Tantalum Metals Play Increasing Role in Electronics

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The following is an advisory from Industrialinfo.com (Industrial Information Resources, Inc.; Houston, Texas). Tantalum is at the cutting edge of material technology and demand for this metal is increasing. Due to improved metallurgical and manufacturing techniques used to produce mini-capacitors, tantalum metal is increasingly finding its way into virtually every electronic product built today. According to Roskill Information Services (London, England), demand for tantalum has grown by an average of 10% a year since 1992 and this trend is expected to continue for the next few years. Approximately 70% of worldwide tantalum consumption is used for the manufacturing of tantalum capacitors. A smaller percentage is used as an alloying metal for piping and vessels in the Chemical Processing Industry (CPI), mainly due to its high melting point and resistance to corrosion. Tantalum capacitors are found in electronic devices, such as; automobile electronics, cell phones, computers, and camcorders. Tantalum capacitors account for only 6% of the total capacitors consumed in the electronics industry; however, market share will increase as electronic component manufacturers continue to substitute tantalum for traditional metals such as aluminum, nickel, and other base metals, states Mary Asuagbor, Metals and Minerals Group International Research Specialist for Industrialinfo.com.

To meet market demand, the mining of tantalum ore (tantalite) has increased significantly over the past two years. Tantalum ore is mined, smelted into tantalum metal ingots, and processed into capacitor-grade powder that is used to make capacitors for the electronic industry. Australia accounts for approximately 70% of tantalum ore production, with the remaining 30% coming from Brazil's Companhia Industrial Fluminense, (Sao Joao del Rei, Brazil), Canada's Tantalum Mining Company (Bernic Lake, Manitoba Canada), China's Ningxia Orient Tantalum Industry Company Limited (Ningxia, China) and smaller properties in Bolivia, Russia, and Africa.

The world's leading tantalum producer, Sons of Gwalia (SOG) Limited (Perth, Australia) holds more than 50% of defined global tantalum reserves. The company mines 25% of all the tantalum produced worldwide at sites in Greenbushes and Wodgina, Australia. The company recently announced that it has hired JR Engineering (Perth, Australia) to provide engineering and construction services for an $80 million (USD) expansion to increase annual production at its Greenbushes and Wodgina Tantalum Mines from 1.2 million pounds to over of 2.3 million pounds per year. This expansion is scheduled to be complete by 1Q03. Also, Lynas Corporation Limited (West Perth, Australia) is conducting a bankable feasibility study for the $41 million (USD) Mount Weld Rare Earth and Tantalum Mine.