Cobalt, Critical, Strategic and Rare Earth Minerals and Metals – Page 94

Rare-Earth Market – by Lee Simmons (Foreign Policy Magazine – July 12, 2016)

July 12, 2016

By monopolizing the mining of rare-earth metals, China could dictate the future of high-tech.

Most people have no idea what’s in an iPhone. Yttrium and praseodymium don’t exactly roll off the tongue, but they’re part of what make smartphones so small, powerful, and bright. These exotic materials are among the planet’s 17 rare-earth elements, and surprisingly, the soft, silvery metals are not at all rare.

But they’re found in tiny concentrations, all mixed together, and usually embedded in hard rock, which makes them difficult — and messy — to isolate. In China, which mines 89 percent of global output, toxic wastes from rare-earth facilities have poisoned water, ruined farmlands, and made people sick.

Beyond high-tech gadgets, rare earths play a critical role in national defense, enabling radar systems and guided missiles. Ironically, they also power clean-energy technologies, such as wind turbines and electric cars.

[Rare Earth Minerals] Lynas – Barbarians at its Gate? – by Christopher Ecclestone (InvestorIntel.com – June 13, 2016)

June 13, 2016

http://investorintel.com/

It’s easy in all the euphoria currently swirling in the Lithium to forget that Rare Earths and Lithium were mentioned in the same breath as “no-hopers” only a few years ago. The factors that made Lithium what is was also held true for Rare Earths.

Let’s look at it. Both bubbled to the surface as sexy new things in 2009-10. A lot of press ink was spilled and scores of new vehicles were created. As we have often sustained the appearance of REEs “saved” Lithium from a similar bubble to be burst. Lithium plays were probably around 30 in number (and only 20 of any real substance) when REEs burst on the scene and created 100/200/300 listed plays (depending on your calculations).

If REEs had NOT appeared then Lithium too would have been massively overpopulated. When it came down to it, there were two REE plays that got across the production line (Lynas and Molycorp) and only two new Lithium plays managed the same feat (Galaxy and Talison) and even in the case of Talison it was the reopening of an existing Lithium mine.

Niobium Mining – The First Step in Building a Fighter Jet (Palisade Global Investments – June 3, 2016)

June 6, 2016

https://www.equities.com/

In what was probably the least publicized bidding war in mining history, fifteen companies took part in the sale of Anglo American’s niobium and phosphates operations located in the states Goiás and São Paulo, in Brazil.

In a strategy to alleviate its $26 billion of net debt, Anglo American eventually sold its Brazilian niobium and phosphates businesses to the China Molybdenum Co. Ltd. for a staggering $1.5 billion. The sale was part of a plan to divest more than half of its operations to focus on more prolific projects, and analysts rejoiced as the $1.5 billion price tag was 50% more than the expected sales price.

The niobium and phosphate operations had always been Anglo’s more lucrative divisions, but was a small contributor to the overall bottom line. In aggregate, last year the operations generated $146 million in earnings before interest, taxes, depreciation and amortization (EBITDA), niobium contributing $40 million.

Appalachian Coal Ash Richest in Rare Earth Elements – by Ken Kingery (Duke University/Pratt School of Engineering – May 27, 2016)

May 30, 2016

https://pratt.duke.edu/about/news/

Concentrations are highest in coal from the Appalachian Mountains

A study of the content of rare earth elements in U.S. coal ashes shows that coal mined from the Appalachian Mountains could be the proverbial golden goose for hard-to-find materials critical to clean energy and other emerging technologies.

In the wake of a 2014 coal ash spill into North Carolina’s Dan River from a ruptured Duke Energy drainage pipe, the question of what to do with the nation’s aging retention ponds and future coal ash waste has been a highly contested topic.

One particularly entrepreneurial idea is to extract so-called “critical” rare earth elements such as neodymium, europium, terbium, dysprosium, yttrium and erbium from the burned coal. The Department of Energy has identified these globally scarce metals as a priority for their uses in clean energy and other emerging technologies. But exactly how much of these elements are contained in different sources of coal ash in the U.S. had never been explored.

China plays long game on cobalt and electric batteries – by Henry Sanderson (Financial Times – May 25, 2016)

May 25, 2016

https://next.ft.com/

Chinese company’s acquisition of Congo cobalt mine has repercussions for car industry

As China Molybdenum announced it was buying one of Africa’s largest copper mines earlier this month one thing was soon clear: the acquisition was about far more than the red metal.

The $2.65bn deal, the biggest private investment in the Democratic Republic of Congo’s history, is instead designed to secure China’s supplies of cobalt, a once niche raw material that is crucial to developing batteries for electric cars.

The purchase of the Tenke mine, which contains one of the world’s largest known deposits of copper and cobalt, shows how Chinese companies are now moving to take a dominant position in battery materials as the country prepares to shift its economy from heavily polluting industries.

CMOC’s investment in Tenke Fungurume and Kokkola is set to further increase China’s hold on global cobalt – by Edward Spencer (CRU Group.com – May 18, 2016)

May 19, 2016

http://www.crugroup.com/

Chinese companies have been seeking to diversify their portfolios for a number of years now, unafraid to invest large amounts in overseas and upstream operations. Last week China Molybdenum Co., Ltd. announced that its wholly-owned subsidiary CMOC Limited had entered into a definitive agreement with Freeport-McMoRan to acquire its 56% share of the Tenke Fungurume copper-cobalt mine in the DRC.

The US$2.65B acquisition is China Moly’s second major deal within two weeks, having agreed to buy Anglo American’s niobium and phosphates business on 28th April for US$1.5B.

While many have focused on the phosphate and copper components of these deals, much of the value of these assets lays in their minor metal associations – namely niobium and cobalt. On completion of the acquisitions CRU estimates that China Moly will be the world’s second largest producer of both ferroniobium and cobalt in addition to being the fourth largest producer of molybdenum.

Why Lithium Isn’t the Big Worry for Lithium-Ion Batteries – by Jason Deign (Green Teck Media.com – June 23, 2015)

May 19, 2016

http://www.greentechmedia.com/

Why Lithium Isn’t the Big Worry for Lithium-Ion Batteries – Cobalt and nickel bottlenecks are a much bigger threat.

Lithium-ion battery production is more likely to be constrained by cobalt or nickel supplies than by lithium availability, experts believe.

Li-ion battery makers use both metals in greater quantities than lithium, which has been the subject of significant supply concerns as battery production ramps up. In fact, none of these minerals are worryingly scarce in nature.

What troubles some observers, however, is that cobalt and nickel are susceptible to greater supply-chain risks because of the countries that control the resources.

The Commodity That No One Knows About But Everybody Wants to Buy – by Thomas Biesheuvel and Jesse Riseborough (Bloomberg News – May 18, 2016)

May 18, 2016

http://www.bloomberg.com/

The world’s mines and steel plants got so devalued during the commodity slump that some were just given away by owners struggling to cut losses or debt. But there’s at least one metal that’s been attracting a lot of attention.

Niobium — named for a Greek goddess who became a symbol of the tragic mourning mother — is used to produce stronger, lighter steel for industrial pipes and aircraft parts. It is mined in only three places on Earth, and the price of every kilogram is seven times higher than copper.

China Molybdenum Co. outmaneuvered at least 15 companies last month to purchase Anglo American Plc’s niobium and phosphate unit in Brazil, agreeing to pay $1.5 billion, or 50 percent more than the valuation by some analysts. The buying frenzy that included Vale SA, Apollo Global Management LLC and X2 Resources showcased the growing appeal of a market that may be worth $4 billion for a soft, silvery metal many experts don’t know much about.

More Chinese resource acquisitions on the way – by Lara Smith (Mineweb.com – May 17, 2016)

May 18, 2016

http://www.mineweb.com/

Lara Smith is the Founder and Managing Director of Core Consultants in June 2009. Core Consultants are committed to supplying high-quality commodity market research, analysis and valuations to global institutions.

China Molybdenum (CMOC) has long earned its reputation as a highly acquisitive company. In 2015, it made its intentions known that it would pump around $2bn into acquiring mining assets outside of China. Traditionally a molybdenum and tungsten producer, CMOC has targeted copper in recent years, paying $820m for Rio Tinto’s Northparkes copper mine in New South Wales in 2013 and bidding for Barrick’s Zadivar mine in 2015.

Earlier this year the company revealed that it had earmarked $4bn to acquire assets following its agreement to purchase Anglo’s Brazilian niobium and phosphate operations, which is regarded as a diversification from the more volatile metals market.

Cobalt: The Bass Player in the Tesla Band – by Peter Clausi (InvestorIntel.com – May 16, 2016)

May 17, 2016

http://investorintel.com/

Numbers are numbers and facts are facts: we make serious money when we figure out how those statistics could affect the future. For the past year, we’ve been haranguing about the global shortage of cobalt. We’re not alone in this. See John Petersen‘s series of beautifully analytical data-driven articles and Chris Ecclestone‘s thesis. The key facts you need to know:

1. roughly 97% of the world’s supply of cobalt is produced as a by-product of nickel or copper production. Fact;

2. the spot prices for copper and nickel have plummeted to and have stayed at levels that make many deposits uneconomic. Fact;

3. as a result of these economics, the owners of some of those copper and nickel mines are closing the mines, putting those mines on care and maintenance in a Hail Mary that someday the commodity price will recover enough to someday make these mines economic. Fact;

Mine Tales: U.S. Four Corners area was great producer of vanadium – by William Ascarza (Arizona Daily Star – May 16, 2016)

May 16, 2016

http://tucson.com/

William Ascarza is an archivist, historian and author of seven books available for purchase online and at select bookstores.

Principal vanadium production in Arizona has come from the Four Corners area in northeastern Arizona and Mammoth located in southeastern Arizona.

The Four Corners area is the far greater producer, having accounted for 90 percent of Arizona vanadium output from vanadium-uranium deposits in sandstone. The ore averages 1 percent or more of vanadium, making it enough to mine at a profit. Several notable locations include the Morrison Formation in the Carrizo Mountains, Chilchinbito areas and the Chinle Formation in the Monument Valley area of Apache and Navajo counties.

Considered a byproduct of uranium mining, vanadium is a metal element highly sought after because of its application as a strengthening agent for steel. It has also been used in nonferrous alloys and chemicals.

Here’s a Way Out of Our Rare-Earths Mess – by James Kennedy (Defense One.com – May 12, 2016)

May 13, 2016May 13, 2016

http://www.defenseone.com/

James Kennedy is president of ThREE Consulting, Thorium & Rare Earth Elements, Mining Minerals and Metals (ThREEM3). He is also a consultant to the U.S. government, financial, mining and energy industry on strategic issues related to rare earths and thorium within the U.S. regulatory environment. China controls substances so valuable that the Pentagon dares not act. It’s up to the Senate now.

The Pentagon recently received what amounts to a grade of F on its efforts to ensure that its suppliers can continue to obtain the rare-earth metals that make possible many of today’s advanced weapons and other technologies. After nearly two decades of Defense Department fecklessness, it’s up to lawmakers to act.

In stark terms, a Government Accountability Office report described how defense officials have failed to meet, and even to identify, their legal and national security obligations with regard to this “bedrock” national-security concern. Instead, defense officials have repeatedly given the all-clear signal to Congress and two administrations.

Tesla Battery Drive Lures China Molybdenum Into Cobalt – by Danielle Bochove (Bloomberg News – May 9, 2016)

May 10, 2016

http://www.bloomberg.com/

China Molybdenum Co. is the latest company to bet on the future of electric cars with its plans to acquire cobalt assets in the Democratic Republic of Congo.

On Monday, Freeport-McMoRan Inc. agreed to sell its controlling stake in the Tenke Fungurume copper-cobalt mine to CMOC, as the Luoyang, China-based company is known, for $2.65 billion. CMOC is also negotiating to buy Freeport’s interests in other cobalt assets.

The deal marks the Chinese company’s entry into cobalt, one of the specialty metals used in rechargeable batteries. The battery market is expanding as more consumers turn to electric cars made by companies such as Tesla Motors Inc. and look to store renewable energy to power appliances when there’s little wind or sunshine.

Lithium-ion Batteries – The Cobalt Cliff Is Upon Us – by John Peterson (InvestorIntel.com – April 8, 2016)

April 8, 2016

http://investorintel.com/

I had a very enlightening conversation on Wednesday morning with the experts at Darton Commodities Limited, a U.K.-based metals trader that specializes in cobalt and serves as an intermediary between cobalt producers and European users. A couple days before the call, Darton sent me a copy of their 42 page “2015-2016 Cobalt Market Review.” It was one of the most impressive and data rich industry overviews I’ve ever seen.

Our wide ranging hour and a half conversation confirmed my developing thesis that cobalt is an immense supply chain risk that lithium-ion battery manufacturers and users have blithely dismissed in a headlong rush to build production capacity for markets that may not develop, or may develop more slowly than anyone anticipates. It left me more convinced than ever that my initial risk assessments were understated.

The Cobalt Cliff is upon us and there is no reasonable probability that the battery industry will have the muscle to outbid other essential industries that must have cobalt to make far more valuable products.

Plans move forward for rare earth elements mine on Labrador coast (CBC News Newfoundland and Labrador – March 14, 2016)

March 15, 2016

http://www.cbc.ca/news/canada/newfoundland-labrador/

Search Minerals, a mining and exploration company, is making plans for a rare earth elements mine on the southeast coast of Labrador.

The company, based in both British Columbia and Labrador, discovered the Port Hope Simpson Rare Earth Element District, a belt in the area about 70 kilometres long and up to eight kilometres wide.

are earth elements are used to make such things as batteries, electronics and magnets. Search Minerals president Greg Andrews said the company has received a preliminary economic assessment on its “Foxtrot” project, in the Fox Harbour area, to see if it’s economic to move into production.