Issue link: http://resourceworld.uberflip.com/i/612354
d e c e m b e r / j a n u a r y 2 0 1 6 www.resourceworld.com 15 conductors, armaments, jet turbine blades. It is especially important in situations where metal fatigue must be avoided. The contract price for tantalum is cur- rently around $140/lb, compared to the spot market price of $85 to $100. The problem with Tantalum is that much of the world's supply comes from Central Africa, raising questions about how much of this material is being sold to fund conflict in that region. Leading producers include Global Advanced Metals, which has mining operations in Australia and down- stream operations in Japan and the United States. NIoBIuM Niobium is a strengthening agent that is used in steel production. The price has remained stable at around $25/lb on the spot market. Not a lot of companies are producing niobium and demand has been suppressed by slowing global GDP growth. As a result, the outlook depends on infra- structure spending in countries like China. Companhia Brasileira de Metalurgia e Mineração (CBMM) is the world's premier supplier of niobium and niobium technol- ogy. CBMMs Araxe Mine in Brazil accounts for 85% of the total market. Another significant producer is the Niobec Mine in Québec. Magris Resources, a private equity firm led by former Barrick Gold CEO Aaron Regent became the new offi- cial owner of Niobec in January 2015 after a group led by Magris agreed to acquire the mine from Iamgold for $530 million. Regent said the operation appealed to him because he sees strong market funda- mentals for niobium. The mine generates significant free cash flow. coBAlT Cobalt has a diverse range of important metallurgical and chemical uses, rang- ing from aircraft engines to rechargeable batteries. It is usually produced as a by- product of nickel and copper mining activities. The main reserves are found in the southern part of the Democratic Republic of Congo, an area which cur- rently holds half of the world's cobalt reserves. The balance is produced in Australia, Cuba, Zambia, New Caledonia, Canada and Russia, Madagascar and Brazil. China's share of global cobalt production has grown dramatically in recent years, contributing some 33,000 tonnes or 41% of global refined output. At $14.50/lb, cobalt has been trading well below the historic average of around $20 and is expected to remain at this level in the near future, said Mitchell Smith, head of corporate development at Global Energy Metals Corp. in Vancouver. But cobalt has been gaining attention along with other metals like lithium, graphite, nickel and vanadium that are used in the production of batteries. This is partly due to Tesla Motors Inc. and Panasonic Corp. building a Gigafactory, a large scale battery factory, in Nevada. It is expected to produce cells, modules, and packs for Tesla's electric vehicles and for the stationary storage market.