Shift in Global Tantalum Mine Production, 2000–2014
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Shift in Global Tantalum Mine Production, 2000–2014 Tantalum has a unique set of tantalum from mine production is econom- (defined as sharing a border with the properties that make it useful in a ically viable in only a few countries. DRC) (U.S. Securities and Exchange number of diverse applications. The Although developed countries Commission, 2012; Chasan, 2015; ability of the metal to store and release dominated tantalum mine production U.S. Department of State, 2015). electrical energy makes it ideally suited in the early 2000s, production today The DRC, Rwanda, and surrounding for use in certain types of capacitors is dominated by countries in the Great countries are not globally significant that are widely used in modern elec- Lakes Region of Africa (figs. 1 and 2). sources of tin, tungsten, or gold, tronics. Approximately 60 percent of There is concern that the sales of accounting for only about 2 percent global tantalum consumption is in the minerals, including columbite-tantalite or of the mined world supply for each of electronics industry (Papp, 2015). The “coltan,” a mineral from which tantalum these elements. The region has, however, ductility and corrosion resistance of the is derived, have helped finance rebel evolved to become the world’s largest metal lends itself to application in the groups accused of violating human rights producer of mined tantalum. chemical processing industry, and its high as part of the continuing armed conflict A further complication of the melting point and high strength reten- in the Democratic Republic of the Congo production of tantalum stems from the tion at elevated temperatures make it an (DRC) and neighboring countries. These opacity of the tantalum market. Unlike important component of super alloys used accusations have prompted the passage most base and precious metals, tantalum in aircraft engines (Global Advanced of legislation in the United States to concentrates are not publicly traded Metals Pty Ltd, 2010). curb the procurement of these mineral through commodities exchanges but As a major industrialized nation, the commodities, referred to as “conflict are bought and sold through networks United States is a leading consumer of minerals,” from the DRC. Specifically, of dealers and on contract between tantalum and tantalum-containing products. section 1502 of the 2010 Dodd-Frank producers and consumers, some of whom Domestic deposits typically are of low Wall Street Reform and Consumer may not provide accurate statistical grade, and no tantalum has been recovered Protection Act (Public Law 111–203, data concerning the amounts, origins, from mining activities in the United States 124 Stat. 2213–2218) requires companies and destination of the concentrates since 1959 (Wessel, 1961). Consequently, that source tantalum, tin, tungsten, and (Browning, 2015; Tantalum-Niobium the United States is nearly completely gold (3TG) to perform due diligence International Study Center [TIC], reliant on imports to meet its domestic on their supply chains to determine 2015). Some price data can be found in consumption of tantalum for economic and if the materials they use originate trade journals or in other publications; national security needs. The recovery of from the DRC or adjoining countries however, there are no recognized official A. 2000 B. 2014 Other African countries Other African Australia 7% countries 4% Rwanda 12% 12% Brazil 12% Bolivia <1% China 5% Democratic Republic of Australia the Congo 45% 9% Democratic Republic of Rwanda China 5% the Congo 50% 17% Brazil Canada 5% 17% Bolivia <1% Total=1,100 metric tons of tantalum Total=1,200 metric tons of tantalum contained in concentrates contained in concentrates Figure 1. Mine production of tantalum contained in concentrates, by country of origin, for 2000 (A ) and 2014 (B ). U.S. Department of the Interior Fact Sheet 2015 –3079 U.S. Geological Survey December 2015 set exchange prices for either concen- of knowledge. Data limitations prevent a 45 percent share of global produc- trate or tantalum metal. Because price is estimating the amounts of potentially tion, mostly from the Greenbushes and determined by negotiation between buyer recoverable tantalum contained in Wodgina Mines. Other leading producers and seller (TIC, 2015), published prices tantalum and tin concentrates that are in that year were Brazil (17 percent), for concentrate are probably not represen- produced annually in a number of Rwanda (12 percent), and the DRC tative of global prices paid for concentrate. countries including Malaysia, Russia, (9 percent) (figs. 1A, 2). Beginning in The development of a mine-to-market and Thailand. Most of this production is 2006, the Greenbushes Mine began to supply-chain analysis is complicated and a byproduct of the mining and smelting reduce production, and, by 2009, the difficult because many of the industry of cassiterite, an ore mineral for tin, Greenbushes and Wodgina Mines were participants that produce, trade, and and, to a much lesser extent, wolframite placed on care and maintenance, ending consume tantalum do not publish statis- and scheelite, ore minerals for tungsten. Australia’s position as the world’s leading tical information, contracts are long term Tantalum contained in slags from past producer of tantalum in concentrate. between miners and buyers, and much of smelting activities in Australia, Brazil, The estimated annual production of the industry is vertically integrated. Portugal, and several Asian countries also tantalum contained in tantalum and tin As a result of these and other is excluded from the estimates because concentrates in the DRC and Rwanda considerations, tantalum is considered of data limitations. The level of infor- was relatively modest for the period 2000 by many to be a “critical” commodity mation required to develop estimates of through 2006, averaging 101 t and 73 t, (National Research Council, 2007; undocumented tantalum production that respectively. Combined, the contribution of Erdmann and Graedel, 2011; Meinert, originated in conflict and some noncon- the two countries to tantalum-in-concentrate 2014; Geoscience Australia, 2015). This flict areas in Africa, South America, and production among the countries studied fact sheet identifies and addresses the some other locations was not available. averaged less than 15 percent during the major geographic shifts in the sources of Several major events during the 7-year period. In 2007, however, reported mine production of tantalum which have period 2000 to 2014 influenced mine production in the DRC increased to 320 t of occurred over the past 15 years, some of production (fig. 2). These events included tantalum in concentrate, nearly three times the factors that drove these shifts, and (1) the effects of rapid increases in the average of the previous years, and mine some of the related consequences. tantalum demand and consumption that production in Rwanda increased to 170 t One of the activities of the U.S. resulted in higher prices just prior to the of tantalum in concentrate (fig. 2). The Geological Survey National Minerals year 2000 during the “dot-com boom,” combined production from the 2 countries, Information Center (USGS–NMIC) followed by the bursting of the “dot-com which share a common border, represented is to analyze global supply chains and bubble” in 2000 that lingered into 2002; nearly 35 percent of the total estimated characterize major components of (2) the global recession in 2008–2009, mine production from the 15 countries mineral and material flows from ore which decreased demand for most studied. The increase in mine production extraction through processing to first mineral commodities; (3) regional armed from the two countries compensated to tier products. These analyses support conflicts in the Great Lakes Region of a large degree for the loss of production the core mission of the USGS–NMIC Africa, primarily the DRC and Rwanda, that resulted from the suspension of the as the Federal entity responsible for the through much of the period analyzed; higher-cost Australian mining operations collection, analysis, and dissemination of and (4) proposed and enacted legislative and from the termination of releases of objective, unbiased, factual information action in Europe and the United States tantalum materials from the U.S. National on minerals essential to the U.S. economy in response to issues related to conflict Defense Stockpile. and national security. minerals, such as implementation of the The increase in production in the Dodd-Frank Act in 2010. DRC and Rwanda and the decline in Global Tantalum Mine Production The data indicate that the total production in Australia were already amount of tantalum contained in tantalum underway prior to the global economic The estimated annual mine produc- and tin concentrates in the countries downturn in 2008–2009 and the drop tion of tantalum contained in tantalum studied averaged about 1,300 metric tons in tantalum prices. This was a time of and tin concentrates for 2000 –2014 is per year (t/yr) (expressed as tantalum reduced demand for electronics and shown in figure 2 for 15 countries. The contained in concentrate) for the period a drop in the price of tantalum. The USGS–NMIC analysis does not address 2000 to 2014. Tantalum derived from actions on the part of the Australian the amount of tantalum ultimately mining, the focus of this fact sheet, mining companies were reportedly recovered from these concentrates, which is a component of total supply, which taken in response