Tantalum

About Tantalum

Pure tantalum is a soft, ductile, grey-blue metal, characterized by high melting and boiling points and an exceptional resistance to chemical attack below 150°C.  It is practically inert to many oxidising and reducing acids, with the exception of sulphuric acid.

Tantalum usually occurs in combination with oxygen and one or more other metals, the oxides forming tantalates.

Uses of Tantalum

The principal user of Tantalum  is the electronics industry, which uses tantalum in the manufacture of capacitors and, to a lesser extent, sputtering targets. Combined, these two end uses accounted for about 60% of total tantalum consumption in 2008. 

Other applications, such as super alloys and cemented carbides, consume significant amounts of tantalum, but it is the electronics industry that has driven the long-term growth in consumption.

End Uses of Tantalum - 2008

The U.S.A. is the world’s largest consumer of tantalum and accounted for around a third of total demand in 2008.   That will probably change in the future as capacitor manufacture is transferred from locations such as the U.S.A. and Japan to China.  However, the USA will remain the major producer of super alloys containing tantalum.

Supply and Demand

Around 70% of the tantalum market is supplied by primary production from tantalum-bearing minerals such as peralkaline granites, syenites, metasomatites and nepheline syenites, which are the primary host Ta minerals that occur at Motzfeldt.

The remainder of the world tantalum supply is sourced from tin slags and reprocessed scrap material.  Most tantalum scrap, which makes up about 20% of supply, is generated during the manufacture of capacitors.

The global recession forced the closure of a number of tantalum producers including Talison’s world class Wodgina mine, the Tanco operations of Cabot and Noventa’s operations. These actions reduced the global supply by around 50%. Over the past 2-3 years inventories including the US strategic reserve have been unwound. As these supply options dry up it is expected that the tantalum market will fall into supply deficit. Further supply side pressure will be placed on tantalum as a result of the passing of the US Financial Stability Act.

Metals industry research group, Roskill (The Economics of Tantalum 2010) considers that “there is a risk, and a very real risk, of a tantalum supply shortfall, if the conventional primary tantalum supply chain is not re-established.”

The US Financial Stability Act was signed into law on 21 July 2010. This act includes measures to restrict the markets for "conflict tantalum" by requiring US companies to submit an annual report to the US Securities and Exchange Commission disclosing whether their products include tantalum, tungsten, tin and gold sourced from the Democratic Republic of Congo ("DRC") or adjoining countries. These producers are required to disclose their supply chain audit processes to demonstrate that these raw material inputs are sourced from conflict free parts of the DRC or adjoining countries.

The reporting regime will place strict obligations on the consumers of tantalum, (which include the major global electronics manufactures) to ensure that they can trace the source of supply and identify the point of origin to a reliable source.

The intent of the Financial Stability Act is to restrict markets for "conflict sourced minerals" from the DRC as much of the mining of conflict minerals is carried out by artisanal miners often in appalling slave labour type conditions and the proceeds used to fund conflict in the eastern DRC.

From a practical point of view it will be extremely difficult to verify that tantalum is being sources from legitimate sources in the DRC and many of the major companies, who have not already done so will opt to source tantalum away from the DRC and the surrounding countries.

Pricing and Outlook

Tantalite prices at December 2010 are in the range of US $80-$90/lb Ta2O5. Which is an increase of approximately 80% since the beginning of 2010. These increases are attributable to demand side pressure and reductions in supply from countries such as the DRC, which is thought to provide around 10% of world tantalite supply.

Roskill also suggest that “although demand for tantalum will return to what has for some years been a strong growth trend, it will probably take until 2012 for that to happen”.

Pure tantalum is a soft, ductile, grey-blue metal, characterized by high melting and boiling points and an exceptional resistance to chemical attack below 150°C.  It is practically inert to many oxidising and reducing acids, with the exception of sulphuric acid.

Tantalum usually occurs in combination with oxygen and one or more other metals, the oxides forming tantalates.

Uses of Tantalum

The principal user of Tantalum  is the electronics industry, which uses tantalum in the manufacture of capacitors and, to a lesser extent, sputtering targets. Combined, these two end uses accounted for about 60% of total tantalum consumption in 2008. 

Other applications, such as super alloys and cemented carbides, consume significant amounts of tantalum, but it is the electronics industry that has driven the long-term growth in consumption.

End Uses of Tantalum - 2008

The U.S.A. is the world’s largest consumer of tantalum and accounted for around a third of total demand in 2008.   That will probably change in the future as capacitor manufacture is transferred from locations such as the U.S.A. and Japan to China.  However, the USA will remain the major producer of super alloys containing tantalum.

Supply and Demand

Around 70% of the tantalum market is supplied by primary production from tantalum-bearing minerals such as peralkaline granites, syenites, metasomatites and nepheline syenites, which are the primary host Ta minerals that occur at Motzfeldt.

The remainder of the world tantalum supply is sourced from tin slags and reprocessed scrap material.  Most tantalum scrap, which makes up about 20% of supply, is generated during the manufacture of capacitors.

The global recession forced the closure of a number of tantalum producers including Talison’s world class Wodgina mine, the Tanco operations of Cabot and Noventa’s operations. These actions reduced the global supply by around 50%. Over the past 2-3 years inventories including the US strategic reserve have been unwound. As these supply options dry up it is expected that the tantalum market will fall into supply deficit. Further supply side pressure will be placed on tantalum as a result of the passing of the US Financial Stability Act.

Metals industry research group, Roskill (The Economics of Tantalum 2010) considers that “there is a risk, and a very real risk, of a tantalum supply shortfall, if the conventional primary tantalum supply chain is not re-established.”

The US Financial Stability Act was signed into law on 21 July 2010. This act includes measures to restrict the markets for "conflict tantalum" by requiring US companies to submit an annual report to the US Securities and Exchange Commission disclosing whether their products include tantalum, tungsten, tin and gold sourced from the Democratic Republic of Congo ("DRC") or adjoining countries. These producers are required to disclose their supply chain audit processes to demonstrate that these raw material inputs are sourced from conflict free parts of the DRC or adjoining countries.

The reporting regime will place strict obligations on the consumers of tantalum, (which include the major global electronics manufactures) to ensure that they can trace the source of supply and identify the point of origin to a reliable source.

The intent of the Financial Stability Act is to restrict markets for "conflict sourced minerals" from the DRC as much of the mining of conflict minerals is carried out by artisanal miners often in appalling slave labour type conditions and the proceeds used to fund conflict in the eastern DRC.

From a practical point of view it will be extremely difficult to verify that tantalum is being sources from legitimate sources in the DRC and many of the major companies, who have not already done so will opt to source tantalum away from the DRC and the surrounding countries.

Pricing and Outlook

Tantalite prices at December 2010 are in the range of US $80-$90/lb Ta2O5. Which is an increase of approximately 80% since the beginning of 2010. These increases are attributable to demand side pressure and reductions in supply from countries such as the DRC, which is thought to provide around 10% of world tantalite supply.

Roskill also suggest that “although demand for tantalum will return to what has for some years been a strong growth trend, it will probably take until 2012 for that to happen”.