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.

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.

In general, the Ta2O5 content in ore can range from as little as 100 ppm. to as much as 1000 ppm..  Currently, most of the pyrochlore ore mined has an average grade in the 100 ppm. to 500 ppm. range which is similar to the grades 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.

Global economic recession has driven down demand in the electronics and aerospace markets, which makes up about three quarters of tantalum consumption.

Depressed prices in 2008 resulted in the suspension of a number of mines, including the world’s biggest producer, Talison’s Wodgina mine in Western Australia.  Noventa and Tanco suspended operations a few months later and global primary tantalum supply was cut by almost 50%.

Existing inventories (including the US Strategic Reserve of Ta), have been drawn down over the past 12 to 18 months and will continue to do so with primary production falling below consumption.  Metals industry research group, Roskill 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.”

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”.

Pricing and Outlook

Tantalum prices are current in the range of  US$40-$45/lb Ta₂O₅.  In terms of future tantalum pricing, Roskill’s view is as follows; “Roskill considers that when the tantalum market returns to long-term trends, in terms of demand and primary supply, and contract prices are once again the norm, those contract prices will be at least US$60/lb Ta2O5 and may well reach close to US$70/lb.   That level of pricing, Roskill believes, is needed to sustain a conventional primary tantalum industry.”