniobium and nickel-niobium, niobium

carbides and mixed carbides, lithium and potassium niobate and other niobium

compounds. Some niobium oxide is also used directly in the manufacture of glasses,

electrical ceramics, piezoelectric devices and catalysts.

Commercial niobium oxide products are generally termed high-purity oxide to distinguish

them from more intermediate forms. The purity of all commercial oxides is typically over

99% Nb2O5, exclusive of loss on ignition (LOI). Various designations, such as special-

purity, ultra-pure and optical-grade, are used to distinguish grades meeting more

stringent specifications.

Niobium oxides are normally supplied as calcined powders or granules (LOI <1%) but

are also available as dried, but uncalcined (20% H2O), powders or granules and as a

wet filter cake (30-55% Nb2O5). Calcined niobium oxide is insoluble in water and

hydrochloric acid, slightly soluble in hydrofluoric acid and relatively inert to most other

chemicals. Wet filter cake is very reactive with alkalis and acids.


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Table 5: CBMM: Specifications for commercial niobium oxides (%)

High-purity Special-purity Filter cake

(%) Spec Typical Spec Typical Spec Typical

Nb2O5 98.5 99.0 99.5 99.7 99.0 99.0

LOI 0.5 0.1 0.3 0.1 1 1

(ppm)

Ta 2,000 1,500 2,000 1,500 2,000 1,500

Si 900 500 500 200 1,000 500

Fe 900 500 30 10 1,000 500

Ti 900 200 500 200 1,000 200

K 500 200 500 200 500 200

Na 100 50 100 50 100 50

C 100 50 … … 100 50

P,S 100 <50 … … 100 50

As,Bi,Zn 10 <5 … … … …

Ag 5 <5 … … … …

Pb 5 1 … … … …

Sn 5 1 … … … …

Ca … … 20 10 … …

Mg … … 20 10 … …

Mn … … … <1 … …

Co,Cr,Cu,Mo,Ni … … … <1 … …

Typical bulk density

(g/cm3)

1.8 1.0 1.0

Form white powder white powder white lumps

Packaging 4x200kg drums

or 500kg bags

4x100kg drums 4x100kg drums

Source: CBMM literature Note: 1-Filter cake is 50%5% Nb2O5 (99%min. on a dry basis) and 50%5% H2O: impurity levels measured after

calcining at 800C.

Standard high-purity niobium oxides are mainly used in ceramics and catalysts, and in

the manufacture of carbides, some niobium metal and some master alloys. Wet filter

cake products are mainly used for ceramic and catalytic applications. Commercial

products typically contain 0.1-0.2% or less of tantalum and 0.05% or less of other

impurities.

Special-purity grades of niobium oxide are used in the manufacture of high-purity

niobium metal, alloys and master alloys, in the production of lithium and potassium

niobate crystals for electro-optical devices, and in special glasses. They generally

contain less than 10ppm iron and less than 1ppm of chromium, cobalt, copper,

manganese, molybdenum and nickel.


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Table 6: Cabot: Specifications for commercial niobium oxides

Standard-grade Optical-grade

(%) Spec Typical Spec Typical

Nb2O5 bal. bal. bal. bal.

LOI 1.01 0.4

1 0.1

1 0.05

1

(ppm)

Ta 1,000 500 500 200

Al 800 500 5 3

Si 500 300 75 30

Fe 500 350 5 <3

Ti 100 50 3 <1

Sn 100 50 3 <1

Ca 500 100 3 <1

Mg 100 20 3 <1

Mn 50 20 3 <1 Co,Cr,CuMo,Ni 20 <10 3 <1

Zr 20 <10 5 <5

V 20 <10 3 <1

Sb 100 70 3 <1

W 100 <100 25 25

Bulk density (g/cm3) 0.96 0.96

Form powder (85%-325mesh)

granules (95%-10mesh)

granules (100%<¼ inch)

Source: Cabot literature (Cabot Supermetals is now known as GAM Technology) Note: 1-LOI Loss on ignition measured at 1,000C, oxide basis, uncalcined powder (20%H2O) and wet filter cake

(30-50% Nb2O5) are also available.

2.5.3 Vacuum-grade ferroniobium and nickel-niobium

High-purity grades of ferroniobium are produced by reducing high-purity (99%) niobium

oxide with iron in an aluminothermic reaction. The process is similar to that used for the

production of HSLA-grade ferroniobium but the batches produced are generally smaller.

In some cases the reaction is carried out in water-cooled copper reactors or other

special converter vessels to avoid contamination of the product by normal refractory

linings. Nickel-niobium, typically containing 30-35% Nb, is also produced by an

aluminothermic process. Nickel powder is used in place of the iron powder used for

ferroniobium production. Chromium-niobium may also be produced, by an analogous

process, but is not widely used. Typical specifications for vacuum-grade ferroniobium

and nickel-niobium are shown in Table 4.

2.5.4 Niobium metal, alloys and intermediates

Niobium metal is generally prepared as a powder that is then consolidated, further

refined or alloyed in a variety of ways. By far the most common method of producing

niobium metal powder is the aluminothermic reduction of niobium oxide (Figure 7), a


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process similar to that used for the production of high-purity ferroniobium and nickel-

niobium. Niobium metal powder may also be produced by reduction of K2NbF7 with

sodium, or by reduction of niobium oxide with magnesium.

Figure 7: Niobium production by the aluminothermic reduction process

Source: Fabrication Industry of Niobium in China, T.I.C. Bulletin N95, September 1998

The most commonly used method of consolidating and further purifying niobium metal

powders is electron-beam melting. Electron-beam furnaces have widely replaced

conventional furnaces for the production of niobium and other high-purity refractory

metals. They can reach temperatures as high as 4,000C, although lower temperatures

are adequate for niobium (and most other metals). An electron-beam furnace is

essentially a large thermionic vacuum tube in which an intense beam of electrons,

emitted from the tungsten cathode, is directed by magnetic fields onto the feedstock and

the ingot being formed. Drops of molten metal fall from the end of the feedstock into a

molten pool at the top of the ingot, which is held in a water-cooled cylinder. The ingot is

retracted at the rate at which it is being formed. Impurities are volatilised from the

surface of the molten metal and carried away by pumps that maintain a vacuum of

approximately 10-6

torr.

Consolidation of niobium metal powder may also be achieved by sintering bars of

pressed powder in a vacuum furnace. A large current passed through the bars raises

Nb2O5 Al powder

Burden

Mixing

Pressing

Reduction

Al2O3 Slag

Nb-Al alloy

Crushing

Refining in horizontal crystallisers of electron-beam furnace

Electron-beam refining

Powder production by hydrogenation

Nb ingots Nb powder


Roskill


the temperature towards the melting point of the metal and the impurities evolved as

gases are removed by vacuum pumps. Niobium may also be consolidated by arc-

melting under vacuum or in an inert gas, using pressed and pre-sintered bars of metal

powder as the consumable electrodes. The molten metal formed in the arc is held in a

water-cooled copper crucible, from which the finished ingot is afterwards removed.

Zone-refining has also been used for the purification of bars and rods of niobium. A

molten zone is moved slowly along the bar, causing certain impurities to move either

with or against the movement of the molten zone. The impurities thus accumulate at

one or other of the ends of the bar and are subsequently removed.

Niobium metal can be formed and fabricated by most metallurgical and engineering

techniques and is commercially available as powder, ingot, sheet, rod, wire, insulated

wire, foil, microfoil, tube, single-crystal stock and sputtering targets. Cold-working is

necessary as niobium reacts with oxygen and nitrogen at elevated temperatures. When

work-hardening occurs, the metal may be annealed by heating to 1,300-1,400C under

vacuum or an inert gas such as argon or helium. Recrystallisation occurs at 1,050C.

Niobium alloys are normally produced from electron-beam melted ingots of niobium

metal in a vacuum-arc furnace of the consumable electrode type. Alloying elements are

welded to the niobium metal, which is used as the consumable electrode, in the amounts

required to achieve the desired composition. For large ingots, two melts may be

required to produce a homogeneous ingot of the correct composition.

Commercially, the most important alloys are niobium alloyed with hafnium, tungsten,

tantalum, titanium or zirconium. The alloys of 50-56% niobium and 44-50% titanium are

particularly important for use in superconductors. They are available in various single-

and multi-filament wire forms, embedded in copper and insulated.

Niobium alloyed with 1% zirconium is widely used in the nuclear industry and other

corrosive environments and is commercially available in various thin-tube forms.

2.5.5 Other niobium compounds

A fairly wide variety of inorganic and organic compounds of niobium are produced

commercially, although total demand for such materials is small and a considerable part

of demand is accounted for by research uses. Niobium carbide (NbC) is a metallic grey-

brown material with a melting point of 3,500C. It is harder than corundum, with a micro-

hardness as high as 2,470kg/mm2. NbC has a modulus of elasticity of 49x10

6, and has

a specific electrical resistivity of 147-cm at room temperature and of 254-cm at the

melting point. Niobium beryllides are intermetallic compounds exhibiting good strengths

at elevated temperatures. Parts can be formed by ceramic forming methods, as well as

flame and plasma-arc spraying. The physical properties of niobium beryllides, niobium

boride and niobium nitride are summarised in Table 7.


Roskill


Table 7: Properties of niobium beryllides, boride and nitride

NbBe12 NbBe17 NbB NbN

Crystal habit tetragonal hexagonal … cubic

Density (g/cm3) 2.91 3.28 7.2 7.3

Melting point (C) 3,070 3,100 2,900 1,800

Resistivity (-cm) … … 32 …

Thermal conductivity (760-1,482ºC) 17.5-19 18.8-19.8 … …

Coefficient of thermal expansion 9.36 8.83 … … Source: Ceramic Industry Materials Handbook, January 1998

Other niobium compounds, mostly prepared from niobium oxide, include:

Bromide Lithium niobate Phosphate

Dioxide Methylate Pentafluoride

Ethylate Oxalate Potassium niobate

Hydride Pentachloride Silicide

Iodide Phenolate Sulphide

Commercial niobium carbides, used in cemented carbide tools, are generally powders

containing about 87% niobium, with the balance being mainly carbon. Lithium niobate

and potassium niobate are produced as single crystals for use in optoelectronic and

electronic devices. Lithium niobate is used in a variety of integrated and active acousto-

optical devices owing to its unique electro-optical, photoelastic, piezoelectric and non-

linear properties. Most of the other niobium compounds noted above are used primarily

in the preparation of catalysts.

Table 8: Specifications for lithium niobate

Fabrication spec. Standard value

Optical grade

Dimensional tolerances +/- 0.1 mm

Orientation tolerances 10-15 arc minutes

Surface quality 10/5 Scratch/dig

/4 Flatness

20 arc sec. parallelism

Coating R< 0.2% - single wavelength

R< 0.6% - broadband

Acoustical grade

Standard orientation Y+36°-cut - Longitudinal mode

41° rotated X-cut - Shear mode

Orientation tolerances 10 arc minutes or better

Typical size, mm from 10 x 10 to 40 x 60; 0.1-1.5 Thk

Surface quality One side polished 20/10; 1per 25 mm flat

Other side is inspection polished

Parallelism is within 1 arc minute

SAW filters

Standard orientation Y+127°51'-cut within 10 arc min.

Typical size, mm Dia up to 76.2 ± 0.25 x 0.2-1.0 Thk

Surface quality 20/10 front face, back face is fine ground Source: Almaz Optics


Roskill


2.6 Production costs

There is little information available on production costs at existing mines. CBMM does

not release any information and data for Anglo American is aggregated by business unit.

Niobium is a very small part of Anglo American’s overall business. Data is published for

Niobec.

Of the three, Niobec has the highest production cost because it is an underground mine.

It also has the lowest ore grade, at about 0.6% Nb2O5. A planned change in mining

approach at Niobec (see below) could see its production cost fall significantly in future

from the current level of about US$25/kg Nb. At Anglo American’s Catalão mine, the

production cost is estimated to be in the range of US$14-19/kg. That company is also

changing its mining method and moving from weathered ore (1.03% Nb2O5) to hard rock

(1.24%). CBMM combines very high ore grade with production costs that are possibly

below US$10/kg Nb.

Figure 8: CBMM, Anglo American Brasil and Niobec: Grade of ore mined and

estimated production cost

0

5

10

15

20

25

30

0 0.5 1 1.5 2 2.5 3

Pro

du

cti

on

co

st (

US

$/k

g N

b)

Ore grade (% Nb2O5)

Niobec

Catalão

CBMM

Sources: IAMGOLD; Roskill estimates

At the Niobec operation, the operating margin in the first nine months of 2011 was

US$14/kg Nb. That was down from US$19/kg year-on-year, owing to lower grades and

costs resulting from mine re-sequencing to align to future planned changes in mining

approach, higher prices of consumables and a stronger Canadian dollar. The margin

had improved to US$16/kg in the third quarter of 2012, because of higher niobium

prices, and the company reported that it was US$15/kg for the full year.


Roskill


Niobec’s owner (IAMGOLD) has been evaluating the options for a move to open-pit or

block caving mining. A PFS released in early 2012 indicates that block caving is the

preferred option. The company also intends to increase its level of production threefold.

A feasibility study is expected to be completed by the third quarter of 2013, with

permitting anticipated to be in place in 2014.

The evaluation of the block caving scenario is shown below. The numbers were still

current in December 2012.

NAV (after tax): US$1.6-1.8Bn

Mine life: 46 years

Niobium production (post expansion): 13,500tpy Nb

Mining cost: US$17/kg Nb

Operating margin: US$28/kg Nb

Pre-production capital expenditure: US$976M

Growth and sustaining capital over 46 years: US$965M

Operating cash flow (pre-tax): US$15.2Bn

Estimated IRR (after tax): 17-19%

Niobium price assumption: US$45/kg Nb


Roskill


3. World supply of niobium to 2012

3.1 Niobium minerals

Mine production of niobium is from the niobium minerals pyrochlore and columbite and

from other minerals such as tantalite. Pyrochlore and columbite account for over 99% of

total production. Industry statistics do not differentiate between pyrochlore and

columbite but the majority of output reported in this category is pyrochlore.

Almost all pyrochlore production is from CBMM and Anglo American, in Brazil, and

Niobec, in Canada. Their combined reserves are sufficient to meet global demand for

niobium for many years. None of the pyrochlore mined by these companies is exported;

all three convert it to downstream products on-site. CBMM is by far the largest producer.

It has expanded its production capacity significantly in recent years and further

increases are planned. Anglo American and Niobec also have plans to expand their

capacity. Small amounts of pyrochlore are also mined at Lueshe in the DRC. Nigeria

and Brazil are considered to be the main sources of columbite entering the international

market.

Figure 9: World: Mine production of niobium, 1990 to 2012 (t Nb2O5)

2023 21

1823

26 2429

35 33 33

46 47

41

46

64

74

9997

59

83

9188

0

20

40

60

80

100

120

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012

Sources: T.I.C. (data for primary production by miners and smelters and receipts by traders from non-reporting

companies)

Mine production of niobium has been on an upward trend for many years (Figure 9).

After a period of gentle growth during the period 1990 to 2000 (CAGR 5.1%), annual

increases over the last decade have averaged 6.5%py. That figure would have been

higher if the global economic downturn had not resulted in a 40% drop in production in


Roskill


2009. The average for 2000 to 2008 was 14.2%py. Supply recovered strongly in 2010

and 2011 but eased by 3.1% in 2012 (although processors’ shipments of niobium

products increased slightly).

The dominance of Brazil and Canada in the global supply of niobium is illustrated in

Table 9. Production of tantalum-niobium minerals does take place in a number of other

countries but the supply of niobium is usually incidental to the supply of tantalum, which

is a much more valuable product (seven times more valuable as of end-2012, in terms of

contained oxides).

The importance of prices of other materials will impact upon many of the new projects in

the pipeline. Few of these are pure-play niobium projects and most are multi-commodity

projects, the success of which will depend on the market conditions for rare earths,

zirconium and others, and not on the demand for niobium.

Table 9: World: Mine production of niobium by country, 2007 to 2011 (t Nb)

2007 2008 2009 2010 e2011

Brazil P, C 57,267 58,000 58,000 58,000 58,000

Burundi 10 18 5 13 13

Canada P, C 4,337 4,383 4,330 4,419 4,632

DRC C-T, other 98 179 150 93 80

Ethiopia T 12 14 14 17 14

Mozambique 14 28 29 30 65

Nigeria C-T 340 230 360 480 440

Rwanda 150 190 150 120 120

Somalia C-T - 2 2 - -

Total1 62,200 63,000 63,000 63,200 63,400

Source: USGS Note: 1-Bolivia, China, French Guiana, Kazakhstan, Russia and Uganda also produce niobium but no data is

available.

3.2 HSLA-grade ferroniobium

HSLA-grade ferroniobium is the main end-use for niobium and the trend in ferroniobium

supply thus follows that for mine production. Shipments of ferroniobium fell very sharply

in 2009 but rebounded strongly in 2010 and 2011 before slipping back to more modest

growth of 2.5% in 2012 (Figure 10).

Shipments of ferroniobium were 53,516t Nb in 2012. CBMM accounted for 83% of the

total, with the balance split fairly equally between Niobec and Anglo American Brasil

(apart from a small amount produced in China for the domestic market).


Roskill


Figure 10: World: Shipments of ferroniobium, 2000 to 2012 (000t Nb)

20.422.4 23.0

25.8

29.3

40.1

44.0

52.554.3

37.3

41.9

52.253.5

0

10

20

30

40

50

60

2000 2002 2004 2006 2008 2010 2012

Sources: T.I.C. (data for primary production by miners and smelters and receipts by traders from non-reporting

companies)

3.3 Other niobium products

The volume of niobium used in non-steel applications is comparatively small. The T.I.C.

reports shipments of niobium from processors in several forms (Table 10). A significant

proportion of niobium chemicals, metal and alloys are ultimately used in masteralloys.

Overall, shipments of non-steel niobium products grew at a CAGR of 5.4% between

2000 and 2012. The sharp fall in demand in 2009 was short-lived and it quickly returned

to a growth trend. Niobium metal and niobium alloys both saw a slight drop in shipments

in 2012 but the overall total still rose by 1.2%, to a record 6,802t Nb.


Roskill


Table 10: World: Processors’ shipments of niobium for non-steel applications,

2000 to 2012 (000t Nb)

Nb chemicals VG FeNb, NiNb Nb metal Nb alloys Total

2000 2.86 0.23 0.54 3.63

2001 3.04 0.27 0.32 3.63

2002 2.18 0.27 0.36 2.81

2003 2.36 0.50 0.41 3.27

2004 1.54 1.32 0.45 0.32 3.63

2005 1.46 2.01 0.44 0.48 4.39

2006 1.90 2.15 0.41 1.23 5.69

2007 1.99 1.72 0.70 1.29 5.69

2008 2.10 1.50 0.69 1.18 5.47

2009 1.67 0.94 0.43 0.81 3.85

2010 2.72 1.33 0.54 1.23 5.82

2011 2.77 2.14 0.74 1.07 6.72

2012 2.96 2.23 0.64 0.96 6.80 Source: T.I.C. (data for primary production by miners and smelters and receipts by traders from non-reporting

companies)


Roskill


4. Summary of niobium producers, processors and projects

4.1 Mine producers

Table 11 summarises the available details on existing mine producers of niobium, some

of which are also processors or linked to processors. The summary includes those

companies that produce pyrochlore (which represents the vast majority of niobium

supply), companies that mine tantalum and niobium as co-products, and companies that

are pure-play tantalum producers. The last group are included because, although they

produce and sell tantalum concentrates, low concentrations of niobium are present in

the material shipped to processors. In the past, the low niobium price rendered its

recovery uneconomic. At current prices, niobium recovery from tantalum concentrates is

viable for some processors and is considered to be taking place. The tonnages involved

are not large taken in the context of the ferroniobium market but are of some

significance to other market segments.

Table 11: World: Summary of the principal mine producers of niobium

Reserves &

resources (Mt)

Grade

(%

Nb2O5)

Product Capacity (000tpy)

Notes

Pyrochlore

Brazil

Anglo

American

4.3 proven and

probable

reserves

(weathered

rock).

1.03 FeNb 7.5 Nb

(nameplate). Has

not been reached

in recent years.

Moving from soft rock to hard-

rock mining by end-2013.

Expansion of FeNb capacity to

6,500tpy Nb by 2015. Possible

expansion to 15,000tpy by 2017.

33.2 measured

and indicated

(hard rock).

1.24

CBMM 829 (weathered

rock).

2.5

FeNb 120 gross weight Expansion to 150,000tpy by

2015.

936 (hard rock). 1.57 Nb2O5 5 Anticipated expansion to

10,000tpy completed in

November 2012.

Optical-

grade

Nb2O5

Ø Capacity being increased from

400tpy to 500tpy.

Alloys 4 Capacity to be increased to

6,000tpy.

Metal Ø No decision yet made on

whether to increase current

capacity of 210tpy.

Table continued….


Roskill


….Table continues

Reserves &

resources (Mt)

Grade

(%

Nb2O5) Product Capacity (000tpy) Notes

Canada

Niobec 46 proven and

probable.

0.53 FeNb ~7.5 Nb Reserves data for end-2010.

Very large increase in 2011,

following PEA. Substantial

expansion in FeNb production

underway. 13,500t FeNb

anticipated from 2017. Feasibility

study due by end 2013.

60 inferred. 0.53

DRC

Lueshe Intermittent production of up to

1,500tpy concentrate. Exported

to Russia for non-steel use.

Other minerals

Brazil

LSM 6.32 proven

and probable

reserves.

0.0092 Nb and

Ta

oxides.

NiNb.

Capacity for Ta2O5 believed to be

around 180tpy. Based on ore

grades, Nb2O5 capacity is

probably less than 50tpy. A large

part of concentrates output sold

on long-term contract.

Pitinga 424 measured

and indicated

reserves.

0.021

Ta2O5

(1:10

Ta:Nb)

FeNb-Ta

alloy.

Production in 2009 reported as

1,363t. Production in the first

quarter of 2013 believed to be at

the level of 1,235tpy Nb2O5

equivalent.

Burundi

Various Concentr

ate.

Small scale artisanal production

of columbite-tantalite.

China

Minning Concentr

ate.

Relatively small producer of

columbite-tantalite. Production of

Ta2O5 in 2012 estimated at 45t.

Captive to domestic processors.

Yichun Concentr

ate.

Relatively small producer of

columbite-tantalite. Production of

Ta2O5 in 2012 estimated at 68t.

Captive to domestic processors.

Colombia

Various Ore. Small scale artisanal production


Congo

Brazzaville

Various Ore. Small scale artisanal production


Commercial supply of tantalum

concentrates to begin during

2013 but the niobium content will

be small

Table continued….


Roskill


….Table continues

Reserves &

resources (Mt)

Grade

(%

Nb2O5) Product Notes

DRC

Various Ore. Widespread artisanal mining of columbite-tantalite.

The niobium content is small.

Ethiopia

Kenticha Concen

trate.

Commercial production and export of columbite-

tantalite concentrate halted in 2012 because of

radioactivity. Situation persists in 2013, although a

processing plant is planned for 2015 to produce added-

value tantalum and niobium products, including Nb2O5.

India

Various Small scale production of tantalum and niobium from

columbite-tantalite and tin slags.

Malaysia

Various Appears to supply very low-grade tantalum-niobium

minerals.

Mozambiq

ue

Noventa 3.64 0.015 Concen

trate.

Produces and sells tantalum concentrates that contain

niobium (probably not recovered during processing).

Namibia

Various Numerous tantalum-niobium deposits are known.

Some small scale artisanal production may be taking

place.

Nigeria

Various Widespread artisanal production of columbite-tantalite.

Production is exported to processors in Asia and

Europe and the niobium is recovered. The USGS

estimates the niobium content in 2011 at 629t Nb2O5.

Roskill estimates the content at 839t Nb2O5.

Russia

Lovozero 0.3 Loparite mined at Lovozero is processed to tantalum

and niobium oxides and rare earths at Solikamsk.

Rwanda

Various Artisanal production of columbite-tantalite.

Uganda

Various Ore. Very small scale artisanal production of columbite-

tantalite.

Sierra

Leone

Various Small scale artisanal production of columbite-tantalite.

Somalia


South

Africa


Thailand

Various Columbite, tantalite and struverite are mined with

cassiterite ores. Tantalum and niobium are also

recovered from tin slags.

Venezuela

Various Widespread artisanal production of columbite-tantalite.

Zambia

Various Intermittent small scale production of columbite-

tantalite.

Zimbabwe

Various Artisanal production of columbite-tantalite. Source: Section 5


Roskill


4.2 Processors

Table 12 provides summary details of the principal processors of niobium, excluding the

pyrochlore converters. There are probably numerous other small processors,

particularly in China.

The processors are the purchasers of tantalum and niobium minerals entering

international trade. Some also purchase tin slags but probably only for the tantalum

values; the niobium content of slags is believed to be very small. The processors

typically produce both tantalum and niobium and often other metals. They do not

disclose much information on their operations.

Table 12: Summary of the principal processors of niobium

Products Capacity

(tpy)

Notes

Austria

Plansee High-purity Nb metal and

alloys.

Treibacher Ta2O5 and Nb2O5,

carbides and FeNb.

Divested 10% stake in Silmet in 2011.

China

Ningxia Orient FeNb. 600 Supplied by Minning and imports. Probably the

world’s largest Ta processor. Also probably the

largest buyer of Ta and Nb minerals.

Nb metal.

Conghua Nb2O5. 300

Optical-grade Nb2O5. 40

FeNb. 400

Duoluoshan

Sapphire

Nb metal. 50

F&X Nb2O5. 350

Fogang Jiata Nb2O5

FeNb.

300

500

Jiujiang Jinxin

Jiujiang TaNbRe Nb metal

Nb2O5.

20

300

Imports 300-400tpy of Ta-Nb concentrates.

King Tan High-purity Nb2O5

Nb2O

FeNb

70

100

300

Zhuzhou Nb carbide.

Estonia

Molycorp Silmet Ta and Nb metal and

compounds.

700 total (420

for Nb metal)

Bought by Molycorp in 2011. Imports FeNbTa

alloy from Brazil and columbite from Brazil and

Nigeria. Will become the world’s largest

producer of Nb metal.

Table continued….


Roskill


….Table continues

Products Capacity

(tpy)

Notes

Germany

GfE Nb metal, alloys and

oxides.

Part of the same corporate group as the MIBRA

mine in Brazil.

Freiburger NE

Metal

Nb metal and alloys.

WC Heraeus High-purity Nb metal.

H.C. Starck (also

USA)

Ta and Nb metal,

alloys and compounds.

One of the world’s largest Ta and Nb

processors.

Japan

Mitsui Nb2O5. 90

Ta-Nb carbide. 25

Kazakhstan

Ulba Ta and Nb metal,

alloys and oxides.

Niobium production in 2012 reported as 43t.

Russia

Solikamsk Ta2O5 and Nb2O5

oxides.

Sales of Nb2O5 were 656t in 2006. Raw

materials are supplied by Lovozero.

UK

Various

USA

GAM Technology

(also Japan)

Ta and Nb. Formerly Cabot Supermetals.

H.C. Starck

(see Germany)

Source: Section 5

4.3 Potential new sources of niobium supply

Table 13 lists the principal known niobium projects. It includes those that are based

primarily on niobium and those with niobium as a potential by-product or co-product.

Many of the projects are at a very early stage and many, also, will probably not be

commercialised in the foreseeable future.


Roskill


Table 13: World: Summary of the principal niobium mine projects

Reserves &

resources (Mt)

Grade

(%

Nb2O5)

Product

Capacity

(tpy)

Notes

Pyrochlore

Brazil

MBAC 6.34 measured

and indicated

resources.

21.94 indicated

resources.

1.02

0.64

Nb2O5 740 (2016

to 2020)

1,840 (by

2024)

Mainly a rare earths project. All by-

product niobium output likely to be sold

to CBMM.

Canada

Niocan 10.63 measured

and indicated

resources.

0.67 FeNb 4,370 Strong local opposition. Unlikely to

come into production in the near future.

Taseko Mines 286 measured

and indicated

resource.

144 inferred

resource.

0.37

0.32

Nb2O5 5,450 Detailed engineering and permitting

taking place during 2013. Likely scale

of the operation suggests that

conversion to FeNb will be required.

Paraguay

Latin American

Minerals

Currently being explored. Samples

have graded up to 0.23% Nb2O5.

USA

NioCorp

Developments

19.3 indicated

resource.

83.3 inferred

resource.

0.67

0.63

Potentially a very large source of

niobium but plans appear to have been

stalled during 2012 by lack of finance.

Drilling extected to re-start in mid-

2013.

Other minerals

Australia

Alkane

Resources

73 measured

and inferred (36

proven and

probable).

0.46 Nb2O5 2,100 Mainly a zirconium and rare earths

project. DFS due in first quarter of

2013. Production is anticipated to start

in late 2015. Niobium to be supplied to

a third party for conversion to FeNb.

Hastings Rare

Metals

36.2 indicated

and inferred

resources

0.35 Nb2O5 2,630 Heavy rare earths, zirconium and

niobium project. PFS and DFS

underway in 2013. Production is

anticipated to start in 2016.

Lynas 37.7 resources. 1.07 Being commercialised as a rare earths

project. No current plans to exploit the

niobium resource.

Table continued….


Roskill


….Table continues

Reserves &

resources (Mt)

Grade

(%

Nb2O5)

Product

Capacity

(tpy)

Notes

Canada

Avalon Rare

Metals

72.66 measured

and indicated

using base-case

cutoff.

0.4 Nb2O5 1,700 Mainly a rare earths and zirconium

project. PFS completed in 2011.

Feasibility study due in the second

quarter of 2013. Commercial

production anticipated for 2017.

Cache

Exploration

Early stage evaluation of rare earths,

zirconium and niobium deposits in

Newfoundland and New Brunswick.

Commerce

Resources

51.8 indicated.

8.8 inferred.

0.15

0.17

Nb2O5 4,500 Currently anticipating start-up of

production in 2015. Will also produce

tantalum.

Crevier

Minerals

25.4 measured

and indicated.

0.2 Nb2O5 1,700 Currently anticipating start-up of

production in 2016. Will also produce

tantalum.

DIOS

Exploration

Early stage exploration for rare

earths and niobium near the Niobec

mine.

GéoMégA

Resources

183.9 indicated.

66.7 inferred.

0.13

0.14

Mainly a rare earths project. PEA

due in the second quarter of 2013.

International

Bethlehem

Mining

0.01 Initial drilling programme in 2011.

Matamec 3.9 Mainly a rare earths project.

Nuinsco

Resources

515-630

Exploration Target

Mineralization

Inventory

0.09-

0.11

Hosts niobium, tantalum, uranium,

rare earths and phosphorous.

PhosCan 62.2 measured

and indicated

resource.

55.7 inferred

resource.

0.34

0.34

Nb2O5 1,800 Niobium would be a by-product of

phosphate production. No reported

timeline to commercialisation. Pilot

plant studies undertaken during

2012.

Quest Rare

Minerals

278.1 indicated.

214.4 inferred.

0.18

0.14

Nb2O5 3,161 or

3,908

Mainly a rare earths and zirconium

project. Feasibility study due by the

end of 2013.

Rare Earth

Metals

41 resource

estimate

0.26 Very early stage. Main interest is in

rare earths and beryllium.

Sarissa

Resources

20 historical

resource.

0.47

Finland

Tertiary

Minerals

1.05 inferred

resource.

0.03

Ta2O5

(Ta:Nb

7:1).

Dormant.

Gabon

Eramet 21.6 1.6 On-going work to develop a pilot

plant for the recovery of niobium,

tantalum and rare earths by 2014/15.

Table continued….


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….Table continues

Reserves &

resources

(Mt)

Grade

(%

Nb2O5)

Product

Capacity

(tpy)

Notes

Greenland

Ram

Resources

340 inferred

resource

(partial).

Early stage of exploration. Of interest

for tantalum and niobium.

Hudson

Resources

Early stage of exploration. Of interest

mainly for rare earths, with tantalum

and niobium of very secondary

interest.

Kenya

Pacific Wildcat 103.5 inferred

resource.

0.65 Nb2O5 Niobium and rare earths project.

Company anticipates start-up in 2016

at a rate of 2,900-3,600tpy Nb2O5.

Kyrgyzstan

No current production but deposits

containing at least 175,000t Nb2O5

have been identified.

Malawi

Globe Metals

and Mining

68.3

measured

indicated and

inferred.

0.014 FeNb 4,500

FeNb

DFS due January 2013 but reported to

have been delayed. Production

expected to start 2015.

Mongolia

Several tantalum-niobium deposits

under investigation.

Morocco

Significant tantalum-niobium

mineralisation has been identified in

the south of the country.

Russia

Technoinvest Constructing a processing plant to

recover niobium, tantalum, zirconium

and rare earths from ore mined in

Siberia. Eventual niobium output will

amount to a few hundred tonnes a

year.

Saudi Arabia

Ghurayyah 385 0.28 Dormant.

Spain

Solid

Resources

5.6 inferred

resource.

4.2 inferred

resource.

0.084

0.11

Expected to come into production in

early 2014. Mainly a tin and tantalum

project. The total niobium resource is

probably less than 1,000t.

Tanzania

Panda Hill

Mines

32 probable 0.77 Nb2O5

concentrate.

8,680 Active project but no information on

timeline available.

Peak

Resources

Production of rare earths could begin

in 2016. By-product niobium is

possible. Source: Section 5


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5. Review of niobium production, processing and projects by country

5.1 Angola

Following several decades of civil war, mineral exploration work resumed in Angola. At

present, however, attention is focused mainly on the development of the country’s

diamond resources and substantial offshore petroleum wealth.

Angola hosts an important alkaline carbonatite belt comprising more than 30 intrusions,

including three in which tantalum and niobium occurrences have been identified: Bonga,

Bailundo and Virolundo. Information on those resources is very limited but the main

occurrences are believed to be in Huambo and Benguela provinces, south of Luanda.

5.2 Argentina

Very small quantities of columbite and tantalite have been produced in Argentina in the

past. The combined production in 1968 was reported to be almost 12t, falling to

approximately 5t in 1971. There is little information regarding later output, although the

production of approximately 100kg of Nb2O5 was reported in 1989. There are no reports

of any subsequent production of either niobium or tantalum.

5.3 Armenia

The Hrazdan iron ore deposit contains approximately 150Mt of ores grading 32% iron.

The ores also contain tantalum, niobium, rare earth elements, germanium, thallium and

zirconium.

5.4 Australia

5.4.1 Niobium resources

Australia possesses substantial niobium resources. In 2011, the economic

demonstrated resources were estimated at 0.5Mt, which is comparable to the total

resources in Canada.

Over 70Mt of Australia’s resources, and all of the proven/possible reserves, are located

in the area of New South Wales being developed by Alkane Resources for rare earths,


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zirconium, tantalum and niobium. The niobium grade averages 0.46% Nb2O5. In

Western Australia, the Brockman-Hastings deposit contains a JORC compliant indicated

resource of 27.1Mt at 0.365% Nb2O5 and an inferred resource of 9.1Mt at the same

grade. Subeconomic resources have also been identified at Brockman-Hastings and at

Mt. Weld, also in Western Australia.

There is currently no mining of niobium in Australia, although it has in the past been

recovered as a by-product of tantalum mining.

5.4.2 Niobium projects

Alkane Resources 5.4.2.1

The Dubbo Zirconia Project, 100% -owned by Australian Zirconia, is located

approximately 400km north west of Sydney. Australian Zirconia is a wholly owned

subsidiary of ASX-listed Alkane Resources. The total measured and inferred resource

at Dubbo is 73Mt grading 0.03% Ta2O5 and 0.46% Nb2O5, in addition to zirconia and

yttrium/rare earths. Proven and probable reserves (same grades) are approximately

36Mt.

Dubbo is mainly a zircon and rare earths project and its economics depend largely upon

those products. It will, however, produce tantalum and niobium as a tantalum-niobium

concentrate (70% Nb2O5). A demonstration plant was commissioned in 2008 and has

been producing samples of niobium products since then, including in the first quarter of

2011. More than 300kg have been supplied. A September 2011 announcement by the

company gave mid-2014 as the probable date for the start of commercial production.

Recent company literature indicates end-2015 as more likely. A DFS was scheduled for

completion in the first quarter of 2013.

The initial project plan called for a processing capacity of 0.2Mtpy ore. That would yield

600tpy of tantalum-niobium concentrate. Later plans were based on a throughput of

either 0.4Mtpy yielding 1,400tpy of concentrate or 1Mt yielding 3,005tpy (2,100tpy

Nb2O5). The second option appears to have been selected.

Memorandums of understanding are in place for all the anticipated production of

zirconium and niobium. In the case of niobium, concentrates will be supplied to a

unnamed European company for conversion to ferroniobium.

There are currently no plans to recover the tantalum contained in the concentrates,

although it is being considered as a longer-term possibility.


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Hastings Rare Metals 5.4.2.2

The Brockman-Hastings tantalum/niobium/rare earth deposit, located in the Kimberley

region of Western Australia contains indicated and inferred JORC compliant resources

of 36.2Mt of ore grading 0.35% Nb2O5. The deposit was the subject of attention from

several companies in the 2000s, including Tantalum Australia/ABM Resources and the

Mount Gibson Iron subsidiary Aztec Resources. The deposit is now owned by Hastings

Rare Metals, which aims to produce heavy rare earths, zirconium oxide and 2,630tpy of

Nb2O5. A scoping study and economic assessment were completed in mid-2012 and a

PFS and DFS are to be undertaken during 2013. Company literature indicates a start to

production in 2016.

Lynas 5.4.2.3

The Mt. Weld deposit in Western Australia is owned by Lynas. This high-grade resource

is associated within a 3km diameter carbonatite intrusion, where prolonged deep

weathering of the carbonatite has produced an overlying cap enriched in rare earths,

niobium and tantalum.

Mt. Weld contains a large and high-grade rare earths resource, possibly the richest in

the world, and this is the focus of Lynas’ attention. An on-site concentrator was being

commissioned during 2011 and a processing plant in Malaysia was on-stream in 2012.

In addition to rare earths, the Mt. Weld deposit contains potentially economic resources

of niobium, tantalum, zirconium and titanium. Named the Crown Polymetallic deposit,

total JORC compliant resources have been estimated at 37.7Mt, with a tantalum content

of 0.024% Ta2O5 and 1.07% of Nb2O5. With the company’s focus on rare earths, there

are no immediate plans to develop this deposit.

In March 2011, it was reported that Lynas was to sell the Crown deposit to Forge

Resources, of Sydney, for A$29M. Forge’s literature indicated a strong interest in the

niobium. The deal was abandoned in May 2011.

Others 5.4.2.4

In 2010, Artemis Resources acquired a 100% interest in the Buchan’s Creek/Grant’s

Gully tantalum-lithium-niobium tenements in Queensland. Drilling work undertaken in

2008 by the previous owners had returned tantalum values of 0.13% Ta2O5. No further

appears to have been carried out and in its mid-2011 activities report Artemis stated that

it was seeking expressions of interest for its non-core assets, including Buchan’s

Creek/Grant’s Gully.

Capital Mining reported in its 2011 annual report that it had undertaken initial

exploration work at its Narraburra zirconium-rare earths project in New South Wales.

The 55Mt JORC inferred resource contains 0.008% Nb2O5.


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5.5 Austria

There is no mine production of niobium in Austria but the country has a significant

niobium processing sector and is also a medium-sized consumer of ferroniobium. The

processing sector is supplied by imported materials. The only imports that can be

isolated in the trade statistics are ferroniobium and a combined category for niobium and

rhenium. The latter comes very largely from Brazil and is presumed to be mostly

niobium products from CBMM.

Table 14: Austria: Imports of ferroniobium and other niobium products,

2007 to 2012 (t)

2007 2008 2009 2010 2011 2012

Ferroniobium 956 1,125 665 1,061 1,191 1,867

Other niobium1 36 65 42 138 145 179

Source: Global Trade Atlas Note: 1-May include rhenium and other minor metals but the quantities would be very small.

5.5.1 Niobium processors

Plansee 5.5.1.1

Plansee is a producer of high-grade niobium and tantalum alloys and metal, and

tantalum carbide. Its tantalum products are used in various applications including

medical implants, surgical nets and wires, vascular chips, pacemaker electrodes and

dental implants. The company is a major manufacturer of hot zones components for

vacuum furnaces. Hot zones components are constructed mainly from molybdenum,

tungsten and tantalum. The company does not release production figures.

Treibacher Industrie 5.5.1.2

The privately owned processor Treibacher imports niobium and tantalum raw materials

to produce niobium and tantalum carbides and oxides and ferroniobium, along with other

hard metals and ferroalloys. Treibacher acquired a 25% stake in the Estonian processor

Silmet in 2003, although reduced this to 10% in February 2006 when Zimal acquired a

majority interest in the company. Subsequently Treibacher sold its remaining 10% share

to Molycorp in 2011 as part of the latter’s acquisition of Silmet.


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5.6 Belgium

There is no mine production of niobium in Belgium but the country has a significant level

of two-way trade in ferroniobium and other niobium products. The trade statistics also

show imports of niobium ores and concentrates, in a category that also includes

vanadium. The data almost certainly refers to vanadium

Table 15: Belgium: International trade in ferroniobium and other niobium products,

2007 to 2012 (t)

2007 2008 2009 2010 2011 2012

Imports

Ferroniobium 2,859 1,507 1,084 1,835 1,583 1,686

Other niobium 167 73 125 183 121 41

Exports

Ferroniobium 105 111 72 238 121 297

Other niobium1 215 114 158 164 155 100


Affilips, of Tienen, produces up to 15,000tpy of master alloys, including niobium alloys.

5.7 Bolivia

Small amounts of tantalite are produced in Bolivia. According to the USGS, output was

10-12tpy from 2001 to 2003 and 4t in 2005.

General Minerals, of Canada, has explored pegmatites in the Santa Cruz district of

south east Bolivia. The company owned several tantalum prospects totalling

approximately 24,400 hectares on the Bolivian shield. The prospects were located in

three separate areas: Agua Dulce, Los Patos and Rio Blanco.

Most work focused on the Agua Dulce prospect, 50km east of San Ramon in the La

Bella district. The company’s claims in this region cover 9,900 hectares. Exploration

centred on the Caracore pegmatite. There do not appear to be any plans to develop the

prospect. The company, now known as Sprott Resources, does not mention these

prospects in its current literature.

Tantalite was recovered from the Agua Dulce area prior to the 1970s from alluvial

deposits associated with the host pegmatites.

Other areas considered promising for niobium and tantalum discoveries include the

Velasco Alkaline mineral province, in eastern Bolivia, and the Cerro Manomo carbonatite

complex, some 95km from San Ignacio de Velasco. The Velasco deposits adjoin the

state of Rondônia in Brazil, where extensive niobium- and tantalum-bearing tin deposits

have been identified.


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5.8 Brazil

Brazil hosts extremely large niobium resources and its producing companies play a

major role in the global supply of niobium minerals, ferroniobium and other niobium

products.

5.8.1 Niobium reserves and resources

Brazil is by far the world’s largest producer of niobium and hosts an estimated 95% of

measured and indicated reserves. Those reserves, approximately 4.5Mt Nb2O5, are

sufficient for many of global output at current rates of production.

Most niobium is produced from the pyrochlore deposits of Araxá in Minas Gerais, which

are exploited by CBMM, and from Catalão, in Goiãs, where Anglo American Brasil

operates a mine. Niobium is also recovered from columbite-tantalite at Presidente

Figueredo, Amazonas. The columbite-tantalite deposits in Amazonas contain measured

reserves of 0.32Mt Nb2O5 and indicated reserves of 0.45Mt.

Table 16: Brazil: Reserves of pyrochlore, 2005 (t Nb2O5)

Measured Indicated Total

Amazonas 1,094 6,019 7,113

São Gabriel da Cachoeira 1,094 6,019 7,113

Goiãs 13,340 78,855 92,195

Catalão 10,181 78,855 89,036

Ouvidor 3,159 - 3,159

Minas Gerais 2,564,619 1,113,064 3,677,683

Araxá 2,564,571 1,113,064 3,677,635

Tapira 48 - 48

Total 2,579,053 1,197,938 3,776,991 Source: DNPM

5.8.2 Production of niobium minerals and products

All but a small fraction of Brazil’s niobium production is derived from pyrochlore, most of

which is converted to ferroniobium prior to sale. Production of niobium minerals has

been on a generally upward trend since the early 1990s and reached a record 81,922t

Nb2O5 in concentrate in 2007 (Figure 11) before falling sharply in 2008, in advance of a

steep drop in ferroniobium production in 2009 (Table 17). Mine production increased in

2009 but eased again in 2010 and 2011, suggesting that the recovery in ferroniobium

production was met from raw material stocks.

Production of niobium oxide has generally mirrored the trend in ferroniobium output.

Data for production of other forms of niobium has not been published since the mid-

1990s.


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The USGS estimates production of columbite-tantalite amounts to about 550tpy (gross

weight). The niobium content is not reported. A high proportion of total production of

columbite-tantalite is carried out by artisanal mining undertaken by local prospectors

(garimperos). Much of that mining is carried out in the Pitinga area of Amazonas as well

as in tin-tantalum areas of Minas Gerais, Rio Grande do Norte and Bahia. There has

also been artisanal production in the tin-mining district of Bom Futuro, Rondônia,

although it is not clear whether that continues; commercial-scale mining in the area has

ended owing to depleted resources.

Figure 11: Brazil: Mine production of niobium, 1991 to 2011

(000t Nb2O5 in concentrate)

19 19

14

1922

25 26

3431 31

3941

3734

56

69

82

61

89

64 65

0

10

20

30

40

50

60

70

80

90

100

1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011

Source: DNPM


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Table 17: Brazil: Production of niobium products, 1990 to 2011 (t Nb)

FeNb FeNb (AP) NiNb Nb2O5 Nb metal

1990 10,890 … 58 1,145 9

1991 12,323 101 3 1,320 68

1992 10,598 95 29 590 7

1993 8,811 75 15 458 8

1994 11,705 80 80 635 40

1995 16,614 35 109 1,605 2,373

1996 15,526 89 54 1,730 2,427

1997 17,815 … … 1,745 27

1998 20,516 … … 2,400 …

1999 18,866 … … 1,375 …

2000 18,218 … … 1,274 …

2001 24,864 … … 2,632 …

2002 24,174 … … 7,421 …

2003 24,875 … … 5,064 …

2004 25,169 … … 2,529 …

2005 38,819 … … 3,399 …

2006 41,566 … … 4,008 …

2007 52,442 … … 2,915 …

2008 53,839 … … 3,812 …

2009 34,746 … … 2,333 …

2010 52,588 … … 4,298 …

2011 53,691 … … 4,388 … Source: DNPM

5.8.3 Exports of niobium

Brazil is the world’s largest exporter of niobium. The country does not import any

niobium.

Exports of niobium minerals 5.8.3.1

Niobium contained in pyrochlore mined by CBMM and Anglo American Brasil is not

exported from Brazil in mineral form. It is converted to niobium products before sale.

Niobium is, however, contained in tantalum-niobium concentrates produced and

exported by LSM Brasil and Mineração Taboca and by artisanal producers. These

materials are exported mostly to processors in China and to H.C. Starck’s processing

operations in Germany and Thailand.


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Table 18: Brazil: Exports of niobium-bearing ores and concentrates, 2007 to 2012

(t gross weight)

2007 2008 2009 2010 2011 2012

Thailand - - - - - 1,168

Germany 35 130 73 59 899 736

China 554 146 402 368 268 153

Other 18 308 85 88 41

Total 607 584 560 515 1,167 2,098 Source: Global Trade Atlas

Exports of ferroniobium 5.8.3.2

Exports of ferroniobium from Brazil grew strongly in the 2000s and peaked at 72,221t in

2008 (Table 19) before falling sharply in 2009 owing to the global economic crisis.

Recovery in exports was strong in 2010 and into 2011 but eased in 2012.

A high proportion of the ferroniobium exported from Brazil, particularly by CBMM, is sold

through affiliates. CBMM has marketing subsidiaries in the USA, Singapore and the

Netherlands.

Not all the ferroniobium produced in Brazil is exported. The country has a significant

steel industry that consumes up to 4,000tpy of ferroniobium (contained Nb).

Some countries, notably Estonia, report imports of ferroniobium from Brazil that is not

ferroniobium but a FeNbTa alloy produced by Mineração Taboca.

Table 19: Brazil: Exports of ferroniobium by principal destination, 2005 to 2012

(t gross weight)

2005 2006 2007 2008 2009 2010 2011 2012

Netherlands 15,837 16,004 19,276 20,251 9,269 21,017 21,078 20,987

China 9,144 10,530 14,640 18,467 15,217 14,541 14,923 16,291

Singapore 1,495 882 977 3,977 7,818 10,063 10,519 12,027

USA 8,578 11,210 12,542 10,100 3,817 8,985 9,927 10,215

Japan 7,923 8,841 8,545 9,968 4,715 6,371 6,084 6,554

Canada 1,205 1,758 1,470 1,608 822 1,576 1,616 1,342

S. Korea 2,023 1,788 3,662 2,820 1,771 1,705 3,347 516

Other 5,467 8,332 10,744 5,580 1,962 2,690 2,515 3,055

Total 51,672 59,345 71,856 72,771 45,391 66,948 70,009 70,948 Source: Global Trade Atlas


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Exports of high-purity niobium oxide 5.8.3.3

Brazil’s exports of high-purity niobium oxide grew strong in the second half of the 2000s

and reached 1,808t in 2011. The USA is the largest export market by a substantial

margin.

Table 20: Brazil: Exports of high-purity niobium oxide, 2007 to 2011 (t)

2007 2008 2009 2010 2011

739 890 944 1,477 1,808 Source: DNPM

5.8.4 Niobium producers

Anglo American Brasil (Catalão) 5.8.4.1

Through its wholly owned subsidiary Mineração Catalão de Goiás, Anglo American

Brasil is the second-largest producer of pyrochlore in Brazil and broadly comparable in

size to Canada’s Niobec in terms of ferroniobium production. Its mining operations are

located at Catalão, in the state of Goiás. They have historically been based on oxide

(weathered rock) rather than hard rock. Niobium is also recovered from tailings from the

company’s Copebrás phosphate mine.

Although a major niobium producer, Catalão is a minor part of the overall Anglo

American portfolio. In the first six months of 2012, the niobium business made an

operating profit of US$45M, about 1% of the group total.

In the late 2000s both reserves and grades at Catalão were falling, as shown in Table

21. That prompted Anglo American to announce in October 2010 that it was to divest

Catalão and a number of other non-core businesses. In a later announcement,

however, it indicated that a drilling programme had delineated additional niobium

resources. In conjunction with the application of improved processing technology, that

would provide the opportunity for significant extension of Catalão’s life of mine and

production capacity. The company thus reported that it had decided to retain the

business.

Table 21: Anglo American Brasil: Niobium reserves (2009 model)

Ore (Mt) Grade (% Nb2O5)

2007 2008 2009 2007 2008 2009

Proved 11.9 10.6 9.1 1.24 1.21 1.19 Probable 4.2 4.0 3.1 1.15 1.14 1.14

Total 16.0 14.6 12.2 1.21 1.19 1.17 Source: Anglo American


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Central to the decision was a planned move from oxide mining to hard-rock mining. In

its 2010 annual report, the company changed its calculation model (Table 22).

Reserves at the operating mine were reduced from 12.2Mt to 5.1Mt (5-year mine life)

and the average niobium oxide grade was lowered. A large proportion of what had

previously been defined as reserves was now classified as resources, and those

resources were split between oxide and hard rock.

Table 22: Anglo American Brasil: Niobium reserves and resources (new model)

Ore (Mt) Grade (% Nb2O5)

2009 2010 2011 2009 2010 2011

Reserves (mine – oxide)

Proven 9.1 4.0 3.4 1.19 1.09 1.03

Probable 3.1 1.1 1.0 1.10 1.01 1.04

Total 12.2 5.1 4.3 1.17 1.07 1.03

Resources (mine – oxide)

Measured & indicated 39.5 2.8 2.8 1.29 1.22 1.22

Inferred 11.9 1.2 1.1 1.18 0.89 0.89

Resources (mineral deposit - hard rock)

Measured & indicated - 33.2 33.2 - 1.24 1.24

Inferred - 18.1 18.1 - 1.37 1.37 Source: Anglo American

At time of writing, the technical modifications necessary for the switch to hard-rock

mining had not been completed. Production of ferroniobium in 2012 was 4,400t Nb but

the company anticipated a fall in 2013 owing to declining grades in the weathered rock.

Once complete, the upgraded operation will have the capacity to produce 6,500tpy of

ferroniobium in 2015. Anglo American has suggested a second expansion, to

15,000tpy, by 2017.

Table 23: Anglo American Brasil: Production of niobium, 2009 to 2012

2009 2010 2011 2012

Ore mined (000t) 907 1,209 867 933

Ore processed (000t) 874 909 903 978

Ore grade processed (kg/t Nb) 9.3 6.6 8.1 8.5

FeNb production (t Nb) 5,100 4,000 3,900 4,400 Source: Anglo American

Companhia Brasileira de Metalurgia e Mineração (CBMM) 5.8.4.2

CBMM is the world’s largest producer of niobium by a considerable margin and is the

only pyrochlore-based producer active in all niobium product segments. It exports via its

subsidiary companies CBMM Europe (Amsterdam), CBMM Asia (Singapore) and

Reference Metals (USA). It also sells significant tonnages of niobium into the domestic

market.


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For several years until early 2011, CBMM was owned almost entirely by Brazil’s Moreira

Salles family. A former CEO held a small stake. In March 2011, it was announced that

a Japanese investor group consisting of JFE Steel, Nippon Steel, Sojitz and Japan Oil,

Gas and Metals National Corporation, together with a Korean investor group comprising

the steel producer POSCO and the National Pension Service, had entered into an

agreement to purchase part of CBMM. Under the terms of the deal, the new

shareholders acquired a 15% stake in the company, at a cost of US$1.95Bn. The

steelmakers and Sojitz also entered into long-term supply agreements with CBMM, the

terms of which were not disclosed.

At the end of August, an apparently identical deal was struck with a Chinese group

comprising Baoshan Iron & Steel, CITIC Group, Anshan Iron & Steel Group, Shougang

and Taiyuan Iron & Steel Group.

The company operates a pyrochlore mine and processing plant near Araxá in east-

central Minas Gerais state. The open-pit mine exploits what is considered to be the

largest pyrochlore deposit in the world. The deposit comprises weathered rock overlying

hard rock. The weathered rock is the current source of production and will remain so for

the foreseeable future, as reserves are sufficient for at least 100 years at current

production rates.

Table 24: CBMM: Reserves and resources of niobium

Ore (Mt) Nb2O5 (%)

Nb2O5 (Mt)

Weathered rock 829 2.5 20.7

Hard rock 936 1.57 10.3

Total 1,765 31.0 Source: CBMM

Ore extraction from the open-pit mine is by backhoe shovels and trucks and requires no

blasting or heavy equipment, which offers cost benefits. Ore is then transported to the

company’s plant via a 3.2km conveyor belt. There, it undergoes concentrating

(crushing, grinding, magnetic separation, flotation and thickening), which raises the

Nb2O5 content from 2.5% to 55%. That is then increased to over 55% during sintering.

The sinter is refined further, to between 58% and 60% Nb2O5, in a dephosphorisation

process, during which it is mixed with charcoal and ferrous scrap. Most of this refined

concentrate is then reacted with ferrous scrap and aluminium in the metallurgical plant to

produce HSLA-grade ferroniobium containing >65% Nb. The balance is diverted for the

production of other products. CBMM’s complete product portfolio comprises:

HSLA-grade ferroniobium

Vacuum-grade ferroniobium

Vacuum-grade nickel-niobium

Niobium metal

Niobium oxide

High-purity niobium oxide

Optical-grade niobium oxide.


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Products are offered for sale with the following packaging formats:

Cans (7,10,15 and 20kg) – HSLA-grade ferroniobium

Big bags

o 1,000kg - HSLA-grade ferroniobium

o 500kg – niobium oxide, high-purity niobium oxide, optical-grade niobium

oxide, VG ferroniobium, nickel-niobium

Steel drums

o 50kg – niobium oxide, optical-grade niobium oxide

o 200kg – niobium oxide, high-purity niobium oxide

o 250kg - HSLA-grade ferroniobium, VG ferroniobium, nickel-niobium

CBMM began producing HSLA-grade ferroniobium in 1965. In 1994, it replaced the

existing aluminothermic process with an electric-arc process, which reduced aluminium

consumption and replaced the iron oxide raw material with iron metal (scrap). The initial

ferroniobium capacity of 22,000tpy was increased to 45,000tpy in the early 2000s and

later to 90,000tpy.

These expansions were made by CBMM to ensure long-term stability of supply in a

rapidly growing market.

CBMM had plans to increase capacity further, to 0.15Mtpy by 2014/15. Those plans

were shelved when the global economy turned down towards the end of 2008, resulting

in a severe fall in demand for ferroniobium.

Demand recovered in 2010 and reported that it sold its entire output of ferroniobium and

other niobium products. In anticipation of further growth in 2011, the expansion plans

were revived and capacity of 0.12Mtpy was reached in June. Another expansion, to

0.15Mtpy, is expected by 2015.

CBMM reported its sales of ferroniobium in 2012 as 67,000-68,000t, up from 65,000t in

2011. The forecast for 2013 was 72,000-73,000t.

Production of high-purity niobium oxide (min. 98.5% Nb2O5) began at Araxá in 1980.

The plant had an initial production capacity of 2,200tpy, later raised to 5,000tpy. Further

expansion, to 10,000tpy, was intended to be in place by the end of 2009 but, as with

ferroniobium, the plans were delayed. Demand for niobium oxide picked up and in mid-

2011 CBMM was reportedly sold-out, making expansion to 10,000tpy highly likely. The

expansion was completed in November 2012 and the additional capacity will be fully

operational by April 2013.

A second plant producing 300tpy of very pure optical-grade Nb2O5 was opened in mid-

1998. In October 2012, it was reported that the existing capacity of 400tpy was to be

increased to 500tpy.

A 4,000tpy capacity special alloys plant produces vacuum-grade ferroniobium and

nickel-niobium. That capacity is to be increased to 6,000tpy. CBMM reports that this

level of capacity represents about 60% of the world market.


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Niobium metal ingots and niobium-zirconium (1%) alloy are produced in two electron-

beam furnaces with a total reported capacity of 210tpy. In late 2012, CBMM was

undertaking a study to evaluate whether an expansion in niobium metal capacity would

be justified.

LSM Brasil 5.8.4.3

LSM Brasil is part of AMG Advanced Metallurgical Group. It mines tantalum and

niobium minerals from the MIBRA mine near Sao Joao del Rei, Minas Gerais and is one

of the world’s largest tantalum producers. During the suspension of GAM’s tantalum

operations in Australia from late 2008 it was probably the largest hard-rock mining

operation. It likely regained that position in light of the decision by GAM in early 2012 to

suspend tantalum mining at Wodgina once more.

Despite that, tantalum and niobium do not form a large part of AMG’s overall business.

In 2010, tantalum and niobium made up only 4% of AMG’s total sales revenue.

The MIBRA deposit is thought to be related to granitic rare-metal pegmatites emanating

from a peraluminous granite forming part of the Archaean-Palaeoproterozoic Sao

Francisco Craton. Proven and probable reserves at the mine are reported as 6.32Mt,

averaging 0.0375% Ta2O5 and 0.0092% Nb2O5 (Mining Journal, September 2010).

LSM is primarily a tantalum producer and part of its raw materials supply may come from

sources other than its own mine (artisanal production and imports). In its literature it

refers only to the tantalum content of its output.

The MIBRA mine had a design capacity of 45tpy Ta2O5 and produced some 20t in 2003.

Production was ramped-up in 2008, to 68tpy. Production has been increased further

since then. In mid-2010, the Chinese processor Ningxia Orient contracted to buy LSM’s

entire second-half production of tantalum, some 90t. Output in 2011 is estimated to

have been 135t Ta2O5. The company is taking steps to improve the production

capability of the mine through additional exploration and de-bottlenecking activities. In

September 2011 it announced that mining and concentrating capacity would reach,

180tpy Ta2O5 by the first quarter of 2012.

LSM produces tantalum and niobium oxides and high-purity NiNb at its aluminium

master alloys plant near Sao Joao del Rei and has a small tin smelter that also produces

tantalum-rich slag. Some niobium oxide is shipped to LSM in the UK and converted to

ferroniobium for use in superalloys, complex stainless steels and nickel-base alloys.

In the US market, product sales are made through an associate company, Metallurg.

In March 2011, it was reported that LSM had entered into supply agreements with its

traditional customers for all of its tantalum concentrate production through the end of

2012, at fixed prices based upon the current market price of tantalum. The deliveries

under these agreements were to commence in stages, beginning in the second quarter

of 2011. An announcement in April 2011 identified the principal buyer as H.C. Starck.


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In October 2012, however, the company announced that it had signed a long-term

contract to supply a large part of its tantalum concentrate production to a tantalum

processor. Shipments were due to commence in the second quarter of 2013. Although

not named, the processor is believed to be Global Advanced Metals.

Mineração Taboca 5.8.4.4

The Pitinga mine in Amazonas is by far the largest tantalum resource in Brazil and some

industry observers believe it to be the largest in the world.

Until 2008 it was owned by Mineração Taboca and thus ultimately by the Paranapanema

Group. In September 2008, 100% of Taboca and 85% of its immediate parent Mamore

were sold by Paranapanema to Serra da Madeira Participações, controlled indirectly by

Peru's tin producer Mineradora Minsur.

The published resource at Pitinga includes 424Mt measured/indicated at a grade of

0.021% Ta2O5 (1:10 Ta:Nb) plus Sn, with a further 194Mt inferred. In addition, the

company claims a further 500Mt of ‘exploration target’. It is a tin mine first and foremost,

with its niobium/tantalum of slightly lesser importance.

The Pitinga mine opened in 1982 and for some years was one of the largest tin

producers in the world. Soft rock reserves were partly exhausted in 2003 and

operations switched to the processing of remaining alluvial reserves and tailings,

pending the coming on-stream of the underlying Rocha Sã hard rock mine. Seeking the

full exploitation of the hard rock deposit, Taboca carried out exhaustive research,

analysing the possible technological routes for the processing of the Pitinga ore body.

As a result of those efforts, a process was developed and from 2004 production was

derived from the existing 400tph hard-rock crushing plant and from the remaining alluvial

reserves. In 2006, the company commissioned a new crushing line with a capacity of

800tph ROM ore, based on the same process principles.

The first phase of the Rocha Sã project involved a mine producing 5.7Mtpy of ore to be

treated by gravity and flotation, yielding 7,000tpy of tin, 160tpy of tantalum and 1,560tpy

of niobium. That phase was completed in early 2006. A second phase of the project,

which was due to come on stream by end of 2007, was to bring production to 8.6Mtpy

ROM ore, yielding 10,500tpy of tin, 300tpy of tantalum and 2,700tpy of niobium. The

company had plans to double capacity over the long term. Their status is not clear. It

appears that Minsur may be relying on processing tailings, as these have a higher

concentration of minerals than the hard rock.

The main product is a niobium-tantalum concentrate containing 300kg/t Nb2O5 and

30kg/t Ta2O5, which is used to produce a ferroniobium-tantalum alloy (45% Nb, 5% Ta)

at Pitinga. Production in 2009 was reported as 1,363t. Production in the first quarter of

2013 is estimated to have been at the level of 160tpm (1,235tpy Nb2O5 equivalent).

Most output is exported under long-term contracts. The main markets are Europe,

China, the USA and Japan. Molycorp Silmet, in Estonia, is a major customer.


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MBAC Fertilizer 5.8.5.1

In September 2011, MBAC, of Toronto, announced that it had exercised an option to

purchase 100% of the Araxá rare earths/niobium/phosphate project in Minas Gerais.

The project consists of four tenements covering 214 hectares of Barreiro carbonatite,

which also hosts CBMM. The deposit has been explored several times since the mid-

1960s, including as recently as 2009.

The company announced an immediate start to metallurgical testing and drilling, to

validate the historical data and evaluate the potential to produce rare earths. In early

2012 it issued an NI 43-101 report that gave the inferred niobium resource as 2.7Mt at

1.41% Nb2O5 (using a 6% rare earths cutoff).

In September 2012, the company released an initial PEA. That gave measured and

indicated resources as 6.34Mt, with an average grade of 1.02% Nb2O5. There was an

additional inferred resource of 21.94Mt at 0.64%.

The company has reported the PEA to be robust. It anticipates a start to rare earths

production in early 2016. During the first phase (2016 to 2020) it expects to also

produce 740tpy of Nb2O5. That will rise to 1,840tpy by phase 3 of the project (2024

onward).

It is highly likely that all niobium production will be sold to CBMM.

5.9 Burundi

Artisanal mining for gold, cassiterite and tantalite from pegmatites in the Precambrian

Burundian formation began in the 1930s, initiated by Belgian companies operating in the

eastern Kivu province of the then Belgian Congo. More recently, small tonnages of

columbite-tantalite and tantalite concentrates have been produced in Burundi, often as a

by-product of tin and tungsten mining from post-kibaran granitoids.

There are niobium occurrences in association with these deposits in eastern Burundi,

and tantalum occurrences in the central and western areas of the country. Cassiterite,

columbite, tantalite and wolframite deposits are also associated with pegmatites and

alkali granites in the northern provinces of Kayanza and Kirundo.

In the late 1970s and up to 1981, some output (less than 5tpy) of columbite-tantalite

concentrates was reported. Production was derived from alluvial tin-bearing deposits,

composed principally of bastnaesite (at the Karonje mine) and cassiterite (at the Murebe

mine). All commercial mining was banned in Burundi in 1979 and there was apparently

no production for most of the 1980s.


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Production of tin restarted in 1987. Burundi Mining owned 25% by the government and

75% by the Mannai group of Qatar, was formed in 1989 to oversee and regulate mining

operations. Production of columbite-tantalite also restarted and reached a peak of 123t

in 2001, since when it has fallen significantly.

Table 25: Burundi: Production of niobium minerals, 2003 to 2011

2003 2004 2005 2006 2007 2008 2009 2010 2011

Ore (t) 24 23 43 16 52 91 24 67 68

Nb content (t Nb) 4 5 8 3 10 18 5 13 13

Source: USGS

In 2000, the Burundi government introduced a new law aimed at increasing the

production of artisanally mined minerals. After ratification of the law, 24 new trading

licences were granted for columbite-tantalite. During 2001, however, a sharp fall in

concentrate prices resulted in most of the enterprises ceasing their activities, leaving

only seven producers. There appear to be even fewer now. In 2006, the USGS

reported that output was by Asyst Mines, Comptoirs Miniers d’Exploitations du

Burundi (COMEBU), Hamza and Habonimana. In 2010, the USGS reported the only

producing company as COMEBU, which has the reported capacity to produce 6tpy Ta at

facilities in Kabarore in Kayanza Province. The balance of production comes from

artisanal mining operations at various in Kayanza, Kirundo and Ngozi Provinces. Most

output is exported to China, with F&X Electro-Materials being perhaps the main

customer.

Table 26: Reported imports of tantalum and niobium minerals from Burundi,

2000 to 2012 (t gross weight)

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

China 28 26 474 18 15 3 - - 7 73 159 158

Estonia - - - - - - - - - - - 16 -

Hong Kong - - - - - - - - - 24 11 14 -

Japan 6 23 - - - - - - - - - - -

Total 34 23 26 474 18 15 3 - - 31 84 189 159

Source: Global Trade Atlas

5.10 Cameroon

In early 2008 Consolidated Africa Mining, of the UK, announced the results of an

analysis of samples taken from the old Mayo Darlé Tin Mine area. The samples had the

following average values:

Tin 0.848kg/t

Niobium 0.08kg/t (0.08%)

Tantalum 0.009kg/t

Nb-Sn-Ta-W 0.944kg/t

Uranium 0.004kg/t

REE 0.235kg/t


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There do not appear to have been any further developments.

5.11 Canada

The Canadian company Niobec is one of the three major global producers of pyrochlore

and thus of ferroniobium. Many of the niobium projects in the pipeline are located in

Canada, although most are unlikely to come into production in the near future.

5.11.1 Niobium reserves and resources

Canada is the world’s largest source of niobium-bearing minerals after Brazil, although

its resources are much smaller. The USGS puts Canada’s reserves at 0.2Mt Nb, or

about 5% of the global total.

5.11.2 Production of niobium minerals and products

Current production of niobium is from the Niobec pyrochlore mine in Québec, with all

output converted to ferroniobium. Production of ferroniobium has been fairly stable for

several years, in a range of 4,000-5,000tpy contained Nb. It is likely to increase in

future, in line with planned expansion at Niobec. There are also several projects in the

pipeline that have the potential to become suppliers of niobium, as a co-product or by-

product of rare earths/zirconium extraction.

5.11.3 International trade in ferroniobium

Like its competitors in Brazil, Niobec exports ferroniobium worldwide. It is, however,

much more geared to the European and US markets. Unlike Brazil, Canada is also a

significant importer of ferroniobium. Most of those imports are from Brazil, although the

USA is also a significant source (presumably re-exports of Brazilian ferroniobium).


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Table 27: Canada: International trade in ferroniobium, 2005 to 2012 (t gross weight)

2005 2006 2007 2008 2009 2010 2011 2012

Exports

Netherlands 2,872 3,164 3,300 3,403 3,129 3,294 3,457 3,403

USA 868 1,107 1,193 885 1,402 1,293 1,417 1,713

China 540 940 875 1,210 1,062 926 986 713

Japan 520 390 400 400 35 278 365 369

S. Korea - - - 5 406 237 229 223

Other 105 180 457 175 135 171 180 576

Total 4,905 5,781 6,225 6,078 6,169 6,199 6,634 6,997

Imports 1,576 2,070 2,061 2,487 972 1,963 2,222 2,114 Source: Global Trade Atlas


Niobec 5.11.4.1

In the early 2000s, the Niobec operation was a 50:50 joint venture between Cambior and

Mazarin. Mazarin purchased its stake from Teck in early 2001 and spun it off as a

separate company, Sequoia Minerals, in 2003. Under the terms of the agreement,

Mazarin/Sequoia was responsible for mining operations and Cambior for sales and

marketing. Cambior acquired full control in mid-2004, when it merged with Sequoia. In

late 2006, Cambior, which also had various gold assets, was acquired by the Toronto-

based gold producer IAMGOLD. The niobium operations were thought to account for

US$250-300M of the US$1.1Bn purchase price.

The Niobec mine was commissioned in 1976 and had a milling capacity of 3,500tpd. An

expansion programme had increased that capacity to 4,500tpd by the end of 2006. Until

the early 1990s, all pyrochlore concentrate output was exported to ferroniobium

converters, with Murex (UK) and GfE (Germany) being the principal customers. When

those two companies ceased ferroniobium production, Niobec installed an

aluminothermic ferroniobium converter. The converter, which was commissioned at the

end of 1994, now processes all the mine’s output of pyrochlore. Its initial capacity was

3,400tpy; that has since been increased to a reported 7,500tpy ferroniobium grading

66% Nb.

The Niobec mine, at St-Honoré-de-Chicoutimi in the Saguenay region of Québec, is the

only current producer of pyrochlore in North America and is the second-largest in the

world after Araxá in Brazil. It produced 6,522t (gross weight) of ferroniobium in 2010,

about 8% of the world total. That was slightly higher than in 2009, when production was

affected by the downturn in global demand, but comparable to 2007 and 2008.

Production in 2011 was 4,600t contained Nb (6,900t FeNb). The forecast for 2012 was


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4,600t to 5,100t Nb, with 4,700t reported as the eventual total. IAMGOLD has forecast

production in 2013 as 4,700-5,100t Nb.

Sales of ferroniobium in 2012 were to Europe (49%) and North America (25%), with Asia

accounting for the balance.

Table 28: Niobec: Production of niobium, 2009 to 2012

2009 2010 2011 2012

Ore mined (000t) 1,773 1,792 2,087 2,155

Ore processed (000t) 1,755 1,864 2,113 2,195

Ore grade processed (% Nb2O5) 0.61 0.61 0.57 0.55

FeNb production (000t Nb) 4.1 4.4 4.6 4.7 Source: IAMGOLD

IAMGOLD has made substantial investments in Niobec since 2006 and these have

resulted in a very large increase in niobium reserves and production capabilities. At the

end of 2010, proven and probable reserves were 0.24Mt (Table 29), a third higher than

in 2009. In May 2011, however, the company announced that a NI 43-101 compliant

PEA had increased the measured and indicated mineral resource to 1.93Mt (at 0.42%

Nb2O5), with a further 1.24Mt inferred. IAMGOLD has also reported that it is planning to

triple niobium production, to 13,500tpy Nb from 2017 (approximately 20,750tpy FeNb).

At that rate of production, the remaining mine life is over 40 years. Plans include a

possible switch to block caving mining and a revised resource estimate has been

established for that scenario (Table 30).

Table 29: Niobec: Niobium resources and reserves, as at 31st December 2010

Ore (000t) Grade (%Nb2O5) Contained Nb (Mkg Nb2O5)

Proven & probable reserves 45,716 0.53 243.8

Inferred resources 59,672 0.53 316.3 Source: IAMGOLD

Table 30: Niobec: Niobium reserves and resources under the block caving scenario

Ore (Mt) Grade (% Nb2O5) Contained Nb2O5 (Mkg) Probable reserves 419.2 0.42 1,746 Measured resources

1 235.3 0.44 1,028

Indicated resources1 250.2 0.39 986

Inferred resources 155.4 0.35 547 Source: IAMGOLD Note: 1-Measured and indicated resources are 98% inclusive of probable reserves. Under the block caving scenario

around 2% of the measured and indicated resources include in the probable reserves are slightly below the cutoff of 0.20% Nb2O5 per tonne (before recovery) used for resource reporting. This material represents only 5.8Mt averaging 0.18% Nb2O5 for 10Mkg of Nb2O5 contained.

As of late 2012, IAMGOLD was anticipating completion of a feasibility study for the

expansion by the third quarter of 2013, with permitting expected to be finalised by 2014.

IAMGOLD has been in discussions with a number of potential strategic partners

regarding the potential divestment of 15-20% of Niobec. Company literature suggests

that, with the planned expansion, Niobec will be valued at about US$1.6-1.8Bn.

http://topics.sacbee.com/Indicated+Resources/

http://topics.sacbee.com/Indicated+Resources/


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IAMGOLD also owns 27.5% of the Crevier tantalum-niobium project in Québec.


Avalon Rare Metals 5.11.5.1

Avalon is developing the Nechalacho deposit at Thor Lake, in the Northwest Territories.

The company’s main interest is in the contained rare earths and zirconium but co-

production of niobium and tantalum oxides is being considered. A PFS was completed

in 2011 and a feasibility study is due for delivery in the second quarter of 2013. Using a

base-case cutoff of C$260/t Net Metal Return, the measured and indicated reserves are

72.66Mt at 0.4% Nb2O5. Avalon’s literature calls for production starting in 2017.

Anticipated production of niobium would be 1,700tpy Nb2O5.

Cache Exploration 5.11.5.2

During 2010 and 2011 Cache Exploration, of Toronto, carried out fairly small-scale work

at its Louil Hills property in Newfoundland. The property is of interest for niobium,

zirconium and rare earths. No detailed work has been done but previous exploration in

the area has returned niobium values of up to 0.01% Nb2O5. The company is also

investigating a similar property at Welsford in New Brunswick.

Commerce Resources 5.11.5.3

Commerce Resources, of Vancouver, has 100% ownership of tantalum-niobium bearing

carbonatite deposits located in the Blue River area of central British Columbia.

The Blue River deposits are defined, broadly, as the Fir, Upper Fir and Verity deposits.

Attention to date has been centred on the Upper Fir deposit, the largest of the three and

containing the highest tantalum and niobium grades (NI 43-101 compliant).

The most recent (2012) resource estimate for Upper Fir is 51.8Mt (indicated) at 0.15%

Nb2O5, and 8.8Mt (inferred) at 0.17% Nb2O5.

The project evaluation uses a base-case mining and processing throughput of 7,500tpd.

The company estimates that its niobium production will be about 4,500tpy Nb2O5.

Development work continues in 2013.


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Crevier Minerals 5.11.5.4

The Crevier tantalum-niobium deposit, in the Lac St-Jean area of Québec, was identified

by SOQUEM in the mid-1970s and explored until the mid-1980s. In 1986 it was

acquired by Cambior, operator of the nearby Niobec pyrochlore mine, which was itself

bought by IAMGOLD in 2006. In 2008, a 100% stake in the property was sold by

IAMGOLD to Crevier Minerals, in which IAMGOLD had a 50% shareholding. In 2009, it

was announced that MDN was to take a minority stake in Crevier, eventually increasing

that to a majority shareholding, and would make substantial investments aimed at

bringing a mine and milling operation into commercial production within a relatively short

timeframe. As of early 2013, MDN held 67.5% stake in Crevier, with an option to

increase that to 87.5%. IAMGOLD owns the balance of the shares.

The property comprises a nepheline syenite dyke exhibiting pegmatitic texture that

stretches more than 3km. It hosts a NI 43-101 compliant resource of 25.4Mt (measured

and indicated), averaging 0.196% Nb2O5 and 0.0234% Ta2O5.

The target production level for the project is 1,700tpy Nb2O5 and 178tpy Ta2O5. Crevier

would thus be a fairly significant supplier of both. Production was expected to begin in

2014 but end-2016 is now given in the company literature. A feasibility study is due for

completion during the first half of 2013.

Mineral processing of the Crevier ore is to be undertaken in two separate stages:

flotation to produce a concentrate containing niobium and tantalum, and leaching

(hydrometallurgy) to recover the niobium and tantalum oxides contained in the

concentrate.

Development of the HF leaching programme has been underway since November 2011.

The goal of the programme is to recover the niobium and tantalum oxides contained in a

concentrate produced by pilot plant flotation testing done in 2011. The work is being

carried out by SGS Lakefield. To date, test results appear to confirm the assumptions

used in the preparation of the Crevier project PEA and show that there could be an

improvement in the parameters used. The optimisation factors currently underway are:

Confirmation of the percentage of niobium and tantalum extracted on dissolution

of the concentrate

Potential for the elimination of the pre-leaching stage of the process, which would

reduce the capital costs associated with refinery construction, as well as

operating costs

A reduction in the consumption of the hydrofluoric acid used for leaching, which

could result in a significant reduction in refinery operating costs, as hydrofluoric

acid is a major component of production costs

Results obtained to date indicate the possibility of producing zirconium oxide, an

economic by-product not accounted for in earlier studies.

This programme, which is required to complete the feasibility study, will continue, with

selective recovery tests for niobium and tantalum oxides.

The company is currently seeking investment partners.


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DIOS Exploration 5.11.5.5

DIOS is investigating the Shipshaw niobium-rare earths deposit in the Saguenay area of

Québec. The deposit is located 7km from the Niobec mine.

In December 2011, the company reported the results of its 2011 drilling programme.

Four drill holes returned metric size intercepts grading up to 0.25%, 0.19%, 0.18% and

0.15% Nb2O5. Other sampling returned 1m intercepts with 0.06% and 0.04% Nb2O5.

Eleven grab samples returned values up to 0.07% Nb2O5.

During 2012, the company was also exploring the nearby Falardeau carbonatite.

A corporate presentation from 2011 indicates that IAMGOLD holds a 10% stake in the

project.

GéoMégA Resources 5.11.5.6

GéoMégA is investigating the Montviel rare earths-niobium deposit near Lebel-sur-

Quévillon, Québec. It appears to be interested mainly in the rare earths. The most

recent resource estimate (cutoff 1% TREO) is 183.9Mt at 0.13% Nb2O5 (indicated) and

66.7Mt at 0.14% Nb2O5 (inferred). Development work continues and the company

anticipated issuing a PEA during the second quarter of 2013.

Houston Lake Mining 5.11.5.7

Houston Lake Mining, of Val Caron, Ontario, holds a 100% interest in the 1,000 hectare

Pakeagama Lake Rare Metals Project, located in the Red Lake Mining District of north

west Ontario. The Ontario Geological Survey studied the area in the late 1990s and

reported concentrations of rare metals approaching those of the Tanco mine in

Manitoba. Grab samples yielded up to 0.08% Ta2O5. Channel sampling later

undertaken by Houston Lake on the Northern Wall Zone of the rare metals pegmatite

returned 0.034% Ta2O5, in addition to niobium, rubidium, caesium, tin, lithium, thallium

and gallium. The Pakeagama Lake mineralisation is hosted by one of the largest rare

metals pegmatites in Ontario. Relatively little work appears to have been done since

2008, although the company announced that a stage-1 drilling programme was to take

place during 2012. It appears to have started in the first quarter of 2013.

International Bethlehem Mining 5.11.5.8

International Bethlehem Mining, of Vancouver, has been evaluating the Myoff Creek rare

earth-tantalum-niobium claims, 52km north west of Revelstoke, in the Kamloops Mining

Division of British Columbia. The property was previously owned by Cross Lake

Minerals, which announced promising results from a trenching programme in 2001. The


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Geological Survey of Western Australia reported in 2004 that the carbonatite deposit

contained 0.003% Ta2O5 and 0.014% Nb2O5 (channel samples). International

Bethlehem carried out an initial drilling programme during 2011 and announced the

assay results in early 2012. Those were focused on the rare earths and niobium values.

There do not appear to have been any further developments.

Matamec Explorations 5.11.5.9

Matamec is developing the Zeus property in Québec. This is mainly being developed for

rare earths but the company reported in March 2012 that samples had returned up to

3.9% Nb2O5.

Niocan 5.11.5.10

Niocan owns niobium (pyrochlore) deposits at Oka, about 50km north west of Montréal.

It acquired the mineral rights from Kennecott Canada in 1995 and has since been

pursuing a development programme. In 2000, the company was granted a mining lease

that provided it with the right to access the mineral deposits as well as the entire surface

rights needed to mine and process the ore. The Québec Ministry of Natural Resources

also approved a proposed tailings disposal programme.

Once in production, Niocan could produce 4,370tpy of ferroniobium over a 17-year mine

life.

Niocan originally planned to bring Oka into production in 2006 but plans were delayed by

environmental issues that required further engineering studies and by strong opposition

from the local population. Because of these delays, Niocan announced in 2009 that it

would be necessary to update the 2000 socio-economic study, the Capex-Opex

estimates and the reserves estimates. It reported the completion of those updates in

early 2010.

The Oka resources were re-evaluated in 2009, as per NI 43-101 requirements, and now

stand at 10.63Mt (measured and indicated), averaging 0.67% Nb2O5.

A remaining hurdle is the Certificate of Authorisation, which Niocan has been seeking to

obtain for some years. It is far from certain that the certificate will be granted. The

project continues to face very strong opposition from local residents and Aboriginal

groups. In mid-2010, the Mohawk Council of Kanesatake publicly and categorically

rejected the project, in anticipation of a Québec Government decision on Niocan's

request for a Certificate of Authorisation to the Ministry of Sustainable Development,

Environment and Parks.

It is possible that Niocan may sell the Oka asset. It received two unsolicited offers in

January 2011. One, from Nio Metals Holdings, of New York, was rejected for being too


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low-priced and the offer was withdrawn in March. Nio Metals already held a 42% stake

in Niocan.

The other was from Augyva Mining Resources, a Québec-based junior with several gold,

base metals and iron ore projects in the province. It is not clear what happened in that

instance but Augyva seems to have an interest. It June 2011 it entered an agreement

with the Municipality of Oka concerning tailings remaining from when the deposit was

mined in the 1960s and until the mid-1970s. The announcement drew immediate

condemnation from the Mohawk, who claimed it was a disguised attempt to reopen the

mine.

This project is probably no closer to production than it has been for some years.

Nuinsco Resources 5.11.5.11

Nuinsco Resources is exploring the Prairie Lake deposit in Ontario, which hosts a near-

surface deposit containing niobium, tantalum, uranium, phosphorus and rare earths.

In early 2010, Nuinsco announced that P&E Mining Consultants had completed an

Exploration Target Mineralization Inventory (ETMI) estimate that demonstrated the scale

and potential economic significance of Prairie Lake. According to the ETMI, the deposit

contains 515-630Mt grading 0.09% to 0.11% niobium.

PhosCan Chemical 5.11.5.12

PhosCan is developing the Martinson project in Ontario. Although primarily a phosphate

project, Martinson has significant potential for by-product niobium recovered from waste

streams. The Martinson deposit has a NI 43-101 compliant resource estimate of 62.2Mt

averaging 0.34% Nb2O5, with a further 55.7Mt of inferred resources at the same grade.

Pilot plant studies undertaken during 2012 indicated the possibility of supplying a 1.1%

Nb2O5 feedstock for downstream processing. There does not appear to be a timeline for

bringing Martinson to commercialisation.

Quest Rare Minerals 5.11.5.13

The 100% Quest-owned Strange Lake rare earths deposit is located on the Labrador-

Québec border, 220km north east of the town of Schefferville. The deposit has been

investigated since the 1960s. From 1979 to 2007 six companies explored it for

zirconium, niobium, beryllium and rare earths. Quest acquired it in 2007.

Two main areas of interest have been highlighted by Quest within the Strange Lake

licence area. The first was the original 1980 discovery known as the ‘Main Zone’. The


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second known as the ‘B-Zone’ was discovered by Quest in August 2009 about 3km

north west of the Main Zone and is the current focus of interest.

The most recent NI 43-101 complaint resource estimate for the B-Zone, of 278.1Mt

(indicated) at 0.18% Nb2O5 and 214.4Mt (inferred) at 0.14% Nb2O5. A feasibility study

for the B-zone is due to be completed by the end of 2013.

While the project is mainly being evaluated for rare earths (and zirconium), the

anticipated production of 3,161-3,908tpy Nb2O5 would represent a significant addition to

global niobium supply, if directed towards the non-steel markets.

Rare Earth Metals 5.11.5.14

The Two Tom rare earths, beryllium and niobium property in west-central Labrador is

being investigated by Rare Earth Metals. It appears to be very early-stage, although a

NI 43-101 compliant resource estimate released in late 2011 indicated 41Mt grading

0.26% Nb2O5.

Sarissa Resources 5.11.5.15

The Nemegosenda carbonatite property, in northern Ontario, was explored in the 1950s

and 1960s and its main zone was estimated to contain 20Mt of ore grading 0.47%

Nb2O5. The property was purchased by Sarissa in early 2008 and the company

undertook drilling work during the year. This appeared to confirm the historical data and

also the presence of tantalum and rare earths. In 2010, however, Sarissa withdrew its

resource estimates as they were not NI 43-101 compliant. There is thus no current

estimate.

Work continued and in August 2011 Sarissa announced that it had entered into an

agreement with an Asian company. This would raise up to C$10M, which would be used

for further metallurgical and scoping studies. The Nemegosenda project remains a

possibility for commercialisation but production would seem to be some years away.

Taseko Mines 5.11.5.16

Taseko's wholly owned Aley Niobium Project is located in northern British Columbia.

Taseko acquired the Aley project in 2007 and has undertaken substantial development

work since 2010. A NI 43-101 compliant resource estimate released in 2012 gave the

measured and indicated resource at 286Mt grading 0.37% Nb2O5, with the inferred

resource at 144Mt averaging 0.32% Nb2O5.


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The company plans to release a NI 43-101 compliant reserve estimate during the first

quarter of 2013 and to undertake detailed engineering studies and permitting during the

year.

There does not appear to be any firm timeline for commercialisation but, with an

anticipated output of 5,450tpy of niobium, it is likely that there would be conversion to

ferroniobium.

5.12 China

Production of tantalum-niobium minerals in China is fairly small-scale and geared to the

needs of the domestic processing sector. The principal mine producers are probably

Minning Tantalum-Niobium Development and Yichun Tantalum, both of which are

focused on tantalum. There are a number of other small mines, as well as various

projects, about which little is reported.

In addition to being the largest importer of ferroniobium, China also has a large niobium

processing industry and is a very significant importer of niobium-tantalum raw materials,

and minerals in particular. There are numerous tantalum and niobium processors in

China. Many are very small but some are among the world’s key players, particularly in

the tantalum market.

Imports of niobium into China are reviewed in Section 6.1.


Minning Tantalum-Niobium Mining Development 5.12.1.1

Minning operates the Nanping underground mine, 130km north west of Fuzhou, Fujian

province. The operation is 49% owned by the local Geologic & Exploration Bureau, with

the processor Ningxia Orient holding a further 29%. Ningxia Orient is reported to be the

sole customer for Minning’s output.

The Nanping deposit is located in a large swarm of zoned granitic rare-metal pegmatites

clustered around migmatitic host granite. Previously proven reserves had been reported

to be 4,230t at 0.03% Ta2O5.

Minning started production in 2000 and by 2002 the processing plant was operating at

its full capacity of 600tpd of columbite-tantalite ore. It was anticipated that the plant

would produce 121tpy of niobium-tantalum concentrate, 60tpy of tin concentrate,

0.1Mtpy of potassium feldspar and 15,000tpy of mica powder. Weak market conditions

resulted in the mine being closed in April 2002. It reopened in mid-2004, with

management reporting plans to process some 700tpd of columbite-tantalite ore.


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Production in 2012 is estimated at 45t of Ta2O5. The contained niobium is probably

recovered by Ningxia Orient.

Yichun Tantalum 5.12.1.2

The Yichun mine, 180km south west of Nanchang, in Jiangxi province, opened in 1986.

Yichun is a rare-metal (Li-F) granite deposit and, in addition to columbite-tantalite, is a

major source of lithium mined from lepidolite. Proven reserves have previously been

estimated at 6,800t grading 0.17-0.2kg/t Ta2O5.

In 2008, output from Yichun was estimated at 45-55tpy Ta2O5. In mid-2009 it was

reported that Yichun was to be expanded during the year, raising capacity to 7,000tpd of

ore, yielding 700tpy of niobium-tantalum concentrate. Production of Ta2O5 could double

by mid-decade.

Other 5.12.1.3

There are occasional reports of other tantalum-niobium mines/projects in China. Their

current status is not clear and they have been disregarded in the overall assessment of

tantalum and niobium production in China.

The 801 mine is located near Tongliao in eastern Inner Mongolia, 640km north east of

Beijing. It is owned by Ningxia Orient. The mine contains large resources of tantalum,

niobium, rare earths and zirconium. Reserves are reported to be 37.5Mt of ore with an

average Ta2O5 grade in the upper 50m of 0.022%. Niobium values are much higher.

The GSWA reported that the mine was anticipated to come on-stream in 2003. Its

current status is not clear.

Dexin Mining Resources (DMR) is a junior mining company focused on the acquisition,

development and mining of mineral resource properties in China. DMR is owned by

Manor Global of Canada following Manor Global’s acquisition of West China Mining

Resources Holdings in 2005. The principal asset of the company is a 100% interest in

the Lijiagou lithium pegmatite deposit, located in the north west of Sichuan province.

The Lijiagou deposit was discovered in 1956 and explored between 1956 and 2002.

The deposit has reserves of 8.02Mt grading 1.41% Li2O (113,000t Li2O or 52,470t Li).

DMR completed a feasibility study on the Lijiagou project in 2002. DMR has worked

closely with Sichuan Hengding Industrial since 2009 on developing the Lijiagou lithium

deposit. The two companies aim to construct a mine and plant with an initial processing

capacity of 500tpd mined ore, increasing to 3,000tpd mined ore in the following years.

Sichuan Hengding had intended to invest RMB500M (US$75M) in developing the project

into a mine and becoming a majority shareholder in the Sichuan Dexin, but no progress

in this agreement has been reported. The mine was expected to produce 24,000tpy of

lithium concentrates (grading >5.6% and >7.0% Li2O), 10.39tpy of niobium-tantalum

concentrates and 49.5tpy of beryllium concentrate.


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In mid-2008, Hunan Nonferrous Metals announced that it was to explore for tantalum

and niobium, along with tungsten and copper, in Chaling County, Hunan province.

In 2004, it was announced that a large tantalum-niobium deposit had been identified in

Hengfeng County, Jiangxi province. The deposit contains proven tantalum reserves of

30,000t Ta2O5, with an additional 50,000t of resources, and has the potential to be the

largest tantalum/niobium mine in Asia. It was anticipated to be brought into production

in 2009 by Jiangxi Jinfeng Mining. The proposed capacity of the mine was not

disclosed by the company but has previously been reported as 1,200tpd of processed

ore.

In July 2010, Sichuan Western Resources acquired Jiangxi Ningdu Lithium Industry

(Ningdu Taiyu) and Ganzhou Jintai Lithium Industry (Ganzhou Jintai), merging them to

form a 100% owned subsidiary, Jiangxi Western Resources Lithium Industry.

Ningdu Taiyu had operated the Ningdu spodumene mine in Ningdu county, Jiangxi

province since 2007. The Ningdu deposit contains spodumene, fluorite and tantalum-

niobium ore which is mined by an open pit operation with a design capacity of 90,000tpy

of mined ore.

Limu Non-Ferrous Metal, of Gongcheng, Guangxi, has two tantalum and niobium

mines, with associated milling and processing facilities. In 1996, the T.I.C reported that

reserves at Limu were 2,300t Ta2O5. No recent information on the company’s output is

available. It has previously been reported as having the capacity to produce 20tpy of

Nb2O5, 10tpy of tantalum powder and 30tpy of K-salt.

Xinjiang Non-Ferrous Metals, of Urumqi, Xinjiang, is reported to produce 18tpy

tantalum oxide from ore mined at the Kokotay (Keketouhai) mine located near to the

Mongolian border. The mine produces tantalum, niobium, lithium and beryllium.

Mining at Kokotay focuses on the No. 3 pegmatite, which was previously mined between

the mid-1950s and 1999. The mine was closed and flooded in 1999 as reserves at the

deposit were believed to have been exhausted or uneconomical. In August 2006,

Xinjiang Non-Ferrous began to reopen and drain the Kokotay mine, likely because of

rising commodity prices.

In August 2009, the Institute of Mineral Resources at the Chinese Academy of

Geological Sciences reported that it had identified a very large rare metals deposit in

northwest Xinjiang Uygur Autonomous Region. Exploration work had begun in 2007.

The deposit is reportedly the largest of its kind in the country, containing more than

100,000t of niobium, which surpasses China’s proved niobium reserve of 80,000t. The

deposit also has a proven reserve of more than 10,000t of tantalum and rare earth

metals.


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Conghua Tantalum & Niobium Smeltery 5.12.2.1

Conghua Tantalum & Niobium Smeltery, in Guangdong province, produces a range of

tantalum and niobium products. In 2011 it was reported that it has the capacity to

produce 300tpy of niobium oxide, 40tpy of high-purity (optical-grade) niobium oxide and

400tpy of ferroniobium. It later reported its total capacity as 1,000tpy, with the main

products being tantalum powder, K-salt, tantalum and niobium oxides and ferroniobium.

Concentrates are imported from Brazil and west Africa (presumably Nigeria).

Duoluoshan Sapphire Rare Metals 5.12.2.2

Duoluoshan Sapphire has the reported capacity to produce 150tpy of tantalum metal,

400tpy of K-salt and 50tpy of niobium metal. It exports 85% of its output, mainly to

Japan, the USA, Russia, Germany and south east Asia.

Fogang Jiata Metals 5.12.2.3

Fogang Jiata Metals is located in the Chengnan Industrial Zone, Fogang County,

Qingyuan City, Guangdong province. The company was founded in 1999 and produces

and markets a range of tantalum and niobium products. Sales are made mainly to the

domestic market and the USA. Its product range and production (presumed to be

capacity) are as follows:

tpy

K-salt 500

Ta2O5 30

Nb2O5 300

FeNb 500

F&X Electro-Materials 5.12.2.4

F&X Electro-Materials is a 100% foreign-owned company and started operations in

2000. The plant is located at Yaxi Industrial Development Zone, Xinhui, Jiangmen,

Guangdong.

The company is a major tantalum processor. Its production capacity for tantalum and

niobium products is shown in Table 31. Tantalum-niobium minerals are sourced from

Brazil and Africa, as well as from the Yichun mine in China. F&X was the first Chinese

tantalum smelter to be certified as conflict-free.


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Table 31: F&X Electro-Materials: Production capacity for tantalum and niobium

products, 2011 and 2012 (t)

2011 2012

K-salt 500 500

Ta wire 10 20

Nb2O5 (99%) 300 300

HP Ta2O5 (99.99%) 30 30

HP Nb2O5 (99.99%) 50 50

Metallurgical-grade Ta powder (99.9%) 120 200

Capacitor-grade Ta powder 100 150

Sintered bar 50 50 Source: F&X Electro-Materials

Jiujiang Jinxin Nonferrous Metals 5.12.2.5

Jiujiang Jinxin produces tantalum oxides, K-salt, tantalum carbide and a range of

niobium products. These are sold domestically and exported to other Asian and western

countries.

Jiujiang TaNbRe Smelter 5.12.2.6

The state-owned Jiujiang TaNbRe Smelter (formerly the Jiujiang Non-Ferrous Smelter),

in Jiangxi province, produces niobium and tantalum in both oxide and metallic forms, in

addition to rare earths. It has the reported capacity to produce 20tpy of niobium metal

and 300tpy of niobium oxide, in addition to 50tpy of tantalum metal and 100tpy of

tantalum oxide. It is unlikely that production is at these levels.

King-Tan Tantalum Industry 5.12.2.7

King-Tan is a privately owned company established in 2002 and initially known as Gui-

Family Tantalum-Niobium. Production and processing capacity has been reported by

the company as 300tpy FeNb, 100tpy Nb2O5, 70tpy high-purity niobium oxide, 100tpy

tantalum oxide, 200tpy K-salt, 30tpy tantalum carbide and 30tpy high-purity tantalum

oxide.

The company has tantalum-niobium interests in Ethiopia. It also appears to have

connections to the Yichun mine.


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Ningxia Orient 5.12.2.8

Ningxia Non-Ferrous Metals Smeltery was formed in 1965 and was the first tantalum

processor in China. In 1999, it restructured its organisation and formed a limited

company, Ningxia Orient Tantalum Industry (OTIC). The new company was created to

market tantalum, niobium and beryllium. In early 2008, a 51% stake in OTIC was

acquired by China Nonferrous Metal Mining (CNMC). Ningxia is now certainly the

world’s leading tantalum processor, by a considerable margin. It is also probably the

largest single purchaser of tantalum-niobium minerals.

Tantalum-niobium concentrates are imported from South America (mainly Brazil) and

Africa (mainly Nigeria). Ningxia imports tantalum-niobium concentrates (50% Nb2O5).

Imports are currently in the range of 700-800tpy but were expected to reach 1,000t in

2012, in line with an expansion in production. It operates a tantalum powder plant, a

tantalum wire plant, a niobium plant, a crystal plant and a liquid-liquid extraction plant

located in Shizuisan City, Ningxia.

In mid-2009, the company reported its production capacity for tantalum powder as

550tpy, of which 250tpy is for capacitors and the balance for metallurgical applications.

It also reported the completion, in October 2008, of an 80tpy tantalum wire plant. It also

produces up to 600tpy of ferroniobium.

Zhuzhou Cemented Carbide Works 5.12.2.9

Zhuzhou Cemented Carbide Works is the main supplier of tantalum carbides in China,

accounting for a reported 70% of the total processing capacity. It also produces niobium

metal in the form of bar, wire and sheet. In the case of bar, the company reports its

capacity as a few hundred tonnes a year.

5.13 Colombia

There is no formalised mining of columbite-tantalite in Colombia but illegal artisanal

mining is known to be undertaken in the country’s Amazon region, in the south-eastern

departments of Vaupés and Guainia. Colombia is also believed to be a conduit for

columbite-tantalite produced in Venezuela, also illegally.

5.14 Congo Brazzaville

There are widespread niobium/tantalum occurrences reported in Congo Brazzaville,

although grades are generally lower than in the neighbouring Democratic Republic of

Congo. The state mining and exploration organisation, Société Congolaise de

Recherche et d’Exploration Minière is reported to have confirmed a 1.5Mt deposit of


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lead-zinc-copper and cassiterite ores in the Niari area, which may contain small

quantities of tantalum and niobium.

Congo is listed as the origin of tantalum minerals imported by both China and Japan but

is not clear if Congo Brazzaville is the actual source.

Shipments of tantalum concentrates from Congo Brazzaville to a Western buyer are

expected to begin during the first half of 2013. The quantities of tantalum involved are

substantial but the amount of niobium involved will probably not be much more than

10tpy.

5.15 Democratic Republic of Congo (DRC)

The DRC is believed to contain large tantalum-niobium resources. During most of the

2000s it was often reported that the country hosted 80% of the world’s tantalum

resources, although nobody in the industry appeared to know where that estimate

originated. The T.I.C. now estimates that Central Africa as a whole accounts for 9% of

the global tantalum resource base.

Columbite-tantalite supply from the DRC can be split into two categories:

artisanal columbite-tantalite mining in North Kivu and South Kivu provinces

artisanal columbite-tantalite mining in other provinces

Exploitation of these resources is undertaken for the tantalum, although the niobium is

often recovered by the processors who buy the material. The quantities of niobium

involved are not large and the niobium content is not payable.

The Kivus are the source of the larger part of the DRC’s columbite-tantalite production.

They are also the source of what has become known as conflict tantalum. This is

columbite-tantalite that is mined illegally. Many mine sites are controlled by rebel and

other militias that coerce the local population, including children, to work under barbaric

and frequently dangerous conditions.

There has been considerable pressure from the media, NGOs and others to halt the flow

of conflict tantalum and the supply chain has made efforts to do so. The Dodd-Frank

legislation, which is taking effect in the USA, requires companies to report to the SEC on

where their materials originate. In response, many processors and OEMs have

introduced a policy of not purchasing columbite-tantalite from anywhere in the DRC, and

sometimes from anywhere in the region.

With the various traceability initiatives that are being introduced it is becoming possible

for material to be sourced from parts of the DRC other than the Kivus. The main DRC

source is the province of Katanga and supply from there is likely to grow because it can

now be shown to be conflict-free. Kemet, for example, sources columbite-tantalite from

a mine in Kisengo, Katanga, that is processed to K-salt in South Africa before being

shipped to Kemet. Similarly, AVX partnered with Motorola and others in the Solutions


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for Hope project, developing ethical and sustainable production of columbite-tantalite in

the DRC. This new-found confidence in sourcing ethical columbite-tantalite from the

DRC is evident in the trade data for 2011 and 2012.

Table 32: Reported imports of tantalum and niobium minerals from the DRC,

2007 to 2012 (t)

2007 2008 2009 2010 2011 2012

Kazakhstan - - - - 43 212

China 65 171 121 184 29 85

South Africa - - - - - 22

Hong Kong - - 23 - - 11

Estonia - - - - 28 -

Total 65 171 144 184 100 330 Source: Global Trade Atlas

The industry initiatives, such as the ITRI Tin Supply Chain Initiative (iTSCi), are

expected to be expanded into the province of Maniema and perhaps, later, into the

Kivus, although recent fighting in the columbite-rich districts in North Kivu has

jeopardised the credible implementation of the iTSCi scheme for the Kivus.

The true level of columbite-tantalite production in the DRC is not known. Rittenhouse

International Resources has estimated total production in Central Africa in 2008 at more

than 0.8Mlb (360t) Ta2O5, mostly from the DRC. Moves to eliminate conflict tantalum

from the global supply chain have since started to have an effect. Around 0.6Mlb (270t)

Ta2O5 was produced in the DRC in 2011 and supply is forecast to be in the range of

0.4Mlb to 0.5Mlbpy (180-225tpy) through mid-decade.

The Lueshe pyrochlore mine in North Kivu was previously operated by Metallurg but that

company reportedly ended its interest some years ago and Roskill believes that it was

dormant for a lengthy period. Production of a niobium concentrate appears to have

restarted temporarily in 2008 and again in 2009. It also seems to have stopped again in

late 2011. There are reports of a production level of 1,500tpy of concentrates.

The precise ownership of Lueshe is unclear and reports indicate that there is a power

struggle for control among various parties. Control currently appears to be in the hands

of Somikivu, which is owned by the DRC government (20%), GfE (70%) and Russia’s

Kluchevsky Ferro-Alloy Plant (10%).

Roskill has been informed by an industry source that any concentrate output from

Lueshe is shipped to Russia and is not used in ferroniobium.

5.16 Egypt

Tantalum Egypt, is a joint venture formed in 2001 between the Egyptian Mineral

Resources Authority (EMRA) and Tantalum International, a wholly owned subsidiary of

Australian mining junior Gippsland. It owns the Abu Dabbab tantalum-tin-feldspar


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deposit in the Central Eastern Desert, about 16km from the western shore of the Red

Sea. It also owns the nearby Nuweibi tantalum-niobium deposit. Combined, the two

deposits comprise a very substantial tantalum resource. Abu Dabbab contains JORC/NI

43-101compliant proven and probable reserves of 33.18Mt grading 0.025% Ta2O5, with

a total resource of 41Mt at 0.024% Ta2O5. Nuweibi has a total resource of 98Mt at

0.015% Ta2O5 and 0.095% Nb2O5. Nuweibi does not appear likely to be commercialised

in the foreseeable future as Abu Dabbab is the first priority.

At Abu Dabbab, initial plans called for a throughput of 1.25Mtpy of ore yielding

approximately 180tpy of Ta2O5. A subsequent BFS raised the throughput to 2Mtpy, for

295typy Ta2O5. In mid-2011, a comprehensive technical review increased mill through

once more, to 3Mtpy, with Ta2O5 output at 422tpy (contained in slag). That level of

production would make Abu Dabbab the world’s largest producer of tantalum by a

substantial margin.

At the 295tpy level, almost all anticipated production was committed for sale to H.C.

Starck under the terms of an offtake agreement signed in 2007 and which is still in

place. The additional output at the 422tpy level would be available for sale at prevailing

market prices.

The Abu Dabbab project has been much delayed (it was originally expected to begin

operating in 2006) and there is no clear indication of when it might to come into

production for tantalum and the company continues to seek financing. Commercial

production of alluvial tin is due to begin in 2013, however.

5.17 Estonia

There is no mine production of niobium in Estonia and the country’s downstream

processing industry is thus based on imported raw materials.


Molycorp Silmet 5.17.1.1

Molycorp Silmet is one of only two rare earths processors in Europe and also produces

tantalum and niobium. It was acquired by Molycorp in 2011.

The plant at Sillamäe produces a variety of tantalum and niobium products. The

reported capacity for tantalum and niobium products is 700tpy. Niobium metal is the

principal product (capacity 420tpy) and the company is believed to be the world’s largest

producer.


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Production of niobium and tantalum at Sillamäe was traditionally based on loparite

concentrate from the Lovozero mine in Russia. That is no longer the case and the

company relies on imports from elsewhere.

Silmet purchases a variety of niobium-tantalum materials. The procurement specifications are shown in Table 33. The company also buys scrap but there is no specification.

Table 33: Molycorp Silmet: Specifications for niobium and tantalum raw materials

% Tantalite Columbite Pyrochlore FeNbTa Ta2O5 >25 >4.5 <4.5

Nb2O5 >15 >45 >65 >45

U3O8 <0.2 <0.2 <0.2 ThO2 <0.2 <0.2 <0.2 WO3 <3 <3 <3 Source: Molycorp Silmet

The principal raw material purchased is the FeNbTa alloy and that has been the case for many years. It is purchased from Mineração Taboca in Brazil, the only confirmed producer. It is reported as ferroniobium in trade statistics but, as Estonia does not have a steel industry, it can be assumed that all imports of ferroniobium are material from Mineração Taboca. The main mineral purchased is columbite. It is sourced largely from Nigeria and the tonnages involved are usually much smaller than for the FeNbTa alloy. Niobium-tantalum minerals are imported into Estonia from the Central African region but by companies other than Molycorp Silmet and the material is re-exported. Exports of niobium from Estonia are principally to Italy, the UK, the USA and Japan.

Table 34: Estonia: International trade in niobium and tantalum products,

2007 to 2012 (t)

2007 2008 2009 2010 2011 2012

Imports

Ferroniobium 1,020 840 220 438 374 411

Ores and concentrates

Nigeria - 18 49 275 100 583

Rwanda - 22 119 22 60 121

Other 37 62 25 - 80 20

Total minerals 37 102 193 297 240 724

Exports

Other niobium1 342 343 149 183 274 233



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5.18 Ethiopia

Tantalum-niobium concentrates are produced in Ethiopia by both conventional mining

and artisanal methods. The much larger part of total output is from conventional mining.


Kenticha 5.18.1.1

The state-owned Ethiopian Mineral Resources Development Enterprise (EMDSC) owns

and operates the Kenticha mine and processing plant in the Adola region, 300km from

Addis Ababa. Reserves at the deposit have been reported by the USGS as 2,400t

contained Ta2O5 at 0.015% Ta2O5 but they may well be rather higher. In 2012, EMDSC

reported that reserves were sufficient to produce 9,000t of tantalum products, presumed

to mean concentrates.

Production from Kenticha is sold by tender as a tantalum-niobium concentrate. A tender

document issued in January 2012 gave the tantalum content as 32% Ta2O5. China is

usually the sole export market, although one tender in 2011 was won by H.C. Starck, as

shown in the trade data. The niobium content of the concentrate is payable, which is

fairly unusual.

As all production is exported, trade data provides a good indication of production levels.

Reported imports of tantalum and niobium concentrates from Ethiopia in 2011 were 445t

(Table 35). The tantalum content is estimated at about 115t Ta2O5. The niobium

content of the concentrates can thus be estimated at about 15t. Reported imports in

2012 were 164, for the reasons outlined below.

Table 35: Reported imports of tantalum and niobium concentrates from Ethiopia,

2007 to 2011 (t)

2007 2008 2009 2010 2011

China 123 94 294 242 286

Hong Kong - 2 5 107

Thailand - - - - 49

Estonia - - - - 3

Total 123 96 299 242 445 Source: Global Trade Atlas

EMDSC has been soliciting foreign companies to fund expansion at Kenticha with the

aim of bringing production to 160tpy Ta2O5 by mid-decade. The supply of tantalum from

Ethiopia was, however, halted in 2012 because the material had been found to contain

low levels of radioactivity that rendered it impossible to export. The situation will

continue through 2013 and 2014, although approval has been given for the construction

of a processing plant that would both eliminate the problem of radioactivity and enable


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the production of higher-value tantalum and niobium products (niobium pentoxide).

Tender documents were issued in early 2013 and the stated aim is to have both the

expanded concentrator and processing plant operational by 2015.

5.19 Finland

Tertiary Minerals, of the UK, acquired two pegmatite deposits in Finland in mid-2000.

The deposits are located on the south west coast, at Viitaniemi and Rosendal.

Following a review of the exploration data for the Viitaniemi deposit, in the Sepäläranta

area, Tertiary downgraded the potential of that project. As a consequence, it was

terminated to allow the company to concentrate on the Rosendal project.

The Rosendal dyke was discovered by the Geological Survey of Finland and was

originally estimated to contain reserves of 1.3Mt of ore averaging 0.03% Ta2O5. Tertiary

subsequently undertook further drilling programmes and initiated a PFS. CSMA

Consultants completed an initial financial evaluation as a part of that study, including

calculation of capital and operating costs for a contract-mining operation feeding a

gravity concentration plant producing 27tpy of Ta2O5 in high-grade tantalite

concentrates. The capital cost for a 0.125Mtpy plant was estimated at US$4.57M. The

basis for the CSMA study was an inferred mineral resource block model compiled by

SRK Consulting and estimated to contain 1.05Mt at a mean grade of 0.0.3% Ta2O5.

Tertiary reported that Ta2O5 and Nb2O5 are present in a ratio of 7:1.

Tertiary has focused little attention on the project in recent years. The emphasis was

switched to its Ghurayyah tantalum-niobium deposit in Saudi Arabia and later to

fluorspar projects.

5.20 France

The Beauvoir-Echassières mine in the Massif Central region is exploited for high-grade

kaolin by Kaolins de Beauvoir, a subsidiary of Imerys. A tin-tantalum-niobium

concentrate is recovered as a by-product. Imerys has previously indicated that

production of the concentrate amounts to 55tpy and contains 10% Ta2O5. Historical

trade statistics suggested that it was exported to Brazil but there has been little evidence

of such exports in recent years.

Tantalum-bearing mineralisation has also been identified in the Treguennec area of

Finisterre. Reserves are estimated to total 8.5Mt grading 0.02% Ta2O5 and 0.02%

Nb2O5.

France is one of the largest importers of ferroniobium in Europe. Imports peaked in

2008, at nearly 3,300t. The country also imports significant tonnages of other niobium

products, mostly from Brazil and Germany.


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Table 36: France: International trade in ferroniobium and other niobium products,

2007 to 2012 (t)

2007 2008 2009 2010 2011 2012

Imports

Ferroniobium 2,797 3,293 1,183 2,195 2,225 1,608

Other niobium 331 276 193 232 403 531

Exports

Ferroniobium 948 989 261 505 223 186

Other niobium1 4 2 1 17 13 8


5.21 Gabon

The Mabounié niobium deposit, 200km south east of Libreville, is a high-grade

pyrochlore-bearing carbonatite complex. Originally discovered in 1986 by the Gabonese

Directorate of Mines, it was later explored by the Bureau de Recherches Géologiques et

Minières (BRGM) of France on behalf of the government of Gabon. Reunion Mining of

the UK carried out most of the initial surveying between 1998 and 1999 and identified a

resource of 14Mt grading an average 1.7% Nb2O5. The deposit is similar to the Araxá

niobium deposit in Brazil. Subsequent studies revised the resource to 21.6Mt grading

1.6% Nb2O5.

In late 1998, Reunion Mining formed an international consortium, Niobium Resources,

which in turn had a 70% interest in Soc. Minière de la Mabounié (Somima), a Gabonese-

registered company that held the mining rights to the Mabounié deposit. Somipar, a

consortium of Gabonese investors, held the balance of Somima.

In mid-1999, Anglo American acquired Reunion Mining’s share of Niobium Resources. Later in 1999, Cluff Mining acquired a 49.99% interest in Niobium Resources and became the largest shareholder and operator in the Mabounié project. The other shareholders in Niobium Resources were Niobium Mining (NMC), with 30.01%, and Treibacher Industrie, with 20% (later reduced to 14%). NMC was to be responsible for the technical design of the project, with Treibacher handling the marketing of the planned Mabounié ferroniobium product.

A mini pilot-test programme undertaken in 1998 on drill samples demonstrated that the

niobium ore could be concentrated into a saleable product and during 2000 around

1,000t of ore was mined and shipped to the VIT Research Centre in Finland for full-scale

pilot testing for the production of a niobium concentrate. A full feasibility study into the

development of the high-grade niobium zone and the production of pyrochlore

concentrate was completed during 2001.

Annual production was expected to amount to 10,000t of pyrochlore concentrate that

would be converted on site to produce 6,000tpy ferroniobium. Production costs were

anticipated to be comparable to those of the Brazilian producer, CBMM, at around


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US$5/kg. Capital costs for the project were estimated to be US$50M. The company

was also considering a smaller operation, to produce 2,250tpy ferroniobium, at a cost of

US$5M.

The project was dormant for several years. In 2004, Mining Annual Review indicated

that no further activity had been reported. Cluff, by then called Ridge Mining,

relinquished its interest in the venture in 2005.

It is now owned by France’s Eramet. The company is developing the project and

intends to establish a pilot plant for rare earths, niobium and tantalum recovery by

2014/15. Niobium would be produced as ferroniobium.

5.22 Germany

5.22.1 International trade

There is no mine production of niobium in Germany but the country is the largest

consumer of ferroniobium in Europe and has a substantial downstream processing

industry based on niobium products imported, mainly, from Brazil, the UK and the USA.

Table 37: Germany: International trade in ferroniobium and other niobium products,

2007 to 2012 (t)

2007 2008 2009 2010 2011 2012

Imports

Ferroniobium 6,176 6,363 4,153 5,878 6,579 6,295

Other niobium1 593 583 247 421 893 1,054

Exports

Ferroniobium 1,149 1,072 3,334 389 239 229

Other niobium1 731 43 35 68 87 64



GfE 5.22.2.1

GfE, of Nürnberg, is part of AMG Advanced Metallurgical Group, which also includes the

MIBRA tantalum-niobium mine in Brazil. It produces a range of high-performance


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metals and materials, including Al-Nb-Si-Ti, Al-Nb-Ta, high-purity Fe-Nb, Ni-Nb, Nb

metal and oxides, Nb-Al-Ti, vacuum-grade Nb-Al, Nb-Cr and Ti-Nb.

Freiberger NE-Metall 5.22.2.2

Freiberger NE-Metall, of Freiberg, Saxony, produces niobium metal and niobium-

zirconium alloys, and tantalum metal and semi-manufactures.

H.C. Starck 5.22.2.3

H.C. Starck is an international group of companies with 13 production sites in Europe,

North America and the Far East. Tantalum and niobium operations are based in

Germany, the USA, Japan and Thailand. It was owned by the Bayer Group until early

2007, when it was sold to Advent International and The Carlyle Group.

H.C. Starck produces a range of refractory metal powders, including tungsten,

molybdenum, tantalum, niobium and rhenium, as well as their compounds (borides,

carbides, nitrides, oxides, silicides and sulphides). Semi-finished products and master

alloys are also produced. The company is one of the world’s largest processors of both

niobium and tantalum but does not disclose its output figures.

The company’s operations in Germany receive raw materials from several sources, but

the precise composition of that feedstock is not clear.

WC Heraeus 5.22.2.4

WC Heraeus produces high-purity niobium and tantalum ingots, sheets and wires, as

well as micro-machined parts at its plant at Hanau, near Frankfurt. No output data is

available.

5.23 Ghana

Afminex previously held interests in five tantalum prospects in southern Ghana,

encompassing the contact zone between the large Cape Coast granite intrusion and the

Birimian schists: Akim-Oda, Osenase, Akim-Achiase, Apam, and Winneba. Exploration

work reported in earlier years appears to have been focused on the Akim-Oda and

Apam licences. As of September 2002, inferred and indicated alluvial and eluvial

resources at Akim-Oda were 93t of tantalum minerals, of which 56t were indicated.


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The interests appear to have been abandoned. Afminex changed its name to Caspian

Oil and Gas in the mid-2000s and spun out its minerals assets into a new company

called Perseus Mining. That company is active only in gold.

5.24 Greenland

A number of niobium-tantalum deposits have been identified in Greenland, notably at

Sarfartoq, near Søendre Strøemfjord on the west coast, the IIimaussaq deposit and the

Motzfeldt Complex of southern Greenland.


Ram Resources 5.24.1.1

Niobium-tantalum mineralisation was identified in the Motzfeldt Complex by the

Greenland Geological Survey in the mid-1980s. Extensive hydrothermal mineralisation

was discovered, containing an estimated 500Mt of ore grading 0.025% Ta2O5 and

0.07% Nb2O5. Drilling work undertaken on behalf of the UK’s Angus and Ross in

2000/01 suggested, for the relatively small part of the deposit investigated, a preliminary

resource of 15Mt averaging >0.05% Ta2O5 and >0.6% Nb2O5.

Following the drilling programme, the company stated that further exploration work was

not justified, given the prevailing price of tantalum, although the project was not

abandoned. In 2004, it established a subsidiary, Greenland Resources, to act as the

holding company for its minerals interests in Greenland. A 51% stake in Greenland

Resources was acquired by Australia’s Ram Resources in October 2010. The company

has since carried out drilling work.

In April 2012, Ram released an initial JORC inferred resource statement for the Aries

prospect, part of the Motzfeldt project. This gave the total inferred resource as 340Mt at

0.012% Ta2O5. The company announced that it was to undertake further drilling work,

along with mineralogical and metallurgical studies.

Hudson Resources 5.24.1.2

Hudson Resources is a Canadian mineral exploration company that owns a 100%

interest in the Sarfartoq Rare Earth project. The Sarfartoq deposit was first identified in

1976 and was explored from 1989-2002 by Hecla Mining and New Millennium Capital for

niobium mineralisation. Hudson formed a joint venture with New Millennium in 2003,

exploring the project for diamonds. In 2006 Hudson gained a 100% interest in the

Sarfartoq project and in 2009 turned its focus to rare earths exploration.


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Hudson has identified three main targets at Sarfartoq named ST40, ST1 and ST19. In

January 2011 the company released a NI 43-101 compliant resource estimate for the

ST1 target of 14.1Mt inferred, grading 1.51% TREO (including yttrium). During May

2011, Hudson commenced a 10,000m drilling campaign at Sarfartoq. The campaign

aimed to increase and improve the January 2011 inferred resource estimation for the

ST1 target to an indicated resource. A PEA for the ST1 target was completed in late

2011 and an updated resource estimate was expected during the first half of 2012.

Engineering studies and environmental/social impact studies were expected to be

completed by the end of the year.

Sarfartoq is very much a rare earths project and Hudson appears to place very little

emphasis on the tantalum and niobium in the deposit. The company has, however,

reported that samples collected in 2008 returned 0.7% Ta2O5.

5.25 Guyana

There are numerous occurrences of alluvial columbite-tantalite in Guyana. Those

identified by the Guyana Geology and Mines Commission (GGMC) in 2011 are:

Rumeng River (Mazaruni)

Marlissa Falls in the Berbice River

Maka falls (Waini River)

Kwobanna Road, Moruca District

Minabaru Creek, right bank Imotai River

Waini River, above Imotai River mouth

Morabasi River, Mazaruni

Yorke and Arawapai Creeks

Moruca -Kwebanna Road

Minabaru Creek

Imotai

Robello Creek

Rumong-Rumong area

Kuriaro Creek

Arawapai Creeks

Big Hope (Waini)

Meruwang

Black water (Waini)

Waini (5)

Issan

Tanmex, of Georgetown, was formed in 2000 to develop prospects in the Morabisi and

Kunuballi districts. The company had exclusive rights to 12,140 hectares in Morabisi

and a further 6,070 hectares in Kunuballi. Investigation identified approximately

1.53Mm3 of workable alluvial placer deposits extending over a large area and estimated

to contain 0.9-1.5kg/m3 of tantalum minerals. No commercial mining has yet taken

place.


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In March 2012, US-based REE International announced that it had acquired an 11,400

hectares property in Port-e-Kiatuma. The GGMC had previously estimated the in-

ground columbite-tantalite resource to be valued at US$10M.

5.26 India

5.26.1 Niobium production

A small quantity of tantalum is produced in India from columbite-tantalite minerals and

from tin slags. Columbite-tantalite ores are recovered in Bastar, Madhya Pradesh and

Mandya, Karnataka, while niobium-bearing pegmatites have been identified near Limboi,

Saranypur, Bhavangarh and Sanbalwoda in Sabarkhanda district of Gujarat. Tantalum

is also recovered from tin slags produced by Saru Smelting, near Cuttack in Orissa.

These contain up to 30% combined niobium and tantalum oxide.


Fairly small tonnages of niobium minerals are imported into India and the country also

makes small exports. The figure for exports in 2011 would appear to have been of low-

grade material because the unit value was also very low. Similarly, the ferroniobium

export figure for 2010 was probably a reporting error. In addition to have a low unit

value, almost all the material was reportedly exported to Bhutan and Nepal.

Table 38: India: International trade in ferroniobium and niobium minerals, 2007 to 2012

(t)

2007 2008 2009 2010 2011 2012

Imports

Ferroniobium 1,724 2,007 757 1,242 1,710 1,554

Ores & concs. 128 314 4 1 87 100

Exports

Ferroniobium 310 148 140 1,839 17 -

Ores & concs. 62 42 13 15 533 33 Source: Global Trade Atlas


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5.27 Japan


There is no niobium mining industry in Japan. The country is, however, the world’s

largest consumer of ferroniobium after China and the USA and two Japanese

steelmakers are among the owners of the Brazilian ferroniobium producer CBMM.

Table 39: Japan: Imports of ferroniobium, 2007 to 2012 (t)

2007 2008 2009 2010 2011 2012

8,862 10,952 5,167 8,214 8,162 8,670 Source: Global Trade Atlas


Mitsui Mining and Smelting produces tantalum and niobium oxides, carbides and

metal. Production takes place at the Miike Rare Metal plant in Fukuoka prefecture,

which has an estimated capacity of 90tpy tantalum oxide, 90tpy niobium oxide, 40tpy

tantalum carbide and 25tpy tantalum-niobium carbide. The tantalum oxides are used in

optical, electro-optic and ceramics applications.

5.28 Kazakhstan

Tantalum-niobium mineralisation occurs in Kazakhstan but there is currently no mine

production. The Ulba Metallurgical Plant is one of the world’s leading downstream

processors.

5.28.1 Niobium reserves

Tantalum-niobium mineralisation occurs in ores in a number of deposits in Kazakhstan,

although they are not currently exploited. The most important source in the past was the

Belogorsky Combine, located in the Vostochno-Kazakhstansky region.

The principal deposits of tantalum and niobium ores in Kazakhstan, and the most

recently reported status of the mining operations, are shown in Table 40.


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Table 40: Kazakhstan: Principal deposits of tantalum and niobium-bearing ores

Deposit Company Status Reserves

Karabinsky Akchatau combine Standby Nb-<10,000t Nb2O5

Ta-<1,000t Ta2O5

Belogorsky Belogorsky combine Operational1 Nb-<10,000t Nb2O5

Ta-<1,000t Ta2O5

Yubileiny Belogorsky combine Standby Nb-<10,000t Nb2O5

Ta-<1,000t Ta2O5 Source: InfoMine Note: 1-mined for quartz and feldspars


With no current mine production of niobium minerals, the downstream processing

depends on imported materials. Much of the feedstock is columbite-tantalite from

Central Africa. Ulba may also be toll-processing niobium for processors in other

countries, as it does for tantalum, but this is not evident in the trade statistics.

Table 41: Kazakhstan: Imports of tantalum-niobium minerals, 2007 to 2012 (t)

2007 2008 2009 2010 2011 2012

DRC - - - - 43 212

Germany - 35 - 49 42 -

Russia - - - 303 - -

Rwanda - 336 144 - - 180

Total - 371 144 352 85 392 Source: Global Trade Atlas


Ulba Metallurgical Plant 5.28.3.1

Ulba, located in Ust-Kamenogorsk in eastern Kazakhstan, is 90%-owned by

Kazatomprom, the national nuclear agency. It was the largest manufacturer of tantalum

products in the former USSR and also supplied niobium oxide, superconducting

materials based on niobium-titanium alloy and niobium-tin, which were produced as wire

and filaments, and ferroniobium. Following the break-up of the USSR, deliveries of

niobium and tantalum-bearing raw materials to the plant fell considerably, with a

corresponding decline in output. Production ended in 1995.

Operations restarted in November 1999. The plant has a reported annual capacity of

120t of tantalum and also produces niobium and ferroniobium. Actual production

capacity would appear to be higher. Ulba is believed to currently be the world’s second-


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or third-largest tantalum processor. Niobium production in 2012 was reported by

Kazatomprom as 43t.

5.29 Kenya

In March 2011 Pacific Wildcat Resources, of Canada, announced that significant

niobium and rare earths mineralisation had been encountered at the Mrima Hill property

in Kenya. Initial estimates suggested as much as 50Mt at 0.8% Nb2O5 (non-compliant).

Further drilling work was completed by May of that year and in July the company issued

a NI 43-101 compliant inferred resource estimate of 103.5Mt at 0.65% Nb2O5.

The properly is owned by Cortec Mining, in which Pacific Wildcat has the option to

acquire a 70% stake.

News reports in August 2011 indicated that the Mrima Hill project was facing opposition

from local residents. That issue appeared to have later been resolved, following an

agreement by the developer to invest in community projects.

In October 2012, it was announced that production was to start in 2016, at a rate of

2,900-3,600tpy contained Nb2O5.

Pacific Wildcat also owns the Muiane tantalum mine in Mozambique. The deposit is a

weathered hilltop containing indicated oxide resources of 1.375Mt at an average of

0.025% Ta2O5 (NI 43-101 compliant). The niobium content is not reported. The hard-

rock potential of the deposit has not been evaluated. In March 2011, the company

announced that commissioning had begun, with steady-state production expected by

mid-summer, at a rate of about 10tpy Ta2O5. The estimated mine life is three to five

years. The company was reportedly attempting to sell the asset during 2012, to

concentrate on Mrima Hill, but without success.

5.30 Kyrgyzstan

There is currently no production of niobium in Kyrgyzstan, although Mining Annual

Review (2005) reported that occurrences of both niobium and tantalum are known to

exist at several locations.


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Table 42: Kyrgyzstan: Summary of identified niobium and tantalum occurrences

Deposit Nb/Ta occurrence

Chumali & Chelendy Niobium

Jilisu 93,500t Ta2O5

152,000t Nb2O5

Delbek 57,000t Ta2O5

9,700t Nb2O5

Tutek 30,700t Ta2O5

14,600t Nb2O5

Plus uranium & thorium Source: Mining Annual Review, 2005

5.31 Malawi


Globe Metals and Mining 5.31.1.1

The Kanyika polymetallic project, 150km north of Lilongwe, is being developed by

Australia’s Globe Metals and Mining and, when commercialised, will be a significant new

source of niobium. Tantalum is expected to be produced as a by-product.

The most recent (January 2013) JORC compliant resource estimate for Kanyika is

68.3Mt (5.3Mt measured, 47Mt indicated and 16Mt inferred). The niobium content

averages 0.014% Nb2O5.

Work on the project stalled in the first half of 2010 when Thutuka, Globe’s South African

investment partner, withdrew from the venture. It restarted in November of that year

when China’s state-owned East China Mineral Exploration and Development Bureau

(ECE) paid US$41M to take a 51% stake in the company.

The deal also brought access to the Chinese capital markets, particularly Chinese banks

and funds, considered crucial in securing project finance for Kanyika, where capital

expenditure is put at US$220M. The China Development Bank has since agreed to

provide the funding.

A DFS was due for release in January 2013 but Globe announced in March that it had

been delayed by on-going discussions with the Malawi government regarding the

development agreement.

Production is expected to start in 2015, at a rate of 3,000tpy niobium in the form of

ferroniobium (4,500tpy FeNb), along with potentially 160tpy Ta2O5. Mine life is 20 years.


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Globe also holds a 100% stake in the early-stage Machinga project, in the south of the

country. The project is primarily of interest for rare earths but the deposit also contains

tantalum, niobium and zirconium.

5.32 Malaysia

Niobium-tantalum minerals (including struverite) are produced in Malaysia but it is not

clear by whom or in what quantities. The USGS reports production from 2005 to 2009

as varying from 52,000t gross weight to 0.55Mt. Those figures are unlikely to refer to a

highly processed product. The main buyer of any production must be China and that

country’s reported imports of tantalum-niobium minerals from Malaysia are usually less

than 2,000tpy (although they increased to 2,565t in 2011 and 4,204t in 2012). In August

2011, Asian Metal reported that China’s imports are of low-grade material, which is

reflected in its low price of about US$5/kg Ta2O5.

5.33 Mongolia

Tantalum-niobium mineralisation has been reported in many areas of Mongolia but most

deposits are undeveloped and little information on them is available.

The Halzan Buregtei deposit, 60km north east of Khovd in north western Mongolia,

contains an estimated 17,800t Ta2O5 at a grade of 0.2%. Some exploration work has

been carried out. The Shar Tolgoi deposit, 130km from Halzan Buregtei, contains an

estimated 22,500t of Ta2O5 at a grade of 0.2%. Development work appeared to be

underway in 2008. Development partners were being sought for both deposits, which

also contain niobium and rare metals.

5.34 Morocco

The Office National des Hydrocarbures et des Mines has identified significant niobium

and tantalum mineralisation in the Glibat Lafhouda carbonatite prospect, located in the

far south of Morocco. Chemical analysis of samples has returned 0.01% to 0.08%

Ta2O5 and 0.29-2.4% Nb2O5.

5.35 Mozambique

Tantalum-niobium mineralisation, in the form of granitic rare-metal pegmatites, is

confined to the north west region of Alto Ligonha in Zambesia province. The most

commercially important deposits are located at Morrua, Muiane and Marropino.


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The country has a long history of tantalum-niobium production that was interrupted by a

civil war that lasted until 1992. Since that time there has been major reconstruction and

rehabilitation of mine operations and production of tantalum has re-started.

Development plans for the Marropino and Morrua mines, owned by Noventa, have the

aim of making the company one of the world’s leading producers of tantalum. The

Muiane mine has also been brought back into production.

While these mines contain niobium, it is present in uneconomic concentrations. Niobium

production, if it is indeed taking place, is from artisanal mining and the quantities

involved are probably no more than a few tens of tonnes a year.

5.36 Namibia

Deposits of tantalum-niobium are found in numerous locations in the south of Namibia

and in the Uis area in the north west of the country. Several of the deposits have been

mined or actively explored in the past but it appears unlikely that much, if any, tantalum

or niobium is currently produced other than by limited artisanal production. The USGS

reports no production since 2004 (13t contained Ta2O5) and there is no evidence in

trade data of any exports of tantalum from Namibia. The principal deposits are

summarised in Table 43.

Table 43: Namibia: Summary of tantalum and niobium minerals resources

Mine/deposit/prospect Location Deposit style Reserve/resources & grades

Tantalite Valley Mine 25km south of

Warmbad

Granitic rare-

metal pegmatite

Reserves & resources: 0.74Mt at

0.04% Ta2O5

Sandamap prospect

(Erongo area)

220km west of

Windhoek

Granitic rare-

metal pegmatite,

placer

0.02% Ta2O5 (composite drilling

samples) and up to 0.05% Ta2O5

(soil samples)

Nainais-Kohero prospect 250km north west of

Windhoek

Granitic rare-

metal pegmatite

…

Three Aloes mine Uis area, 290km

north west of

Windhoek

Granitic rare-

metal pegmatite,

placer

Resources: 7.2Mt at about 0.05%

Ta2O5

B1 and C1 Pegmatites

prospects

Uis area, 290km

north west of

Windhoek

Granitic rare-

metal pegmatite

Resources: 2Mt at 0.02% Ta2O5

Uis slimes dam mine Uis area, 290km

north west of

Windhoek

Tin-tantalum

waste dumps

Resources: 4Mt at 0.006% Ta2O5

Numerous prospects and

small mines

Strathmore area,

334km north west of

Windhoek

Granitic rare-

metal pegmatite,

placer

…

Source: Geological Survey of Namibia

Central African Mining and Exploration (CAMEC), of the UK, had several tantalite

interests in Namibia. None has been in production for some years and it is quite


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probable that the interests were relinquished. CAMEC itself was acquired by Eurasian

Natural Resources in 2009, mainly for its copper, coal and cobalt assets.

CAMEC operated the Three Aloes tantalite deposit, which it acquired in 2001 and

developed at a cost of US$1M. The deposit, in the Uis area, contains an estimated

7.2Mt averaging 0.05% Ta2O5.

In the same area, CAMEC also considered the development of the B1 and C1

Pegmatites, which contain tantalum and tin. The pegmatites are located 15km south of

Uis. Earlier work on the deposits was undertaken by the Namibian Small Scale Miners

Association and prior to that Falconbridge completed detailed drilling. Pegmatite B1 is

500m long and 32m wide with a confirmed reserve to a depth of 30m on the B1(1)

pegmatite of 0.5Mt averaging 0.02% Ta2O5 in the south-western half, with a further

0.5Mt averaging 0.01% Ta2O5.

Falconbridge previously confirmed a total reserve of 2.23Mt at 0.01% Ta2O5 for the

B1(1) pegmatite down to a depth of 40m. A further five satellite pegmatites B1(2-6)

were identified for additional exploration. Preliminary work by Falconbridge indicated

0.57Mt grading 0.02% Ta2O5. The C1 pegmatite has a strike length of 550m, width of

25m, and reserves of 0.46Mt at 0.02% Ta2O5. The tantalite is disseminated through the

pegmatite with localised high-grade areas containing coarse-grained tantalite. CAMEC

intended to establish a 0.15Mtpy open pit mine producing about 16tpy of Ta2O5.

CAMEC held a 51% stake in ABC Mines and purchased some 1.5tpm Ta2O5 from the

company’s mine at Uis. In addition, CAMEC examined the feasibility of reprocessing

tailings from slimes at the Uis tin mine worked by ISCOR until 1989. Resources at the

mine are 4Mt at 0.053% Nb2O5 and 0.006% Ta2O5. A plant producing 23tpy of Ta2O5

and 65tpy of tin was envisaged. CAMEC also explored granitic rare-metal pegmatites

and associated placer prospects in the Strathmore area, south west of Uis.

Magna Mining (formerly Reefton Mining), of Australia, identified substantial tantalum

mineralisation over a 50km length of the Sandamap-Erongo pegmatite belt. Exploration

yielded grades of up to 0.42% Ta2O5 (soil samples). In 2004, the company was

reported to be seeking a joint-venture partner to develop the deposit. In its recent

literature, however, it states that development work has been suspended, as its focus

has moved to gold and copper.

Magnum Mining and Exploration, of Australia, acquired the Tantalum Valley mine in

2007. The mine, in the south of the country, was reopened in 2001, having been closed

since the late 1980s. The new operation was designed to produce 1.8tpm of Ta2O5 from

6,000tpm of ROM ore. Falling world prices resulted in operations at the mine being

suspended at the end of 2001. Magnum reports in its literature that it is searching for an

investment partner to provide funding for further development of the mine but no such

partner has yet been found. That statement has appeared in the literature for several

years.

Tantalum is also found in pegmatites in the Cape Cross-Uis tin belt region. The

Namibia Small Miners Association has previously been reported as operating a small

20tpd processing plant at Uis. The head grade of the material is 0.02% Ta2O5 and is


Roskill


augmented by artisanal production. The prospects are close to the Uis tin mine, which

was operated by Iscor until 1989. Drilling of the pegmatite veins indicated a resource of

2Mt of ore grading 0.01% Ta2O5.

5.37 Nigeria

5.37.1 Niobium production and exports

Large reserves of columbite-tantalite exist in Nigeria, mostly in rare-metal pegmatites

and alluvial placer deposits in Nasarawa, Gombe and Kogi states and in the Federal

Capital Territory.

Columbite-tantalite has been mined by artisanal groups for many years, with the areas

around Nasarawa and the Jos Plateau being the main centres of activity. Output is

accumulated by local traders, such as Mekios, for export, although the government has

proposed the establishment of more formal mineral buying centres.

Mekios owns six mining sites in Kogi, Kwara and Oyo States. Each is approximately

20km2 in size and exploited by mechanised methods. The company also operates

collection centres for artisanal producers.

The USGS estimates for Nigeria’s production of niobium are shown in Table 44. The

data does not agree well with reported imports of tantalum and niobium concentrates by

Nigeria’s trading partners (Table 45). Nigerian supply in 2012 is estimated at about 100t

Ta2O5. That implies that the concentrates contain less than 5% Ta2O5 and are thus

columbite, which should enter international trade with a minimum niobium content of

50% Nb2O5. Recent estimated production is shown in Table 44.

Table 44: Nigeria: Production of tantalum and niobium minerals, 2007 to 2011 (t)

2007 2008 2009 2010 2011

USGS

Gross weight1 850 570 900 1,200 1,100

Nb content2 340 230 360 480 440

Nb2O5 486 329 515 687 629

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Nb2O5 853 625 672 809 839 Sources: USGS; Roskill estimates Notes: 1-Concentrate. 2-Estimated by the USGS as 40%.


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Table 45: Reported imports of tantalum and niobium minerals from Nigeria,

2007 to 2012 (t)

2007 2008 2009 2010 2011 2012

China 810 555 893 1,133 1,076 1,308

Estonia - 18 49 275 100 583

Hong Kong 870 643 318 201 234 197

Thailand 25 25 57 - 196 -

India - - - - 72 55

Other - 9 26 8 - 2

Total 1,705 1,250 1,343 1,617 1,678 2,145 Source: Global Trade Atlas

5.38 Portugal

Columbite-tantalite and tungsten ores occur in the tin belt, which runs along the border

between Spain and Portugal, from Badajoz to La Coruña, but most of the economic tin

mineralisation occurs in Spain.

Tantalite concentrates were produced in Portugal in the 1970s and early 1980s. The

sources of production have not been reported and output appears to have ceased after

1986.

Past producers of tin concentrates in Portugal included Beralt Tin & Wolfram Portugal,

Mineragol, Portuguese American Tin, Minas de Ervedosa and Mines de Ribeira.

The only tin smelter in Portugal, an 800tpy capacity plant at Mangualde, was operated

by Nova Empresa Estanifera de Mangualde until its closure in early 1987. The slags

generated at Mangualde were exported.

5.39 Paraguay

Latin American Minerals (LAT) is a Toronto-based minerals exploration with interests

in Argentina and Paraguay.

LAT’s Chiriguelo project is a large carbonatite intrusion similar to the niobium deposits at

Araxá and Catalão. Historical work on the prospect has proven pyrochlore

mineralisation and a suite of rare earth elements. The project is located 500km north

east of Asunción, near the Brazilian border. The site is readily accessible by a paved

road passing through the southern edge of the project. In 2011, LAT acquired the

exploration concession covering a total of 25,500 hectares. The project is 100% owned

by LAT and has valid environmental permitting until 2013.

In the fourth quarter of 2009, LAT completed a reconnaissance rock and soil-sample

survey in the central ring structure of Chiriguelo to follow up anomalous niobium, rare

earths and radiometric anomalies encountered by Anschutz in the early 1980s. A total


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of 31 rock samples and 15 soil samples were collected and assays returned average

TREOs of 1.38% with a high of 7.59%, and Nb2O5 at 0.075% with a high of 0.23%.

Exploration continues.

5.40 Russia

Several tantalum-niobium operations in Russia have closed over the last decade or so

and current mine production is in the hands of Lovozero, which supplies the processor

Solikamsk.


The former USSR possessed some of the largest tantalum reserves in the world. Total

reserves have been estimated at 0.3Mt Ta2O5, of which approximately 98% are in

Russia.

Most of the economic tantalum and niobium reserves in Russia are located in the

Lovozero deposit in Murmansk oblast on the Kola Peninsula. There are a number of

smaller deposits but many of those are not of a sufficient quality to justify development.

Further exploitation of these deposits has so far been hindered by lack of infrastructure

and the need to invest significant funds in developing the areas. Amendments made to

Russia’s mining law during 2008 now prohibit foreign companies from mining certain

commodities, including niobium and tantalum, on federal land. Foreign companies are

also barred from holding more than 10% of companies with licences on those lands,

unless the deals are promoted by the government itself.


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Table 46: Russia: Principal deposits of tantalum- and niobium-bearing ores

Deposit Region Company Status Reserves

Lovozero Murmansk

oblast

Sevredmet operational >50,000t Nb2O5

>5,000t Ta2O5

Netske-Vara Murmansk

oblast

Sevredmet under exploration 10-50,000t Nb2O5

1-5,000t Ta2O5

Yaregskoe Komi republic Komi Titan under preparation

for titanium

>50,000t Nb2O5

>5,000t Ta2O5

Ulag-Tanzegskoe Tuva republic … reserves outlined >50,000t Nb2O5

>5,000t Ta2O5

Belozeminskoye Irkutsk oblast … reserves outlined >50,000t Nb2O5

>5,000t Ta2O5

Orlovskoe Chita oblast Orlovsky combine operations

suspended

1-5,000t Ta2O5

Katuginsky Chita oblast Zabaikalsky

combine

reserves outlined >50,000t Nb2O5

>5,000t Ta2O5

Aetykinskoe Chita oblast Zabaikalsky

combine

unclear 10-50,000t Nb2O5

>5,000t Ta2O5

Festivalnoe Khabarovsk

krai

Solnechny

combine

operational for tin 10-50,000t Nb2O5

<1,000t Ta2O5

Sources: InfoMine; Russian Mining Magazine


Russia has a domestic tantalum and niobium mining and processing sector and the

requirement for imported raw materials is thus fairly small. Russia is, however, the

second- or third-largest European consumer of ferroniobium, after Germany.

Table 47: Russia: International trade in ferroniobium and niobium minerals,

2007 to 2012 (t)

2007 2008 2009 2010 2011 2012

Imports

Ferroniobium 2,442 2,175 1,506 3,431 2,319 2,427

Ores & concs. 10 75 - - 43 -

Exports

Ferroniobium 144 145 3 1 7 47 Source: Global Trade Atlas


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5.40.3 Niobium producers and processors

Lovozero Mining-Concentrating Combine 5.40.3.1

Lovozero exploits large reserves contained in the Lovozero deposit in the Murmansk

region. The ores contain loparite grading on average 0.3% Nb2O5 and 0.024% Ta2O5.

The company also mines rare earths from the deposit.

Ore is processed to a 95% loparite concentrate containing 6.5kg/t Ta2O5 and 85.5kg/t

Nb2O5. Production capacity is approximately 24,000tpy of loparite concentrate.

Capacity had previously been reported to be approximately 40,000tpy of loparite

concentrate, comprising 3,400tpy Nb2O5 and 260tpy Ta2O5. Output is now rather

smaller, reaching no more than 12,000tpy since the late 1990s. Production of

concentrate was 8-9,000tpy from 2005 to 2010 and is very unlikely to return to a level

above 12,000tpy.

Prior to the break-up of the USSR, Lovozero loparite concentrate was processed at what

is now Molycorp Silmet, in Estonia, and at Solikamsk Magnesium Works, in Russia. In

1992, deliveries of concentrate to Estonia were stopped and Lovozero’s output has

since been processed by Solikamsk. Lovozero and Solikamsk are part of the same

corporate group.

Solikamsk Magnesium Works 5.40.3.2

Solikamsk, located in the Perm region, is a producer of niobium and tantalum oxides,

magnesium metal and alloys and rare earths. The company processes loparite

concentrate produced from the Lovozero deposit. Processing is undertaken using the

chlorine method.

The capacity of the plant has been estimated by InfoMine to be approximately 13,000tpy

of loparite concentrate processed, containing approximately 1,100tpy Nb2O5 and nearly

91t Ta2O5. According to SMZ, sales in 2005 and 2006 were 638t and 656t Nb2O5, along

with 30-40tpy Ta2O5. Solikamsk’s estimated tantalum production is 35tpy Ta2O5.

The company’s main export markets are the USA, Japan and Europe. US imports of

Nb2O5 from Russia peaked at 231t in 2008 but have since been in the approximate

range of 30-50tpy.

Technoinvest Alliance 5.40.3.3

In 2005, Technoinvest was awarded a contract to develop the Zashikhinsky polymetallic

deposit in Siberia. The deposit contains an estimated 25,000t of niobium, in addition to

tantalum, zirconium, rare earths and thorium. Little appears to have been done after


Roskill


that. In July 2011, however, the steel pipe producer Chelpipe invested US$115M to

acquire a 30% stake in the deposit and stated that the move was intended to secure raw

materials supply. A processing plant was to be built in 2012. It would have an ore

capacity of 100,000tpy, so niobium production would probably amount to only a few

hundred tonnes a year.

Other 5.40.3.4

The Novoorlovsky mining and processing combine operated the Orlovsky underground

tantalum mine in the Chitinsky region of Chita until weak market conditions forced its

closure in 1994. Novoorlovsky was owned by MENATEK, a joint venture between

Canadian and (former) Yugoslav companies.

Work on restoration of the tantalum mine and concentrator began in 1998. By 2000, a

small part of concentrator capacity had been recommissioned and production of 5%

Ta2O5 concentrate resumed at a very low rate. Novoorlovsky was scheduled to reach

capacity of 0.6Mtpy of ore by 2002, producing 70tpy of tantalum oxide. The current level

of output is not reported. In 2003, Russian Mining reported that redevelopment work

was also focused on the processing of tailings containing 5,190t of tungsten, 550t of

niobium and 440t of tantalum. InfoMine has reported that there is currently no

production from tailings.

The Zabaikalsky combine is one of a number of entities controlled by TVEL, itself part

of the Russian Ministry for Atomic Energy. Raw materials for the plant used to be

sourced from the Zavitinsky open cast mine in Chita oblast. Output from the Zavitinsky

mine, principally a producer of lithium concentrates, became unprofitable owing to the

decreasing grade of the ores and the poor level of metal recovery at the plant, and

production ceased in 1997.

The combine subsequently started operations at the Aetykinskoe tantalum-niobium

deposit, also in Chita oblast, as part of the Federal Purpose Program of Mining,

Production and Consumption of Lithium, Beryllium, Developing Production of Tantalum,

Niobium, and Tin (LIBTON) project. The Russian government gave approval for the

project in 1997. Zabaikalsky also investigated another deposit, at Katuginsky, but no

production was reported.

In 1999, Zabaikalsky commissioned a gravity concentrator at Aetykinskoe. The

concentrator had a capacity of 0.75Mtpy ore. An unspecified part of output was sold to

Ulba Metallurgical Plant in Kazakhstan. Those shipments stopped in 2003.

Concentrates have also been sold to the Chepetsk mechanical plant (Glazov,

Udmurtia).

In 2000, TVEL completed construction of a hydrometallurgical plant at Pervomaisky

settlement. The plant treated concentrates produced by Zabaikalsky. Its capacity is

60tpy of Nb2O5, 40tpy of Ta2O5 in the form of K-salt, and 100tpy of tin.


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The Aetykinskoe operation has been mothballed since 2005 and the company now

focuses on the production of fluorspar.

5.41 Rwanda

Columbite-tantalite is produced in Rwanda by commercial mining companies such as

Centrale Multi-Services, Eurotrade International, Gatumba Mining Concessions,

Munsad Minerals and Natural Resources Development Rwanda. It is also produced

by artisanal operations, which do not report their output. In addition, Rwanda has been

identified as a key conduit for material smuggled from neighbouring countries, and from

the DRC in particular. That material has been destined for China/Hong Kong.

As is the case with the DRC (Section 5.15), many downstream processors have

developed their own legitimate artisanal supply base in Rwanda and the country’s export

base is expanding.

Table 48: Reported imports of tantalum and niobium minerals from Rwanda, 2007 to 2012 (t)

2007 2008 2009 2010 2011 2012

China 1,389 1,656 2,479 1,634 1,165 801

Kazakhstan - 336 114 - - 180

Estonia - 22 119 22 60 121

USA - - - - - 64

Hong Kong 587 340 381 512 230 47

South Africa - - - - - 38

Thailand - 12 - - - 16

Brazil 50 72 - - -


5.42 Saudi Arabia

The Ghurayyah tantalum-niobium deposit in north west Saudi Arabia is one of the

world’s largest known accumulations of tantalum and niobium, with an inferred resource

(JORC compliant) of 385Mt grading 0.024% Ta2O5 and 0.28% Nb2O5. That is

comparable to the combined known tantalum reserves and resources at the

Greenbushes and Wodgina mines in Australia.

In 2002, the UK’s Tertiary Minerals was awarded an exclusive exploration and

development licence for the deposit. Metallurgical test work and a scoping study were

completed during 2003, demonstrating 74% Ta and 67% Nb recovery to concentrate

and generally positive results. Outline plans called for the mining of 1.5Mtpy of ore over

an initial 20-year period to yield 275tpy of Ta2O5, 2,858tpy of Nb2O5 and 10,000tpy of

zircon concentrate. At that rate of output, production could be sustained for about 200

years.


Roskill


In the financial base case, tantalum-niobium concentrates would be smelted to produce

a low-radioactivity iron-niobium-tantalum alloy that would be further processed to

ferroniobium and tantalum and niobium compounds.

In 2005, Tertiary entered into an agreement with two Saudi companies, AH Algosaibi

and Bros., and Al Nahla Trading & Contracting, to obtain US$7M in funding for the

completion of feasibility studies.

In 2006, metallurgical test work (flotation) carried out by SGS Lakefield, of Canada,

achieved tantalum and niobium recoveries of over 85%, compared to recoveries of,

typically, 50-60% for conventional gravity processing. In late 2008, Tertiary confirmed

that work was continuing on the development of a flotation process able to provide a

concentrate with a metal content high enough to be fed into a hydrometallurgical

process.

Progress on the project was slowed in early 2007, when the Saudi government refused

to renew Tertiary’s exploration licence. The official reason for this was that the

Ghurayyah deposit had been found to contain low levels of uranium, a commodity that

the government does not wish to license for exploration or production. The move led to

a temporary voluntary suspension of trading in Tertiary’s shares. In early 2009,

however, the company remained publicly confident that negotiations to reinstate the

licence would be successful. Nothing appears to have happened since then.

5.43 Sierra Leone

There is some evidence that small-scale mining of columbite-tantalite takes place in

Sierra Leone but the amounts produced are not large. China reports intermittent imports

from Sierra Leone but they amount to less than 20tpy gross weight. The UK reported

very large imports from Sierra Leone in 2010 and 2011 (tens of thousands of tonnes).

Smaller but still large imports were recorded in 2012. The unit value of the imports is

very low. It is not clear what the material is but it is unlikely to be columbite-tantalite.

In late 2007 it was reported that the US-based Hidalgo Mining had signed a letter of

intent to acquire Advanced Industrial Minerals (AIM) in Sierra Leone. AIM was

focused on the exploration and mining of ores containing TiO2 and tantalum. Previous

testing on its properties revealed large alluvial deposits of tantalite-columbite and

titanium minerals. Hidalgo’s plan was to produce 30tpm of tantalum concentrate. The

acquisition plan was halted during 2008.

5.44 Somalia

Small-scale production of columbite-tantalite is thought to take place in the Henweina

Valley and Bur Mado districts. Columbite was discovered by the BGS in the 1950s and

exploited for a few years prior to the 1960s. A prospecting licence covering the

Henweina Valley occurrences was granted to a Djibouti-based company in early 2003.


Roskill


Tin-tantalum deposits at Dalan and Manja-Yihan, in Puntland, were exploited by

Technoexport Bulgaria during the 1970s. The deposits have been stated to contain

resources of 1.4Mt grading 0.015% Ta2O5, with significant rubidium and caesium values.

Simpsonite, a high-grade calcic aluminium tantalite, has been identified in mineral sands

along the beaches of Berbera.

The USGS reported production of columbite-tantalite in 2008 and 2009 totalling 18t

(gross weight). China reported imports of 9t of columbite-tantalite from Somalia in both

2011 and 2012.

5.45 South Africa

A number of tantalum and niobium occurrences are known in South Africa, principally

associated with pegmatites located in the Northern Cape, the Northern Province and

Mpumalanga. Several columbite-tantalite and beryl-bearing pegmatites are located near

Gravelotte, in the Northern Province. Tantalite and columbite have been mined from a

pegmatite at Palakop, near the Klein Letaba River in Northern Province, although that

source is now exhausted. Very small quantities of columbite-tantalite concentrates are

produced intermittently from pegmatites in the north west of Northern Cape Province.

South African statistics reported the production of 13.5t of columbite-tantalite in 1991,

compared with only 6kg in 1990. No production in later years has been reported.

Other countries’ international trade statistics show imports of large tonnages of niobium,

tantalum and vanadium ores and concentrates (combined figures) from South Africa. It

is almost certain that the statistics refer only to vanadium minerals, of which South Africa

is the world’s largest producer.

In early 2004, Titan Processors, a subsidiary of Pinnacle Resources, of the USA,

commissioned a plant in Johannesburg to upgrade imported tantalum ore to high-grade

Ta2O5 (up to 99.5%). It was also reported to produce niobium. The plant was thought to

have been supplied with feedstock mainly from Mozambique and Zimbabwe. It had an

initial capacity of 20tpm of finished products but output was expected to rise to 30tpm

during 2005. That level of output was probably not reached. Sales were reportedly

made to an un-named chemical company in Europe. In its financial reports, Pinnacle

indicated that production was halted owing to problems with controlling product grades

and that the assets were sold in 2006.

Small tonnages of tantalum minerals have continued to be imported into South Africa in

recent years, although it is not clear who the purchasers have been. The exception to

that is 2012. The capacitor manufacturer Kemet has opened a K-salt plant in South

Africa, as part of its development of a legitimate artisanal tantalum supply chain.


Roskill


Table 49: South Africa: Imports of tantalum and niobium minerals, 2007 to 2012 (t)

2007 2008 2009 2010 2011 2012

USA 1 1 - 6 - 64

Congo - - - - - 64

Mozambique 7 23 5 - 9 45

Rwanda - - - - - 38

DRC - - - - - 22

Zimbabwe - 15 18 11 20 16

Other 3 33 20 9 7 1

Total 11 72 43 26 36 250 Source: Global Trade Atlas

5.46 Spain

Solid Resources, of Vancouver, is developing the Doade-Presqueiras deposit in the

region of Galicia in north west Spain. The company holds a concession covering 3,690

hectares that hosts numerous pegmatite dykes containing columbite-tantalite,

spodumene, petalite, cassiterite, rubidium and caesium. Tantalum and tin had been

produced in the area during the 1970s.

Solid Resources has been investigating the deposit since the mid-2000s. In October

2011 it released a NI 43-101 resource estimate for the Presqueiras and Taboazas

areas, which are at the north and south ends of the property and cover about 10% of the

potential mineralised zone. The company indicated that the deposit may extend over

the entire 14km length of the property. The estimated resource at Presqueiras is 5.6Mt

averaging 0.084% Nb2O5, while that at Taboazas is 4.2Mt averaging 0.11% Nb2O5.

Project development was progressing rapidly in 2012 and the company anticipated a

start to production in early 2014. It is mainly a tin and tantalum project. The quantity of

niobium contained in the deposit is probably less than 1,000t Nb2O5.

5.47 Tanzania


Panda Hill Mines 5.47.1.1

The Panda Hill carbonatite is located in southern Tanzania, to the west of Mbeya City. It

has been explored on numerous occasions since the 1950s. Past work has focused on


Roskill


the niobium, because it appears to be a large resource, although the deposit also

contains rare earths.

Panda Hill Mines was granted exploration and other licences in 2006 and has since

been re-evaluating the results of previous exploration work. It does not appear to have

undertaken any further exploration but the project is clearly still active.

Peak Resources 5.47.1.2

In January 2012, the Australian exploration company Peak Resources announced

results of its 2011 drilling programme on the Ngualla project in southern Tanzania.

Although it is mainly of interest as a rare earths project, the deposit contains up to

0.024% Ta2O5, in addition to niobium and phosphate.

A maiden JORC compliant resource estimate for the Ngualla rare earth was released in

February 2012. Further drilling and metallurgical test work continued during 2012, with a

scoping study completed the end of the year. Production could begin in 2016.

5.48 Thailand

Columbite, tantalite and struverite are mined with cassiterite ores, mainly along

Thailand’s west coast. These minerals are separated from tin tailings during processing

operations. Niobium and tantalum are also contained in slags produced during the

smelting of tin ores. The niobium content of slags is very low.

The collapse of the tin market in the 1980s resulted in a large fall in tin mining in

Thailand and the industry has never recovered. The country’s tin smelting industry is

now very largely dependent upon imported raw materials. Thai production of tin metal

was 20,000t in 2010, almost all of which was derived from imported tin minerals, which

have lower tantalum and niobium contents than domestic ores.

The tantalum and niobium processing industry in Thailand thus relies heavily on

imported raw materials. The principal niobium processors are probably the tin smelter

Thaisarco and H.C. Starck. No output data is available.

Thailand imports large tonnages of raw materials from Australia (over 12,000t in 2012).

This material has a very low unit value and is presumed to be waste, probably tin slags.

5.49 Uganda

Columbite-tantalite occurs in pegmatites at Kakanena, Nyanga, Rwakirenzi,

Nyabushenyi, Rwenkanga and Dwata in Ntungamo district; Jemubi and Kabira in

Bushenyi district; Bulema in Kanugu district; Kihimbi in Kisoro district and Lunya in


Roskill


Mukono district. Pyrochlore occurs in carbonatites at Sukulu in Tororo district; Bukusu

Complex in Manafwa district; Napak in Moroto district and Toror in Kotido district.

Small quantities of columbite-tantalite are recovered in Uganda. The USGS reported

production in 2003 as about 5t contained Ta2O5. Reported output in more recent years

has been negligible (a few kilogrammes a year) and there have been no reported

imports from Uganda since 2006, when 35t of ore was shipped to China.

M/S Technical Support and Services, of Wampewo, is thought to have been the main

source of production. In 2004, it was reported that Marubeg had started to produce

tantalite in Ntungamo district. The area has the potential to produce up to 1,000tpm of

ore. Uganda Gold Mining, of Canada, controlled three tantalite properties located in

the south west of the country, at Nyanga, Nyakasopu and Rugomera. The pegmatite

deposits were mined on a small scale during the 1930s and again in the 1960s.

Production ceased in the 1960s owing to political instability in the country. Uganda

Gold’s focus of attention was the Nyanga property. Preliminary exploration uncovered

massive columbite-tantalite in lenses up to 61cm thick adjacent to and on both sides of a

15m-wide, near-vertical quartz vein exposed on the surface for 500m and along open

strike.

5.50 Ukraine

The Vilnohirsk State Mining and Metallurgical Combine produces zircon and titanium

minerals from the Malyshev heavy minerals deposit in central Ukraine. The deposit also

contains small reserves of tantalum and niobium (less than 1,000t Ta2O5 and 10,000t

Nb2O5).

Imports of ferroniobium into Ukraine are in the range of 1,000tpy to 2,000tpy.

5.51 UK

There is no mine output of niobium-bearing minerals in the UK but the country has a

significant downstream niobium and tantalum processing industry based on imported

feedstock. The reported imports of ores and concentrates in 2010 and 2011 seem

unrealistically high. There were very large reported imports from Australia and Sierra

Leone but those imports had extremely low average values and were probably tin slags

or some other form of waste.


Roskill


Table 50: UK: International trade in niobium products, 2007 to 2012 (t)

2007 2008 2009 2010 2011 2012

Imports

Ferroniobium 1,530 1,333 589 1,028 395 251

Other niobium1 143 155 98 107 176 130

Ores & concs. - 8 5 97,287 111,143 75,568

Exports

Ferroniobium 49 50 49 229 179 257

Other niobium1 123 143 23 45 72 29


Companies believed to be active in tantalum trading and processing in the UK include:

Special Metals Supplies

Mining & Chemical Products

Advanced Alloy Services

Swallow Metals & Components

A&M Minerals and Metals

Di Assets

DM Chemi-Met

Euromet

Simmonds (Metal Trading)

5.52 USA

There has been no significant mine production of niobium since the late 1950s. The

country is a major consumer of niobium products and has a large niobium processing

industry. All raw material requirements are met by imports and by sales from the

government’s strategic stockpile. The stockpile is, however, now almost entirely

depleted, with only 10t of niobium metal remaining in 2013.


Niobium occurrences have been identified at several locations in the USA. They are

typically low-grade, often mineralogically complex and most are not commercially viable.

The USGS estimates that the country has approximately 0.15Mt of niobium resources in

identified deposits, none of which it considered economic at 2012 prices.

The Elk Creek deposit in Nebraska was being actively investigated at time of writing and

has the potential to be a major source of niobium in future (Section 5.52.3.1).

Other deposits do not appear to have attracted much, if any, attention in recent years.


Roskill


At Powderhorn, in Colorado, niobium occurs as pyrochlore associated with perovskite in

a large carbonatite plug. Reserves have been estimated at over 600Mt of carbonatite,

containing 400Mt of pyrochlore with a 0.06% Nb2O5 content.

Sur American Gold (now Caden Resources) previously conducted preliminary

exploration on the Euxenite deposit in Park County, Colorado. The deposit consists of a

pegmatite body at least 400m long and up to 75m wide. Sampling yielded assays of

0.7% Nb2O5, in addition to tantalum and yttrium. The deposit is not now mentioned in

the company literature.

In 1989 it was reported that undisclosed quantities of niobium-bearing concentrates had

been produced from a mine and milling operation at Rockford in Alabama. Other US

resources include an estimated 18,000t of niobium contained in placer deposits in Idaho

and Oklahoma, an estimated 55,000t in bauxite ores in Arkansas, other niobium-bearing

titanium ores, and tailings from aluminium plants.


The USA has a substantial two-way flow of trade in niobium and is unusual in providing

fairly detailed statistics (Table 51).

It is the world’s largest importer of ferroniobium, after China, and also exports significant

tonnages, mostly to Canada and Brazil. Those two countries report imports from the

USA that are much smaller than reported US exports and Roskill thinks it highly

probable that Brazilian material is re-exported from the USA.

The USA is also a major importer of high-purity niobium oxide and accounts for a

substantial proportion of Brazil’s exports. It probably features prominently in global trade

in other forms of niobium, although adequate data is not available to allow a detailed

analysis.


Roskill


Table 51: USA: International trade in niobium, 2007 to 2012 (t)

2007 2008 2009 2010 2011 2012

Imports

Ferroniobium 13,399 11,251 4,758 10,142 11,128 12,066

Niobium oxide 1,064 1,219 1,062 1,179 1,607 1,742

Other niobium1 864 1,126 699 1,380 1,464 1,444

Ore & concs. 970 1,181 362 32 199 272

Exports

Ferroniobium 2,015 1,435 355 508 725 839

Other niobium1 636 1,048 248 303 332 497

Ore & concs.

Synthetic Ta/Nb 151 111 171 23 23 209

Nb ore 166 74 20 25 12 31

317 185 191 48 35 240 Sources: US International Trade Commission; Global Trade Atlas Note: 1-May include rhenium and other minor metals but the quantities would be very small.

Although the USA imports significant tonnages of tantalum and niobium minerals (Table

52), the trade statistics do not provide a true picture of the level of niobium imports. The

largest part of total imports in previous years, from Canada, Australia and Mozambique,

were of tantalite containing very little niobium. The, usually, much smaller imports from

other countries are columbite or columbite-tantalite. Data for 2012 shows that moves to

develop an ethical supply of columbite-tantalite from Central Africa have had some

success.

Some niobium raw materials are exported from the USA. The niobium ore/concentrate

is presumably re-export trade, as there is no niobium mining in the USA. The synthetic

concentrate, recovered from wastes and residues, may well be only a tantalum

concentrate.

Table 52: USA: Imports of tantalum and niobium minerals by country of origin,

2007 to 2012 (t)

2007 2008 2009 2010 2011 2012

Ethiopia - - - - - 69

Rwanda - - - - - 64

Indonesia - - - - - 38

Canada 209 193 116 - 20 35

Bolivia - - - - 1 23

Tanzania - - - - - 13

China 5 25 6 10 7 13

Australia 708 774 65 111 -

Mozambique 48 179 174 8 26 -

Other - 10 1 14 34 17

Total 970 1,181 362 32 199 272 Source: Global Trade Atlas


Roskill



NioCorp Developments 5.52.3.1

The Elk Creek carbonatite in Nebraska is 100% owned by Vancouver-based NioCorp

Developments, which was known as Quantum Rare Earth Developments until March

2013. It has attracted considerable media attention because of its size and the fact that

the USA is wholly reliant on imports of niobium, which is regarded as a critical metal. It

also has strong local support, as Elk Creek is an economically depressed area.

The deposit was investigated by Molycorp in the 1970s and 1980s. It hosts niobium in

pyrochlore, together with rare earths and phosphate. The primary interest is in the

niobium. The deposit has a NI 43-101 compliant indicated resource of 19.3Mt at 0.67%

Nb2O5 and an inferred resource of 83.3Mt at 0.63% Nb2O5. Containing 0.67Mt Nb2O5,

Elk Creek is one of the largest known niobium resources.

In mid-2011 Quantum reported that a US$2M drilling programme was underway to

potentially upgrade the resource from the inferred category, to provide new core material

for metallurgical testing and to further explore the rare earth zones. Aerial surveys have

also been undertaken. A PEA was expected during 2012 but press reports late in the

year indicated that a planned drilling programme did not take place. In March 2013, the

company announced that it was hoping for a re-start to drilling mid-year and that it was

seeking to raise up to US$20M in private capital to advance the project.

Elk Creek would be exploited as an underground mine, like Niobec, but is at an early

stage in development and thus several years from possible commercialisation.


The downstream niobium sector in the USA comprises a handful of companies that are

among the world leaders in niobium processing, along with numerous companies

involved in custom processing, scrap processing and trading, such as Reading Alloys

and Exotech.

ATI Wah Chang 5.52.4.1

Wah Chang is part of Allegheny Technologies, which also includes ATI Allvac, ATI

Allegheny Ludlum and ATI Metal Working Products. The group produces speciality

metals for a variety of industrial, electronics and aerospace markets.

Wah Chang produces niobium, titanium, zirconium, hafnium and vanadium metal semi-

manufactures. Products include hot- and cold-rolled plate, sheet, strip and foil,

extrusions, tubes and wire. Its product range includes niobium metal, ferroniobium,


Roskill


alloys of niobium and titanium/zirconium/nickel and niobium chemicals (oxide, carbide,

hydride and tantalum-niobium carbide).

Wah Chang is a leading producer of high-purity niobium oxide. It uses a process

developed by Teledyne to recover niobium oxide from pyrochlore ore, using ferroniobium

as an intermediate. The ferroniobium is chlorinated to yield niobium pentachloride,

which is hydrolysed to the oxide and then kiln-dried. Most output is used in-house for

the production of vacuum-grade ferroniobium, nickel-niobium, niobium metal and

niobium alloys. Production capacity is not reported but has previously been put at about

2,000tpy. Output is consumed mainly in the superalloys industry, as well as in

superconductors.

Between 1998 and 2003, Wah Chang supplied approximately 360t of niobium-titanium

superconducting alloy for the CERN Large Hadron Collider (LHD), then being built near

Geneva, Switzerland.

GAM Technology 5.52.4.2

In 2011, the tantalum producer Global Advanced Metals announced that it was to

purchase the tantalum and niobium processor Cabot Supermetals. Following the

acquisition, the company was renamed GAM Technology. It operates plants at Aizu in

Japan (tantalum powder) and Boyertown, in the USA. It is one of the world’s leading

tantalum processors but less prominent in the niobium market.

At the Boyertown plant, mineral concentrates are first ground, followed by dissolution in

acid and then separation. The process can recover both tantalum and niobium in the

form of separate purified streams that can then be further processed individually into

salts, oxides and metals.

The purified tantalum fluoride and niobium fluoride solutions are precipitated, washed,

filtered, dried, and calcined to produce various salts, principally K-salt and niobium

oxide. The K-salt is used as the feed material for reduction to tantalum metal powder.

Niobium oxide, whether produced on-site or purchased, is used primarily to produce

superalloys, niobium metal, niobium-based alloys (of zirconium, tantalum and titanium),

and superconducting alloys. It is also marketed for ceramic and speciality glass

applications. GAM also supplies sputtering-grade niobium.

Most of the tantalum and niobium melting at Boyertown is undertaken in electron beam

furnaces. The first furnace installed at the plant had a power capability of 600kW.

Cabot started up a second 1,200kW electron beam furnace for tantalum and niobium

melting in 1995. The two furnaces can produce tantalum ingots up to 30.5cm in

diameter and niobium ingots up to 36cm in diameter.


Roskill


H.C. Starck 5.52.4.3

The US arm of H.C. Starck, one of the world’s leading processors of tantalum and

niobium, operates a plant at Newton, Massachusetts. The plant incorporates a refinery,

powder plant, and rolling and wire-drawing mills.

The Newton facility incorporates full research and development laboratories and arc,

plasma and electron beam melt processes for producing tantalum powder. The

company acquired the tantalum wire and mill products plant of Fansteel in 1992 and

transferred production to Newton.

The refinery produces tantalum and niobium metal and alloys by vacuum arc remelting,

plasma melting and electron beam melting. Products include niobium semi-

manufactures, such as cold-rolled plate, sheet, strip and foil, and welded tube of ½ inch

(1.27cm) and upwards, and up to 20ft (6.1m) in length. Other products include tantalum

oxides, cobalt, tungsten, ammonium paratungstate, molybdenum and rare earth metals.

5.53 Venezuela

The existence of columbite-tantalite in Venezuela’s Amazon forest has been known of

for some years and in 2009 the government reported that the resources were potentially

very large. To date, there appears to have been little or no attempt made to exploit

those resources on a commercial basis.

The US company REE International holds the rights to a 314 hectare property in Santa

Cruz. In December 2011, the company reported that it was negotiating its first sale of

tantalum ore. There have been no further reports on this and it is not mentioned in the

company’s literature.

There is believed to be relatively large-scale illegal artisanal mining of columbite-tantalite

in Venezuela, with material being smuggled into Colombia and Brazil.

5.54 Zambia

Production of columbite-tantalite takes place in Zambia but on a small scale and

probably intermittently. For 2002 and 2007, China reported imports from Zambia of 38t

and 73t tantalum, niobium and vanadium ores and concentrates; vanadium is not

produced in Zambia. There have been no reported imports from Zambia since 2007.

Columbite-tantalite concentrate from the Eagle 2 Mine, plus production from small-scale

mining in surrounding areas, has in the past been sold to H.C. Starck.

In the 2005 edition of this report, Roskill indicated that CAMEC, of the UK, had plans to

establish a 60tph processing plant at the Eagle 2 mine. Mining and processing of


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0.25Mtpy of ore were envisaged, yielding approximately 70tpy of columbite-tantalite.

That probably did not happen and CAMEC no longer exists as a company.

5.55 Zimbabwe

The tantalum and niobium industry in Zimbabwe has a long history of artisanal miners

that exploit numerous deposits of microlite, columbite-tantalite and simpsonite, and sell

their output to local traders. In the past, tantalite was also extracted as a by-product of

tin mining. Production is centred round two areas: Kamativi, about 420km south west of

Harare, and the Sutswe, Rusambo and Shamva areas, 100-180km north east of Harare.

Based on trade data, production levels are small. Over the period 2007 to 2011, imports

of columbite-tantalite from Zimbabwe, by China and South Africa, have ranged up to 50t

a year.


Roskill


6. International trade in niobium minerals and products


Relatively little of the niobium mined enters international trade as ore or concentrates.

Niobium occurs with tantalum in a number of minerals in which the proportions of the two

metals vary widely. The mineral pyrochlore has a high niobium content (40-65% Nb2O5)

but little tantalum (0-2% Ta2O5). Columbite has a similar niobium content and the

tantalum value can be up to 40%. Minerals with more commercially interesting tantalum

values, such as columbite-tantalite and tantalite, are mined principally for the tantalum.

They are produced in much smaller quantities than is pyrochlore. Tantalum and niobium

are also present in tin slags and the metals are recovered by processors, notably

H.C. Starck. The niobium content of tin slags is very low.

Pyrochlore is the most commercially important mineral by a very considerable margin

but only small amounts are sold. Most pyrochlore is converted before export to

ferroniobium by CBMM, Niobec and Anglo American Brasil, and to niobium metal, alloys

and high-purity niobium oxide by CBMM. Niobium has not been exported by these

producers as pyrochlore since ferroniobium converters in the UK, Germany and Japan

closed their facilities in the 1990s. Small amounts of pyrochlore are mined and exported

from other countries (probably artisanal mining).

It is difficult to isolate niobium-bearing minerals in official trade data. A single tariff code

is normally used to report trade in ores and concentrates of tantalum, niobium and

vanadium. The production and export of vanadium minerals is much larger than for

tantalum and niobium and this can obscure the overall view. There are also significant

incidences of misreporting. For example, published trade statistics show that Thailand is

the largest importer in this tariff category, with imports coming almost entirely from

Australia. Those imports are not reflected in Australia’s export data, and Australia does

not currently produce vanadium. The material has a very low unit value and it is likely

that it is waste material or tin slags that are processed for the recovery of tantalum. The

UK also imports large volumes of low-value material from Australia and from Sierra

Leone.

It is clear, however, that China is the largest importer of mineral concentrates containing

niobium but the country’s trade data (Table 53) overstates the flow of niobium. China

imports such minerals from producers in Brazil, India, Malaysia and Thailand but the

reported imports are usually much larger than the reported exports by those countries.

This indicates that China may well be importing substantial quantities of tantalum and

niobium contained in tin slags, as well as very low-grade tantalum minerals. In the latter

case, the “other” category shown in Table 53 includes in some years very large imports

from North Korea and Vietnam. Those imports have very low unit values.

China is the only large importer of tantalum-niobium minerals from Africa, other than the

tantalum concentrates produced in Mozambique by Noventa and the concentrates

imported by Molycorp Silmet (from Nigeria) and H.C. Starck (Ethiopia).


Roskill


Table 53: China: Reported imports of niobium-bearing minerals, 2005 to 2012

(t gross weight)

2005 2006 2007 2008 2009 2010 2011 2012

Malaysia 1,633 1,584 975 441 1,073 931 2,565 4,204

Brazil 1,301 679 1,156 1,325 2,023 1,155 1,445 1,798

Nigeria 285 851 810 555 893 1,133 1,076 1,308

Rwanda 974 1,604 1,389 1,656 2,479 1,634 1,165 801

Thailand 583 784 1,580 1,328 1,720 1,588 682 576

Australia 912 532 100 453 35 - 4 -

Other 4,387 4,674 8,712 4,997 867 1,432 1,407 1,317


The USA is, or has been, the only other significant importer of niobium-bearing minerals.

These minerals, from mines in Australia, Canada and Mozambique, are mined for the

tantalum values.

6.2 Ferroniobium

Most ferroniobium entering the market originates in either Brazil or Canada, with Brazil

being by far the larger of the two sources. The producers in these countries are CBMM

and Anglo American, in Brazil, and Niobec in Canada. Exports from Brazil and Canada

(Table 54) provide a good indication of global demand for ferroniobium.

Exports grew strongly during the 2000s and reached a peak of nearly 79,000t FeNb in

2008. The global economic downturn caused a sharp downturn in demand for

ferroniobium in virtually all markets in 2009 and exports fell by 35% from the 2008 level.

There was strong recovery in 2010, before the global economy turned down once more,

resulting in only modest (4.8%) growth in exports in 2011 and even lower growth (1.7%)

in 2012.

The ferroniobium producers in Brazil and Canada are global players. A substantial part

of their export trade is carried out via Singapore and the Netherlands. This can distort

published trade statistics somewhat. For example, the apparent sharp downturn in

exports to South Korea in 2012 is not reflected in that country’s steel production or

ferroniobium import data. Roskill also understands that about 98% of the ferroniobium

exported to countries in Europe is transhipped via the Netherlands.


Roskill


Table 54: Brazil and Canada: Exports of ferroniobium by principal destinations,

2007 to 2012 (t FeNb)

2005 2006 2007 2008 2009 2010 2011 2012

Brazil

Netherlands 15,837 16,004 19,276 20,251 9,269 21,017 21,078 20,987

China 9,144 10,530 14,640 18,467 15,217 14,541 14,923 16,291

Singapore 1,495 882 977 3,977 7,818 10,063 10,519 12,027

USA 8,578 11,210 12,542 10,100 3,817 8,985 9,927 10,215

Japan 7,923 8,841 8,545 9,968 4,715 6,371 6,084 6,554

Canada 1,205 1,758 1,470 1,608 822 1,576 1,616 1,342

S. Korea 2,023 1,788 3,662 2,820 1,771 1,705 3,347 516

Other 5,467 8,332 10,744 5,580 1,962 2,690 2,515 3,016

Sub-total 51,672 59,345 71,856 72,771 45,391 66,948 70,009 70,948

Canada

Netherlands 2,872 3,164 3,300 3,403 3,129 3,294 3,457 3,403

USA 868 1,107 1,193 885 1,402 1,293 1,417 1,713

China 540 940 875 1,210 1,062 926 986 713

Japan 520 390 400 400 35 278 365 369

India 354

S. Korea 5 406 237 229 223

Other 105 180 457 175 135 171 180 222

Sub-total 4,905 5,781 6,225 6,078 6,169 6,199 6,634 6,997

Total 56,577 65,126 78,081 78,849 51,560 73,147 76,643 77,945

Total by destination

Netherlands 18,709 19,168 22,576 23,654 12,398 24,311 24,535 24,390

China 9,684 11,470 15,515 19,677 16,279 15,467 15,909 17,004

USA/Canada 10,651 14,075 15,205 12,593 6,041 11,854 12,960 13,270

Singapore 1,495 882 977 3,977 7,818 10,063 10,519 12,027

Japan 8,443 9,231 8,945 10,368 4,750 6,649 6,449 6,923

S. Korea 2,023 1,788 3,662 2,825 2,177 1,942 3,576 739

Other 5,572 8,512 11,201 5,755 2,097 2,861 2,695 3,592


The principal importing regions are Asia, North America and Europe (Figure 12). Apart

from the large increase in Asian imports in 2008, all three regions have followed

approximately the same trend in recent years, with a sharp fall in 2009 followed by

recovery in 2010 and stagnation in 2011 that probably continued during 2012.

In North America, which essentially means the USA, the intensity of niobium use is

already high (Section 13.2.1.2) and demand for ferroniobium is now fairly mature. It is

unlikely to show any major increases over and above those created by overall growth in

steel production.


Roskill


Figure 12: World: Imports of ferroniobium by region, 2007 to 2012 (t FeNb)

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

2007 2008 2009 2010 2011 2012

Europe Asia N. America Other

Source: Global Trade Atlas

Table 55: North America: Imports of ferroniobium, 2007 to 2012 (t FeNb)

2007 2008 2009 2010 2011 2012

USA 13,399 11,251 4,758 10,142 11,128 12,066

Canada 2,061 2,487 972 1,963 2,222 2,114

Mexico 2,376 1,873 522 828 831 930


The same is true of most of Europe, with the possible exception of Russia.

Ferroniobium is imported into many European countries, of which Germany is by far the

largest market. In addition to the countries listed in Table 56, another 20 import

ferroniobium but usually less than 1,000tpy and typically much less.

The main area of growth in demand for ferroniobium, and thus for growth in imports, is

Asia, which has seen its imports of ferroniobium increase much faster since the mid-

2000s than has been the case elsewhere in the world (Table 57). The pattern of growth

in Asia is also uneven, however. Japan displays the same maturity in demand as

western Europe and the USA. Further growth seems probable in South Korea and there

is considerable potential for growth in India. China remains the main driver of demand

for growth in demand for ferroniobium, and thus for growth in imports.

Outside of the three regions discussed above, South Africa is the largest importer of

ferroniobium, with imports in 2012 of 805t. Total South American imports in 2012 were

350t but that disguises the large Brazilian consumption - some 4,000-5,000tpy - that is

supplied by domestic sources (CBMM).


Roskill


Table 56: Europe: Imports of ferroniobium, 2007 to 2012 (t FeNb)

2007 2008 2009 2010 2011 2012

Germany 6,176 6,364 4,153 5,878 6,579 6,295

Italy 2,893 2,723 1,396 2,751 2,521 2,619

Russia 2,442 2,175 1,506 3,431 2,319 2,427

Austria 956 1,125 665 1,061 1,191 1,867

Belgium 2,859 1,507 1,084 1,835 1,583 1,685

Sweden 1,242 1,264 604 1,146 1,584 1,614

France 2,797 3,293 1,183 2,195 2,225 1,608

Ukraine 1,940 1,280 1,000 954 1,494 1,140

Spain 8,268 695 593 983 1,382 832

Other 6,521 5,930 2,356 3,854 3,691 3,597


Table 57: Asia: Imports of ferroniobium, 2007 to 2012 (t FeNb)

2007 2008 2009 2010 2011 2012

China 15,082 23,585 18,320 18,778 19,135 19,872

Japan 8,862 10,952 5,167 8,214 8,162 8,670

S. Korea 3,642 3,526 3,434 5,146 6,325 6,069

India 1,724 2,007 757 1,242 1,710 1,554

Other 885 792 273 814 986 1,607


6.3 High-purity niobium oxide and niobium metal

High-purity niobium oxide is the most important commercial form of niobium after

ferroniobium. It is used as the starting material for niobium metal and alloys, in carbides

and in a range of chemical and other uses. It is produced and thus traded in much

smaller tonnages than is the case with ferroniobium. The largest producer is CBMM.

That company’s production capacity is reported as 5,000tpy. Plans to increase that to

10,000tpy were shelved during the global economic downturn but were later revived and

the additional capacity was fully operational by April 2013.

There are very few published statistics for trade in niobium oxide as it is usually included

in an aggregated category. Data for the USA is shown in Table 58.

US imports of niobium oxide peaked in 2001 (1,943t), after which they remained in the

approximate range of 800-1,200tpy. Unlike ferroniobium, imports of niobium oxide were

only moderately affected by the global economic downturn. The total for 2011 was the

highest in over a decade and growth in 2012 was over 8%.


Roskill


Table 58: USA: Imports of niobium oxide, 2005 to 2012 (t gross weight)

2005 2006 2007 2008 2009 2010 2011 2012

Brazil 420 516 672 797 909 1,008 1,343 1,528

Russia 129 185 86 231 45 56 31 38

Germany 60 71 83 84 50 56 68 34

China 104 217 125 58 58 59 163 136

Estonia 208 90 85 45 - - - -

Other 25 8 13 4 - - 2 6

Total 946 1,087 1,064 1,219 1,062 1,179 1,607 1,742 Source: US International Trade Commission

There is very little data available on trade in niobium metal, alloys and scrap. The

tariff code 8112.92.4000 (niobium alloys, metal and powders) appears to be reported

only by the US International Trade Commission.

US imports of niobium metal, powder and alloys are made almost entirely from Brazil

(CBMM), Germany (mostly H.C. Starck; appears to be mainly NiNb) and Estonia

(Molycorp Silmet, with Wah Chang probably a major customer). Imports fell sharply in

2009 before recovering strongly in 2010 and 2011 (Table 59). Imports in 2012 were

almost unchanged from the previous year.

Table 59: USA: Imports of niobium metal, powders and alloys, 2005 to 2012 (t)

2005 2006 2007 2008 2009 2010 2011 2012

Brazil 1,150 1,190 750 968 638 1,288 1,250 1,284

Germany 92 55 62 80 37 36 108 92

Estonia 92 148 45 75 14 46 61 46

Other 46 53 7 3 10 10 45 22

Total 1,380 1,446 864 1,126 699 1,380 1,464 1,444 Source: US International Trade Commission

US import statistics for worked niobium articles and niobium scrap are aggregated with

those for other metals. The tonnages involved in both cases are very minor.

6.4 Trade controls

Niobium-bearing minerals imported into the EU, USA and China are free of import duty.

China imposes an import duty of 1% on ferroniobium, 5.5% on niobium oxide and 8% for

niobium metal products. The EU import duty for niobium oxide appears to be 5.5%, with

niobium powders at 3% and alloys at 9%.

The US import duty on ferroniobium is 5% (imports from Canada are free of duty), with

niobium oxide at 3.7% and other niobium products at either 4% or 4.9%.


Roskill


7. World consumption of niobium

7.1 World consumption of niobium to 2012

Niobium consumption is usually described in terms of processors’ shipments (see also

Section 3).

During the 1980s and the first half of the 1990s, global niobium consumption was fairly

stable at about 13,000tpy Nb. Demand then entered an almost uninterrupted growth

phase, passing 20,000t in 1997. Particularly strong growth took place from the mid-

2000s and a peak level of nearly 59,000t was reached in 2008 (Table 60).

The underlying growth has come about very largely as a result of increasing global

production of steel – by far the largest market for niobium – and in particular because of

the rising use of certain added-value steels that contain niobium. Not all steels contain

niobium.

The global economic downturn resulted in a very sharp drop in consumption of niobium

in 2009, with ferroniobium (the principal product form) experiencing a fall of nearly a

third. The market recovered swiftly in 2010 and into 2011 but saw little growth in 2012

as global economic conditions deteriorated once more.

Table 60: World: Consumption of niobium, 2002 to 2012 (000t Nb)

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

HSLA FeNb 23.0 25.8 29.3 40.1 44.0 52.5 54.3 37.3 41.9 52.2 53.5

Nb chemicals 2.18 2.36

1.54 1.46 1.90 1.99 2.10 1.67 2.72 2.77 2.96

VG FeNb, NiNb 1.32 2.01 2.15 1.72 1.50 0.94 1.33 2.14 2.23

Nb metal 0.27 0.50 0.45 0.44 0.41 0.70 0.69 0.43 0.54 0.74 0.64

Nb alloys 0.36 0.41 0.32 0.48 1.23 1.29 1.18 0.81 1.23 1.07 0.96

Total (non-steel) 2.81 3.27 3.63 4.39 5.69 5.69 5.47 3.85 5.82 6.72 6.80

Total 25.8 29.0 32.9 44.5 49.7 58.2 59.8 41.1 47.7 58.9 60.3 Source: T.I.C.

Between 2002 and 2012, total consumption of niobium grew by an average of 8.8%py,

although there were significant differences on a product-by-product basis. Had the

economic crash of 2009 not taken place, consumption may have to continued to

increase at the 2002-2008 average of 16.4%py.


Roskill


Table 61: World: Average annual growth in niobium consumption, 2002 to 2012

CAGR (%)

HSLA FeNb 8.8

Nb chemicals1 8.5

VG FeNb and Ni-Nb1 6.8

Nb metal 9.0

Nb alloys 10.3

Total Nb 8.8 Source: Roskill Note: 1-Start year 2004.

7.2 Consumption of niobium by form and application

Niobium is used in a variety of forms (Table 62).

Table 62: Summary of applications for niobium

Form of Nb Applications Principal markets

HSLA-grade FeNb High-strength low-alloy (HSLA)

steels

Automobiles, gas linepipe,

construction, heavy engineering

Stainless and heat-resistant

steels

Automobiles, petrochemical and

power plants

Vacuum-grade FeNb and NiNb Superalloys Aircraft engines, electricity

generation, petrochemicals

Nb metal and alloys Superconductors Particle accelerators, magnetic

resonance imaging, various

small-tonnage uses

Nb chemicals Functional ceramics and

catalysts

Optical, electronics

Source: CBMM

By far the most important in tonnage terms is HSLA-grade ferroniobium, which has applications in the production of certain types of steel (Figure 13). This market now accounts for about 90% of niobium usage in terms of Nb units and has been responsible for most of the increase in overall consumption over the last decade or more.

Vacuum-grade ferroniobium (VG FeNb) and nickel-niobium (NiNb) find widespread

application in superalloys used in the aerospace industry, particularly in commercial

aircraft engines, in land-based gas turbines for electricity generation, and in corrosion-

resistant and heat-resistant alloys. Strong demand in end-use markets saw shipments

of superalloys rise during the late 1990s and into the early part of this century, until an

economic slowdown, coupled with terrorist acts, resulted in a sharp downturn in aircraft

sales and the land-based power generation market, and thus in demand for superalloys.

Both end-use markets for superalloys bottomed-out in 2003 and then entered a strong

growth phase. VG FeNb and NiNb made up 4.9% of processors’ shipments of niobium

units in 2012, although superalloys may make up a larger part of the overall niobium


Roskill


market than is suggested in the trade data, as at least part of the material reported as

‘niobium chemicals’ is niobium oxide that is ultimately processed to alloys.

Niobium metal and other niobium alloys, typically containing titanium or zirconium,

are used in industries such as aerospace, superconductors and nuclear energy.

Niobium metal and alloys accounted for 2.7% of processors’ shipments in 2012.

Niobium chemicals have a wide variety of applications, for example in catalysts and

functional ceramics and accounted 4.9% of processors’ shipments in 2012. Very little

information is available regarding the amount of niobium chemicals used in individual

applications but a large part of the reported total is believed to be high-purity niobium

oxide that is used to produce masteralloys.

Figure 13: Estimated consumption of ferroniobium by application, 2012

Structural45%

Automobiles23%

Linepipe16%

Stainless & heat-resistant

6%

Other10%

Source: Roskill

7.3 Consumption of niobium by region/country

Other than for ferroniobium, it is difficult to make direct comparisons between regions

and countries with regard to niobium consumption and end-use patterns. Most countries

do not report their consumption of niobium and niobium products cannot usually be

isolated in international trade statistics.

Although an estimated 90% of global niobium consumption is in steelmaking, overall

steel production levels in individual countries do not necessarily reflect the amounts of

ferroniobium used. The steel product mix varies from country to country and most

grades of steel do not contain niobium.


Roskill


Figure 14 shows the estimated geographical breakdown of ferroniobium consumption in

2012. It is based on trade flows, and estimates of domestic supply in China, as well as

of consumption in Brazil and Canada.

Asia is the largest consuming region, at 46% of the world total in 2012. China alone accounted for a quarter of total demand. Europe, where Germany is by far the largest consumer, contributed a further 28% to world consumption in 2012, and North America, principally the USA, 18%. Brazil is the only significant consumer of ferroniobium in South America and the country has one of the highest intensities of use in the world.

Figure 14: World: Estimated consumption of ferroniobium by region/country, 2012

China26%

Japan11%

S. Korea7%

Other Asia/Pacific4%

Germany8%

Other Europe21%

USA14%

Other N. America4%

Brazil4%

Other1%

Source: Roskill


Roskill


Figure 15: Selected countries: Apparent consumption of ferroniobium in 2012 and

average annual growth in consumption 2000 to 2012

China

USA

Japan

Germany S. Korea

Italy RussiaFrance India

0

5,000

10,000

15,000

20,000

25,000

0 5 10 15 20 25 30

Ap

pa

ren

t c

on

su

mp

tio

n (

t Fe

Nb

)

CAGR (%)

Source: Roskill

The pattern of growth in ferroniobium consumption has displayed marked geographical

differences since the start of the 2000s (Figure 15). In 2000, the vast majority of the

ferroniobium consumed was used in North America, western Europe and Japan.

Between them, China, South Korea, Russia and India consumed approximately 2,500t

of ferroniobium in 2000, which is approximately the size of the market in Italy in 2012.

Things have changed considerably over the last decade or so. In the established

markets, Germany has seen the highest rate of growth, at 8.7%py. Most other countries

in this group had growth of below 5%py. In the new markets, however, growth rates

have been very high. The combined increase in consumption in the four new markets

shown in Figure 15 between 2000 and 2012 was almost equal to the combined 2012

consumption in the five established markets.

The principal reason for this very rapid growth has been the dramatic increase in steel

production in the newer markets, which saw their steel output rise much faster than in

the established markets. Although the rate of growth has slowed from that seen in the

2000s, the newer markets will still experience higher growth in steel production than

western Europe, North America and Japan. That will result in higher demand for

ferroniobium, as will an anticipated rise in the incidence and intensity of niobium use in

countries such as China, Russia and India (see Section 13.2.1.2).

Production of superalloys is concentrated in the USA, Europe and Japan. This market

sector typically makes up at least a quarter of total US niobium consumption. Production

of superconductor wire is more widespread but the USA is probably the largest

producer.


Roskill


High-purity niobium oxide is used in a number of countries but the USA may be the

largest single market. The country accounted for around a third of Brazil’s exports in

2012. Consumption of the higher-purity optical-grade niobium oxide has previously

been reported by CBMM as 500tpy, with Japan accounting for some 60% of the total.


Roskill


8. Use of niobium in steel

The steel industry is by far the largest user of niobium and accounted for 88% of global

niobium consumption in 2012. In this market, niobium is used in the form of HSLA-grade

(high-strength, low-alloy) ferroniobium, also known as standard-grade ferroniobium.

This material should not be confused with vacuum-grade ferroniobium, a form of niobium

used mainly in non-ferrous metallurgy (e.g., nickel-based alloys) and wherever higher

purity is critical (e.g. valve steels).

Niobium is not used in all types of steel produced. It is used mainly in HSLA, advanced

high strength steels, stainless and heat-resisting steels, which have a variety of

applications such as natural gas linepipe, automotive components and construction.

The stainless and heat-resisting steels represent a small part of the ferroniobium market

– an estimated 6% in 2012. The vast majority of ferroniobium consumed is used in

HSLA steels.

Table 63: Summary of applications for steels containing niobium

Steel product Applications

Plate Large-diameter gas linepipe

Shipbuilding

Offshore platforms

Bridges & viaducts

High-rise buildings

Heavy machinery

Pressure vessels

Hot-rolled strip Smaller-diameter welded pipe

Automotive (truck frames, wheels)

Crane booms

Railway wagons

Containers

Cold-rolled strip Automobile body panels

Structural sections and reinforcing bar Various. Competition from vanadium

Engineering bar Automobile forgings

Wire rod Fasteners

Rail steels

Stainless and heat-resistant steels Automobile exhausts

Catalytic converters

Other Includes seamless pipe, tool steel and iron and steel castings Source: CBMM

The steels that contain niobium comprise only a very small part of the overall steel

market. In 2012, global production of crude steel was 1.54Bnt. SMR has estimated

production of HSLA steel in that year at 23Mt. Similarly, world production of stainless

steel was an estimated 33Mt in 2012. The use of niobium is largely limited to the 400

series stainless steels, which make up about a quarter of the total stainless market.

Ferroniobium is added to these steels to act as a grain refiner and precipitation hardener

to improve simultaneously mechanical strength and toughness and high-temperature


Roskill


strength, and to enhance resistance to corrosion. In the steels where it is used, niobium

is added in very small amounts. In HSLA steels, the rate of addition is of the order of

0.05% by weight. Additions to stainless steel are higher (0.4% to 0.8%).

8.1 Alloy steels

The alloy steels category includes finished steels other than carbon and stainless steels.

The principal alloy steels are HSLA and full-alloy steels. Others include electrical and

tool steels.

High-strength steels have improved strength-to-weight ratios. They are used in

structural applications, machinery, the automotive industry, transport equipment and

linepipe. The principal categories of high-strength steels are HSLA and dual-phase

steels. A variety of specifications has been developed in response to the major uses for

HSLA steels, notably in the natural gas industry, transportation and structural

applications. HSLA steels were first developed as structural steels, to compete with the

mild steels, high-carbon steels and full-alloy steels used in the construction industry.

Figure 16: Use of niobium in high-strength steel

Source: TTP Squared Inc., March 2011

Steel

IF steel C-Mn steel High strength

steel High alloy

steel

Quench & temper

Cold rolling HSLA Bainitic

steel

Titanium Niobium Vanadium


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8.1.1 Strengthening mechanisms for steel

Niobium is added to steel to increase its strength and toughness. It is a strong carbide-

and nitride-former and its addition produces significant increases in strength through

grain refinement and precipitation hardening.

The microstructure of steel is controlled by heat treatment and by alloying additions.

When steel is heated to a temperature above 815C, a homogeneous phase known as

austenite is formed. According to the rate of cooling, austenite is transformed into one

of three types of steel with different microstructures, described as follows.

Slow cooling produces pearlite, which is soft and exhibits limited ductility. Faster cooling

produces bainite, which is harder and tougher than pearlite. Rapid cooling produces

martensite, where the carbon and the alloying elements are very finely distributed. The

martensitic steels are the hardest types of steel.

Deformation of metals and alloys results from the movement of dislocations or defects in

the crystal structure over large distances through the crystal lattice of a solid. Plastic

deformation, for example through rolling or extrusion, requires that a stress be applied,

that dislocations are generated and that those dislocations move through the crystal

lattice. The mechanical properties of the metal or alloy are determined by the stress that

is required to create and to move dislocations.

Strengthening mechanisms increase the resistance to movement of the dislocations. A

number of strengthening mechanisms are used in steelmaking (Table 64). Grain

refinement is the most effective, as it increases both strength and toughness. Grain

refinement, along with precipitation hardening, is by far the largest end use for niobium.

Table 64: Properties influenced by microstructure and strengthening mechanisms for

steel

Strength Toughness Formability Weldability

Carbon content ++ -- -- --

Solid solution hardening + -(+) - -(+)

Precipitation hardening + - - -

Dislocation hardening + - -- Neutral

Grain refinement ++ ++ Neutral +

Inclusions (sulphur) Neutral - - - Source: CBMM

Grain refinement 8.1.1.1

Grain refinement is an effective method for strengthening ferritic-pearlitic low-carbon

steels. This mechanism also results in lower impact-transition temperatures, producing

HSLA steels suitable for applications such as Arctic pipelines, where good impact

properties at low temperatures are required. Aluminium, niobium, vanadium and

titanium are all grain-refiners and the choice of alloying additions depends on the


Roskill


specific properties required of the finished steel, the processing methods used and their

cost.

Additions of niobium and vanadium result in the precipitation of carbides (NbC3 and VC3)

and carbonitrides ((Nb(C,N) and V(C,N)) in the ferrite. These precipitates act to confine

the ferrite grain boundaries and slow grain growth, thus reducing the movement of grain

boundaries during heat treatment. Larger alloying additions, and the presence of

nitrogen, can increase this grain-refining action.

Niobium and vanadium (to a much lesser extent) are strong carbide-formers and

produce fine-grained steels containing dispersed carbides. These steels exhibit greater

toughness and impact resistance than coarse-grained steels and are less susceptible to

cracking during quenching. Carbide dispersion also imparts good wear-resistance,

weldability and high-temperature strength to steels.

Some grain refinement can be achieved in semi-killed steels in the as-rolled condition

with small additions of niobium, but extensive grain refinement is obtained only if the

steel is heavily controlled-rolled. Niobium and vanadium additions have the advantage

over aluminium that they may be used in semi-killed rather than fully killed steels, which

raises the yield of marketable steel per ingot. They also produce steels with higher yield

strengths and low impact-transition temperatures.

As a result, semi-killed controlled-rolled grades of niobium, vanadium and niobium-

vanadium steels have widely displaced fully killed aluminium-nitrogen structural steels.

Vanadium, however, may have adverse effects on low-temperature impact properties

and the growth in demand for steels in markets such as Arctic pipelines in the 1970s and

1980s led to niobium being frequently preferred over vanadium in the new high-strength

steel compositions designed to meet low-temperature performance specifications.

In the higher-quality steels, where niobium is finding increasing use, there is little

opportunity for substitution by other alloying elements. At the typical addition rate of

0.05%, niobium delivers steel with a ferrite grain size of 20μm2. Similar additions of

titanium and vanadium result in much larger grain sizes, approximately 60μm2 and

100μm2, respectively. Even at much higher rates of addition, titanium and vanadium

cannot offer the degree of refinement provided by microalloying with niobium.

Precipitation hardening 8.1.1.2

Precipitation hardening occurs when a dispersed second phase is present in an alloy.

Dislocations cannot pass through the second phase particles, as they can through the

matrix, and are forced to go between the particles. The stress required to achieve this

increases as the distance between the particles is reduced. The strength increase

resulting from the addition of a second phase depends primarily on the strength,

structure, spacing, size, shape, distribution and orientation of the particles.

Precipitation-hardening additions of niobium and vanadium have significant effects on

yield strength but have the limitation that they often increase the impact-transition


Roskill


temperature. The main precipitation-hardening systems used for HSLA steels are

shown in Table 65; the main niobium precipitates involved are the same as for grain

refinement, namely carbides and carbonitrides. All the elements shown exert some

solid-solution strengthening, but only copper additions of about 1.3% provide marked

increases in strength by this mechanism.

Table 65: Principal precipitation-hardening mechanisms for steel

Alloying elements Main precipitates

Niobium Niobium carbonitride and Nb(C,N)

Niobium carbide NbC3

Vanadium Vanadium carbonitride and V(C,N)

Vanadium carbide VC3

Niobium + vanadium Mixed carbonitrides and carbides Nb(C,N), NbC3,

V(C,N), VC3

Vanadium + nitrogen Vanadium nitride VN

Copper Copper Cu

Copper + niobium Copper and niobium carbonitride Cu,

Nb(C,N)

Titanium Titanium carbonitride and

titanium carbide

Ti(C,N)

TiC

Aluminium + nitrogen Aluminium nitride AlN Source: High-Strength, Low-Alloy Steels: Status, Selection and Physical Metallurgy, Battelle Press

Niobium produces increases in strength by precipitation hardening. Its grain-refining

effect and the relatively low affinity for oxygen that permits its use in semi-killed steels

are further advantages. Niobium performs best if precipitated in austenite as relatively

coarse carbonitride particles under conditions that promote a high degree of grain

refinement. The resultant improvements in yield strength and ultimate tensile strength

permit reductions in the gauge of steel required to meet a given strength requirement.

The main reported disadvantage of niobium has been an adverse effect on the

toughness of the heat-affected zone (HAZ) in welded structures. Research has

suggested that HAZ embrittlement in niobium-treated steels is caused by the formation

of bainite and apolygonal ferrite in the microstructure. As for grain refinement, the use of

niobium for precipitation hardening competes with, and complements that, of vanadium.

Both niobium and vanadium in carbon-manganese structural steels form carbides that

are considerably more stable than manganese or iron carbides. Niobium carbide is

more stable, since vanadium carbides are in solution at all hot-rolling temperatures and

can be taken into solution during normalising. In addition, vanadium and niobium both

combine with nitrogen in steels, but vanadium is the more potent nitrogen-fixer. The

presence of vanadium provides good yield strength but poor impact properties and there

is a tendency to use vanadium more frequently in thicker sections of steel where this

disadvantage is mitigated by the greater thickness.

Generally, additions of niobium provide a larger increase in yield strength than similar

percentage additions of vanadium. Niobium additions in hot-rolled high-strength steels


Roskill


are two to four times lower than those of equivalent vanadium steels. The effect of

varying additions of vanadium and niobium are shown in Table 66.

A combination of vanadium and niobium produces higher yield strength than can be

obtained with either element alone. Niobium/vanadium steels made with relatively low

carbon contents are commonly known as pearlite-reduced steels. The lower carbon

content increases weldability and improves low-temperature impact properties. Pearlite-

reduced and acicular ferrite steels can also be produced using niobium and

molybdenum additions.

Table 66: Effects of niobium and vanadium additions on yield strength

Yield strength

Steel type Alloy addition (%) ksi MPa

A 0.4%Mn - 43 297

0.03Nb 59 407

0.05Nb 62 428

B 1.2%Mn - 48 331

0.03Nb 68 469

0.05Nb 72 497

0.08Nb 74 510

C 0.3%Mn - 43 297

0.08V 51 352

0.14V 55 379

D 1.2%Mn - 48 331

0.08V 67 462

0.14V 80 552 Source: High-Strength, Low-Alloy Steels: Status, Selection and Physical Metallurgy, Battelle Press

Until the 1960s, the basic low-carbon steels traditionally used for bridges and buildings

had minimum yield strengths of about 33ksi, fair weldability and the lowest price per unit

of weight. They also, however, had the highest price-to-yield-strength ratios. The

earliest approach to high-strength structural steels was the use of carbon steels and

alloy steels with carbon contents higher than 0.3% and increased manganese content.

This high carbon level allowed heat treatment, producing yield strengths of up to 100ksi,

but reduced formability and weldability.

The need for higher strength and lighter-weight structures prompted the development of

new steels to fulfil the requirements of good weldability and good impact strength at low

temperatures. These steels, developed during the 1960s, were the high-strength, low-

alloy (HSLA) steels with minimum yield strengths ranging from 45ksi to over 80ksi.

8.1.2 Use of niobium in-high strength, low-alloys steels (HSLA)

HSLA steels are produced by a large number of companies. Table 67 lists those

companies that have been identified as purchasers of ferroniobium for use in HSLA

steelmaking. Some also use ferroniobium in the production of stainless steel.


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Table 67: Summary of major purchasers of ferroniobium for HSLA steel production

Country/region Company

Europe Arcelor Mittal

Thyssen1

Tata

Riva

Dillinger

Salzgitter

Voest Alpine

SSAB

Ruukky

US Steel Kosice

Russia & Ukraine SeverStal

Metalloinvest

Novolipetsk (NLMK)

Magnitogorski

Metinvest

Alchevsk

South Africa ArcelorMittal

North America Arcelor Mittal

Nucor

AK Steel1

Evraz

Gerdau

Severstal

SSAB

US Steel

AHMSA

Ternium

South America Usiminas

Arcelor Mittal

CSN

Gerdau

CSA Thyssen

Ternium

Japan Nippon Steel1

Sumitomo1

JFE Steel

Kobe Steel

Hitachi

Table continued….


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….Table continues


China Baosteel

Anshan

TISCO1

WISCO

Shougang

Jinan

Nanjing

Maashan

Valin Group

Hebei

Xinyu

Anyang

Benxi

South Korea POSCO1

Hyundai

Taiwan China Steel

Australia Blue Scope Steel

Indonesia Krakatau Steel

India Bhilai

Essar

Tata

JSW1

Source: Roskill Note: 1-These companies also purchase ferroalloys for use in stainless steel

HSLA steels are a group that includes several sub-groups:

Advanced High Strength Steels (AHSS)

Dual Phase Steels (DP)

Complex Phase Steels (CP)

Martensitic steels

TRIP steels (Transformation Induced Plasticity)

Newer grades of high-strength steels are continually being developed to meet increasing

demand for ultra-high purity and ultra-clean steels, produced at a competitive cost with

minimal environmental impact.

Advanced high-strength steels were developed to meet the need for more formable

high-strength steel in the transportation market. They are multi-phase steels with a

better combination of high-strength and formability than conventional micro-alloyed steel

because of the higher ratio of tensile strength to yield strength.


Roskill


AHSS include dual-phase steels, which have a low initial strength and high ductility, but

work-harden rapidly to produce parts with yield strengths from 60ksi to 120ksi. Up to

0.06% vanadium additions act as an austenite stabiliser, precipitation strengtheners and

microstructure refiner.

Table 68: Typical composition of dual-phase steel (wt %)

Element Wt %

C 0.06-0.15

Mn 1.5-2.5

Cr Under 0.40

Mo Under 0.40

V Under 0.06

Nb Under 0.04 Source: Welding Journal

Complex phase steels have a very fine-grained microstructure. In addition to carbon,

silicon and aluminium, they contain niobium, titanium and/or vanadium to form fine alloy

carbide precipitates. Under high strain rate deformation conditions, CP steels show

good energy absorption.

Martensitic steels contain carbon to increase the hardenability and the strength of the

martensite. Manganese, silicon, chromium, nickel, molybdenum, boron and/or vanadium

are added to further increase hardenability and provide desired mechanical properties.

TRIP steel is typically used in the automotive industry. It has a triple phase

microstructure consisting of ferrite, bainite, and retained austenite. During plastic

deformation and straining, the metastable austenite phase is transformed into

martensite. This transformation allows for enhanced strength and ductility.

In the USA, most HSLA steels are covered by six ASTM standard specifications: A242,

A440, A441, A529, A572 and A588, of which A572 is the principal niobium-bearing

grade. A number of other types, notably A607, A633, A649, A710, A736 and A737, may

also contain niobium. Table 69 shows the composition and properties of ASTM A572

grade HSLA.

ASTM A572 describes niobium-vanadium HSLA steels that are widely used for riveted,

bolted or welded structures in the oil and gas industry, in general construction, and in

bridges, because of their good notch toughness. Niobium additions are generally below

0.05% and can be as low as 0.005%, compared with a 0.01-0.10% range for vanadium

additions. They generally also contain around 0.01% molybdenum but any two of these

three elements may be absent from particular compositions.


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Table 69: Alloying additions and properties of ASTM grades of HSLA steels

Composition (%) Thickness UTS Yield

Grade C Mn Cu Mo Nb V (mm) (ksi) point (ksi)

A242 0.15 1.0 0.2 - - - 69.9 70 50

A440 0.28 1.1 0.2 - - - 44.5 70 50

A441 0.22 0.85 0.2 - - 0.02 19.1 70 50

A572 42 0.21 1.35 0.2 0.015 0.05 0.1 101.6 60 42

45 0.22 1.35 0.2 0.015 0.05 0.1 38.1 60 45

50 0.23 1.35 0.2 0.015 0.05 0.1 38.1 65 50

55 0.25 1.35 0.2 0.015 0.05 0.1 28.1 70 55

60 0.26 1.35 0.2 0.015 0.05 0.1 25.4 75 60

65 0.26 1.35 0.2 0.015 0.05 0.1 12.7 80 65

A588 0.19 0.9-1.25 0.4 - - 0.1 101.6 70 50

A514 0.20 0.6-1.0 0.5 - - 0.08 19 115-135 100

Source: High-Strength, Low-Alloy Steels: Status, Selection and Physical Metallurgy, Battelle Press

Niobium and vanadium HSLA steels are the most widely used HSLA steels; their

suitability for linepipe was a major reason for the growth in demand for HSLA steels.

ASTM A588 grades have yield strengths of 50ksi in sections up to 11cm thick, similarly

achieved with additions of 0.02% to 0.1% niobium or vanadium, and are weldable.

These steels are used in structures where weight savings and durability are important,

with alloying additions aimed at improving mechanical properties (especially in thick

sections) and providing the required resistance to atmospheric corrosion. Niobium,

however, is only one of a range of elements that may be added and vanadium has been

preferred in many proprietary compositions.

ASTM A633 grades are normalised HSLA structural steels that are designed for use in

extremely cold environments (-45ºC). They have better notch toughness than as-rolled

steels of the same strength. Two of the five standard grades contain niobium.

ASTM A710 grades are low-carbon age-hardening multiple alloy steels. Minimum yield

strengths are 60-80ksi in the nickel-copper-chromium-molybdenum-niobium grades and

75-85ksi in nickel-copper-niobium grades.

ASTM A736 describes nickel-copper-niobium-chromium-molybdenum alloy steel plates,

shapes and bars, with minimum yield strengths of 60ksi to 80ksi. These low-carbon,

age-hardening steels are used in pressure vessel plates and piping components.

ASTM A737 grades are HSLA pressure vessel steels. Typical minimum yield strengths

are 50ksi for niobium-bearing grades and 60ksi for vanadium-nitrogen grades (to which

niobium is sometimes also added).

Commercial production of niobium-treated strip steel began in 1962 in the USA, with a

thin gauge hot-rolled sheet product called GLX-W from the Great Lakes Steel Division of

National Steel. That had minimum yield strength of 300-350MPa but subsequent

developments in processing and composition produced hot-rolled sheets with yield

strengths up to 550MPa. Some grades now available exceed 600MPa.


Roskill


Higher strength is achieved through additions of manganese and 0.03-0.1% Nb, while

the carbon content is kept low to increase formability. Even lower additions (0.005-

0.060% Nb) achieve significant improvements in yield strength (from 240MPa to

380MPa) in niobium-treated cold-rolled HSLA steels.

Table 70: Niobium-containing hot-rolled and cold-rolled HSLA steels

Yield strength Composition (%)

(MPa) C Mn S P Nb Al

Hot-rolled sheet 350 0.08 0.6 0.015 0.008 0.03 …

420 0.08 0.6 0.015 0.008 0.05 …

490 0.08 1.0 0.015 0.008 0.07 …

550 0.08 1.2 0.015 0.008 0.1 …

Cold-rolled sheet 240 0.08 0.51 0.01 0.004 0.005 0.098

276 0.08 0.5 0.01 0.002 0.01 0.09

310 0.08 0.5 0.01 0.002 0.01 0.09

345 0.08 0.49 0.02 0.005 0.037 0.096

350 0.08 0.5 - 0.02 0.06 0.05 Source: High-Strength, Low-Alloy Steels: Status, Selection and Physical Metallurgy, Battelle Press

Various improvements in steel processing technology have been developed for, or

applied to, the production of HSLA steels. Vacuum-argon-decarburisation (VAD) has

been used to produce low-carbon hot-rolled grades that compete with more expensive

dual-phase steels. Online accelerated cooling (OLAC) improves mill productivity and

produces low-cost rolled sheet; 0.022% niobium additions promote grain refinement,

precipitation hardening, and the formation of low-carbon bainite while reducing the

carbon equivalent value of the steel. Cooling of HSLA sheet at lower (475ºC)

temperatures produces a ferrite-bainite structure, containing 10-15% bainite and no

martensite, which avoids the problems of cracking in heat-affected zones associated

with similar dual-phase steels.

Structural applications 8.1.2.1

Structural steels, mainly plate, accounted for an estimated 45% of world ferroniobium

consumption in 2012.

Demand from the construction industry was the main driving force behind the

development of high-strength steels that exhibit good uniformity of properties throughout

thick sections. High-strength steels used for general structures, such as bridges and

high-rise buildings, are often supplied in normalised conditions to ensure uniformity of

properties throughout the thick sections. They are used to achieve reductions in weight.

Niobium steels tend to be used for sections up to 12.5mm thick, while vanadium-nitrogen

steels are employed for thicker sections. For higher-strength requirements, manganese-

vanadium steels or quenched and tempered grades, such as ASTM A514, are used.

ASTM A572 and similar niobium-bearing grades are also used.


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HSLA steels used in structural applications must often have adequate corrosion

resistance as well as the required strength. For such a situation, weathering steels of

the A242 type have been developed that form protective oxide coatings on their surfaces

to prevent further oxidation. Weathering steels are employed in highway bridges and

other structures where cost savings on maintenance costs offset their high cost relative

to competing steels such as A572 HSLA grades.

There are numerous well-documented examples of incidences where the use of

niobium-bearing HSLA steels has brought considerable economic benefit. One is the

Millau Valley Bridge, in France, which was opened in the mid-2000s. Its construction

involved the use of 40,000t of HSLA plate containing 0.025% Nb and it has been

calculated that this provided a 60% reduction in the overall weight of the bridge (steel

and concrete). Similarly, the Øresund Bridge between Denmark and Sweden was built

using 82,000t of HSLA plate (0.022% Nb), with a resulting saving in cost estimated at

US$25M. The 63-storey Commerzebank Tower in Frankfurt was constructed with

19,500t of steel, including 10,000t of HSLA steel (0.03-0.05% Nb). The weight saving

compared to reinforced concrete was 60,000t.

Plate for shipbuilding and offshore platforms constitutes another important application for

niobium microalloyed steels. In this application plates in excess of 50mm thickness are

common. Often, steel companies that produce plate for linepipe also produce ship plate.

Niobium-bearing steels are widely used in high-strength reinforcing bars because of

their high yield strength and good weldability. HSLA steel with yield strength of 80ksi or

more must contain no more than 0.25% carbon and around 1% manganese to remain

weldable. In order to achieve the strength level with such limitations on carbon and

manganese, additions of 0.03-0.05% Nb or 0.03-0.11% V are made.

The type and quantity of alloying additions are determined by the type and design of the

steel plant, the bar diameter, the cost of other raw materials and the design of the rolling

mill, which controls rolling speeds and finished rolling temperatures.

After HSLA steel is rolled or cast into billets, it can be reheated to normal rolling

temperatures of 1,200C to 1,250C. The particles of niobium carbonitrides that

precipitate in the billet during the later stage of cooling are completely dissolved and the

steel becomes soft. The re-precipitation of carbonitrides occurs at relatively low

temperatures and after rolling has been completed. The HSLA steels thus behave like

carbon steels and can be rolled without altering the mill design.

The fact that the carbonitrides completely re-dissolve at the reheating temperatures

means that niobium steels can withstand thermal cycling. When, owing to mill

breakdowns or other operational irregularities, billets have to be cooled and

subsequently reheated, niobium steels are unaffected and can be rolled without danger

of further cracking. Vanadium carbonitrides exhibit similar behaviour, but other

precipitates may not completely re-dissolve and may be unable to withstand the thermal

stresses produced in the billets.

HSLA reinforcing bars are increasingly being used to strengthen foundations of high-

stress structures. The weldability of HSLA steels make them suitable for use in

http://www.us.cbmm.com.br/english/sources/uses/photo4.htm



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continuously cast concrete, which is being used increasingly in the USA and western

Europe for roads and runways, for smooth running and longer life. The bendability of

HSLA reinforcing bars makes them suitable for use in the foundations of power stations,

in pre-stressed concrete bridges, in road tunnels and for the foundations of many

offshore installations.

Structural steels, particularly reinforcing bar, are the part of the HSLA market where

ferroniobium faces most competition from ferrovanadium (Section 13.2.1.3).

In addition to being used in HSLA structural steels, niobium can also be used in full-alloy

structural steels. These typically contain 0.1-0.45% carbon and alloying additions of

manganese, chromium, molybdenum, vanadium and nickel. In general, higher alloy

contents give greater hardenability while higher carbon contents give greater strength to

the steel. Molybdenum and vanadium both increase tempering resistance and promote

secondary hardening. Chromium is added to full-alloy steels to increase tempering,

oxidation and corrosion resistance, but it does not cause secondary hardening.

Niobium is not widely used in full-alloy structural steels. Many are aluminium grain-

refined to promote hardness, and niobium is sometimes used as an alternative grain

refiner. Some also contain boron to enhance hardenability and conserve other alloy

additions. Table 71 shows the compositions of two structural full-alloy steels containing

niobium.

Table 71: Niobium-containing full-alloy structural steels

Composition (%)

Grade C Si Mn V Nb

4360 43D 0.16 0.5 1.5 0.1 0.1

4360 50D 0.18 0.5 1.5 0.1 0.1 Source: Stahlschüssel, Verlag Stahlschüssel Wegst GmbH

Cast full-alloy steels have been developed for nodes in offshore structures, using the

microalloying techniques employed for controlled-rolled and normalised steels. Cast

nodes of Mn-Cr-Mo-Nb-V-Cu steel are subject to a double normalising treatment to

produce good combinations of mechanical properties. The cast nodes have been found

to be more resistant to fatigue damage than welded nodes of HSLA or carbon steels,

which were previously the dominant types used in offshore structures.

Automotive steels 8.1.2.2

Automotive steels accounted for an estimated 23% of world ferroniobium consumption in

2012.

The vehicle industry is a major consumer of HSLA steels containing ferroniobium.

These steels are used in the form of hot- and cold-rolled strip and long products and

have a wide range of applications.


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Table 72: Typical HSLA steel automobile parts in Japan and Europe

Japan Europe

Bumper bar Stiffener for front door capping

Front frame Support for front stock absorber

Inner front pillar Bottom side member

Door impact bar Upper suspension arm

Rear side frames Lower brackets for front axles

Roof header Bow support for rear quarter

Front frame reinforcement Stiffener for centre pillar inner panel

Parking brake reinforcement Front & near faces of shock absorber case

There is growing emphasis in the automobile industry on improving fuel efficiency,

reducing vehicle weight and environmental emissions, and increasing passenger safety.

This has led to the introduction and increased use of lighter materials such as aluminium

alloys, high-strength steels, magnesium, titanium and plastics, at the expense of mild

steel. The main impetus behind the use of light metals in automobiles is the need to

improve fuel consumption and meet pollution control legislation while achieving higher

engine performance. In Europe, it has been estimated that every 100kg of reduced

vehicle weight translates into a 6% reduction in CO2 emissions, or 9g/km.

Steel, particularly carbon steel, has long been the principal constituent by weight of

automobiles and other vehicles. In mid-2005 it was estimated that a mid-sized

automobile in the USA (weight 1.4t) contained:

38.5% mild steel

9.3% high-strength steel

1.4% other steel

8.9% aluminium

0.5% magnesium

This is likely to change markedly in future. In early 2007, Drucker Worldwide forecast

that the use of advanced high-strength steels (AHSS) in North American automobiles

would increase from 68kg to over 180kg per vehicle to 2015. In terms of body structure

weight, that represents an increase from 11% to 40%. AHSS, which has a tensile

strength several times greater than that of mild steel, is now used in 40% of vehicles

produced and in the 2008 model Mercedes C-Class it made up 70% of the body

structure.

The process of redesigning vehicles is one that is being undertaken with collaboration

between steelmakers and the automobile industry, and it is a long-term process. Major

research aimed at illustrating the advantages of using AHSS in high-volume steel

applications to significantly reduce vehicle weight while improving safety and

performance and maintaining manufacturing affordability began in 1999 with the Ultra

Light Steel Auto Body project; the fifth project in the series, the Future Steel Vehicle

project, was unveiled at the end of 2007.

Table 73 shows that world production of passenger vehicles fell in 2008 and 2009 in

response to the global recession before recovering in 2010. Production rose in 2011


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and peaked in 2012. Output in the Asia-Pacific region increased by a CAGR of 37%

between 2002 and 2012, underpinned by strong growth in China. Output in the rest of

the world increased by a CAGR of 11% over the same period.

Table 73: World: Production of passenger vehicles, 2004 to 2012 (M units)

2004 2005 2006 2007 2008 2009 2010 2011 2012

Europe 17.83 17.68 18.10 19.33 18.38 15.25 17.34 18.33 19.62

N. America 6.47 6.52 6.89 6.48 6.19 3.96 5.08 5.61 6.01

S. America 2.10 2.29 2.44 2.85 3.01 2.99 3.14 3.15 3.38

Asia-Pacific 17.87 20.05 22.21 24.21 24.77 25.29 32.41 32.48 34.78

Africa 0.29 0.32 0.34 0.33 0.38 0.28 0.36 0.38 0.40

Total 44.55 46.86 49.98 53.20 52.73 47.77 58.34 59.95 64.19 Source: 2004 to 2011 OICA Survey, 2012 data based on Roskill and PwC estimates

Growth in demand for ferroniobium and other micro-alloying elements is higher than

growth in automobile production because of the growing use of AHSS.

Linepipe steels 8.1.2.3

Linepipe is used widely in the oil and natural gas industry. HSLA linepipe is typically

used in gas transmission pipes. Linepipe steels accounted for an estimated 16% of

world ferroniobium consumption in 2012.

Gas transmission linepipe requires a high level of strength to contain high-pressure gas,

as well as acceptable toughness to prevent fracture in the event of external forces, such

as earthquakes. Good weldability is also needed to enable easy fabrication of a

transmission system.

Linepipe grades of HSLA steel are commonly named in accordance with American

Petroleum Institute (API) designations: an 'X' followed by the specified minimum yield

strength of the pipe in thousands of pounds per square inch (000psi or ksi). HSLA

steels are used widely for X60, X65 and X70 linepipe, while various X75 and X80 grades

are also available. These steels may be produced with many different combinations of

alloying elements and/or thermo-mechanical processing. The evolution of niobium-

bearing HSLA linepipe steels is illustrated in Table 74. Even-higher grades, X100 and

X120, are now available.


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Table 74: Development of linepipe steels

Composition (%)

Date Type C Mn Nb S P Other Processing

Pre 1960s 0.21 0.8 - 0.035 0.030 - Semi-killed

1959 GLX 0.19 1.0 0.02 0.030 0.030 - Semi-killed

1970 X60 0.12 0.1 0.03 0.020 0.025 - Fully killed

1972 X60 Tough 0.12 1.2 0.03 0.008 0.020 Re/Ca Fully killed

1973 X60 Sour 0.10 0.1 0.04 0.004 0.015 Re/Ca Fully killed

1974 X65 0.06 1.6 0.05 0.003 0.015 V,Mo,Re,Ca Continuously cast

1982 X65 Sour 0.05 1.1 0.03 0.001 0.010 Cu,Ni,Ca Continuously cast, TMCP1

1985 X70 0.04 1.5 0.03 0.001 0.010 Ti,V,B,Mo Continuously cast, TMCP1,

vacuum treated

1988 X80 0.03 1.8 0.05 0.001 0.008 Ti,Mo,B Continuously cast, TMCP1,

vacuum treated

Source: Paper by J.M. Gray & G. Tither, Niobium International Symposium, November 1988 Note: 1-Thermo-mechanical processing

As steels satisfying basic strength requirements have become readily available, and

competition in their markets has increased, other criteria have become more important.

In general-purpose uses, weldability and other factors affecting pipeline construction

costs are important, while a significant proportion of demand for linepipe has required

additional high resistance to low temperatures for pipelines in Alaska, Canada and

Siberia. Steel and pipe producers have developed and marketed products, such as

seamless large-diameter linepipe, aimed specifically at the oil country tubular goods

(OCTG) market.

The degree of strength required in individual pipelines may depend on government

legislation, geographical situation, individual climatic conditions and economic

considerations, or on a combination of those factors. In rural areas of North America,

steels conforming to the X60 specification have been used to carry gas at pressures up

to about 600psi. In areas classified as within 'city limits', the X65 grades are specified.

In Europe, X65 steels are standard and have pressure capacities up to 1,000psi. The

severe conditions encountered in Arctic areas demand even higher strengths and use

X70 and above. The X100 and X120 grades have been developed principally for these

conditions.

The first high-strength linepipe steels developed were niobium and vanadium HSLA

steels. These required heat treatment and heavy controlled-rolling to conform to the

difficult specifications for large diameter linepipe used in Arctic conditions. Although they

are still widely used for less demanding applications, heat treatment of pipes of 120cm

or greater diameter is difficult and expensive, and vanadium steels in particular are

prone to brittle cracking at low temperatures. Acicular-ferrite and pearlite-reduced steels

that can be used in the as-hot-rolled condition were developed as alternatives.

The acicular-ferrite steels are low-carbon grades with few or no carbide inclusions, which

results in a tough steel with good weldability. The toughness can be improved by

niobium additions and by controlled-rolling. Such steels work-harden during forming

from about 65ksi to 75ksi yield strength. Tempering and the addition of molybdenum to

these steels further increase yield strength, to about 85ksi. A typical composition is


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0.065% carbon, 0.1% silicon, 1.85% manganese, 0.3% molybdenum and 0.06%

niobium.

The pearlite-reduced steels are low-carbon grades containing vanadium or niobium.

The low carbon level reduces the proportion of pearlite in the matrix, thus improving its

strength. These steels are used for somewhat less severe applications than the

acicular-ferrite steels. Several hundred kilometres of pearlite-reduced steel linepipe

have been used in the North Sea. A typical composition is 0.1% carbon, 0.1% silicon,

1.4% manganese, 0.2% molybdenum and 0.05% niobium.

X60 linepipe is mainly produced from niobium or niobium-vanadium steels with low-

temperature rolling; this gives linepipe with good weldability and low-temperature

toughness. Three examples of steels developed by Japan’s Kawasaki Steel (now JFE

Steel) for electric-resistance welding are shown in Table 75. Vanadium is added to

thicker-walled pipe to maintain strength, and can be fairly readily substituted for niobium

where low-temperature toughness is not required.

Table 75: Composition of electric-resistance welded linepipe steels

Composition (%)

Grade C Al Mn Nb P Si S V

X60 0.18 0.003 1.29 0.041 0.020 0.20 0.009 0.026

X60 0.17 0.025 1.17 0.039 0.016 0.18 0.004 0.010

X65 0.08 0.027 1.33 0.038 0.016 0.21 0.002 0.031 Source: Kawasaki Steel technical report

Vanadium-nitrogen normalised steels can substitute for niobium steels where low

temperature toughness is required, but they require different welding practices during

manufacture and construction. They were once widely used in western Europe when

niobium was less widely available and might be used there again, but would face

resistance in North America, where use would entail investment in new normalising

furnaces or the use of imported grades.

X65 and X70 linepipe is generally made from vanadium-niobium steels using low-

temperature rolling. This alloying combination can be replaced by molybdenum-niobium

or nitrogen normalised steels in X65 grades. Thicker-walled X70 grade linepipe may

alternatively use molybdenum-niobium or molybdenum-niobium-vanadium steels. Many

proprietary grades of vanadium-niobium and niobium-molybdenum hot-rolled X65 and

X70 linepipe have been reported.

Niobium-molybdenum steels have been more widely adopted for X70 and X80 linepipe

than the application of special rolling methods (although these are capable of meeting

the highest specifications for linepipe with vanadium-niobium additions). Considerable

research has been undertaken to achieve 'as-rolled' HSLA plate products with 600MPa

yield strengths and transition temperatures of -80C or lower. To achieve these

objectives, Nippon Steel developed ultra low-carbon bainitic steels for 142mm diameter

X70 and X80 linepipe. These steels contain only 0.02% carbon, and additions of

titanium, boron and nitrogen in addition to 0.05% niobium. In Brazil, CBMM has

developed an X80 grade using 0.07-0.09% niobium additions and accelerated cooling to


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achieve a ferritic-bainitic microstructure. Hot-rolled linepipe developed for low-

temperature liquefied gas transmission in the FSU uses unusually high additions of up to

0.15% niobium, which permit more relaxed rolling schedules.

Type X80 steel is also being considered for use in offshore oil platforms and shipbuilding

applications.

High resistance to the sulphide stress cracking and hydrogen sulphide corrosion

associated with an increasing number of oil and gas installations is a further

specification which is met by quenched and tempered (QT) molybdenum-chromium and

molybdenum-niobium steels. JFE Steel has produced linepipe quenched at 950C with

0.031% niobium, 0.70% molybdenum and 1.47% chromium additions, which has yield

strength of 97.7ksi and 106.7ksi tensile strength.

Specifications for steels used in ancillary plant, including pumping stations and cleaning

units, are also severe. The production of bends and T-sections includes heating the

steel to forging temperatures, followed by bending, drawing, heat treatment and welding.

Many components for turbines and valves, such as pump bodies and casings, are often

cast from HSLA steels. The steels have compositions similar to HSLA plate and sheet,

adjusted to give adequate casting behaviour.

Linepipe is used to transport natural gas, crude oil and refined products, often over very

long distances. Natural gas transportation linepipe is the largest part of this market,

accounting for anywhere between a half and three-quarters of total pipeline construction

in any given year, and is probably also the major use for HSLA steels, and thus for

niobium.

Table 76 shows the level of world gas pipeline construction from 2006 to 2012. As this

industry is project-driven, construction levels vary widely from year to year and country

to country. After bottoming-out in 2006, gas pipeline construction rose in both 2007 and

2008, and reached a record level in 2009 before falling very sharply in 2010. There was

recovery in 2011 and 2012 but it is not expected to continue during 2013, during which

construction is anticipated to be below 10,000km, over 80% of it in North America and

the Asia-Pacific region (Figure 17).

Table 76: World: Gas pipeline construction by region, 2006 to 2012 (km)

2006 2007 2008 2009 2010 2011 2012

USA 2,283 3,301 4,480 6,418 1,490 2,382 1,223

Canada 69 - 388 55 1,009 240 232

S. America 1,671 805 2,198 2,002 1,518 682 748

Europe1 1,565 1,802 200 668 980 3,993 1,571

M. East 1,235 771 1,316 2,406 1,495 1,337 -

Africa 678 209 586 406 835 - -

Asia-Pacific2 2,908 4,676 2,981 2,916 2,182 2,052 7,346

Total 10,409 11,564 12,149 14,871 9,509 10,686 11,120 Source: Oil & Gas Journal Notes: 1-Regions west of the Ural Mountains and north of the Caucasus Mountains 2-Regions east of the Ural Mountains and south of the Caucasus Mountains


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Figure 17: World: Projected gas pipeline construction by region, 2013 (km)

Source: Oil & Gas Journal

Pressure vessel steels 8.1.2.4

Pressure vessels and piping components may be made of niobium-bearing ASTM A737

grades of HSLA steel (with 50-60ksi yield strengths) or ASTM A736 nickel-copper-

niobium-chromium-molybdenum alloy plates, shapes and bars (with 60-80ksi yield

strengths).

High-strength steel castings 8.1.2.5

HSLA steels have applications as casting materials. Additions of niobium and

vanadium, and to a lesser extent zirconium and titanium, improve the strength of

conventional fine-grained structural steels considerably. Suitable compositions and heat

treatment make it possible to tailor mechanical properties over a broad range without

resorting to hot-forming processes.

With typical compositions of 0.1% vanadium and niobium, and carbon contents of less

than 0.1%, such HSLA steel castings offer low susceptibility to cracking and excellent

weldability and machinability. The addition of 0.1% niobium to low-carbon steels in

combination with bainite-forming elements, such as manganese or molybdenum,

produces steels that can be cast in thicknesses up to 200mm, and have good notch

N. America 40%

S. America 2%

Europe 7%

M. East & Africa 10%

Asia Pacific 41%

Total = 9,918km


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toughness, yield strength and creep strength. Their strength is far superior to that of

conventional structural steels, even at high temperatures.

Niobium and vanadium are preferred to titanium and zirconium additions in HSLA

castings because, in steels of comparable strength, they require lower temperatures and

thus suffer less distortion and surface oxidation during heat treatment. Compositions

have been developed which are fully compatible with hot-rolled plate and have been

approved for use in offshore structures.

The centrifugal spinning process was developed for the production of niobium-bearing

steels for the offshore industry. Molten metal is fed into a tubular mould that rotates

around its horizontal axis at very high speeds. Centrifugal forces cause non-metallic

inclusions to remain at the interior of the bore, where they can subsequently be removed

by drilling. Niobium additions of 0.03-0.07% are made for grain refinement and the final

tube exhibits an extremely good combination of strength and toughness. Centrifugal-

spun pipe is used for tubular components in jack-up rigs, buckle arrestors, risers and

connection lines in offshore structures.

8.2 Stainless and heat-resisting steels

Stainless and heat-resisting steels are the largest use for ferroniobium after HSLA steels

but they represent a far smaller market, at about 6% of total ferroniobium consumption in

2012. The rate of addition of ferroniobium is much higher in this application, however, at

0.4% to 0.8%, compared to 0.05% (CBMM figures).

8.2.1 Types of stainless steel

Stainless steel is a generic term for corrosion-resisting alloy steels containing chromium

and, often, nickel. Nickel is added to stainless steel mainly to improve its ductility, while

its corrosion resistance is due to the presence of a tightly adherent, continuous,

impervious chromium-rich oxide surface-layer that prevents further oxidation.

In the AISI classification of steels, stainless steel must contain 10% or more chromium.

The addition of 10% chromium to a steel gives corrosion resistance in mild atmospheres

or steam; additions of over 18% chromium give protection in more destructive

atmospheres in the chemical, petrochemical, process and power industries.

The microstructure of steel determines its properties of strength, toughness and

corrosion resistance. The microstructure depends on the basic composition of the steel

and on the heat treatment it receives. There are three main types of stainless steel:

austenitic (200, 300 and 600 series), martensitic (400) and ferritic (400). Modifications to

the composition of stainless steel to suit specific applications and to keep it competitive

with other materials have resulted in the development of variations on the traditional

basic compositions, such as superaustenitic, superferritic, duplex and superduplex

stainless steel.


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The principal distinction is between austenitic and ferritic stainless steels. Austenitic

grades contain 16-26% Cr and at least 8% Ni. Ferritic stainless steels contain 12-18%

Cr and little or no nickel. They are the principal types of stainless steel that contain

niobium. Martensitic types contain less than 14% Cr, little or no nickel and have a higher

carbon content than the other two types, of up to 0.3%.

The 300 series austenitic stainless steels, also known as 18/8 steels, are the most

widely used types of stainless steel. They have good corrosion and oxidation

resistance, and good ductility. They can be used both in low-temperature applications,

such as liquid gas storage, and for high-temperature applications, such as heat

exchangers. Most austenitic stainless steels have low resistance to acid corrosion,

however, and cannot be hardened by heat treatment.

Additions of niobium to austenitic stainless steels improve their corrosion resistance,

high-temperature strength, creep resistance and weldability. Niobium forms carbides

that are more stable than chromium carbides and do not go into solution at annealing or

welding temperatures. Additions of niobium, or a similar stable carbide-former, thus

prevent the precipitation of chromium carbides at grain boundaries in the steel, which

otherwise would deplete adjacent areas of chromium and impair corrosion resistance.

Niobium is generally added to austenitic stainless steels at levels equal to eight or ten

times the carbon content of the steel, up to a maximum of 1%.

A high proportion of all austenitic stainless steels produced are variations on two

standard grades. Type 304, containing 18% to 20% chromium, is used in kitchen

utensils, cutlery, sinks, dairy installations and process plant for the oil, chemical, paper

and food processing industries. Type 316, containing 16% to 18%, is similar to Type

304 but is particularly suitable for smoky and highly corrosive environments. The low-

carbon version of this grade, Type 316L, is highly resistant to corrosion, oxidation and

sensitisation. It is used in aircraft parts, process plant and steam generator tubes.

Niobium is generally not present in most 304/316 stainless steels, although it finds use

in steels that replace those grades in some applications.

The major market for niobium in the standard austenitic grades is in Type 347, which

competes with Type 304 because of its superior creep-rupture strength and oxidation

resistance. Tests at 649ºC and 815ºC have shown that Type 347, containing 0.8%

niobium, has higher tensile strength, yield strength and long-term (1,000 hours) rupture

strength. Important markets for Type 347 stainless steel include aerospace, refining and

the automotive industry. Another grade containing niobium, Type 348, is used in the

nuclear industry.

Type S20910 (0.2% Nb) is an austenitic, corrosion-resistant stainless steel that finds use

in the petroleum, chemical, pulp and paper, textile, food processing and marine

industries. The steel combines good corrosion resistance and high strength.

Various proprietary grades have been developed from the 304 and 316 types. They

usually have enhanced corrosion resistance, particularly to sulphuric acid and chlorides,

imparted by higher chromium and molybdenum contents. Niobium additions have been

reported for Armco Nitronic 50 (0.2% Nb) and Jessop JS700 (0.3% Nb). Armco Nitronic


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50 has high strength and impact resistance, good corrosion resistance and good

ductility. It is used in the aircraft industry for tubing, pneumatic and structural ducts, and

in the petrochemical, chemical, paper, food and textile industries.

Carpenter 20Cb-3® (1.0% Nb) is an austenitic stainless steel possessing excellent

resistance to hot sulphuric acid and many other aggressive environments that would

readily attack Type 316 stainless. 20Cb-3® stainless is stabilised to limit intergranular

attack. The presence of niobium in the alloy minimises the precipitation of carbides

during welding. 20Cb-3® stainless exhibits excellent mechanical properties and is

relatively easy to fabricate.

The 200 series austenitic stainless steels possess mechanical and corrosion

resistance properties similar to their corresponding 300 series steels. They exhibit better

yield strength and tensile strength than traditional austenitic types, as well as high

ductility and superior creep properties at elevated temperatures. These alloys were

originally developed to conserve nickel compared to 300 series steels, by replacing

nickel with manganese in a ratio of 2% Mn/1% Ni replaced. Traditionally produced

mainly in India for kitchen and catering markets, the use of 200 series steels has spread

to China but is low in other countries.

The absence of nickel in 200 series stainless makes it much cheaper to produce, which

has led to growth in its use. The lack of nickel means it has lower corrosion resistance,

however, making it suitable for a much narrower range of applications than the 300

series. On the other hand, the use of nitrogen in 200 series stainless means it is

generally stronger than 300 series steel; grade 201, for example, has a yield strength

30% higher than grade 304. The downside to this higher strength is that 200 series

stainless can be more difficult to form, although formability can be improved with the

addition of copper.

The 400 series martensitic stainless steels have a higher carbon content than

austenitic types, over 0.15%, and only moderate corrosion resistance, together with poor

weldability. They can be considerably hardened by heat treatment, however, and are

cheaper than most other stainless steels. Martensitic stainless steels typically contain

less than 14% chromium and less than 1% molybdenum. Widely used grades include

Type 410, used in general engineering components, and Type 420, which is suitable for

cutlery, knife blades, surgical instruments, springs and fasteners. The use of niobium is

generally restricted to more specialised varieties of martensitic stainless steels.

Type S45000 stainless steel (0.4% Nb min.) is a martensitic, age-hardenable steel with

very good corrosion resistance and moderate strength. The steel resists atmospheric

corrosion including salt-water atmospheres, has excellent resistance to rusting and

pitting in 5% and 20% salt spray at 35°C, and resistance to oxidation up to 650°C. The

minimum niobium content is eight times the carbon content.

Type S45500 (2.0% Nb) is an age-hardenable, martensitic stainless steel for use in

service temperatures up to 425°C. The steel is easily formable, exhibits no corrosion in

fresh water, resists staining in normal air atmosphere, and has good resistance to pitting

in 5% salt spray and 5% ferric chloride.


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17-4 precipitation hardening martensitic stainless steel is widely used because of its high

strength, high hardness, excellent corrosion resistance, and easy heat-treatment. The

17-4 PH alloys are used in the aerospace, medical, food processing and chemical

industries for applications such as pump shafts, valve stems, braces, fasteners,

coupling, rocket and missile components, hydraulic actuators and wear rings.

Custom 630 (17Cr-4Ni; 0.45% Nb max.) produced by Carpenter Technology is a

martensitic precipitation/age-hardening stainless steel offering high strength and

hardness along with excellent corrosion resistance. It has good fabricating

characteristics and can be age-hardened by a single-step, low-temperature treatment. It

is used for a variety of applications including oil field parts, chemical process equipment,

aircraft fittings, fasteners, pump shafts, nuclear reactor components, gears, paper mill

equipment, missile fittings, and jet engine parts. A modified version, Project 70®

Stainless Custom 630, has improved machinability.

Carpenter Custom 455® (0.5% Nb max.) is a martensitic age-hardenable stainless steel

with high-strength and good corrosion resistance to atmospheric environments. It is

relatively soft and formable in the annealed condition. A single-step ageing treatment

develops exceptionally high yield-strength with good ductility and toughness. This

stainless steel can be machined in the annealed condition, and welded in much the

same manner as other precipitation hardenable stainless steels. It can also be

extensively cold-formed.

Maraging steels are almost carbon-free martensitic steels that are capable of age-

hardening. The annealed steel is soft and ductile, but when aged at about 480C it

becomes hard, strong, tough, and resistant to fracture, yet easy to weld. When aged,

such steels possess yield strengths between 140ksi and 300ksi, according to alloy

composition. Around 11% to 16% chromium is added to stainless maraging steels in

order to increase their strength and resistance to corrosion. Compositions of some

stainless maraging steels that contain niobium are shown in Table 77.

Table 77: Niobium-containing maraging steels

Composition (%) AFC-260 Alloy B

C 0.08 0.16

Cr 15.5 14.0

Ni 2.0 1.0

Co 13.0 13.5

Mo 4.3 5.0

Nb 0.14 0.22 Source: Centre d’Information de Cobalt

Maraging steels are useful in applications requiring high strength-to-weight ratios. They

exhibit high resistance to low-stress fracture, and their resistance to hydrogen

embrittlement and stress-corrosion cracking is generally superior to that of the HSLA

steels. Applications for maraging steels are found in aerospace, machine components,

marine equipment and tooling. Aerospace applications for maraging steels include

motor cases and load cells for measuring rocket motor thrust, helicopter drive shafts,

aircraft landing-gear components, and hinges for swing-wing aircraft. Machinery


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applications include timing mechanisms in fuel injection pumps, index plates for machine

tools, bolts and fasteners, barrels for rapid-firing guns, and components for cryogenic

machinery. Marine applications include deep-sea submersibles and foil assemblies on

hydrofoil craft.

The 400 series ferritic stainless steels contain low levels of carbon and up to 30%

chromium. They are more resistant to corrosion and are more easily welded than

martensitic grades, but less so than the austenitic grades. They are easy to fabricate

but cannot be grain-refined by heat treatment.

This series is the largest consumer of niobium in the stainless steel industry.

Niobium is added to ferritic stainless steels to reduce susceptibility to intergranular

corrosion at high temperatures, and to prevent riding or roping of the surface of cold-

rolled strip. As with austenitic stainless steels, the high levels of interstitial elements in

many ferritic grades render them susceptible to sensitisation through the precipitation of

chromium carbides and nitrides after welding, which impairs corrosion resistance.

Markets for niobium-bearing ferritic grades include the automobile industry, most notably

in the manufacture of exhaust systems, food and beverage processing, consumer

appliances, HVAC and the nuclear industry.

Grades produced by Allegheny Ludlum over the range Type 409 to 468 contain from

0.15% Nb to as much as 0.8% Nb, but generally below 0.5%. Niobium is also present in

some superferritic stainless steels (containing up to 30% Cr). AL 29-4C® alloy is a

superferritic stainless steel designed for extreme resistance to chloride ion pitting,

crevice corrosion and stress corrosion cracking, and resistance to corrosion in oxidising

and moderately reducing environments. The alloy was developed in the early 1980s for

welded condenser tubing used in power stations using seawater or brackish water. It

contains 0.2-0.1% combined niobium and titanium.

A number of variations on the traditional stainless steel compositions have been

developed. Duplex stainless steels have a structure that contains both ferrite and

austenite. Duplex alloys have higher strength and better stress corrosion cracking

resistance than most austenitic alloys and greater toughness than ferritic alloys,

particularly at low temperatures. Superaustenitic stainless steels have the same

structure as the common austenitic alloys but they have enhanced levels of elements

such as chromium, nickel, molybdenum, copper, and nitrogen, which give them superior

strength and corrosion resistance. Superferritic stainless steels have a structure and

properties similar to the common ferritic alloys but they contain enhanced levels of

chromium and molybdenum to increase their resistance to high temperatures and

corrosive environments such as seawater. Niobium is not commonly used in these

stainless steel variants, although grades of duplex steel containing up to 0.08% Nb have

been reported.

Heat-resistant steels are designed to operate under stress at elevated temperatures,

where resistance to creep (deformation under load) is required. These steels are able to

resist oxidation and scaling at high temperatures. Generally, heat-resistant steels are

austenitic or ferritic types, containing from 8% to 33% chromium and up to 1%


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molybdenum. Table 78 shows the compositions of selected niobium-containing

austenitic and ferritic stainless steels suitable for use at high temperatures.

Table 78: Composition of niobium-bearing heat-resistant steels

Composition (%)

Grade C Si Mn Co Cr Mo Ni Nb/Ta Others

630 0.04 0.6 0.28 - 16.0 - 4.25 0.27 Cu 3.3

651 0.32 0.55 1.15 - 18.5 1.4 9.0 0.4 W 1.35, Ti 0.25

653 0.12 0.5 0.75 - 15.9 2.5 14.1 0.45 Ti 0.25, Cu 3.0

661 0.12 0.7 1.5 19.5 20.75 2.95 19.85 1.15 W 2.35

671 0.42 0.6 1.65 43.6 19.65 4.15 20.35 4.1 W 3.95

688 - - - - 15.0 - 73 0.85 Ti 2.5, Al 0.8 Source: Stahlschüssel, Verlag Stahlschüssel Wegst GmbH & Co

These chromium-molybdenum steels are very important materials, used in a wide range

of high-temperature applications, particularly in electricity generating equipment and the

petrochemicals industry. Low-alloy grades are used in temperatures above 425C and

in conditions where the steel is subject to hydrogen attack or temper embrittlement. For

temperatures above 550C, higher levels of chromium are added to improve oxidation

resistance. Where even greater resistance to corrosion is required, ferritic and austenitic

stainless steels are used.

A large number of grades suitable for stainless steel castings have been developed.

They include casting versions of the AISI and BSI grades of wrought steels, and the BSI

series of ANC investment casting steels. Niobium, and sometimes titanium, is added as

a carbide former to counteract a tendency to intercrystalline corrosion in cast austenitic

18Cr-10Ni stainless steels.

Several standard grades of casting steels contain niobium, although niobium additions

do not figure in many reported proprietary compositions. Additions of 1.0-1.1% niobium

are specified in AISI 318-C16, AISI 347-C17, ANC 3B and ANC 4C grades while 0.5%

niobium is included in the ANC 20 type.

Components made of cast stainless steel include pump casings and housings, turbine

blade rings and combustor cases, check valves, diffusers and wellhead assemblies. As

engine temperatures have risen in efforts to reduce harmful emissions, automakers have

increasingly used cast stainless steel exhaust manifolds to prevent thermal fatigue.

General Motors uses CN12 containing 13% nickel for the manifolds of its 2500/3500

truck series.

Inco has developed niobium-chromium stainless castings containing 6-30% nickel, 14-

26% chromium, under 2% manganese, under 8% molybdenum, 2-5% sulphur and up to

1% niobium. The steel is fully molten at temperatures as low as 1,288C and may be

used to produce castings of stainless steel articles for domestic, industrial and marine

uses.


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Kobe Steel has developed a niobium-bearing stainless steel suitable for casting ship

propellers and water turbine runners. This steel contains 0.01-0.1% niobium, has high

corrosion fatigue strength, high resistance to cavitation and good weldability.

8.2.2 Stainless steel production and markets

World production of stainless steel 8.2.2.1

Not all steelmakers produce stainless steel and, of those that do, not all make grades

containing niobium. Table 79 lists the companies that have been identified as

purchasers of ferroniobium. Some of them also produce HSLA steels containing

niobium (Thyssen, Acerinox, AK Steel, Sumitomo, Nippon Steel, TISCO and POSCO).

Table 79: Summary of major purchasers of ferroniobium for stainless steel production


Europe Thyssen

Acerinox

South Africa Columbus

North America AK Steel

ATI Allegheny Ludlum

North American Stainless1

South America Aperam

Japan Nisshin

Nippon Steel Stainless

Sumitomo

China TISCO

South Korea POSCO

India JSW Stainless Source: Roskill Note: 1-Part of Acerinox

From the start of the 2000s global production of stainless steel grew by an average of

5%py and reached a peak of an estimated 33.1Mt in 2012 (Table 80). The fairly gentle

overall trend does, however, disguise a major shift in the structure of the industry.

China’s production grew by an average of 27.5% over the period, while other parts of the

world saw little growth, or even declines. As a result, China’s share of global production

grew from 6% in 2002 to 41% in 2012 (Figure 18).


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Table 80: World: Production of crude stainless steel, 2002 to 2012

(Mt, liquid steel basis)

China Other Asia Europe Americas Other Total

2002 1.2 7.6 8.3 2.8 0.6 20.4

2003 2.0 8.5 8.7 2.9 0.6 22.7

2004 2.8 9.4 9.0 3.0 0.7 24.9

2005 3.4 9.2 8.6 2.8 0.6 24.5

2006 5.4 9.6 9.6 3.0 0.7 28.3

2007 7.6 9.0 8.4 2.7 0.7 28.3

2008 7.3 8.2 8.1 2.5 0.5 26.7

2009 9.8 7.9 6.1 2.1 0.5 26.4

2010 11.3 9.2 7.7 2.6 0.5 31.3

2011 12.6 8.8 7.9 2.5 0.4 32.2

2012e 13.6 8.8 7.9 2.5 0.4 33.1

CAGR (%) 27.5 1.5 -0.5 -1.1 -4.0 5.0 Sources: Roskill; WBMS; ISSF; SMR; Accenture Research; EUROFER; Heinz H. Pariser

Figure 18: World: Share of crude stainless steel production by region, 2002 to 2012

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

China Other Asia Europe Americas Other

Source: Table 80

The geographical distribution of stainless steel production by steel grade is uneven. The

200 series steels, which do not contain niobium, are produced mainly in India and China

and made up 15% of world production in 2012 (Table 81). The 300 series steels

account for the largest part of stainless steel production almost everywhere outside of

India. Few steels in this series contain niobium; grade 304, the most commonly used

stainless steel does not. Production of the 400 series steels is also widespread. This

series is the principal user of niobium in stainless steel. Not all 400 series steels contain


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niobium. The main application is in grade 409, which is the most commonly used

stainless steel after grade 304.

The distribution of production across the various steel grades has seen a significant

change since the early 2000s. At that time, the 300 series accounted for 70% or more of

total production, with the 200 series at about 6% and the 400 series at 23%. The 400

series’ share of the market has changed little over time but there has been a shift from

the 400 series to the 200 series. The reason for that is the price of nickel.

The 200 series was developed to provide a low-cost alternative to the 300 series. This

series can be used in many but not all, applications where the 300 series is normally

used. The difference is that, unlike the 300 series, the 200 series contain no nickel,

which is a major cost component. The annual average price of nickel in 2001 was

US$5,948/t. It grew rapidly in the following years, reaching US$37,216 in 2007. That

prompted a switch from the 300 series to the 200 series. The nickel price has since

dropped back to about US$16,500/t (April 2013) but the 200 series has kept its share of

the market, perhaps permanently.

Table 81: World: Production of stainless steel by region and series, 2012 (%)

Series

200 300 400 Duplex

India 57 28 15 -

China 23 52 24 -

Other Asia 2 60 39 -

Europe 1 74 23 2

Americas 4 59 36 -

Other 1 61 38 -

Total 15 57 27 1 Source: SMR

World consumption of stainless steel 8.2.2.2

World consumption of stainless steel grew by an average of 4.7%py between 2002 and

2010, to reach a peak of 24Mt (Table 82). That growth is similar to that seen for world

production and consumption thus probably increased further in 2011 and 2012.

The pattern of growth was geographically uneven, with Asia, and China in particular,

showing much faster growth than in other parts of the world (if China is excluded from

the calculation, the overall growth rate is about 3%py and the average for Asia is 5.7%).

As a result of the higher rates of growth, the Asian region consolidated its position as the

world’s largest consumer of stainless steel between 2002 and 2010 (Figure 19).


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Table 82: World: Consumption of stainless steel, 2002 to 2010 (Mt)

2002 2003 2004 2005 2006 2007 2008 2009 2010 CAGR (%)

Europe

Germany 1.3 1.4 1.6 1.4 1.7 1.7 1.7 1.2 1.6

Italy 1.0 1.1 1.1 1.0 1.6 1.3 1.2 0.7 1.1

Other 2.6 2.6 2.8 2.7 3.4 3.3 3.2 2.2 2.9

Sub-total 4.9 5.1 5.5 5.1 6.6 6.3 6.1 4.1 5.6 1.7

Asia

China 3.1 4.1 4.4 4.9 5.1 5.4 5.1 7.0 6.9 (10.6)

Japan 1.7 2.0 2.2 2.1 2.1 2.2 1.8 1.3 1.8

S. Korea 0.8 0.9 0.9 0.9 1.1 1.0 1.3 1.7 1.7

India 0.6 0.6 0.7 0.9 0.9 1.1 1.0 1.1 1.3

Other 1.3 1.7 1.8 1.7 1.8 1.8 1.9 1.6 2.0

Sub-total 7.5 9.3 10.0 10.6 10.9 11.4 11.0 12.6 13.7 7.9

Americas

USA 2.4 2.2 2.6 2.4 2.7 2.3 2.0 1.4 2.1

Other 0.8 0.7 0.9 0.9 0.9 1.0 1.2 0.9 1.1

Sub-total 3.2 3.0 3.5 3.3 3.6 3.3 3.2 2.3 3.2 0.3

Other 1.1 1.1 1.1 1.0 1.6 1.4 0.7 1.5 1.4 3.0

Total 16.7 18.4 20.2 19.9 22.6 22.3 21.0 20.5 24.0 4.7 Source: WBMS

Figure 19: World: Share of stainless steel consumption by region, 2002 and 2010 (%)

29

23

45

57

19

13

7 6

0

10

20

30

40

50

60

70

2002 2010

Europe Asia Americas Other

Source: Table 82


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Stainless steel is used in many different applications (Figure 20). The 400 series have

some uses in food and beverage processing, consumer appliances, the nuclear industry

and HVAC but by far the main market is in automobile exhausts.

Figure 20: World: Use of stainless steel by market segment, 2012

Architectural & construction

17%

Transportation12%

Other3%

Catering/appliances

37%

Process/resources19%

Chemical/petrochemical

12%

Source: SMR

8.3 Other steels

8.3.1 Interstitial-free steels

Interstitial-free (IF) steels with extra-low carbon content (<0.005%) and excellent

formability were introduced in the early 1980s. They are called interstitial-free because

the interstitial elements nitrogen and carbon are fixed by titanium and/or niobium. They

are produced on continuous-annealing lines.

IF steels, containing around 0.02% niobium and titanium, are characterised by excellent

deep-drawability and high resistance to ageing. The use of these steels has made

possible the production of large integrated sheet panels and complex parts, contributing

to a reduction in the number of welds, a reduction in the number of parts being formed

and reduction in weight. IF steels find most use in the automobile industry.

In IF steels, carbon and nitrogen form precipitates with the titanium and niobium rather

than being dissolved interstitially in ferrite. The microstructure consists of a highly


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ductile matrix of ferrite with embedded precipitates of TiC, TiS, Ti4C2S2, TiN, NbC and

NbN. Table 83 shows a typical IF steel composition.

Table 83: Composition of Nippon Steel interstitial-free steel

%

C 0.002

Si 0.005

Mn 0.005

P 0.002

S 0.0004

Al 0.04

Ti 0.011-0.042

Nb 0.005-0.042

N 0.0015 Source: International Forum on Interstitial-free Steel

IF steels possess excellent stretch formability and deep drawability while retaining a high

degree of strength, and also contain very low levels of carbon and nitrogen, which

increases formability. The addition of niobium in the stabilisation process prevents the

‘powdering’ (poor coating quality and variability of zinc coating adherence) effect often

created by stabilisation with titanium alone. The addition of niobium also provides a finer

grain size prior to the cold-rolling and annealing process, which helps to create greater

uniformity of mechanical properties. Some producers use niobium alone in IF steel

stabilisation to further improve the surface quality and zinc coating adherence, but a Nb-

Ti mix is preferred for cost reasons.

A disadvantage of IF steel has been cold-working-embrittlement (CWE). The lack of

solute carbon is responsible for the segregation of phosphorus onto the ferrite grain

boundaries. This results in a decrease in the bonding strength of the grain boundaries.

A high-speed impact deformation at low temperatures can yield intergranular brittle

fracture. Alloying with boron appears to enhance the CWE-resistance.

8.3.2 Tool steels

Tool steels are a small-volume part of the overall steel market and world production in

2012 was less than 2Mt.

Tool steels are steels that have adequate hardness, or are capable of being hardened

sufficiently, to be useful as tools. There are many different types of tool steels, with

varying degrees of hardness, toughness and resistance to high temperatures. They

may be classified into four main groups: carbon (water-hardening) tool steels; cold-work

tool steels; hot-work tool steels; and high-speed steels,

Niobium is not widely used in tool steels. This is due to the fact that niobium strengthens

steels by the formation of niobium carbide, a mechanism that is of minor importance in

tool steels, where the process of quench-hardening is usually applied. Another factor is


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that most common grades of tool steels were established prior to the 1960s, before

affordable niobium in the form of the low-cost pyrochlore reserves of Brazil and Canada

became widely available.

Up to 5% niobium can be added to hot-work manganese tool steels as a carbide-former,

and there is interest in substituting niobium for vanadium in high-speed tool steels.

Experimental steels have been produced to evaluate the use of niobium as a

replacement for vanadium in hot-work tool steels. Niobium can replace up to half of the

vanadium used in Type H11 hot-work steel, which normally contains about 0.4%

vanadium. In Type H13 hot-work die steel, the substitution of 0.08% Nb for 0.50% V

produces steel with better overall properties owing to more effective grain control.

Manufacturers who have adopted this modification include Böhler-Uddeholm, Carpenter

Technology and Aços Villares.

Aços Villares of Brazil has developed warm-forging steel containing 0.45% Nb. This

steel has an impact resistance four to five times higher than M2 high-speed steel, with

an equivalent tempering hardness of 57-62 HRC. The company has also introduced

VK-10N as a replacement for T42. In this steel, developed in the 1980s, the 3% V

addition is substituted with 2.2% Nb+0.5% V.

In the USA, Carpenter Technology has produced a series of alloy tool steels containing

1.1-2.99% niobium to increase resistance to abrasive wear. They contain 65% Fe, a

maximum of 19%Cr, 15%Co, 20%W, 10.5%Mo, 6% V, 4%Cu and 2.5% each of

manganese and silicon. Carpenter’s Thermowear steel was developed to replace H19

tool steels in extruded automobile valves. The steel contains 1.5% Nb, and reportedly

exhibits 100% better life than other tool steels.

Some niobium-bearing high-speed steels have been developed to avoid the need for

cobalt additions. Böhler-Uddeholm S620(28) contains 0.07% Nb and is used to

machine nickel-base superalloys and titanium alloys. The steel shows better

performance than M42 and T42, which contain 9-10% Co, thus offering a considerable

cost advantage.

Some tool steel compositions are used to manufacture other items such as rolling-mill

rolls and hard-facing electrodes.

8.3.3 Rail steels

Rail steels have traditionally been made from carbon steels containing 0.4% to 0.8%

carbon and 0.8% to 1.0% manganese. These steels continue to be used for normal

service conditions but may not be adequate on stretches of track that have high traffic-

densities, on sharp curves or for lines subject to high axle-loadings.

Alloy rail steels are thus used where high wear and deformation resistance are required.

Chromium/molybdenum rail steels offer the best combination of yield strength and


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hardness, having up to 60 times longer life than carbon steels. Their weldability is good,

and cycle times are similar to those of carbon steels.

Niobium is used in only a few of these rail steels and, as an addition to chromium-

bearing rail steels, faces competition from molybdenum and vanadium. Nippon Steel is

an important producer of niobium alloy rail steels.

Table 84: Composition of niobium-containing rail steels

Composition (%) Cr-Si-Nb Si-Nb

C 0.7 0.74

Mn 1.1 1.3

Si 0.55 0.8

Cr 0.8 -

Nb 0.06 0.3

Properties

0.2% proof stress (ksi) 102.3 93.5

Ultimate tensile stress (ksi) 150.8 155.2

Elongation (%) 10 10

Brinell hardness (N) 340 320 Source: Vanadium: A Mineral Commodity Review, South African Dept. of Mineral & Energy Affairs

8.3.4 Cast iron

The addition of niobium to cast iron is a relatively new technology. Niobium forms very

hard carbides that confer excellent wear resistance. Niobium also modifies the graphite

cell size. The most significant applications are in automotive cylinder heads, piston rings

and truck brakes.



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9. Use of niobium in non-ferrous alloys

Niobium has good resistance to high temperatures and corrosion and is added to a

variety of non-ferrous alloys, mainly in order to increase their strength at high

temperatures. The niobium additions are typically much higher than in most steels, at

1.0% or more.

The main market for niobium-containing alloys is as an addition to a group of high-

performance alloys commonly referred to as superalloys. These find use in high-

temperature parts in aerospace, particularly civil aircraft, in land-based gas turbines for

electricity generation, and in chemical processing, automobiles and the oil industry.

They represent the largest use of niobium outside the steel industry. Other high-

performance alloys include those developed for corrosion- and wear-resistance.

Niobium is supplied to this market in the form of vacuum-grade ferroniobium and nickel-

niobium. The T.I.C. reported shipments in 2012 to amount to 3.7% of total niobium

shipments, or 33% of niobium destined for the non-steel market.

Other non-ferrous alloys that can contain niobium include some titanium, titanium-

aluminium and tantalum alloys used in the aerospace industry, zirconium alloys used in

the nuclear industry, specialised copper alloys and nickel-titanium shape memory alloys.

9.1 High-performance alloys

Niobium finds use in a variety of nickel-, cobalt- and iron-based superalloys, corrosion-

resisting alloys and wear-resisting alloys that are collectively known as high-performance

alloys. These alloys are the largest market for niobium, after ferrous metallurgy.

There are numerous producers of high-performance alloys but most are small-scale and

the industry is dominated by a handful of companies, namely: ATI Allegheny, ATI Allvac,

Carpenter Technology, Special Metals and Haynes International, all based in the USA;

and ThyssenKrupp VDM, of Germany.

Superalloys are designed for use at high temperatures (above 650ºC) where tensile,

thermal, shock, and vibratory stresses are encountered. Superalloys also possess high

surface-stability and resistance to oxidation. Many superalloys are based on Group VIIIa

elements, such as iron, nickel, and cobalt, but contain a variety of other elements in

minor amounts, including niobium (Table 85). Niobium is used mainly in the Inconel

family of nickel-based alloys and most particularly in Types 718 (5.3-5.5% Nb), 706 (3%

Nb) and 625 (3.5% Nb). These form the largest part of the superalloys market, in

tonnage terms.

Corrosion-resisting alloys (CRAs) contain large percentages of molybdenum and

chromium for aqueous corrosion resistance, and are used in industrial plants. Wear-

resisting alloys contain tungsten, chromium, molybdenum and more than 1.0% carbon to

form carbide particles in the matrix that give good abrasion resistance in the absence of

lubrication.


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There is a considerable degree of overlap in the properties and uses of many of these

alloys and the term superalloys is often used to describe high-performance alloys in

general.

Superalloys and CRAs typically have high strength and high resistance to corrosion, and

maintain these properties at elevated temperatures. Superalloys are usually associated

with the aerospace industry, where alloys resistant to stresses and to oxidation at high

temperatures are required for gas turbines and rocket engines. Static industrial turbines

and corrosion-resisting applications are an increasingly important market for niobium-

containing alloys, however.

Table 85: Composition of niobium-containing superalloys

Commercial Composition (%)

designation Co Cr Mo Ni Al Nb Ti Fe Others

14-4PH 14.1 2.38 4.25 0.25 bal. Cu 3.25

17-4PH 16.0 4.25 0.27 bal. Cu 3.3

17-14CuMo 15.9 2.5 14.1 0.45 0.25 bal. Cu 3.0

19-9DL 18.5 1.4 9.0 0.4 0.25 bal. Mn 1.15, W 1.4

Alloy 713C 12.5 4.5 bal. 6.0 2.0 0.6 1.0 Zr 0.1

Alloy 713LC 12.0 4.5 bal. 5.9 2.0 0.6 0.3 Zr 0.1

AR-13 58.0 21.0 1.0 Nb/Ta 2.0 2.5 W 11.0

AR-213 66.0 19.0 Nb/Ta 6.5 W 4.7

AR-215 64.0 19.0 Nb/Ta 7.5 W 4.5

ARMCO 20-45-5 22.0 3.0 49.0 0.4 bal. Mn 7.0

Carpenter 20Cb3 21.0 3.0 38.0 1.0 bal. Mn 2.0, Cu 4.0

CG 27 14.0 6.0 39.5 1.75 1.1 2.7 bal.

CM-7 48.0 20.0 15.0 Nb/Ta 1.3 W 15.0

CRM-6D 20.0 1.0 5.0 1.0 bal. W 1.0

CRM-15D 20.0 2.0 5.0 2.0 bal. W 2.0

Custom 450 16.0 1.0 7.0 0.4 bal. Cu 1.75

Custom 455 12.0 8.5 0.4 1.2 bal. Cu 2.0

EME 19.0 12 1.3 bal. W 3.25

G-32 46.0 19.0 12.5 2.0 Nb/Ta 1.3 16.0

H-46 12.0 0.65 0.45 0.4 bal. V 0.3

H53 6.7 10.5 0.8 0.25 0.5 bal. V 0.55, W 0.8

Hastelloy F 1.25 22.0 6.5 bal. 2.1 21.0 Mn 1.5, W 0.5

Hastelloy G 2.5 23.5 7.5 bal. 2.5 21.0 Mn 2.0, W 1.0,

Cu 2.25

Haynes 152 65.0 21.0 0.8 Nb/Ta 1.75 W 10.0

Haynes 556 20.0 22.0 3.0 20.0 0.3 1.0 bal. Mn 1.5, W 2.5

Haynes 713 0.5 13.0 4.5 70.0 6.0 2.3 0.75 2.0

IN-102 16.0 3.25 bal. 0.6 3.25 0.7 9.0 W 3.25

IN-713 14.0 5.2 bal. 6.5 2.8 1.0 2.5

IN-738 8.5 16.0 1.8 61.0 3.4 0.9 3.4 Ta 1.75, Zr 0.4,

W 2.6

Incoloy 825CP 21.5 3.0 42.0 0.9 30.0 Cu 2.2

Incoloy 903 15.0 38.0 0.7 3.0 1.4 41.0

Inconel 604 15.8 bal. 2.0 7.2 Cu 0.1

Inconel 610 15.5 bal. 1.0 9.0 Cu 0.5

Inconel 625 21.5 9.0 61.0 0.4 3.7 0.4 2.5

Inconel 706 16.0 42.0 2.9 1.8 40.0

Inconel 718 19.0 3.0 52.5 0.9 5.1 0.9 19.0 Cu 0.1

Inconel FM62 17.0 70.0 3.0 10.0 Cu 0.5

Inconel WE132 17.0 68.0 4.0 11.0 Mn 1.5, Cu 0.5

Inconel 750 15.5 73.0 0.7 1.0 2.5 7.0

Inconel 751 15.5 72.0 1.2 1.0 2.3 7.0

Table continued....


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....Table continues

Commercial Composition (%)

designation Co Cr Mo Ni Al Nb Ti Fe Others

Inconel X-750 15.5 73.0 0.7 1.0 2.5 7.0 Cu 0.5

JS 700 23.0 5.0 26.0 0.5 bal. Mn 2.0, Cu 0.5

M-203 36.5 19.5 24.5 Nb/Ta 1.2 2.15 1.6 W 12.0

MAR-M200 10.0 9.0 bal. 5.0 1.0 2.0 W 12.5

MAR-M302 58.0 21.5 Nb/Ta 9.0 W 10.0

MAR-M322 61.0 21.5 Nb/Ta 4.5 0.75 W 9.0

MAR-M918 52.0 20.0 20.0 Nb/Ta 7.5

N-155 20.0 21.0 3.0 20.0 Nb/Ta 1.0 30.0 W 2.5, Mn 1.5

Nimocast 739 19.0 22.4 48.0 1.9 1.0 3.7 Ta 1.4, W 2.0

Nimonic 101 19.7 24.2 1.5 bal. 1.4 1.0 3.0

Nitronic 50 23.5 3.0 13.5 0.3 Mn 6.0, V 0.3

Rene 62 15.0 9.0 44.0 1.25 2.3 2.5 22.5

Rene 80 9.5 14.0 4.0 61.0 4.0 3.0 W 4.0

Rene 95 8.0 14.0 3.5 64.5 Nb/Ta 3.5 2.5 W 3.5

S-590 20.0 21.0 4.0 20.0 4.0 bal. Mn 1.25, W 4.0

S-816 bal. 20.0 4.0 20.0 4.0 3.4 Mn 1.5, W 4.0

SM-200 10.0 9.5 56.0 5.0 1.0 2.0 3.0 W 12.5

Stellite 6 bal. 26.0 6.0 W 5.0

Stellite 250 bal. 28.0 2.0 20.0

Stellite 251 bal. 28.0 2.0 18.0

Stellite 306 bal. 25.0 6.0 W 2.0

TAZ 8A 6.0 4.0 68.0 6.0 2.5 Ta 8.0, W 4.0

Thermax 115 12.5 1.0 1.5 Nb/Ta 0.6 V 0.5

Thermax 519 25.0 25.0 Nb/Ta 1.8

Thermax 532 22.0 0.5 33.0 Nb/Ta 0.6

Thermax 533 26.0 37.0 Nb/Ta 1.5 Mn 1.5, Si 2.0

Thermax 638 16.0 27.0 36.0 Nb/Ta 1.3 W 4.0-5.5

Thermax 657 52.0 bal. Nb/Ta 1.7

TRW V1A 7.5 6.0 2.0 70.5 5.4 0.5 1.0 Zr 0.13, Hf 0.43,

Re 0.5, W 5.8

Udimet 630 17.0 3.1 51.0 0.6 6.0 1.1 17.5 W 3.0

UMCo-51 50.0 28.0 2.1 18.0

Unitemp 19-9WX 20.5 0.5 8.5 0.1 1.3 0.2 bal. W 1.6

Unitemp 212 16.0 25.0 0.2 0.5 4.0 bal.

Unitemp 706 16.0 41.5 0.2 2.8 1.8 bal.

Unitemp 718 18.0 3.0 58.0 0.5 5.0 1.0 bal.

V-36 bal. 25.0 4.0 20.0 2.0 2.4 W 2.0

WI-52 bal. 21.0 0.5 2.0 2.0 W 11.0

Source: Stahlschüssel, Verlag Stahlschüssel Wegst GmbH. & Co Notes: 1-Most alloys contain 0.1-1.0% Mn and Si

2-The data shown above is for the purposes of illustration only. Some alloys have been withdrawn from use and the composition of others is subject to change.

Niobium is usually added to high-performance alloys in the form of high-grade (vacuum-

grade) ferroniobium, nickel-niobium or niobium metal, depending on the application and

the levels of impurities that can be tolerated. Ferroniobium is largely used for iron-

containing alloys such as IN-718. Nickel-niobium is used in non-rotating turbine parts,

such as vanes and casings. Electron-beam (EB) niobium metal is used in critical

rotating parts, such as turbine blades, wheels and discs, although there is some concern

over the purity of that material when it is derived from scrap. The typical specifications

of niobium materials for superalloy applications are summarised in Table 86.


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Table 86: Specifications for niobium materials used in superalloy manufacture (ppm)

Impurity EB Nb NiNb HP FeNb

N 25 50 60

O 50 500 500

S 25 20 40

Si 35 800 800 Source: T.I.C. Symposium, 2001

9.1.1 Types of high performance alloys

Nickel-based alloys 9.1.1.1

Nickel-based alloys, when aged, are resistant to corrosion at high temperatures by virtue

of the precipitation of a gamma prime phase, Ni3(Al,Ti) and solid-solution strengthening

provided by the addition of niobium, molybdenum, tungsten or tantalum. They have an

austenitic microstructure and contain up to 80% nickel. Many different compositions

have been noted, but most well-known are members of the Inconel, Nimonic or Hastelloy

series.

The wrought Nimonic 75 and 80 alloys were among the first high-performance alloys

developed and date back to the 1930s. These alloys are based upon an 80% nickel,

20% chromium composition and use additions of aluminium and titanium to achieve age

hardening. Subsequently, the addition of tungsten and molybdenum to wrought alloys

was found to improve creep strength by both solid solution and precipitation

strengthening, while additions of cobalt improved the high-temperature capability.

Additions of niobium, as in Inconel X750, were found to improve strength by precipitation

of a gamma prime Ni3Nb phase.

The development of vacuum investment casting techniques in the 1950s allowed the

production of precision cast components with greater strengths than forged components.

Casting alloys developed in the 1960s included IN-100, B-1900, MAR-M200 and Inconel

713; part of the chromium content in these alloys was replaced with molybdenum,

tungsten and/or niobium to produce very high (up to 60%) contents of gamma prime

phases. Inconel 713 (IN-713) contains 2% niobium and is still widely used in turbine

blades, although generally only in the rear stages of turbines, where temperatures are

relatively low. MAR-M200 contains 1% niobium and was adopted for turbine blades by

Pratt & Whitney in the 1970s.

Inconel 718 is the most important nickel-based alloy, and is used extensively in

commercial and military jet engine manufacture. It makes up an estimated 35% of the

total weight of a typical jet engine, with other nickel-based superalloys adding another

13%. Inconel 718 is a nickel-chromium-iron alloy with additions of 4.8-5.2% niobium and

2.8-3.3% molybdenum, which is precipitation-hardenable through additions of titanium

http://www.us.cbmm.com.br/english/sources/uses/inconel2.htm



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and aluminium. The alloy has excellent corrosion resistance and mechanical properties,

both at elevated and low temperatures.

The alloy was originally developed for use as a disc material for aircraft gas turbines,

although its use has been widened to include other engine parts such as bolts, fasteners

and rotor shafts, as well as for non-aerospace applications such as pump shafts and

other highly stressed parts in the nuclear, cryogenics, petrochemicals, offshore and

marine engineering industries. Inconel 718, along with Inconel 706, is increasingly used

in the land-based gas turbines sector.

The automobile industry is a relatively small consumer of superalloys but Inconel 625

finds growing use in exhaust systems.

A factor that could limit the use of niobium in future, particularly in aircraft engines, is the

drive for higher performance, which means higher-temperature operation. Inconel 718 is

already being used at temperatures equivalent to 85% of its melting point. It could,

therefore, face competition from other superalloys, for example cobalt-based alloys, and,

over the longer term, from intermetallics and ceramic composites.

Further developments in superalloy processing technology brought directional

solidification, where crystals were grown in one direction along the axis of the turbine

blade, and, in the 1970s, the introduction of single-crystal blades with no grain

boundaries. Single-crystal castings now dominate the turbine blade market. Some

single-crystal nickel-based alloys contain niobium, such as CMSX10 (0.1% Nb) but it is

not present in the most commonly used alloy, CMSX4.

Krupp VDM Nicrofer 3620Nb-alloy 20 is a niobium stabilised nickel-iron-chromium alloy

which has good resistance to dilute sulphuric acid and other reducing acid conditions,

and finds use in heat exchangers and piping systems in sulphuric and phosphoric acid

plants.

United Technologies has developed a -strengthened nickel-based single-crystal

superalloy for use in gas turbine blades. The alloy has improved resistance to hydrogen

embrittlement and is particularly suitable for rocket engine components and other high-

pressure hydrogen environments. It has the following composition:

%

Cr 11-13

C 0.06%

Fe 17-19

Mo 2.8-3.3

Nb+Ta 5.75-6.25

Ti 1.75-2.25

Al 0.4-0.8

Ni Balance


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Cobalt-based alloys 9.1.1.2

Cobalt-based high-performance alloys for wrought work have an austenitic matrix and

contain around 35% cobalt, 20% nickel, 20% chromium, 15% iron, and between 0.7%

and 6% molybdenum, tungsten and niobium. Their creep-rupture strength is good and

they are resistant to oxidation at 650-980C. Most alloys exhibit good weldability.

Cobalt-based casting alloys contain up to 65% cobalt, 25% chromium and 10% nickel.

They do not generally have an austenitic microstructure.

Cobalt-based alloys usually contain higher levels of chromium than nickel-based alloys,

and so have better hot corrosion resistance. In gas turbine applications this allows the

use of lower-grade fuels than can be used with nickel-based alloys. The rupture

strength of these alloys is lower, however, and they tend to be used for static

components such as turbine vanes, which operate at temperatures between 870C and

1,040C. Widely used cast alloys are WI-52 and AiResist 13, which contain 2% niobium.

S-816 (4% Nb) and L-605 are among the wrought alloys that have found widespread

application.

Iron-based alloys 9.1.1.3

Iron-based high-performance alloys are analogous with highly alloyed stainless steels.

These alloys contain about 15% chromium and up to 25% nickel to provide corrosion

resistance and stabilise the austenitic structure. They can only be used up to about

730ºC owing to a tendency towards phase instability at higher temperatures. The higher

nickel content improves high-temperature stability. Most iron-based alloys also contain

between 1% and 6.5% molybdenum.

Allvac Vasco® 15-5 (0.3% Nb) is a precipitation hardening stainless steel that finds use

in aircraft and missile fittings, fasteners, gears, as well as blades and shafts for turbines

and pumps. Allvac Nickelvac® H-46 speciality steel (0.35% Nb) is used for structural

components for land-based gas turbines, as well as for rings and structural components

in jet engines.

9.1.2 Markets for high-performance alloys

Statistical information on the production and consumption of superalloys is limited. The

market for high-performance alloys, including superalloys, is estimated to be some 0.14-

0.15Mtpy. The USA has traditionally been the principal player in this market but its

dominance of both production and consumption has declined over time, in line with the

growth of the aerospace industry in Europe. It nevertheless retains by far the largest

share of the overall market (Figure 21).

The aerospace industry, particularly the commercial aerospace industry, is and will

probably remain the main market for superalloys, accounting for about 75% of total

consumption (Figure 22). Over the last decade or so, however, the land-based gas


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turbine segment has emerged as a significant consumer of superalloys, accounting for

an estimated 17% of total consumption.

Figure 21: World: Estimated division of the high-performance alloys market by region,

2012 (%)

USA54%

Asia15%

Europe25%

Other6%

Source: Roskill


application, 2012 (%)

Aerospace75%

Land-based turbines

17%

Automotive5%

Oil & Gas2%Tools

1%

Source: Roskill


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Aerospace applications 9.1.2.1

Superalloys have a range of uses in the aerospace industry, particularly in engines. The

main applications are in turbine blades and vanes, where exceptional high- temperature

strength is required. They are also used in combustor cans, which are the hottest part of

the engine, and in turbine discs, which need to be made from ductile materials with high

resistance to tensile and fatigue stress.

Outside the engine, superalloys are used in aircraft fastener applications, where stress

corrosion cracking is a concern. Airframe components, such as thrust reversers and

ducting systems, and critical skins and airframe parts on supersonic aircraft are other

end-uses. In rocket engines, nickel-based superalloys provide high strength under

severe environmental conditions.

Superalloys make up a small but significant and high-value part of the overall market for

aerospace. In 2012, it is estimated that consumption of superalloys in aerospace was

around 9% of total material use, or approximately 54,000t (Figure 23).

Figure 23: World: Estimated aerospace raw material demand1, 2012

Sources: Roskill; ICF SHE&E Note: 1-Buy weight material demand.

Although in volume terms the consumption of superalloys in aerospace is small, in value

terms they account for a much larger portion of total raw material demand, perhaps 20%.

Aluminium alloys 49%

Steel alloys 22%

Titanium alloys 10%

Superalloys 9%

Composites 6%

Other 4%

Total = 0.6Mt


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Demand for aerospace engines comes from three markets:

Commercial aerospace, comprising passenger and freight aircraft and smaller

business and leisure aircraft, which account for over two-thirds of engine sales

and the bulk of consumption of superalloys

Military aerospace, including missiles, small combat and bomber aircraft, and

large transport planes, which account for around a quarter of aerospace engine

demand

Space flight, including commercial satellites and space exploration, accounting for around 5%.

Civil and military engines are manufactured by a number of companies, but the market is

dominated by Pratt & Whitney, General Electric, CFM and Rolls-Royce.

Table 87: World: Leading manufacturers of aircraft engines

Company Country

General Electric USA

Ishikawajima-Harima Heavy Industries Japan

Kawasaki Heavy Industries Japan

Mitsubishi Heavy Industries Japan

Motoren & Turbinen Union Germany

Pratt & Whitney USA

Rolls-Royce UK

Snecma France

Teledyne Continental Motors USA

Turbomeca France

Volvo Aero Sweden Source: Trade press

The aerospace industry is divided between civil aviation, business aviation, military and

rotary wing aircraft. Civil aviation is by far the largest market segment, and represented

almost three-quarters of the total market in 2012 (Figure 24).


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Figure 24: Estimated aerospace raw material demand by air transport sector, 2012

Air transport73%

Rotary wing13%

Business & general aviation

10%

Military fixed wing4%

Sources: Roskill; ICF SHE&E

Figure 25 below shows the trend of both jet airplane and engine deliveries from 1996 to

2012. Overall, the trends have followed changes in general economic conditions.

Between 1996 and 2001, deliveries of both engines and airplanes rose quickly, before

being affected by economic recession. This pattern was repeated from 2003 to 2011,

with a drop-off in deliveries owing to the global recession of 2008/09. The cyclical

nature of the airline industry has been evident for many years, with an expectation that

the period 2020-2025 will be the next low-point in the market.


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Figure 25: World: Jet airplane and engine deliveries, 1996 to 2012 (units)

0

200

400

600

800

1,000

1,200

1,400

0

500

1,000

1,500

2,000

2,500

3,000

Engine deliveries Jet airplane deliveries (RHS)

Source: Airline Monitor

Non-aerospace applications 9.1.2.2

Non-aerospace applications for high-performance alloys make up about a quarter of

total superalloys consumption, and include:

land-based gas turbines for peak power generation at utilities or large industrial

users of power

fossil fuels and nuclear generating plant

the oil and gas industry

paper production and food processing

heat exchangers, recuperators and other high-temperature equipment

petrochemical and chemical plant handling corrosive materials.

Land-based turbines make up the largest non-aerospace end-use for superalloys. The

industry developed through technology transferred from the aerospace sector and grew

rapidly during the 1990s, following deregulation of electricity markets in many parts of

the world, which meant that smaller sources of power generation became able to

compete with the large established suppliers.

In all cases, land-based turbines are not in continuous use and must, therefore, be

capable of sustaining performance with repeated heating to temperatures above 1,200°C, followed by rapid cooling. The ability of certain superalloys to withstand large

and frequent fluctuations in temperature had already been proven in the aerospace

industry and they were quickly adopted by the power generation sector, where they are

now included in all new turbines.


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From the 1980s to 2001, world gas turbine deliveries had generally increased year-on-

year, growing from some 300-400 in the early 1980s to around 1,500 in 2001. The

recession in early 2000 saw demand fall sharply, as global orders declined. For the

period 2004 to 2008, demand for gas turbines rose quickly, by an annual average rate of

almost 11%. The global financial crisis-led recession saw orders fall by over 50% from

2008 to 2009, although a small recovery did take place in 2010. There was a small drop

between 2010 and 2011 to 677 orders.

Figure 26: World: Gas turbine power generation orders, 1980 to 2011¹ (units)

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011

Source: Diesel & Gas Turbine Worldwide, 2012 Note: 1-Data to 2008 was based on a May to May calendar. Data for 2009 to 2011 is based on January to

December calendar year.

9.2 Titanium alloys

Titanium and titanium-based alloys have the most favourable strength-to-weight ratios of

common engineering materials and are used principally in aircraft engines, airframes

and in gas turbine construction. Other applications are in chemical plant, where the high

corrosion resistance of titanium, rather than its strength, is required. Titanium is

normally alloyed with aluminium or vanadium. The most widely used titanium alloy, Ti-

6AI-4V, has excellent high-temperature strength. It accounts for over half US

consumption of titanium-based alloys and perhaps 90% of the world market. That alloy

does not contain niobium.


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Titanium alloys containing niobium are shown in Table 88.

Table 88: Niobium-containing titanium alloys

Component Alloy designation

(wt%) 21S 367 829 834

Al 2.5 - 3.5 5.5 - 6.5 5.2 - 5.7 5.5 - 6.1

C 0.05 0.08 0.08 0.04 - 0.08

Fe 0.4 0.25 0.05

H 0.015 0.009 0.006 0.006

Mo 14 – 16 0.2 - 0.35 0.25 - 0.75

N 0.05 0.05 0.03 0.03

Nb 2.4 - 3.2 6.5 - 7.5 0.7 - 1.3 0.5 - 1

O 0.11 - 0.17 0.2 0.09 - 0.15 0.075 - 0.15

Si 0.15 - 0.25 0.2 - 0.5 0.2 - 0.6

Ti 76 - 80.8 84.5 - 88 84.2 - 88.1 81 - 87.4

Ta 0.5

Zr 2.5 - 3.5 0.3-0.5

Sn 3-4 3-5

Others, total 0.4 0.4 0.2 0.2 Source: www.matweb.com

Type 367 is a titanium-aluminium-niobium alloy that has good biocompatibility

characteristics. This property has led to its use in the manufacture of surgical implants.

It was developed specifically for the manufacture of femoral components for hip

prostheses. It has a guaranteed tensile strength of 900MPa, but in practice the strength

is usually nearer 1,000MPa. Its metallurgy is closely analogous to that of Ti-6AI-4V but

biocompatibility is improved with the replacement of vanadium by niobium.

Type 21S, a beta-class alloy, was introduced in 1989 by Timet. The alloy is similar to

Ti-15-3, but has much better oxidation and corrosion resistance. Its formability is better

than Ti-15-3 and it can be aged to a wide range of strengths to a maximum of

1,300MPa. Aerospace applications include engine exhaust plug and nozzle assemblies.

The alloy's resistance to aircraft hydraulic fluids, such as Skydrol, is excellent at all

temperatures. It is used for metal matrix composites as it can be economically rolled to

foil, is compatible with most fibres, and is sufficiently stable up to 816°C.

Type 829 combines creep resistance up to 540°C with good oxidation resistance. It is

non-magnetic, weldable and has good forgability.

Type 834 is a near alpha titanium alloy with increased tensile strength and creep

resistance up to 600°C, combined with improved fatigue strength when compared with

established creep-resistant alloys such as Ti 6-2-4-2, Ti 829 and Ti 685. Like those

alloys, it is non-magnetic, weldable and has good forgability. Major uses for 834 include

rings, compressor discs and blades for aircraft engines.

Niobium is also important in the development of titanium aluminides, which have good

high-temperature properties but poor ductility at low temperatures. The addition of

niobium can improve these properties.


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A number of other niobium-rich titanium alloys are available in the USA. These include

Ti-21Nb-14Al and Ti-20Nb-14A1-3.5V-2Mo that are available in ingots and as sheets.

9.3 Zirconium alloys

Niobium is contained in several zirconium-based alloys, in concentrations of up to 1%.

Given that the consumption of zirconium metal is estimated at about 7,000tpy,

consumption of niobium in this application is probably only around 50tpy.

In the nuclear industry, zirconium metal is extensively used in the form of Zircaloy-2,

Zircaloy-4 or Zircaloy-2.5Nb. These are reactor-grade alloys containing varying levels of

tin, iron, chromium, niobium and nickel, and are mainly used for fuel rod cladding in

water-cooled nuclear reactors. Zirconium alloys are also used for reactor cladding in

heavy-water moderated and cooled reactors, and as pressure tubes in Candu type

reactors, a variation of the heavy-water reactor developed in Canada.

A number of binary and tertiary zirconium and niobium alloys have been developed to

replace the traditional Zircaloy compositions in both light- and heavy-water reactors.

Typical alloys are designated ZrNb-2 and ZrNb-3, containing additions of 0.3% and 1.0%

niobium respectively. Westinghouse Electric’s ZIRLOTM

alloy contains lower levels of tin

than the Zircaloys, and contains 1% niobium. The alloy is reported to have higher

strength and corrosion resistance than Zircaloys and can, therefore, remain in the pile of

pressurised water reactors longer without deleterious growth and creep, as suffered by

other alloys in this extreme environment.

Table 89 shows the producers and fabricators of zirconium and Zircaloys for the nuclear

industry.

Table 89: Producers and fabricators of zirconium/Zircaloy for nuclear applications

Country Company

Canada GE Canada

GEC Alsthom International Canada

IDEA Research

Nu-Tech Precision Metals

Zircatec Precision Industries

China China Rare Metal and Rare Earth Group

Jinzhou Ferroalloy Group

Northwest China Zirconium Tube

France BSL Industries

TIMET Savoie

Zircotube

Table continued….


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….Table continues

Country Company

India Nuclear Fuel Complex

Italy Franco Corradi

Russia Eco-Bio

Techsnabexport

Sweden Sandvik Steel

UK British Nuclear Fuels

Goodfellow Cambridge

New Metals & Chemicals

USA Atomergic Chemetals1

Carpenter Technology

Foster Miller

Leico Industries

Nu-Tech Precision Metals

Reactor Experiments2

Sandvik Special Metals

Wah Chang

Western Zirconium Sources: World Nuclear Industry Handbook; Nuclear Engineering International; Company data Notes: 1-Unknown if still in operation. 2-Acquired by Thermo Reax (now Thermo), unknown whether still producing zirconium.

9.4 Other alloys

Several tantalum-based refractory alloys contain niobium additions. Tantaloy 63, which

contains 2.5% tungsten and 0.1% niobium, is used in tubing and lining in chemical

process equipment handling sulphuric, hydrochloric and other acids. In addition to high

corrosion resistance, the alloy exhibits high electrical conductivity and good ductility.

Cabot’s (now GAM Technology) tantalum alloy KBI-40® contains 60% tantalum and 40%

niobium, and KBI-41®, contains 58% tantalum, 37.5% niobium, 2.5% tungsten and 2%

molybdenum. The addition of niobium makes KBI-40® cheaper, stronger and 25% less

dense than pure tantalum, while the additions of tungsten and molybdenum in KBI-41®

increase high-temperature strength. These alloys permit material and cost savings in

applications such as tubing for heat exchangers, where their greater strength allows

reductions in the thickness of the tube wall or higher operating pressures in tubes of the

same wall thickness.

Researchers at Iowa State University have previously investigated the production of a

copper-niobium alloy using high-pressure gas atomisation and hot isostatic pressing

(HIP) techniques. Material fabricated from a 10-38 particle size fraction exhibited

ultimate tensile strength of 1,000MPa, compared with only 621MPa for as-drawn,


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alumina-strengthened commercial material (Glidcop alloys). Both strength and electrical

characteristics were similar to highly worked cast and wrought alloys of the same basic

composition.

Shape memory alloys are materials that can be transformed from an unstable state

(the martensite phase) to their original stable condition (the austenite phase) by the

application of a small amount of heat; articles made from such alloys effectively

'remember' their original shape.

Commercial shape memory materials are usually nickel-titanium alloys. Additions of

between 5% and 20% niobium to these alloys improve their machinability and widen the

temperature range over which they retain an austenitic structure. Additions of up to 30%

niobium produce an alloy that is austenitic even at room temperature.

Applications for shape memory alloys include pipe couplings, electrical connectors and

switches. As new compositions, including niobium-bearing grades, are developed, they

are finding new applications in a variety of fields.

The California Institute of Technology has developed quinary metallic glass alloys

containing 45-65% zirconium and/or hafnium, 5-15% aluminium and/or zinc, and 4-7.5%

niobium and/or titanium, plus minor amounts of other elements. The alloy composition is

(Zr,Hf)a(Al,Zn)b(Ti,Nb)c(CuxFey(Ni,Co)z)d.

Carpenter Technology, of the USA, produces a soft magnetic ferritic alloy, Chrome

Core® 18-FM Solenoid Quality Stainless. The alloy, which includes additions of

molybdenum and 0.25% niobium, has improved crevice corrosion resistance and

optimum machinability. The alloy is suitable for use with fuels containing ethanol and

methanol, and in severe aqueous environments. Applications include automobile

components, such as fuel injection, antilock braking systems and automatically adjusting

suspension systems. Other potential uses include solenoid valves, pumps, fittings and

parts for the appliance industry, such as steam irons, soda and beer taps, and chemical

processing.

Carpenter Hiperco® Alloy 50 is an iron-cobalt-vanadium soft magnetic alloy containing

0.05% Nb. It is used primarily in the manufacture of rotor and stator laminations in

motors and generators for aircraft power generation applications.


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10. Use of niobium metal and niobium-based alloys

Niobium metal and alloys made up 2.7% of the total niobium shipments reported by the

T.I.C for 2012 (24% of shipments to non-steel markets).

A number of niobium-based alloys have been developed. These are principally alloys of

niobium and aluminium, hafnium, tin, titanium and zirconium that are used in high-

temperature applications in the aerospace and nuclear industries, shape memory alloys

and low-temperature superconductors.

Niobium metal finds use where its high resistance to corrosion, refractoriness and good

workability are exploited, such as in surgical implants, furnace parts and semiconductor

production.

10.1 Use of niobium-based alloys in superconductors

10.1.1 Superconductor technology development

At extremely low temperatures, close to 0K (-273.15 °C), many metals and alloys exhibit

the phenomenon of superconductivity. Below their critical transition temperatures, their

electrical resistance drops to a point so close to zero that it would take more than

100,000 years for a current in a superconducting ring to decay. Superconductivity may,

therefore, be used to store or transmit electricity without significant loss of power, and to

generate strong magnetic fields in small spaces and with low power consumption.

Further applications arise from quantum interference effects between two

superconductors, in which bound pairs of electrons 'tunnel' through a separating oxide

barrier and produce a current. This phenomenon has applications in high-speed

electronic switching (Josephson junctions) and in some very sensitive measuring

devices for infrared or other magnetic radiation.

Although many metals and alloys can exhibit superconductivity, commercial interest has

focused on materials that have relatively high transition temperatures, can generate

high magnetic fields and are relatively easy to fabricate. Niobium-titanium (52-54% Nb)

alloys are the most widely used superconductors but a variety of intermetallic

compounds of transition metals having an A-15 cubic structure have been studied since

the discovery of superconductivity in vanadium silicide (V-Si) during the early 1950s.

The A-15 superconductors have higher transition temperatures, and can withstand

higher fields, than niobium-titanium alloys. Interest has focused mainly on the niobium

compounds Nb3Sn, Nb3Ge, and Nb3Al, and vanadium-gallium (V-Ga).

These metallic low-temperature superconductors (LTS) are used in a variety of

applications, particularly in medical imaging and high-energy physics. Commercial

development has been slow, however, because these superconductors need to be


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cooled with liquid helium. The high costs and complexity of liquid helium refrigeration

have been limiting factors in the use of LTS.

In 1986, the first of a new family of ceramic superconductors was introduced. Based on

a mixture of lanthanum, barium and copper oxides, this ceramic has a transition

temperature of 35K, much higher than previously believed possible. Since then, high-

temperature superconductors (HTS) have been developed with transition temperatures

as high as 138K. These materials allow cooling with cheaper and more practical liquid

nitrogen and have fuelled the expectation for widespread commercial applications.

Table 90 shows the historical development of metallic and ceramic superconductors.

Table 90: Development of metallic and ceramic superconductors

Material Date Critical temperature (K) Hg 1911 4.0 Nb3Sn 1954 18.0 SrTiO3 1966 0.3 Nb3Ge 1973 22.3 BaPb1-xBixO3 1975 13.0 La(Ba)2CuO4 1986 35.0 YBa2Cu3O7-x 1987 93.0 BiSrCaCu3Ox 1988 100.0 Tl2Ba2Ca2Cu3O6x 1988 125.0 HgBa2CaCu2O6+ 1991 133.0 Hg0.8Tl0.2Ba2Ca2Cu3O8.33 1994 138.0 Source: www:superconductors.org

Pure niobium metal becomes superconductive at 9.25K. Critical values (transition

temperatures and maximum fields) for some niobium-based and other superconducting

materials are shown in Table 91. Although superconductors are routinely cooled with

liquid helium (which boils at 4.2K), higher transition temperatures over about 10K are

desirable because they allow some latitude in the design of cooling systems.

Table 91: Critical values for niobium-based superconductors

Material Transition temperature (K) Maximum field strength (tesla)1

Nb-Ti 9.5 11.5 Nb-Zr 10.8 10.5 Nb3Sn 18.3 22.5 Nb3Al 18.9 29.5 Nb3Ga 20.3 33.5 Nb3Ge 23.2 37.0 NbN 16.5 13.0 Nb3Si 19.0 … Nb

2 9.25 …

Source: Encyclopaedia of Chemical Technology, Kirk-Othmer Notes: 1-At 4.2K; 1 Tesla (T) = 10,000 Gauss. 2-Unlike most superconductors, the case temperature of niobium goes down under pressure.

Niobium-tin superconducting wires can operate at higher temperatures and carry higher

currents than niobium-titanium materials; at 4.2K they retain superconductivity at fields

of up to 23 tesla. Niobium-tin is extremely brittle, however, and in the past it has proved


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difficult to fabricate practical niobium-tin composite wires, although they are in

widespread commercial use.

Niobium-germanium and niobium-aluminium intermetallics are potentially important

superconducting materials, since they can withstand fields of up to about 40 tesla and

are superconducting at 20K or higher temperatures, the highest known for

superconducting intermetallics. As with niobium-tin alloys, however, they are extremely

brittle and difficult to fabricate.

The maximum field strengths achievable with Nb-Ti, Nb3Sn and other superconductors

exceed those required for most uses, but the production of superconductors able to

withstand the very large stresses associated with fields over 8 tesla is difficult. For these

reasons, a superconducting material used in research and development may not be

practicable in commercial applications and materials may be chosen on the basis of

established experience with the processes and problems of fabrication.

Superconductivity disappears rapidly above the critical transition temperature, and

above a critical current density at which flux lines in the magnetic field begin to move

and thus create electrical resistance. Microstructural dislocations and grain boundaries

in the superconductor may 'pin' the flux lines but practical superconductors must be

stabilised against the potentially catastrophic effects of flux jumping, which causes the

superconductor to revert to normal conductivity with a sudden, large, build-up of heat.

Stabilisation typically involves embedding filaments of the superconductor in a material,

usually copper, that exhibits high normal conductivity, and also helps to suppress

instabilities in the magnetic field. Stability is also improved by making the

superconducting filaments in such a composite wire very thin. A large amount of

research and development activity has been directed at the production of

superconducting multiflament composite wires.

In early 2013, researchers at the University of Tokyo announced the development of a

superconducting magnet that eliminates the need for liquid helium for cooling and could

cut the cooling costs of hospital MRIs by more than half. MRIs currently use niobium-

titanium coils or neodymium permanent magnets. These generate a magnetic field of

anywhere from 1.5 tesla to 3 tesla but do not become superconductive until cooled by

helium to 9K. The new magnet, based on magnesium boride, becomes magnetic at 39K

and at 13K generates 3.5 tesla, which is seven times more powerful than the strongest

neodymium permanent magnets. At 20K, the new magnet generates 2.8 tesla. That

degree of cooling can be achieved without the use of helium.

10.1.2 Manufacturers of niobium superconductors

The largest producer of niobium-titanium superconducting wire is reported to be IGC

Advanced Superconductors, of the USA, part of the Intermagnetics General. In 2006,

the company was acquired by Philips, one of the leading MRI manufacturers.


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ICG has reportedly supplied wire for over half of all superconducting MRI diagnostic

systems in use worldwide. The company’s product range includes a range of

application-specific configurations of the following:

Low-temperature superconductors:

Niobium-Titanium (Nb/Ti)

Niobium-Tin (Nb3Sn)

High-temperature superconductors:

BSCCO 2212/Ag multifilamentary wire and tape

BSCCO 2223/Ag multifilamentary tape

The company developed the first mobile MRI magnet, the first 600MHz NMR magnet

and a 20.4 Tesla high-field magnet. It has since developed a 900MHz NMR magnet and

a 45 Tesla research high-field magnet in collaboration with the National High-Field

Magnet Laboratory.

Oxford Instruments of the UK is the largest producer of niobium-tin superconductors.

These are most commonly used in magnets with a field strength greater than 10 Tesla.

Some of the most important producers of superconductor wire are listed in Table 92.

Table 92: World: Major superconducting wire producers

Country Company USA American Superconductor, Massachusetts Argonne National Laboratory, Illinois Cryomagnetics Everson Electric. IGC Advanced Superconductors (Philips), Connecticut Illinois Superconductors, Illinois Los Alamos National Laboratory, Texas Oxford Instruments, New Jersey Pirelli Cable Corp. California Supercon, Massachusetts Superconductivity, Wisconsin Superconductor Technologies, California Japan Aichi Electric Manufacturing Furukawa Electric Hitachi Kobe Steel Kyushu Electric Power Mitsubishi Showa Electric Wire and Cable Sumitomo Electric Industries Toshiba Europe Alstom Magnets & Superconductors BICC Cables, UK Outokumpu Poricopper (Luvata), Finland Oxford Instruments, UK Pirelli Cavi. Italy Siemens Supercables Vacuumschmelze (European Advanced Superconductors) Source: www.superconductors.org


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10.1.3 Applications for superconductors

The vast majority of superconductors used are LTS types, which contain niobium. HTS

types, with no niobium, are showing strong percentage growth and may one day

overtake LTS.

The principal commercial use of niobium-titanium superconductors is in magnetic

resonance imaging (MRI) medical scanners. The high capital cost of the equipment has

restricted the use of MRI in the past (especially as limits have been placed on medical

spending in many industrialised countries) and other magnets now compete with

niobium superconductors, such as neodymium-iron-boron systems. It has been

reported that niobium magnets are preferred to their competitors in many scanners.

The other major market for niobium superconductors is in sub-atomic physics, such as

in particle accelerators. Although the amount of superconductors used on a project can

be quite large, such devices are constructed relatively infrequently.

Other applications for niobium superconductors include power storage and magnetic

separators. Existing LTS technology is not suited to use in some applications that have

long-term potential to become major markets for superconductors, such as MAGLEV

trains and power generation/transmission.

Magnetic resonance imaging (MRI) 10.1.3.1

MRI, used in medical and scientific applications, accounts for by far the largest part of

the superconductor market. Its share of global superconductor sales in 2007 was about

97%. MRI is expected to lose some market share to other applications but will remain

the principal consuming sector for years to come.

Nuclear magnetic resonance imaging (NMR or MRI) is a medical diagnostic technique

that can detect small changes in the soft living tissues to which X-rays are not sensitive.

MRI detects transitions between nuclear spin states in hydrogen nuclei subjected to an

external magnetic field, and the data is analysed using the computerised axial

tomography (CAT) techniques developed for X-ray CAT equipment (body scanners).

MRI systems are used to diagnose disease in human tissue, to perform tests on other

animals and for various analytical procedures.

The magnetic fields required for MRI imaging are low, but they must be very

homogeneous and stable. Niobium-titanium (52-54% Nb) superconducting magnets

compete with neodymium-iron-boron magnets for MRI applications. According to some

reports, niobium-titanium superconducting magnets are preferred over neodymium-iron-

boron permanent magnet systems, even though the latter are reported to be smaller

and to have cheaper maintenance and operating costs.

An MRI system employs superconducting wire to generate a magnetic field that

stimulates atoms to emit radiation. Medical scanners detect the emitted radiation and

transmit cross-section images to a computer. Recent developments include low-field,


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open MRI scanners employing smaller magnet systems. These have reduced cost and

increased physical access for the patient.

MRI devices used in scientific research tend to be large. One unit, delivered to the

University of Colorado by Oxford Instruments in 2005, weighed about 10t and cost

US$5M. It contained 60 miles (96km) of niobium-tin superconducting wire.

The global MRI market was valued at US$5.5Bn in 2010 and was estimated to rise to

US$7.5Bn by 2015. Of that, the US market was estimated at US$4.5Bn in 2010, rising

to US$5.8Bn by 2015. Annual sales are about 3,500 units, with 80% sold into the US,

European and Japanese markets. These are mature markets and most sales are

replacements/upgrades.

The leading MRI producers are GE (25-30% market share), Siemens (25-30%), Philips

(20%), Hitachi (5%) and Toshiba (10-12%). GE, Siemens and Philips have in-house

production of superconducting magnets at legacy factories in the USA and Europe.

Toshiba sources magnets from Siemens and Mitsubishi (the only major independent

producer), while Hitachi purchases from Siemens.

High-energy physics 10.1.3.2

High-energy particle accelerators (or colliders) used for research into sub-atomic physics

were the first significant application for niobium-titanium superconductors. Particle

accelerators are used to study high-energy collisions between the charged particles that

they accelerate around a ring-shaped underground tunnel by means of radio frequency

(RF) resonant cavities.

A number of particle accelerators using niobium-titanium superconducting magnets have

been constructed. Previously, particle accelerators had used copper cavities and

required large amounts of electrical power owing to energy losses in the walls of the

accelerators. Superconducting systems both save power and provide higher potential

energies that permit experiments that are not possible with conventional systems.

The first installation to use niobium-titanium superconductors was the Tevatron project,

at the Fermilab in Chicago, which contained 16t of niobium and was completed in 1983.

Niobium-based superconductors were subsequently adopted in a number of projects:

ATLAS (Argonne Tandem Linear Accelerator System) at the University of

New York

CESR (Cornell Electron Storage Ring)

PETRA (Positron Electron Tandem Ring Accelerator)

TRISTAN (Ring Intersecting Storage Accelerators in 'Nippon'), a KEK

project in Japan

CEBAF (Continuous Electron Beam Accelerator Facility) at Newport

News, Virginia

RHIC Brookhaven, USA


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HERA (Hadron Electron Ring Accelerator) at the Deutsches Elektronen

Synchrotron Institute in Hamburg, Germany

The CEBAF accelerator was designed to use 400 superconducting niobium cavities, the

first two of which were constructed by Babcock and Wilcox in 1986.

The HERA accelerator, completed in 1990, uses 422 magnets to keep the particles on

course in the ring, 224 focusing magnets to keep the beam together and about 1,300

correcting magnets of various kinds. The magnet system is based on niobium-titanium,

cooled with liquid helium.

The Superconducting Supercollider (SSC) project in the USA would have required over

500t of niobium in the form of niobium-titanium alloy. The US Congress cancelled the

project in October 1993, when it was a fifth completed.

CERN's LHC (Large Hadron Collider) supercollider project, located near Geneva, was

commissioned in 2007. Its construction has required a large amount of niobium-titanium

alloy. Wah Chang supplied approximately 360t of alloy billet to cable manufacturers

between 1998 and 2003. IGC is reported to have supplied 586km of superconducting

cable for the project, at a cost of US$16.4M. Outokumpu (now Luvata), of Finland, was

to supply 2,2800km of superconducting cable for the LHC. A cable consists of 36 units

of superconducting wire, each comprising 6,300 superconducting filaments of niobium-

titanium with each filament covered by a 0.0005mm layer of high-purity copper.

Manufacturing of the cables began in 2001, with deliveries scheduled from early 2002 to

mid-2004. The total value of the order exceeded US$21.5M. Furukawa Electric started

shipments of niobium-titanium wire to CERN in April 2000. The wire consists of 6,426

filaments spirally wound in oxygen-free copper, each 6µm in diameter. The company

was to supply 600km of wire by December 2002, with a total weight of 100t.

In total, the LHC is estimated to have required 7,000km of niobium-titanium wire.

The next major project, the International Linear Collider, is expected to use over 500t of

high-purity niobium over a period of several years. That is more than was produced in

2003. Construction could begin in 2015 or 2016, with completion in the mid-2020s.

Electricity generation, storage and transmission 10.1.3.3

With theoretical efficiencies as high as 99%, superconducting electricity generation,

storage and transmission systems have great economic potential.

Large-scale storage of off-peak electricity in large underground superconducting

magnets is seen as the most efficient method of electricity storage. Such a

superconducting energy storage system would have an efficiency of between 93% and

98% of the energy input, compared with 67% to 72% for underground pumped

hydrostorage, 70% for compressed air storage, and 75% to 80% for an advanced

battery storage system.


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American Superconductor manufactures superconducting magnetic energy storage

systems (SMES). The SMES system is based on a superconducting niobium-titanium

coil that carries multimegawatt-level currents at practically zero electrical resistance.

Integrated within this system, the power electronics module can detect voltage sags and

inject large amounts of power to boost voltage on the transmission network within half a

millisecond. In 2000, the company received an order to install a Distributed

Superconducting Magnetic Energy Storage System (D-SMES) in Wisconsin. Each of

the six units in the system had a power reserve of over 3MW, which could be retrieved

whenever there was a need to stabilise line voltage during a disturbance in the power

grid.

Kyushu Electric Power has developed a prototype superconducting magnetic energy

storage (SMES) system with an energy storage capacity of 1kWh. The system is being

used to develop practical SMES devices. The prototype uses a niobium-titanium coil 3m

in diameter. A practical SMES capable of storing the equivalent of pumped storage

power stations (3-5GW) would need to be several hundred metres in diameter.

One goal for superconductor developers is the transmission of commercial power to

cities. Owing to the high cost and difficulty of cooling miles of superconducting wire to

cryogenic temperatures, however, this has only happened with short test-runs in

Copenhagen, Detroit and Albany, NY. This area is, nevertheless, the target of much

research work, most of it collaborative. An example is the Superconductivity Partnership

Initiative (SPI), which was established by the US Department of Energy. SPI has

already been responsible for many new components such as advanced generators,

power cables, current controllers, and rotors. A superconducting transformer was

connected to the US electricity grid in 2001. These systems are based on ceramic HTS

materials, rather than niobium superconductors.

Nuclear fusion research 10.1.3.4

Various attempts have been made to confine plasma in superconducting magnets. At

the very high temperatures associated with nuclear fusion, matter exists as a plasma

which would dissipate its energy in contact with any normal physical container. Plasma

Confinement Research employs magnetic confinement by large superconducting

magnets. Superconducting magnets are essential as the energy requirements of normal

electromagnets would be almost equal to the energy produced by the fusion process.

The availability, fabricability and price of the necessary materials are the likely

constraints on the production of any future commercial reactors.

The International Thermonuclear Experimental Reactor (ITER) project, located in

France, is being funded and run by seven members (the EU, India, Russia, China, South

Korea, Japan and the USA). Although not expected to be operational before the end of

the decade, it is already consuming significant amounts of niobium. It was reported in

September 2012 that Russia was to supply 90t of niobium-tin wire and 40t of niobium-

titanium. In October, Japan Superconductor Technology announced an order for 21t of

niobium-tin wire.


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Magnetic levitation and propulsion systems 10.1.3.5

Magnetic levitation (MAGLEV) vehicles, such as trains, float on strong magnetic fields,

virtually eliminating friction between the train and its tracks. Although the technology for

MAGLEV vehicles is well-established, commercial applications have been hampered by

political and environmental concerns, as well as funding issues.

Various countries have experimented with superconducting magnets in high-speed

magnetic levitation railway systems, for example in the USA, Japan, and Germany. So

far, however, these MAGLEV projects have largely failed to be converted into a

commercially viable system. The only significant MAGLEV train to have been

commercialised is the 30km system running from Shanghai to Pudong International

Airport, which was opened in 2003.

The government-funded Yamanashi Maglex Test Line opened in Japan in April 1997. In

1999, the MLX01 test vehicle attained a speed of 552kph. A new record of 581kph was

set at the end of 2003. This project is on-going.

American Maglev started to build a MAGLEV train at Old Dominion University in Norfolk,

Virginia in January 2001. The train was to begin operating in September 2002 but the

project has encountered several delays.

A short-haul MAGLEV connector between the airport and rail station in Birmingham,

England, was replaced with a conventional train connector in 1995. Germany scrapped

a plan to build an intercity MAGLEV route that was to become operational by 2006.

Although it is likely that MAGLEV trains will become more common in future, they are

unlikely to create additional demand for niobium-bearing LTS because of the difficulty of

cooling the superconductors over long distances. The market will be served by HTS.

Superconducting niobium-titanium magnets were successfully used to propel a 280t ship

in Japan in 1992. The magnet-powered ship was developed by Kobe Steel, Toshiba

and Mitsubishi Heavy Industries, with magnetic force driving sea water through ducts in

the ship to achieve an efficient magnetohydrodynamic (MHD) effect.

Industrial cyclotrons and synchrotrons 10.1.3.6

Nb-Ti superconductors have been used in cyclotrons made by Oxford Instruments,

under contract to NKK of Japan. The machines are used in Position Emission

Topography (PET) scanning, a medical diagnostic technique. The cyclotrons weigh only

3.6t, including the liquid helium cooling system, and consume only 36kW of power,

compared with 100kW in conventional 20t cyclotrons.


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High-intensity magnetic separators 10.1.3.7

Magnetic particles in mineral ores are removed by gravity separation or magnetic

separation using large conventional magnets, and high-intensity magnetic separators

thus have a market in the mineral industry.

The kaolin processing plant of JM Huber in Georgia, USA, uses such a system where

Nb-Ti magnet coils are cooled by liquid helium. A similar model was developed by

Cryogenic Consultants of the UK. Phosphate Development has purchased an open

gradient separator that was developed by Cryogenic Consultants.

Electronics 10.1.3.8

Superconducting Quantum Interference Devices (SQUIDS) that exploit the Josephson

effect are already used in highly sensitive measuring devices in medicine, radio

astronomy and other fields. Potentially important applications for superconducting

switching elements, known as Josephson Junctions, are being actively researched after

a period in which research was largely abandoned in the face of the considerable

technical difficulties that remain to be resolved.

Josephson Junctions can be incorporated into field effect transistors that are part of the

logic circuits within microprocessors. Josephson Junctions offer very fast, low power,

switching performance for large high-speed computers. A milestone was passed in the

2000s, with the successful development of ‘petaflop’ computers (a petaflop is a

thousand-trillion floating-point operations per second). Even more powerful computers

are under development.

Ultra-high-performance electronic filters are now being built with superconducting wire.

Using superconductors, many more filter stages can be incorporated to achieve a

desired frequency response, allowing desired frequencies to pass while blocking

undesirable frequencies. ISCO International and Superconductor Technologies

manufacture such filters for the mobile telecommunications industry.

Ultra-sensitive, ultra-fast, superconducting light detectors based on niobium nitride are

being adapted to telescopes owing to their ability to detect a single photon of light. In

2000, Irvine Sensors received a US$1M contract to develop superconducting digital

routers for high-speed data communications.

10.2 Use of niobium-aluminium alloys

Niobium aluminide systems are being considered for metal-matrix composites designed

to operate at 1,000ºC or higher temperatures in aerospace applications. Although

research is less advanced than for nickel aluminides (which have excellent oxidation

resistance) and iron aluminides (which offer good oxidation resistance at moderate


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temperatures and high ductility), discontinuous reinforcements have been shown to

improve the properties of niobium- and tantalum-based intermetallics.

Niobium-aluminium intermetallics offer high melting points (1,605ºC) and low density

(4.55g/cm3) but, in common with many other ordered intermetallics, have low toughness

and ductility at ambient temperatures. Two types of NbAl3 metal-matrix composites,

containing dispersed second phases or niobium-filament reinforcements, have been

prepared by reactive hot compaction (RHC) of pre-mixed NbAl3 powders in research

undertaken in the USA at the University of Florida. Composites consisting of a NbAl3

matrix with second-phase or multiple-phase particles (of Nb3Al or Nb2Al with a niobium

core, or Nb2Al) were found to strengthen the matrix at high temperatures but offered only

a limited improvement in fracture toughness, owing to the unfavourably strong matrix-

particle bond.

Composites of NbAl3 reinforced with specially coated niobium filaments, however, were

found to offer fivefold improvements over un-reinforced matrices in fracture toughness

tests at ambient temperatures. The niobium filaments are pre-treated by heating to

500C for 30 minutes under a stream of oxygen at one atmosphere of pressure, to

produce a layer of niobium oxide on the surface of the filaments. During RHC

processing, the niobium oxide reacts with liquid aluminium to form an Al2O3 layer,

which serves as an excellent diffusion barrier. The Al2O3 layer is dense, of relatively

uniform grain size, and stable under long-term annealing tests (100 hours at 1,200ºC).

In contrast, uncoated filaments react extensively with the matrix, leading to the formation

of a porous intermetallic layer and undesirable diffusion of aluminium into the filaments.

Mitsubishi Metal, of Japan, produced flakes of niobium-aluminium (Nb3Al) powder for the

first time in 1989; niobium-aluminium had previously been fabricated only as tapes. The

development of a process to produce niobium-aluminium powder was undertaken as

part of research, sponsored by MITI, into materials that can withstand 1,500ºC

temperatures. Molten metal is produced by plasma arc melting in a water-cooled copper

crucible, and then drips through pores in the bottom of the crucible. The drops of molten

material are turned into powder by high-pressure gas jets, thus eliminating the use of

refractories or refractory metal containers.

Future niobium-aluminium alloys may be able to offer improved inherent oxidation

resistance; the approach is to lower the atomic fraction of aluminium in the alloy to a

point where it forms protective external alumina (Al2O3) scales under oxidising

conditions, while still maintaining a high melting point. Three types of alloying addition

can be used to lower the aluminium atom fraction: elements that lower the solubility of

oxygen in the matrix; elements that decrease the diffusion coefficient of oxygen; and

elements that increase the diffusion coefficient and/or solubility of aluminium in the

niobium matrix. Titanium additions are effective in simultaneously increasing the

diffusivity and solubility of aluminium. Both chromium and vanadium decrease the

solubility and diffusivity of oxygen. External alumina scale-formation has been

demonstrated with an alloy of niobium containing 24%Ti, 46.2%Al, 3.3%Cr and 4.4% V.

Scale formation occurred on heating in air at 1,400ºC, but further work was needed to

achieve the same effect at temperatures of 1,200ºC or less.


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Lockheed examined metal-matrix composites based on two niobium-aluminide matrices

(Nb-25Ti-42Al-3Cr-4V and Nb-25Ti-38Al-3Cr-4V) that both form continuous protective

alumina layers at high temperatures. Yttria and alumina reinforcements were found to

be the most stable in tests of samples aged at 1,371ºC.

NbAl3, one of three intermetallic compounds that can be formed in the niobium-

aluminium system, has no detectable homogeneity range, melts congruently and has the

DO22 crystal structure. Niobium aluminides are difficult to process, however, and, owing

to their brittleness, the ingots produced tend to crack during cooling. Powder metallurgy

(PM) and dispersion-strengthening processes offer methods of overcoming the problem

of brittleness.

In research at Marko Materials, two NbAl3 materials, one of them containing 1% titanium

boride (TiB2), were prepared as pre-alloyed ingots, using high-purity (99.9%) starting

materials and a non-consumable electrode arc-melting process under an argon

atmosphere. The ingots were melted repeatedly to ensure good chemical homogeneity

and then rapidly solidified as melt-spun filaments in an advanced melt spinner. The melt

spinning process involves melting in a water-cooled cold hearth using a non-consumable

tungsten arc. Rapid solidification was achieved by extracting thin filaments from the melt

by means of a fast rotating molybdenum wheel. The filaments, typically 20-50 thick

and 0.5mm wide, were pulverised into minus 40-mesh powders by a rotating hammer

mill under an inert gas. The powders were then consolidated in titanium cans by hot

isostatic pressing at 1,400ºC and 103MPa pressure. The dispersion-strengthened

material showed improved high-temperature strength, compared with both the base

niobium-aluminide and nickel-aluminides. The research suggested that larger volume

fractions of ultra-fine dispersoids in niobium-aluminium would yield further improvements

in creep resistance.

10.3 Use of niobium-titanium alloys

Niobium-titanium alloys have been used in the manufacture of one-piece aircraft

fasteners since 1972. Millions of Ti-45% Nb and Ti-55% Nb fasteners have been made

since then. The component consists of an upper titanium-base alloy with the niobium

variant joined underneath by inertial welding. Compared to conventional two-piece

fasteners, the niobium variant can save around between 10% and 40% in weight. Ti-

45% Nb and Ti-55% Nb are produced by Wah Chang (capacity 45tpm).

Titanium is contained in niobium-based alloys used in superconductors.

10.4 Use of niobium-zirconium alloys

A niobium-based alloy containing 1% zirconium is a standard alloy produced by Wah

Chang and other companies. It is used in aerospace applications and in sodium

discharge lamps. Various variants of Nb-1Zr have been developed, such as the PWC-

11 alloy that contains 1% zirconium and 0.1% carbon.


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Niobium alloys containing 1% zirconium can be used for liquid-metal containment

vessels, tubing, and fuel cladding in some fast-breeder nuclear fission reactors. The

thermal neutron absorption cross-section of niobium, at 1.1 barns, is lower than that of

all structurally suitable metals except aluminium, magnesium, zirconium and beryllium.

Most nuclear reactors have used zirconium-base alloys containing 1-4% niobium, rather

than niobium-base alloys, in these applications, however.

Potential exists for the use of niobium alloys in nuclear reactors designed for operation

in space, although there is very strong political opposition to this. Standard niobium-

zirconium (Nb-1Zr) and PWC-11 were selected for use in the SP-100 programme, under

which NASA, the US Department of Defense and the US Department of Energy aimed to

develop a nuclear reactor that could be launched into space and deliver 100kW of

electrical power over long periods of time. The Nb-1Zr alloy was to be used as the basic

material for the lithium coolant boundary, components inside the reactor vessel and the

fuel cladding, while PWC-11 was tested to determine its suitability for the same

applications. The SP-100 programme was cancelled in the early 1990s.

Onera, of Chatillion in France, reported the results of two years of research into

producing Nb-1Zr alloy powders using the plasma rotating electrode process (PREP) in

1989. In this process a 1.2kg cast bar is placed in a PREP machine that rotates at

17,000rpm, while heating the face of the ingot to 2,400ºC under an argon-helium

atmosphere. Molten spherical and elliptical particles fly off the ingot under centrifugal

force and freeze as fine (168) particles with a low (40ppm) oxygen content.

Components made from such materials, which have relatively low (388MPa) strength but

high ductility even at elevated temperatures (30% at 900ºC), are expected to find use in

applications such as heat shields for the next generation of space re-entry vehicles.

Niobium-zirconium-tungsten composites, in which niobium is reinforced by tungsten

fibres, have been developed as candidate materials for reactor fuel cladding and other

applications where very high strength is required. Early composites were produced with

the tungsten wire normally used for lamp filaments, but research was focused on the

development of tungsten-hafnium carbide or molybdenum-hafnium carbide wires

designed specifically for the reinforcement of metal matrix composites.

Niobium metal and niobium-zirconium alloys are used for small tubular parts in high-

intensity, high-pressure sodium discharge lamps. Nb-1Zr may be used in the support

members of these lamps, in the external amalgam reservoir, in the heat reflector and in

ribbon and wire connectors.

Tubes of niobium or niobium-zirconium perform the dual function of current lead and

electrode holder in high-pressure sodium lamps. The advantages of niobium include

compatibility with the thermal expansion coefficient of the adjacent alumina ceramics,

ability to withstand high-temperature sealing processes, and high resistance to sodium

vapour.

In the sodium reservoir, niobium alloy tubing is used for its hot strength and superior

formability. It allows tube dimensions to be reduced from 190mm diameter and 0.17mm

wall thickness to only 30mm diameter and 0.25mm thickness. Niobium tubes can be


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readily bent, coiled, slotted, dimpled, punched, lanced, notched, shaped and cut

precisely to fabricate individual pans.

10.5 Use of niobium-hafnium alloys

Niobium-based alloys have excellent high-temperature strength above 1,300°C and are

used as refractory materials for aerospace applications since they readily accept

coatings to protect against oxidation. The most important alloy in this case is C-103

(89% Nb, 10% Hf, 1%Ti). This alloy, produced by Wah Chang, is used for rocket

nozzles in spacecraft and missiles. Such niobium alloys have high melting points,

elastic modulus and strength, and have widely replaced molybdenum and tungsten

alloys in such applications, because they are less brittle when fabricated as sheet. C-

103 is also used in the Pratt & Whitney F-100 jet engine, which powers the F15 and F16.

Wah Chang was also the developer of high-strength PM niobium alloys, such as

WC3009 which is a niobium-based alloy containing additions of 30% hafnium and 9%

tungsten.

10.6 Use of other niobium alloys

Cabot 752, a niobium alloy containing 2.5% zirconium and 10% tungsten, has been

used for turbine augmentors and afterburners in military aeroengines. The niobium alloy

FS-85, developed by Fansteel in the USA, contains 61.2% niobium, 28% tantalum, 10%

tungsten and 0.8% zirconium. It was used to make the rocket nozzles used in the US

space shuttle.

Tribocor-532N, which contains 50% niobium, 30% titanium and 20% tungsten, was

developed by Fansteel in 1985 for use in seals, valve seats, flow meter parts and other

parts for oil and gas wells; it has a higher surface hardness than cobalt-bonded

cemented carbides and shows high resistance to hydrochloric, nitric, phosphoric and

sulphuric acids.

The Gillette Mach3 razor features a diamond-like carbon layer bonded to the steel blade

with niobium-tin alloy.

Niobium metal and alloys are sometimes used in metal-to-ceramic seals for vacuum

tubes, because their thermal expansion characteristics are almost identical to those of

alumina ceramics. Most volume applications, however, use tungsten or molybdenum

alloys, while with the quartz tubes required for mercury vapour and halogen lamps a

pinch seal of molybdenum ribbon is used.

Conventional incandescent lamp bulbs are typically made with tungsten filaments

(doped with potassium, silicon and aluminium), held in place by ductile molybdenum

support wires. Niobium-ruthenium alloys have been used as high-temperature brazing

alloys for joining tungsten filaments to molybdenum or tungsten structures.


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Niobium-titanium non-sparking components are used by mining companies, particularly

in gold mining operations.

10.7 Use of niobium metal

Most niobium metal is used in the manufacture of alloys and high-purity niobium oxides,

although a small amount is used as metal in a variety of applications, some of which are

discussed in the following sections.

10.7.1 Cathodic protection

Niobium metal is used as a substrate for platinum in impressed current cathodic

protection (ICCP) anodes, largely because it exhibits a higher anodic breakdown

potential (100V) than platinum in seawater. Niobium also has good mechanical

properties, good electrical conductivity and forms an adherent passive film when

anodised. ICCP systems are used to protect metal structures from corrosion, by

polarising them cathodically by means of an impressed current between the structure

and a stable anode.

ICCP systems are used for ship hulls, oil and gas installations, docks, heat exchangers

in power plants, buried pipelines and large storage tanks. The development of smaller,

more economical ICCP systems using integrated circuitry has led to their use in hot-

water storage tanks, water pumps, valves and other equipment that previously required

more expensive materials.

10.7.2 Surgical implants

Niobium and tantalum metal are used as surgical implant materials. Both metals satisfy

the basic requirements for such materials, of compatibility with living tissue, good

mechanical properties including wear resistance, and workability. They are superior to

conventional materials such as stainless steel, cobalt-base alloys, ceramics and vitreous

graphite used in hip prostheses and knee-joint endoprostheses. The lower density of

niobium makes it preferable to tantalum for large implants, but high costs restrict the use

of niobium in this application.

Plansee of Austria produces a range of powder metallurgy (PM) niobium and tantalum

products for the cement-free repair of severely broken bones. Oxide-dispersion-

strengthened niobium metal (NDN) for this application is produced by mechanical

alloying of niobium with one of its oxides in an attrition mill, followed by cold isostatic

pressing, vacuum sintering and hot extrusion at 1,000C in a steel container. NDN has a

tensile strength of over 1,100MPa, more than double that of pure niobium, and 10%

elongation. NDN has been used in spine-stabilising implants and intermedullar nails and

screws.


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10.7.3 Body jewellery

Niobium metal is used for body jewellery, such as rings, bars and septum retainers. The

metal has a lower risk of allergy than surgical stainless steel, although it is

recommended for healed rather than for initial piercings. Niobium is usually anodised,

which results in a wide spectrum of colours, including blue, light blue, green, violet, black

and rainbow effects.

10.7.4 Electronic devices

Capacitors 10.7.4.1

A relatively new market for niobium is in the manufacture of capacitors for use in

electronic devices such as mobile telephones, laptop computers and digital cameras.

Tens of billions of capacitors are manufactured every year. Those based on tantalum

are of most relevance to the niobium sector.

The rapid growth in sales of mobile telephones, a major end use for tantalum capacitors,

during the second half of the 1990s was remarkable and played a significant part in the

growth in consumption of tantalum during that period. Between 1998 and 2000, total

mobile telephone sales grew from 168M units to 413M units. Anticipation of continuing

large annual increases in demand, coupled with rapidly rising tantalum prices and

concern over the security of future raw materials supplies (later shown to be unfounded),

prompted capacitor manufacturers to enter into long-term, fixed-price agreements with

tantalum processors. In the event, the mobile telephone market turned downward in

2001 and did not begin to recover until 2003. Tantalum prices also fell sharply. A

number of the major capacitor manufacturers were left with over-valued, and excess,

inventories of tantalum and a commitment to continue buying at inflated prices for

several years. That situation intensified efforts to design-out tantalum. There was

particular interest in developing niobium capacitors to compete with those made of

tantalum, which have long dominated a market niche requiring small, high-capacitance

and high-performance types.

Attempts to manufacture niobium capacitors began as soon as the metal became

commercially available in the 1960s but technical issues prevented commercialisation for

several decades. In recent years, however, new manufacturing processes for niobium

metal powder and for the capacitors themselves have made niobium a viable capacitor

material. The capacitor manufacturer AVX now offers niobium capacitors. Their

introduction has also been helped by, and to an extent driven by, manufacturers’

concerns over the supply of tantalum.

This end use was considered to have the potential to become one of the largest markets

for niobium outside the steel industry, although the amount used was never likely to

approach the tonnage consumed in the form of steel-grade ferroniobium. The market

has, however, not developed as anticipated. The major reason for this has to do with


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the main advantage of niobium-based electrolytic capacitors over equivalent tantalum

capacitors, which is associated with the fact that NbO capacitors do not burn when in

short circuit (failure mode) as they have high residual electrical resistance. When a

tantalum capacitor fails, it has low resistance (less than 1 ohm) and a consequent high

current promoting increase in temperature that leads to burning. When NbO capacitor

fails its resistance is still high (100 to 1,000 ohms) and, therefore, there is no high

current passing through to promote increase in temperature. This feature is more

important for higher voltage capacitors (20V or higher for solid capacitors), however, and

no company has yet solved the challenge of manufacturing higher voltage solid

capacitors with NbO. The NbO capacitors found in the market are rated 10V and

tantalum equivalents do not have the burning problem at this voltage level.

A large upturn in demand for niobium in this application is unlikely in the foreseeable

future.

Other electronic devices 10.7.4.2

Small quantities of very pure niobium are used in some silicon-based semiconductor

devices. Niobium is used in the deposition of niobium silicide (NbSi2) diffusion barriers

by the magnetron co-sputtering of silicon and niobium. Niobium faces strong

competition from other refractory metals, particularly tungsten and tantalum, for

applications in the dominant metal-oxide semiconductor (MOS) computer technology.

The production of niobium and other ultra high-purity (UHP) sputtering targets for use in

electronics presents considerable technical challenges and the purity required is

increasing as electronics manufacturers seek to improve complementary metal-oxide

semiconductor (CMOS) and very large scale integration (VLSI) technologies. In the

future, chemical vapour deposition (CVD) techniques will increasingly compete with

sputtering targets in this application, but will also require very pure starting materials.

Current sputtering targets are typically produced by electron-beam melting at least two

or three times, and have impurity levels measured in tens of ppm or less. Future

devices will require impurity levels of ppb, and the detection of some elements at these

levels is in itself difficult. It may be noted that niobium is one of the principal impurities in

tantalum sputtering targets, and vice-versa.

10.7.5 Furnaces and other high-temperature manufacturing equipment

Furnaces and other equipment used for the manufacture of metal, glass and ceramic

products are a major application for refractory metals. Typical applications include: hot-

wall pusher furnaces and cold-wall furnaces used for sintering metal and ceramic

powders under a protective or reducing atmosphere; hot isostatic pressing and hot

isothermal forging equipment; and electric melting furnaces for ceramic fibre and glass

production.


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Cost and performance parameters dictate the use of molybdenum or molybdenum

alloys, tungsten, and tantalum. Niobium may be used when operating conditions require

its particular properties, such as resistance to liquid sodium.

10.7.6 Coinage

Small quantities of niobium metal are used in coins and medallions commemorating

special events. Niobium has the advantages of being readily workable and corrosion

resistant, having a density comparable to copper and silver, and a high melting point.

This latter point has been advanced as a deterrent to counterfeiting (since a forger

would need an electron-beam furnace to produce an accurate copy).

Niobium metal blanks are treated by thermal anodic oxidation prior to forming, to

produce a thin (1m) oxide layer that ensures ease of forming. Although greater

availability of niobium metal may promote its more widespread usage in coinage, the

cost of niobium is likely to limit its use, as presently, to special commemorative medals

and medallions.

Examples of niobium commemorative medals and medallions include: the 1,400 medals

struck by the Bavarian Mint Authority from 99.8% pure niobium metal for the 1983 World

Rowing Championships in Duisberg, Germany; the medal of the 1987 International

Numismatics Conference in Munich; 300 medals produced for the 50th anniversary of

the powder metallurgy laboratory at the Max Planck Institute in Germany; and the annual

Charles Hatchett medal, named after the discoverer of niobium and awarded by the

Institute of Metals in London for the most significant scientific work relating to niobium.

Plansee has collaborated with the Austrian Mint on several occasions for the production

of commemorative Euro coins containing niobium.

10.7.7 Radioisotopes

Niobium is one of the 18 elements that have only one naturally occurring isotope (Nb93

).

A total of 30 radioisotopes of niobium have been produced artificially, ranging from Nb81

to Nb110

. Of these, Niobium95

is the most common. The isotope has a half-life of 35

days, decaying by emission of beta and gamma radiation. Nb95

is used as a radioactive

tracer, either alone or in an equilibrium mixture with Zr95

. Nb95

can be readily activated

in ceramic beads.


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11. Use of niobium chemicals

The main use for niobium oxides is as a source of niobium in alloying additives for steel

and superalloys (where it serves as an alternative intermediate product to ferroniobium

for introducing metallic niobium into the alloy). Thus, trends in demand for niobium oxide

and pentoxide are largely determined by prospects for steel and niobium-containing

alloys, discussed in earlier sections of this report.

A number of minor applications make use of niobium oxide or other niobium compounds,

however. Niobium oxide is generally the starting material used for the production of

other compounds, although for some of the more demanding applications, niobium metal

may be used (or niobium oxide may be first reduced to metal by the manufacturer).

The TIC reports that shipments of all niobium compounds from its member companies

amounted to 4.9% of total shipments in 2012, or 43.5% of shipments to non-steel

markets. Most of that was destined for the production of masteralloys.

Table 93 summarises the suppliers and traders of niobium compounds and carbides, as

reported by the T.I.C. The list is not exhaustive because not all companies belong to the

T.I.C.and not all the association’s members contributed to the list. It should be read in

conjunction with Table 12 and Section 5.

Table 93: Producers and suppliers of niobium compounds and carbides

Nb2O5

NbCl5 NbH5 Nb(OH)5 Ceramic Optical Standard K2NbOF5 NbC

ABS Industrial Resources S S

CBMM S S S

Conghua Ta & Nb Smeltery S S S S

Crevier Minerals S S

DM Chemi-Met T T T T

Duoluoshan Sapphire S S

F&X Electro-Materials S S S

FIR Metals & Resource S S S S S

Fogang Jiata Metals S S S

Hi-Temp Specialty Metals S

King-Tan Tantalum Industry S S S S S

Metallurgical Products India S S

Mitsui Mining & Smelting S S S S S

Molycorp Silmet S S

Morimura Bros. S

New Material Corporation S S S S S S

Ningxia Orient Group, CNMC S S S S

Rittenhouse T T

Solikamsk Magnesium Works S S S S

Specialty Metals Trading T

Standard Resources T

Stapleford Trading S S S

Telex Metals S S S S

Treibacher Industrie S S S

Source: T.I.C. Note: S = supplier T = trader


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11.1 Optical glass and enamels

High-purity (99.9% or 99.99%) optical-grade niobium oxide is added to glasses to

achieve the high refractive indices required for the production of special thin spectacle

lenses and other specialist lenses. Lenses in cameras and photocopiers can contain up

to 30% niobium oxide.

Niobium oxide has the important advantages of producing a higher refractive index

without increasing the density of the glass, and also imparts good chemical resistance to

glasses. Additions can be as high as 70% of the weight of the glass, but a 10-30%

range is more common. Niobium oxide is added to lanthanum borate, flint, phosphate

and silicate glass batches for these purposes. Weight saving is an important

consideration in lenses, because of competition from lighter plastic lenses. For example,

a lanthanum borate glass containing niobium oxide with a specific gravity of 4.19 can

have the same optical properties as a glass containing tantalum and lead oxides with a

specific gravity of 4.63, but is 10% lighter. Similarly, a lanthanum flint glass containing

60% lead oxide has a specific gravity of 4.48, whereas a similar glass containing 41%

niobium oxide has a specific gravity of 3.10, some 30% lower.

In many cases, the use of niobium dates from the late 1970s and early 1980s, when it

was first used to replace tantalum because of large increases in the price of tantalum

oxide. The economic factor was important because the weight advantages of niobium

oxide are in part balanced by its tendency to colour the glass. Niobium oxide absorbs

ultra-violet wavelengths close to the visible range and, even in glasses with quite low

impurity levels, tends to absorb visible blue light and thus produce a yellow tint.

Production of optical glass in concentrated in Japan. Corning and Schott in Europe are

also important manufacturers for ophthalmic uses, microscopes and video camera lens

manufacture.

Niobium oxide may be added to titania enamels as a colour controlling agent, to achieve

a bluer shade of white. High-purity grades of niobium oxide are required for this end

use, with low contents of iron and other colouring agents.

X-ray diffraction analysis indicates that niobium oxide and tungsten oxide have a

pronounced effect on the stability of titania in titania-opacified enamels. Niobium oxide

reduces the stability of the titania at firing temperatures, while tungsten oxide lowers the

temperature at which the titania is least soluble, so that high concentrations of anatase

titania crystals can be achieved.

11.2 Electronics and optoelectronics

Optoelectronic and piezoelectric devices based on lithium niobate are a small but

significant market for niobium. A substantial part of total world demand in this segment

continues to be for research and development purposes, while demand from some of


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the early practical applications, in military equipment, may decline in the future.

Commercial applications include:

Surface acoustic wave (SAW) devices

Optical switches and circuits, including modulators, frequency converters and

other semiconductor applications

Oxygen and humidity detectors

Ceramic capacitors

Ferrites

Growth in demand for niobium oxide since the late 1980s has, however, been limited by

improvements in processing methods that have reduced scrap losses. Related factors

are expected to be important in determining the future level of demand for niobium in

these applications. For example, demands for higher performance electronics devices,

particularly in mobile telephones, prompted a move away from lithium niobate to

alternative materials.

Lithium niobate crystals have a number of unique properties. They are ferroelectric,

piezoelectric and pyroelectric, and have high non-linear optical and optoelectronic

coefficients and photo-refractive sensitivity. These properties enable such crystals to be

used widely in optical and acoustic devices. Table 94 shows selected properties of

lithium niobate.

Table 94: Selected properties of lithium niobate

Melting composition (mol% Li2O) 48.6

Density (g/cm3) 4.644

Melting point (K) 1,246

Curie point (C) 1,145

Electrical resistivity at 400C (/cm) 5x103

SAW velocity (M/s) 3,490-3,890

Pyroelectrical coefficient at 300C (C/cm2/C) 0.004

Source: Almaz Optics

Thin films of lithium niobate are important in many applications such as optoelectronic

and silicon integrated circuit technology.

The production of lithium niobate is an important market for special-purity (typically

99.99% minimum) grades of niobium oxide. The niobium oxide is melted together with

lithium carbonate to produce a bath mixture of molten lithium niobate; special-purity

niobium oxides and other high-purity materials are used similarly to prepare bath

mixtures for the production of other niobate crystals.

Single crystals of lithium niobate are produced by the Czochralski (CZ) vertical-pulling

process, in which a monocrystalline seed is placed in the bath of molten lithium niobate.

A single-crystal boule slowly grows around the seed crystal as it is rotated and slowly

pulled upwards while the temperature is lowered. The electronic properties of single-

crystals may be controlled by the addition of selected doping agents to the melt before

crystal growth begins.


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The completed boule is subsequently sliced into thin (0.5mm) wafers, which become the

substrates of piezoelectric or optoelectronic devices. The CZ process, and the now less-

common HZ or horizontal Bridgman process, is used to produce single-crystals of many

different materials. Improvements to the basic process continue to be researched,

important general aims being the more precise control of crystal properties and the

production of larger-diameter wafers (which offer cost savings in the subsequent batch

processes used to fabricate circuits on the substrates).

Many other niobium-bearing crystalline materials, such as strontium barium niobate or

sodium barium niobate, exhibit more pronounced optoelectronic properties than lithium

niobate or potassium niobate, and offer the possibility of producing smaller devices that

can operate at lower voltages. The wide range of niobium-bearing materials that exhibit

interesting optoelectronic and ferroelectric properties is illustrated in Table 95.

In general, these materials are prepared using the same basic techniques as for lithium

niobate, but successful implementation of commercial applications depends critically on

the development of a viable variant of the crystal-growing process. Many parameters,

including temperature, rate of crystal growth, pressure and the stoichiometry of the bath

mixture, affect the quality of the crystals that can be grown from any particular material.

In many cases, therefore, lithium niobate may be preferred over these alternatives (but,

in turn, be less widely used than some titanates and zirconates) because of the

experience accumulated in the mass production of crystal substrates.

Table 95: Properties and applications of niobate ferroelectric materials

Group Material Abbreviation Properties Applications

Perovskite Pb(Mg1/3,Nb2/3)O2 PMN Dielectric Capacitors, memory,

niobates PMN/PbTiO3 PMN/PT Electro-optic waveguides

LiNbO3 LN Piezoelectric Pyrodetectors

KNbO3 KN Electro-optic Waveguides, frequency

doublers, (SHG), holographs

K(Ta,Nb)O3 KTN Pyroelectric Pyrodetectors

Electro-optic Waveguides

Tungsten (Sr,Ba)Nb2O6 SBN Dielectric Memory

bronzes Sr(Ba)0.8(Cr,Zn,Y)2Na0.4Nb2O6 Dielectric Dielectric (Pb,Ba)Nb2O6 PBN Dielectric Memory

K3Li2Nb2O6 KLN Pyroelectric Pyrodetectors (K,Na)3Li2Nb5)15 KNLN Pyroelectric Pyrodetectors (K,Sr)Nb2O6 KSN Pyroelectric Pyrodetectors (Pb,K),Nb2O6 PKN Electro-optic Waveguides Ba2-xSrxK1-yNayNb5O15 BSKNN Electro-optic Waveguides Ba2NaNb5O15 BNN Electro-optic Waveguides Source: Nagoya University, Japan, reported in Ceramic Bulletin

Leading producers of SAW components are Fujitsu, Murata and Matsushita of Japan

and EPCOS of Germany. EPCOS sources LNB crystals from its subsidiary, Crystal

Technology in Palo Alto, California, which is believed to be the world’s largest producer.


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11.3 Other uses for niobium chemicals

Niobium may be used in catalysis in the form of a mixed bulk oxide, an oxide support, a

surface niobium oxide phase and as a niobium compound or organo-metallic complex.

CBMM supplies niobium oxides, niobium oxalate, niobium phosphate and niobic acid for

use in catalysts and catalyst research. Other niobium compounds whose catalytic

activity has been investigated include the dioxide, pentachloride, pentafluoride, hydride,

nitride, sulphide and carbide.

Table 96: Catalytic applications of niobium compounds and complexes

Compound/complex Catalytic application

NbCl5 polymerisation, trimerisation, alkylation, chlorination

NbF5 isomerisation, reduction, fluorination, selective removal of sulphur compounds

NbH hydrogenationolysis, isomerisation

NbS2 hydrodesulphurisation, coal hydrogenation, alcohol dehydroxylation

NbN para-ortho hydrogen conversion

NbC dehydrogenation, cracking, hydrogen sulphide/carbon monoxide chemistry

NbO2, Nb2O5 trimerisation, alkylation

Nb organometallics polymerisation, dimerisation, isomerisation, dehydrogenation, alkylation,

metathesis, epoxidation Source: Catalytic applications of niobium , Niobium Products

Niobic acid (Nb2O5·nH2O) was developed by CBMM in the late 1980s. It is a solid

material produced by the polymerisation of niobium oxide and water. Niobic acid has

high acid-strength, despite its high water-content, exhibits high activity and selectivity,

and has high stability in hydration, hydrolysis and esterification processes in which water

molecules participate or are liberated. It also exhibits photochemical and

electrochemical activity. In 2005, niobic acid was used, for the first time and in Brazil, to

produce biodiesel as a by-product of palm-oil refining.

The versatile solid-state chemistry of niobium oxide permits the synthesis of novel mixed

metal oxide catalysts that are reported to be particularly effective as selective oxidation

catalysts. A molybdenum-bismuth-niobium catalyst system (Mo12Bi9Nb3Ox) has been

found to be effective in the oxidation of isobutylene to methacrolein, propylene to

acrolein, and ethane to ethylene.

Niobium oxide is also used commercially in preparing vanadium-antimony-phosphorus-

titanium mixed oxide catalysts for the selective oxidation of o-xylene to phthalic

anhydride and of durene to pyromellitic anhydride, and for the ammoxidation of aromatic

methyl groups.

As an oxide support, niobium oxide promotes the catalytic effect of other metals such as

ruthenium and rhodium in the production of synthetic fuels and chemicals from carbon

monoxide and hydrogen, enhancing both activity and selectivity. Compared with silica

and alumina supports, niobium oxide increases the selectivity of carbon monoxide

hydrogenation reactions.


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Eastman Chemical, Bechtel, and Research Triangle Institute have undertaken work to

develop a three-step syngas-based method for producing methyl acrylate (MMA). In the

process, propionic acid is produced from ethylene and syngas, using a Mo-based

catalyst. This acid is then reacted with formaldehyde to produce MMA. This stage

utilises a silica supported niobium-based bifunctional catalyst.

Standard processes for the production of MMA use cyanohydrin and concentrated

sulphuric acid. This is a potentially hazardous operation.

Table 97: Applications for surface niobium oxide phases in catalysis

Carrier Catalyst Applications

Silica Nb2O5/SiO2 olefin metathesis

Nb2O5/SiO2 olefin dimerisation

Nb2O5/SiO2 olefin isomerisation

Nb2O5/SiO2 synthesis of methyl methacrylate

NbMxOy/SiO2 olefin isomerisation

NbMxOy/SiO2 (M=halide) alkylation

NbMxOy/SiO2 (M=Rh,Ni,Ru,Fe,…) hydrogenation of carbon monoxide to

synthetic fuels and chemicals

Alumina Nb2O5/Al2O5 light gas oil cracking

Nb2O5/Al2O5 hydrocarbon isomerisation

Nb2O5/Al2O5 acetylene trimerisation to benzene

M/Nb2O5/Al2O5 (M=Rh,Ni,Ru,…) hydrogenation of carbon monoxide to

synthetic fuels and chemicals

Pt-Ir-Cl/Nb2O5/Al2O5 dehydrocyclisation of n-heptane to toluene

Ru-Pd/Nb2O5/Al2O5 reduction of nitrogen oxides in automobile

exhausts

Cr2O3/Nb2O5/Al2O5 dehydrocyclisation of paraffins

Titania Nb2O5/TiO2 hydrogen sulphide and carbon monoxide to

CH3SH and CH3SCH3

V2O5/Nb2O5/TiO2 reduction of nitrogen oxides from stationary

sources

M/Nb2O5/TiO2 (M=Ru,Fe,…) hydrogenation of carbon monoxide to

synthetic fuels and chemicals Source: Catalytic applications of niobium, Niobium Products

When deposited as a dispersed surface phase on alumina, titania or silica catalyst

supports, niobium oxide has a pronounced effect on their physical and chemical

properties, particularly thermal stability and the formation of the Brønsted acid sites

required for hydrocarbon conversion reactions and pollution control catalysts. Many

possible applications for such catalysts have been identified; a potentially important one

is the use of surface niobium oxide phases in the titania-supported vanadium pentoxide

catalysts used for the selective reduction of nitrogen oxides. The use of niobium

enables the catalysts to be effective at lower (<300C) temperatures, suppresses the

undesirable oxidation of sulphur dioxide, and improves resistance to the thermal and

mechanical stresses encountered during operation and catalyst regeneration.


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Cemented carbides are powder metallurgy products consisting of a carbide of a Group

IVB to VIB metal (such as tantalum or niobium) in a metal matrix (usually cobalt or

nickel). They are used for tools and other parts that require good toughness, shock

resistance and corrosion resistance. Applications include tool bits, drill bits, shovel

teeth, turbine blades and dies in high-pressure industrial processes.

Pure niobium carbide is prepared by the high-temperature (1,600-1,800C) carburisation

of niobium oxide with carbon black, in a hydrogen atmosphere or under vacuum. The

resultant powder is then sintered with a binder phase such as cobalt or nickel to produce

a cemented carbide tool insert (or tip). Commercial niobium carbide powders generally

contain 87% niobium and 13% carbon. Mixed tantalum-niobium carbides may be

prepared by a similar process using finely ground tantalum-niobium concentrates. The

resultant crude carbides are leached with hydrochloric and nitric acids to remove iron

and manganese and leave mixed carbides of niobium, tantalum and titanium. These

may be dissolved in hot hydrofluoric and nitric acid mixtures for further separation.

Table 98: Basic physical properties of selected carbides

Condition Carbide/matrix Hardness (Vickers) Melting point (C)

Pure carbides Tantalum TaC 1,800 3,067

Niobium NbC 2,400 3,420

Titanium TiC 2,500 3,928

Vanadium VC 2,800 2,648

Tungsten W2C

WC

3,000

2,400

3,600

3,983

Chromium Cr3C2

Cr25C6

1,300

1,300

2,760

…

Complex carbides M6C 1,000-1,650 …

MC 1,800-2,200 …

Matrix Ferrite 200 …

Pearlite 350 …

Tempered martensite 4,500 … Source: Journal of Metals

A significant proportion of the niobium consumed in cemented carbide tool inserts,

particularly in western Europe, derives from tantalum-niobium oxide concentrates whose

niobium content is never, or never accurately, recorded in niobium production statistics.

The market for commercial niobium oxides in this end-use is thought to be larger in the

USA and Japan.

There has been interest in substituting tantalum carbide with mixed tantalum-niobium

carbides, largely because of the large price differential and the recurrence of shortages

and price spikes that characterise the tantalum market. Niobium carbide has similar

properties to tantalum carbide and the tantalum:niobium ratio in mixed carbides can be

readily varied. In addition, as tantalum and niobium are chemically very similar and

hence require many stages of solvent extraction to separate, it is more cost effective to

produce a mixed carbide where the relative content of both elements is within an

acceptable range.


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There is a very wide variety of opinion as to the percentage of niobium that can be

added to tantalum carbide before the strength of the tool insert is reduced below

acceptable levels, and industry practice varies significantly between different countries.

These differences appear to mirror, and may in part be a consequence of, the different

production routes for mixed carbides noted above.

Various other approaches to reducing tantalum consumption in tool inserts have been

investigated, including: the use of hafnium carbides, mixed hafnium-niobium carbides,

quaternary W-Ti-Nb-Zr carbides, titanium carbides and aluminium oxide; the use of

tantalum carbide, titanium nitride and aluminium oxide coatings; the redesign of

components to reduce the weight of the inserts; improved production processes; and

increased scrap recycling.

Although niobium carbide is increasingly used as a cheaper alternative to tantalum

carbide, or combined with tantalum carbide to create mixed carbides, this is a small

application for niobium. Cemented carbide manufacture accounts for at most a few

hundred tonnes of niobium oxide each year. In addition, the long-term prospects for

growth in niobium carbide demand remain modest. The cutting tool sector as a whole is

expected to show only slight growth in the future. The increased recycling of used tools

will offset much of that growth and manufacturers’ requirements for niobium carbide will,

at best, remain at previously seen levels.


Roskill


12. Niobium prices


The principal niobium mineral produced is pyrochlore. That mineral is not exported by

the major producers in Brazil and Canada, although very small tonnages are thought to

be supplied from elsewhere, and there is no quoted market price for it. Other minerals

containing varying proportions of niobium and tantalum form the basis of most trade in

niobium concentrates and are the basis for a high proportion of downstream processing

to niobium for non-steel applications.

According to the T.I.C., Columbite concentrates made available for sale should ideally

contain a minimum of 50% Nb2O5 and should contain less than 0.13% ThO2 and less

than 0.048% U3O8 (or less than 0.25% ThO2 if no U3O8 is present, or less than 0.095%

U3O8 if no ThO2 is present). The value is based on the Nb2O5 + Ta2O5 content payable

as Nb2O5; the Ta2O5 content is not paid a higher rate, although it is much more valuable

and very probably being recovered by many of the processors that purchase the

concentrates.

If material contains Ta2O5 equal to or greater than the Nb2O5 content, then it would be

sold as tantalite and should contain a minimum of 30% Ta2O5 and the same limit for

ThO2 and U3O8 as for columbite. The payable value is based on the Ta2O5 content

alone, any Nb2O5 is generally ignored, even if some processors are probably recovering

the niobium.

Despite their close physical association, niobium and tantalum concentrates have little in

common when it comes to prices. The market price for niobium concentrates grew

strongly during 2008, to more than US$40/kg Nb2O5, before falling to less than

US$16/kg by mid-2009, in line with the global economic crisis (Table 99). Prices

recovered to nearly US$50/kg during much of 2011 and 2012 but had slipped back

below US$40/kg by the end of 2012. The first quarter of 2013 saw prices firming to

nearly US$42/kg.

Tantalum concentrate prices, however, were weak during 2008 and fell noticeably during

2009 before rallying in 2010 and peaking in mid-2011 and then dropping sharply through

mid-2012. Unlike niobium prices, tantalum prices rose during the latter part of 2012

before easing slightly in the first quarter of 2013.


Roskill


Table 99: China: Average quarter-end prices of niobium1 and tantalum2 concentrates,

2008 to 2013 (US$/kg contained oxide)

Nominal (current) prices Real (inflation adjusted) prices

Nb concentrate Ta concentrate Nb concentrate Ta concentrate

Mar-08 25.90 101.41 27.58 107.99

Jun-08 31.97 95.90 33.86 101.57

Sep-08 40.23 92.59 42.38 97.54

Dec-08 34.46 97.00 36.10 101.63

Mar-09 22.33 97.00 23.35 101.40

Jun-09 15.98 81.57 16.67 85.08

Sep-09 20.24 72.75 21.06 75.71

Dec-09 20.61 75.13 21.40 78.00

Mar-10 20.79 96.50 21.53 99.95

Jun-10 27.62 121.35 28.54 125.39

Sep-10 38.58 156.13 39.77 160.95

Dec-10 36.97 221.15 38.02 227.42

Mar-11 35.27 258.43 36.18 265.04

Jun-11 44.09 283.56 45.10 290.02

Sep-11 49.45 278.09 50.44 283.66

Dec-11 49.41 221.37 50.26 225.18

Mar-12 49.60 213.85 50.29 216.79

Jun-12 48.50 219.14 49.00 221.40

Sep-12 48.50 238.52 48.83 240.15

Dec-12 39.68 273.37 39.82 274.31

Mar-13 41.89 259.04 41.89 259.04 Source: Asian Metal Notes: 1-Niobium Conc. = Nb2O5 50% min., Ta2O5 5% min., CIF China

2-Tantalum conc. = Ta2O5 30%, CIF China Prices adjusted for inflation using US GDP deflator data from the IMF World Economic Outlook database. March 2013 has been used as the base month.

12.2 Ferroniobium

Most ferroniobium is sold under long-term contracts between producers and consumers.

Perhaps only 5% of total production is sold via the spot market. Contract prices are not

disclosed but the trends can be seen from average import values.

Ferroniobium prices are not demand-driven. They are largely determined by CBMM and

followed by other producers. This ability to influence and maintain pricing levels derives

from:

CBMM’s dominant position in the market

The apparent willingness of Niobec and Anglo American Brasil to let CBMM lead

The overwhelming technical advantages offered by the use of niobium

Minimal opportunity for substitution of niobium by other alloying elements

Niobium’s very small contribution to overall steel production cost.


Roskill


Ferroniobium prices are historically stable, as shown by US import data, which has been

converted from FeNb to contained Nb using a typical Nb content of 66% (Figure 27).

The trend in US prices is mirrored by that for western Europe and Japan.

The price of ferroniobium was almost unchanged in current terms for many years and

thus falling in real terms. CBMM’s strategy of growing the ferroniobium market over

years has been based to a very large extent on promoting the technical benefits of

niobium and, in particular, the added value.

Figure 27: USA: Average annual value of ferroniobium imports,

1990 to 2012 (US$1/kg Nb)

0

5

10

15

20

25

30

35

40

45

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012

Source: US International Trade Commission Note: 1-Constant 2012 dollars.

CBMM’s strategy has been highly successful and in the mid-2000s the company

substantially increased its production capacity to ensure continuity of supply. It has

recently done so again and further expansion in planned.

Between 2006 and 2008, CBMM doubled the price of ferroniobium. At first, the

movement appeared to be a spike but it later became clear that it was a permanent

increase to address what appears to have been structural under-valuing of niobium. Up

to that point, the strong growth in demand for ferroniobium had not been reflected in its

price.

Stability returned at the higher price level and subsequent increases have been modest

(Figure 28). Overall, the price of ferroniobium is demand-inelastic. The global economic

downturn in 2009 caused demand for ferroniobium to fall sharply. That had minimal

effect on prices, however (Figure 29).


Roskill


Underlying prices for ferroniobium will very likely continue to rise gently, with no sharp

fluctuations.

Figure 28: USA: Average monthly value of ferroniobium imports,

2009 to 2013 (US$1/kg Nb)

0

5

10

15

20

25

30

35

40

45

50

Jan-0

9

Ma

r-0

9

Ma

y-09

Jul-0

9

Sep

-09

Nov-0

9

Jan-1

0

Ma

r-1

0

Ma

y-10

Jul-1

0

Sep

-10

Nov-1

0

Jan-1

1

Ma

r-1

1

Ma

y-11

Jul-1

1

Sep

-11

Nov-1

1

Jan-1

2

Ma

r-1

2

Ma

y-12

Jul-1

2

Sep

-12

Nov-1

2

Jan-1

3

Source: US International Trade Commission Note: 1-Constant March 2013 dollars.


Roskill


Figure 29: US average annual value of ferroniobium imports and Brazilian exports of

ferroniobium, 2005 to 2012

0

5

10

15

20

25

30

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

2005 2006 2007 2008 2009 2010 2011 2012

US

$/k

g F

eN

b

t Fe

Nb

Brazil exports US import value

Sources: US International Trade Commission; Global Trade Atlas

12.3 Other niobium products

Niobium oxide (Nb2O5) is the most important commercial form of niobium after

ferroniobium, although it is consumed in much smaller amounts. It is usually termed

high-purity niobium oxide to distinguish it from niobium ores and concentrates, which are

impure mixtures of niobium and tantalum oxides but which are typically described in

terms of the Nb2O5 and Ta2O5 content.

Niobium oxide contains 69.9% Nb, compared to 66% (typical) for ferroniobium. It is

available in several grades. CBMM supplies:

standard high-purity niobium oxide (99% Nb2O5) for use in ceramics, catalysts,

carbides and some forms of niobium metal and alloys

filter cake (99% Nb2O5) for use in catalysts and ceramics

special-purity (99.7% Nb2O5) for use in high-purity niobium metal and alloys,

glass and optoelectronics.

Market prices for niobium oxide grew from mid-2009 before peaking and stabilising at

the end of 2011. A fall was seen at the end of 2012 and there was little change in the

first quarter of 2013.


Roskill


Table 100: China: Average quarter-end prices for niobium oxide, 2009 to 2013

(99.5% min. fob China, US$/kg)

Nominal (current) prices Real (inflation-adjusted) prices

Jun-09 30.33 31.63

Sep-09 33.00 34.34

Dec-09 33.00 34.26

Mar-10 34.69 35.93

Jun-10 40.05 41.38

Sep-10 45.50 46.90

Dec-10 46.50 47.82

Mar-11 46.89 48.09

Jun-11 54.50 55.74

Sep-11 58.83 60.01

Dec-11 64.50 65.61

Mar-12 63.24 64.11

Jun-12 63.50 64.15

Sep-12 63.50 63.94

Dec-12 53.50 53.68

Mar-13 53.50 53.50 Source: Asian Metal Note: Prices adjusted for inflation using US GDP deflator data from the IMF World Economic Outlook database.

March 2013 has been used as the base month.

There is little information on worked or unworked niobium metal or scrap prices in the

industry press and information on international trade is not published by most countries.

Because of the multiplicity of product forms and grades/purities, detailed time-series

analysis of available data is of little practical value.

12.4 Price forecasts to 2017

The price forecast for ferroniobium takes into account a number of factors, including:

historical stability in niobium prices

the sharp producer-implemented rise in prices during the second half of the

2000s

a return to stability

serious downturn in the global economy in 2009

an evident demand inelasticity in prices.

The forecast is based on the average annual CIF value of imports into the USA and the

monthly variations in the average value since the start of 2009 (which is when the new

benchmark level is considered to have been established).

The US average value is conservatively forecast to increase from the 2012 level of

US$42.91/kg Nb (Table 101) to US$49.74 in 2017, representing a growth rate of 3%py.

Average values in western Europe, Japan and China differ from those in the USA,

mainly because of variations in exchange rate movements (CBMM has historically priced


Roskill


its exports using the Real), but since 2007 have been on aggregate within a few per cent

of the US average and are expected to increase at the same rate.

Table 101: USA, Germany, Japan and China: Year-end average CIF import value of

ferroniobium, 2012 and forecast to 2017 (US$/kg Nb, nominal prices)

USA Germany Japan China

2012 42.91 39.85 42.00 39.28

2013 44.20 41.05 43.26 40.46

2014 45.52 42.28 44.56 41.67

2015 46.89 43.55 45.89 42.92

2016 48.30 44.85 47.27 44.21

2017 49.74 46.20 48.69 45.54 Source: Roskill

Over the period 2009-2012, the average import value of niobium oxide in to the USA

was 1.05-1.47 times the value of ferroniobium on a contained Nb basis. It is forecast

that niobium oxide will be priced at an average of 1.3 times that of ferroniobium, on a

contained Nb basis.


Roskill


13. Niobium outlook to 2017

13.1 Outlook for world niobium supply

The supply outlook analysis is based on the company profiles contained in Section 5.

13.1.1 Niobium minerals

The mineral pyrochlore accounts for the vast majority of the global supply of niobium.

The existing producers have abundant reserves. CBMM has reserves of weathered rock

sufficient to last for over 100 years, while Anglo American Brasil and Niobec can

maintain current production rates for 30-40 years. Very large pyrochlore resources exist

elsewhere in the world but they are not being exploited.

Other minerals make up a small part of overall niobium supply. The principal minerals

are columbite, which is normally sold as a concentrate containing at least 50% Nb2O5,

and columbite-tantalite (25-60% Nb2O5). These minerals are mostly produced by

artisanal methods and very little output data is available. Rough estimates can,

however, be made from the volumes of concentrates entering international trade.

Table 102 shows the reported global imports of tantalum and niobium concentrates from

selected countries. Some countries may be missing from the list and Chinese and

Russian domestic supply have not been included, nor has the FeNbTa alloy produced in

Brazil. In this analysis it is assumed that the concentrates from Brazil and Nigeria are

columbite, at 50% Nb2O5, and that the other material is columbite-tantalite, at 25%

Nb2O5. Using these assumptions, the countries shown contribute 1,500-2,500tpy of

Nb2O5 to global supply. If 60% Nb2O5 in columbite-tantalite is assumed, the total rises to

2,500-3,500tpy.

Artisanal production is flexible and can easily be tailored to meet market conditions.

Columbite is produced primarily for the niobium. Columbite-tantalite, on the other hand,

is largely produced for the tantalum and changes in demand for tantalum would impact

on the supply of niobium.


Roskill


Table 102: Reported imports of tantalum and niobium concentrates from selected

countries, 2007 to 2012 (t)

2007 2008 2009 2010 2011 2012

Brazil 607 584 560 515 1,167 2,098

Burundi - - 31 84 189 159

DRC 65 171 144 184 100 330

Ethiopia 123 96 299 242 445 269

India 62 42 13 15 533 33

Nigeria 1,705 1,250 1,343 1,617 1,678 2,145

Rwanda 2,026 2,366 3,165 2,168 1,455 1,267 Source: Global Trade Atlas

Together with artisanal production, there are numerous niobium projects in the pipeline

(in addition to the ferroniobium projects and expansions discussed below). Some are

based mainly on niobium, while in others niobium would be a co-product or by-product of

tantalum, rare earths or zirconium. Many of these projects will not reach

commercialisation in the foreseeable future. Of those that are at a reasonably advanced

stage of development, none looks highly likely to come into production before 2016.

If all the advanced projects with reported timelines came into production as planned,

approximately 14,500tpy Nb2O5 could be added to global supply from 2016. That could

rise to over 20,000tpy from 2017. There is another 12,000tpy of capacity with no

reported timeline. In total, therefore, there is the potential for over 30,000tpy of

additional Nb2O5 supply. That is a much greater amount than could be absorbed by the

non-steel niobium market and a substantial part of any new supply would have to be

aimed at the much larger ferroniobium market. A number of the advanced projects are

based on that premise.

13.1.2 Ferroniobium

In 2013, estimated global ferroniobium capacity stood at 88,900t Nb.

Anglo American Brasil 3,900t

CBMM 79,000t

Niobec 5,000t

Chinese producers 1,000t

Total 88,900t

In 2012, Anglo American, CBMM and Niobec produced/sold 53,000t (contained Nb) of

ferroniobium. Capacity utilisation was thus about 60%. All three companies have

expansion plans and another producer is expected to start up in 2015. By 2017, total

capacity will have increased by nearly 40% from the current level.


Roskill


Table 103: World: Forecast ferroniobium capacity, 2013 to 2017 (t contained Nb)

2013 2014 2015 2016 2017

Anglo American Brasil1 3,900 3,900 6,500 6,500 6,500

CBMM 79,000 79,000 99,000 99,000 99,000

Niobec 5,000 5,000 5,000 5,000 13,500

Globe Metals & Mining - - 3,000 3,000 3,000

China 1,000 1,000 1,000 1,000 1,000

Total 88,900 88,900 114,500 114,500 123,000 Source: Roskill Note: 1-Potentially 15,000tpy from 2017

13.1.3 Other niobium products

Other niobium products can be split into three broad categories: niobium chemicals;

niobium alloys and niobium metal. The chemicals category includes high-purity Nb2O5,

much of which is ultimately used in the production of alloys.

Figure 30 shows the total production capacity reported by CBMM and Molycorp Silmet

and estimates for the Chinese processors. It does not include other processors, such as

H.C. Starck and GAM Technology, for which there is no data. It also shows the

processors’ shipments reported by the T.I.C. for 2012, which was a record year.

Molycorp Silmet is believed to be the world’s largest producer of niobium metal and

CBMM is considering increasing its production capacity. In 2012, CBMM completed a

doubling of its Nb2O5 capacity to 10,000tpy.

Figure 30: Niobium chemicals, alloys and metal: Production capacity and processors’

shipments in 2012

0

2

4

6

8

10

12

14

Nb chemicals Nb alloys Nb metal

Capacity (000t) Shipments (000t Nb)

Sources: Section 5; T.I.C.


Roskill


13.2 Outlook for world niobium demand

13.2.1 Drivers and limiters of niobium demand

Global economic and market trends 13.2.1.1

Niobium is consumed largely as ferroniobium in the production of steels used in

structural, automotive and gas linepipe applications (mostly in HSLA steels but also in

ferritic stainless steels). In non-steel applications, it is consumed mostly in superalloys,

which are mainly used by the aerospace industry and for land-based gas turbines.

Trends in these end-use markets are all governed by overall economic trends and the

historical statistical correlations are very strong (Figure 31). Trend analysis thus relies

heavily on GDP data and forecasts produced by the IMF, EIU and other organisations.

The outlook for global steel production is of most importance. World steel production is

forecast to increase by 3.5%py between 2012 and 2020 (Table 104).

Figure 31: World: Correlation1 between crude steel production and ferroniobium

consumption, 2000 to 2012

600

700

800

900

1,000

1,100

1,200

1,300

1,400

1,500

1,600

20 25 30 35 40 45 50 55 60

Cru

de

ste

el

pro

du

cti

on

(M

t)

Ferroniobium consumption (000t Nb)

Sources: World Steel Association; Roskill Note: 1-r²=0.9387

The pattern of growth will differ considerably from region to region. Steel production in

North America, the EU and Japan is mature and will show only modest increase.


Roskill


Growth in output in China and India will ease from the very high rates seen in the 2000s

but will remain strong.

China, other parts of Asia and Russia currently have fairly low intensity of use of niobium

(Section 13.2.1.2). In these regions, there is considerable potential for increased use of

niobium.

Table 104: World: Crude steel production growth, 1990 to 2020f (%py)

China EU 27 Japan India Russia1

S. Korea USA Brazil World

1990-2000 6.7 0.1 -0.4 6.1 -9.4 0.5 1.2 3.1 3.2

2000-2010 17.6 -1.1 0.3 9.8 1.5 3.2 -2.2 1.7 5.4

2012-2020 4.3 1.8 0.1 5.5 3.2 6.6 2.2 0.7 3.5 Sources: World Steel Association; Roskill forecasts Note: 1-Russia 1990-and 1991 figures are those of the FSU.

Structural steels accounted for 45% of ferroniobium consumption in 2012 and future

growth in demand will be underpinned by the global performance of the construction

sector. While construction has slowed globally in response to the recession, investment

in infrastructure is expected to grow over the medium term, particularly in developing

countries such as China, increasing demand for niobium-containing building materials.

Oxford Economics forecasts suggest that both the Chinese and US construction sectors

will see growth over the 2012 to 2021 period (Figure 32).

Figure 32: USA and China: Forecast growth in construction, 2012 to 2021 (%py)

7.07.3

8.1 8.0

7.4

8.9

7.4

8.0

6.7

4.4

0

1

2

3

4

5

6

7

8

9

10

2012 2013 2014 2015 2016-2021

China USA

Source: Oxford Economics

The strongest construction spending growth is expected to be in China, followed by India

and Indonesia. Following earthquakes in 2011, reconstruction spending in Japan and

New Zealand will provide a temporary stimulus to construction spending in these

countries. In Latin America, the only other major growth area, Brazil and Panama are


Roskill


also expected to exhibit robust construction spending growth throughout the forecast

period.

By 2020, Asian construction spending is forecast to outstrip western European

spending, which is expected to account for 24% of global construction spending by

2020, compared to 35% in 2015 (Figure 33).

Figure 33: World: Forecast share of construction spending by region, 2015 and 2020

3524

25

17

31

46

10 13

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2015 2020

W. Europe N. America Asia/Pacific Other

Source: Davis Langdon (AECOM)

Some 23% of the ferroniobium consumed in 2012 was used in steels for automobiles.

Both HSLA and stainless steels are used in this market segment. Stainless steels are a

much smaller market for ferroniobium than are HSLA steels and made up about 6% of

ferroniobium consumption in 2012. Growth in world production of stainless steel is

expected to grow at a slower rate through 2017 than was the case during the 2000s.

Niobium is mostly consumed in ferritic stainless steels for automobile exhausts,

however. The use of these steels is well-established in this application and, as was

shown in Table 73, global production of automobiles is on a long-term growth trend.

Demand for niobium will also be driven by the increasing replacement of mild steels in

automobiles by HSLA and advanced high-strength steels (Figure 34).

Table 105: World: Forecast production of crude stainless steel by region,

2013 to 2017 (Mt, liquid steel basis)

China Other Asia Europe Americas Other Total

2013 14.7 8.9 8.1 2.6 0.5 34.6

2014 15.5 9.1 8.2 2.6 0.5 35.9

2015 16.8 9.3 8.3 2.7 0.5 37.6

2016 17.7 9.5 8.5 2.8 0.5 38.9

2017 18.4 9.7 8.6 2.8 0.5 40.0

CAGR (%) 3.0 1.0 0.9 1.4 2.3 2.2 Source: Roskill


Roskill


Figure 34: USA: Growth in consumption of advanced high-strength steels in

automobiles, 1995, 2005 and 2015 (%)

22

4740

78

41

10

12

50

0

20

40

60

80

100

120

1995 2005 2015

High-strength steels Mild steels Advanced high-strength steels

Source: US Steel

HSLA steels for natural gas linepipe are the third-largest application for ferroniobium

and accounted for 16% of global consumption in 2012. Over the long term, demand for

niobium in this market segment seems almost certain to continue growing, albeit at a

fairly steady and modest rate. The US Energy Information Administration reported that

world consumption of natural gas grew almost without interruption from 1980 to 2006,

with slight falls in only three years, and doubled over the period. By 2030, demand is

forecast to have increased by a further 50%-60%. The pattern of increase will vary, with

the more established industrial economies seeing annual rises of 0.5-1.5%, while

countries such as India and China are projected to experience growth of about 5-6% per

year.

The increase in demand for natural gas will result in higher demand for HSLA steel for

both new pipelines and refurbishment of existing infrastructure. This will require

significant quantities of HSLA steel. Growth in demand will primarily be driven by Asia

while much of the natural gas will be supplied by the CIS (notably Russia and

Azerbaijan), and the Middle East (particularly Iran). As a result, there is likely to be a

rise in construction activity, as pipelines are laid over vast distances to satisfy Asian

energy demands. In the short-term, a number of major inter-regional pipelines are

planned for construction (Table 106).


Roskill


Table 106: World: Major inter-regional gas pipeline projects

Name Delivery

Point

Capacity

(Bnm2)

Status Start date

Russia

Altai China 30 Planned 2015

Russia-Asia Pacific Korea 10 Planned 2015-2017

Nord Stream N.W. Europe 27.5 Under construction 2011

Nord Stream 2 N.W. Europe 27.5 Planned 2012

South Stream S.E. Europe 63 Planned 2015

Caspian/

Middle East

Nabucco S.E. Europe 26-31 Planned 2017

ITGI S.E. Europe 12 Planned 2017

TAP Italy 10+10 Planned 2017

IGAT 9 Europe 37 Planned 2020

Caspian

CAGP China 30+ Under construction 2012

CAGP expansion China 20+ Planned Post CAGP

TAPI Pakistan 30 Planned 2015

Middle

East/Turkey

IPI India 8 Planned 2015

Arab Gas Pipeline Middle

East/Turkey

10 Partially built …

Asia Pacific Myanmar-China China 12 Under construction 2013

Africa GALSI Europe 8 Planned 2015 Source: WEO Golden Age of Gas Report Note: Start dates are as reported by sponsors.

Outside the steel industry, the largest application for niobium is in superalloys that are

used mainly in aerospace and land-based gas turbines.

Over the coming five years, deliveries of both jet airplanes and engines are expected to

increase. As the world economy gradually recovers from the 2008/9 recession, airline

travel and, in turn, construction and spending in the airline sector are likely to show

strong growth.

For the seven-year period between 2013 and 2020 global deliveries of both jet airplanes

and engines will rise by around 2-3%py. Much of this growth is likely to be driven by the

on-going urbanisation in China, which will see an increase in income per-capita, which

will result in a rise in air travel traffic. Freight air travel is also likely to increase, with

Chinese freight to increase by around 6% per year over the next 20 years. Figure 35

and Figure 36 show the increases likely to be seen in air traffic and deliveries of both

airplanes and engines.


Roskill


Figure 35: World: Forecast jet airplane and engine deliveries, 2013 to 2020 (units)

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2013 2014 2015 2016 2017 2018 2019 2020

Engine deliveries Jet airplane deliveries (RHS)

Source: Airline Monitor

Figure 36: World and China: Forecast air travel demand, 2012 to 2032 (%py)

5.0

7.0

5.2

6.2

0

1

2

3

4

5

6

7

8

World China

Traffic growth Freight growth

Source: Boeing

Based on the outlook for demand growth in aerospace industry, consumption of

superalloys is likely to increase. For the eight years from 2012, superalloys consumption

in aerospace is expected to grow by around 1-2%py, with growth expected to be slightly

faster for the four-year period from 2016 to 2020, at 3%py (Figure 37).


Roskill


Figure 37: World: Aerospace raw material demand, 2012 to 2020 (000t)

0

100

200

300

400

500

600

700

2012 2013 2014 2015 2016 2017 2018 2019 2020

Aluminium alloys Steel alloys Titanium alloys Superalloys Composites Other

Source: ICF SH&E

Demand for non-aerospace superalloys is expected over the same time period to ease.

The gas turbine market is expected to peak in 2013/14, after which point production of

new units is likely to slow. Figure 38 below gives an indication of the future market for

gas turbines.

Figure 38: World: Gas turbine production, 2012 to 2020 (units)

1,000

1,050

1,100

1,150

1,200

1,250

2012 2013 2014 2015 2016 2017 2018 2019 2020

Sources: Roskill; Forecast International


Roskill


In other areas of application, the consumption of niobium tends to be fairly small and

often project-related, rather than driven by economic trends. Niobium alloys for

superconductors are a good example of this, as a single project can have a significant

but short-lived requirement for niobium.

Incidence and intensity of ferroniobium use 13.2.1.2

Ferroniobium is not used in all types of steel. The main application is in HSLA steels

used for gas linepipe (strength) and automotive/structural applications (strength and

weight reduction). It is also used in some of the 400-series stainless steels, particularly

for automobile exhausts. Linepipe was historically the principal application. Structural

applications are now the largest users of HSLA steels. As shown in Figure 14, the use of ferroniobium is geographically very variable. It is equally variable in terms of unit consumption across the range of steels in which it is used. The average consumption in HSLA steels is 0.05% (50g/t). Additions are much higher in the 400-series stainless steels, at 0.4-0.8%, although this is a much smaller market for niobium than HSLA steel. The average across all steels where niobium is used is reported as 0.2%. When making comparisons between countries, it is common practice to measure the intensity of use in terms of ferroniobium consumption (usually apparent consumption) against total crude steel production. The global average peaked at 63g/t in 2007 before falling sharply, to 44g/t in 2009, in line with the global economic crisis. Over the period 2010-2012 it was at about 55g/t (Figure 39).


Roskill


Figure 39: Selected countries: Estimated intensity of use of ferroniobium in crude

steel, 2007 to 2012 (g/t FeNb)1

0

20

40

60

80

100

120

140

160

2007 2008 2009 2010 2011 2012

USA Germany Russia World Japan China

Source: Roskill Note: 1-Based on international trade data and estimates of domestic consumption in Brazil, Canada and China.

There are very large variations either side of the world average. Based on international trade data and steel production statistics, the USA appears to have the highest intensity of use (although CBMM has reported a lower average than shown in Figure 39), followed by the EU, and Germany in particular. The slightly lower incidence of use in Japan is believed to be a result of the process technology used; rolling, rather than alloying, can be used to obtain the same results. China and Russia have unit consumptions that are significantly lower than average. There appears to be considerable potential for increased intensity of use in countries where it is low. As shown in Figure 40, the mature markets have ferroniobium intensities well-above the global average (South Korea’s intensity is similar to that of the major European markets other than Germany). There are, however, a number of countries with large steel industries but low intensity of niobium use. These countries have some of the highest forecast rates of growth in steel production and it is also likely that an increasing part of their steel production will be of higher-quality grades, such as HSLA.


Roskill


Figure 40: Selected countries: Comparison of crude steel production and estimated

intensity of use of ferroniobium, 2012

China

EU (27)

JapanIndia

Russia S. KoreaUSA

Brazil0

100

200

300

400

500

600

700

800

0 20 40 60 80 100 120 140

Cru

de

ste

el p

rod

uc

tio

n (

Mt)

g/t ferroniobium

Source: Roskill

Relative pricing and risks of substitution for ferroniobium 13.2.1.3

The principal use of ferroniobium is as a grain refiner in HSLA steels. It increases

strength and allows for less steel to be used. In gas linepipe, ferroniobium is critical to

the production of the higher-end grades. In automobile uses, the higher strength allows

for weight reduction, which provides for greater fuel economy and lower emissions. In

structures, such as bridges, the smaller tonnage of high-strength steel required,

compared to carbon steel, results in considerable cost savings.

As indicated earlier, ferroniobium is added to steel in extremely small amounts. It is thus

a very minor component of overall steel production cost and the higher cost to final

consumers of using HSLA steels is more than offset by the reduction in total steel

volumes required. Other metals also act as grain refiners in HSLA steels. The main competitor to ferroniobium is ferrovanadium, which is actually preferred in some cases. For example, ferrovanadium is used in concrete reinforcing bar because it confers better casting and rolling characteristics than does ferroniobium.

Ferroniobium is not used in all steels but where it is used its inherent technical

advantages make substitution unlikely in most cases. Possibly only 5% of the steel

made using ferroniobium could be made using ferrovanadium. In some applications,

such as high-pressure pipeline steels, no amount of ferrovanadium can provide the

degree of grain refinement afforded by ferroniobium.


Roskill


The risk of large-scale substitution for ferroniobium by ferrovanadium is slim. Unlike

ferroniobium, ferrovanadium has volatile pricing (Figure 41). Ferrovanadium is currently

somewhat lower-priced than ferroniobium but, as its unit consumption is typically

multiples that of ferroniobium, it remains much more expensive in terms of cost per

tonne of steel.

Figure 41: Comparison of ferroniobium and ferrovanadium prices, 2000 to 2012

(US$/kg contained metal)

0

10

20

30

40

50

60

70

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

FeNb FeV

Source: Global Trade Atlas Note: FeNb is the average value of Brazilian exports and assumes a Nb content of 66%. FeV is the average value

of Chinese exports and assumes a V content of 75%.

McKinsey has estimated that in most cases the price of ferroniobium would have to be

several times higher than that of ferrovanadium for substitution to be attractive (Table

107).

Table 107: Potential for substitution of ferrovanadium for ferrovanadium

Typical grade (%)

High V alternative

Substitution price

Application Nb V Nb V P(Nb)/P(V)

Construction 0.04 - - 0.07 1.75

Automotive

Structural (HSLA) 0.06 - 0.04 0.04 2.00

Body (IF steel) 0.02 - - 0.08 4.00

Tool steel 0.08 0.03 - 0.40 5.00

Oil & Gas, shipbuilding 0.03 - - 0.20 5.67

Source: McKinsey

Ferrotitanium can be used in place of ferroniobium in interstitial steels for unexposed

automobile parts. The surface quality is poorer but that is of no importance because the

part is not visible.


Roskill


The main substitution risk comes from substitution by the steels that HSLA steels are

intended to replace. CBMM has reported that there is a current trend in China to use

lower-quality steels in place of HSLA steels, for example in structural applications. The

rationale behind this is that greater volumes of lower-quality steel are required. This

translates into greater manpower needs and fits the government policy of maintaining

full employment.

Stockpiles 13.2.1.4

There is currently no production of niobium in the USA. In the past, the US government

maintained a large stockpile. In 2000, the inventory amounted to 677t of niobium

concentrates, 230t of ferroniobium, 64t of niobium metal and 10t of niobium carbide.

Most of it was sold off by 2007. All that remains is about 10t of niobium metal.

Stockpiles could become a significant part of the market in future. The US government

now considers niobium to be a critical metal, as does the European Commission. The

Japan Oil, Gas and Metals National Corporation already maintains government-industry

stockpiles. Niobium is being considered for inclusion. The government of South Korea

now includes niobium in its inventory of stockpiled materials.

13.3 World niobium demand forecast

13.3.1 Ferroniobium

World consumption of ferroniobium in 2012 was about 53,500t (contained niobium).

In assessing future demand for ferroniobium, considerable reliance must be placed on

forecasts for growth in overall steel production, which are geographically very variable

(Table 104). Account must also be taken of the intensity of use of ferroniobium. The

global average intensity is about 55g of ferroniobium per tonne of crude steel. As was

demonstrated in Section 13.2.1.2, some countries have intensities far higher than that.

Equally, there are a number of countries that are major steelmakers, have high forecast

rates of growth and yet currently have intensities well below average. It is anticipated

that these countries will steadily move to the production of higher-quality steels, such as

HSLA, and will thus consume more ferroniobium in future.

Figure 42 shows the forecast growth in global ferroniobium demand to 2017 under two

scenarios. In the stable intensity scenario, the country-by-country intensities remain

constant at their estimated 2012 levels. This scenario predicts that world demand for

ferroniobium will reach 64,000t Nb in 2017 (CAGR 3.74%). This forecast is probably

conservative.


Roskill


An alternative (hypothetical) scenario considers the possibility of increased intensity of

use in China, India and Russia, which are major steelmakers but have low unit

consumptions of ferroniobium. It assumes that these three countries will see

incremental growth in intensity from 2013 and be at close to the 2012 global average by

2017. Under this scenario, the growth in demand for ferroniobium is forecast at

7.32%py.

Actual levels of ferroniobium consumption are likely to fall somewhere between the two

forecasts by the end of the forecast period.

Figure 42: World: Forecast demand for ferroniobium, 2012 to 2017 (000t Nb)

5456

5860

6264

57

62

66

71

76

0

10

20

30

40

50

60

70

80

2012 2013 2014 2015 2016 2017

Stable intensity scenario Intensity growth scenario

Source: Roskill

13.3.2 Other niobium products

The non-steel applications for niobium make up a much smaller part of the overall

demand for niobium than does ferroniobium and individual products are consumed in

quantities of a few hundred to a few thousand tonnes per year. This will not change.

Because the tonnages are fairly small, slight changes in consumption in any year can

translate into large percentage variations. Overall, however, consumption grew by a

CAGR of 6.8% between 2000 and 2012, when it reached a record 6,800t Nb.

Apart from a sharp drop in 2009, the demand for niobium has been on an uninterrupted

growth trend for the last decade. That is likely to continue and total demand should pass

the 10,000t level by 2017.


Roskill


Table 108: World: Forecast demand for niobium in non-steel applications,

2012 to 2017 (000t Nb)

Nb chemicals VG FeNb, NiNb Nb metal Nb alloys Total

2012 2.96 2.23 0.64 0.96 6.80

2013 3.21 2.38 0.67 1.10 7.35

2014 3.49 2.58 0.73 1.20 7.98

2015 3.78 2.80 0.79 1.30 8.66

2016 4.10 3.04 0.85 1.41 9.40

2017 4.45 3.30 0.93 1.53 10.20 Sources: T.I.C.; Roskill

13.4 Forecast niobium supply-demand balance

Figure 43 shows the forecast supply-demand balance for ferroniobium to 2017. It is

based on the anticipated increases to ferroniobium production capacity and the

expected growth in demand for ferroniobium (Sections 13.1.2 and 13.3.1).

There appears to be little risk of ferroniobium supply moving into deficit. Under the

stable intensity scenario, capacity utilisation will be in the range of 52-65% until 2017.

Even under the intensity growth scenario, it would be of the order of 58-69%.

In the case of other niobium products, the analysis contained in Section 13.1.3

indicates that there is also little risk of supply moving into deficit.

Figure 43: World: Forecast ferroniobium supply-demand balance,

2012 to 2017 (000t Nb)

0

20

40

60

80

100

120

140

2012 2013 2014 2015 2016 2017

Stable intensity scenario Intensity growth scenario Capacity

Source: Roskill

niobium market outlook to 2017

Documents

resources of niobium

niobium resources

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niobium processors

niobium reserves

niobium metal

niobium compounds

occurrence of niobium