Vehicle electrification and the associated rise in lithium mining could drive an increase in tantalum (Ta) supply from outside central Africa, delegates heard today at the Tantalum-Niobium International Study Centre meeting in Rio De Janeiro.
Growing lithium demand from battery electric vehicles (EVs) could result in more production of tantalum as a by-product of hard rock lithium mining, Andrew Matheson, advisor to Ximei Resources, told delegates.
There are four lithium mines producing tantalum as a by-product — all in Australia — including Greenbushes, owned by Talison Lithium, Wodgina, owned by Mineral Resources, Pilangoora, owned by Pilbara Minerals and Mt Cattlin, owned by Allkem.
Tantalum by-product output from these mines this year could be as much as 400t of tantalum pentoxide, most of which is already under contract with major US tantalum consumer Global Advanced Metals.
But as lithium demand grows, more lithium mines are coming on line with the potential to produce tantalum as a by-product.
Chinese battery mineral producer Zhejiang Huayou Cobalt could produce as much as 200 t/yr of tantalum from its Arcadia mine in Zimbabwe, but the company is currently focused on lithium production and is not known to be producing tantalum, Matheson said.
There is also potential for China's Sinomine to produce tantalum as a by-product from its Bikita and Tanco lithium mines in Zimbabwe. Bikita could produce as much as 200 t/yr of tantalum as a by-product, but the potential tantalum resource of Tanco is unknown.
In Australia, Liontown Resources' under-construction Kathleen Valley lithium project could produce as much as 500 t/yr of tantalum as a by-product.
But despite the potential for increased tantalum supply, it is not guaranteed. Production faces some significant economic and operational obstacles.
Strong demand and high prices for lithium mean that many mining projects will prioritise the production of lithium. Indeed, Pilangoora has the potential to produce as much as 400 t/yr of tantalum but is thought to produce closer to 100-150 t/yr as the company prioritises lithium output.
Furthermore, the tantalum concentrate produced from these projects is often class 7 radioactive material, making it more difficult to transport and handle.
Argus today assessed tantalite prices slightly higher at $78-80/lb cif mainport, up from $76-78/lb on 7 September as firm demand from Chinese consumers lifted offers. Downstream demand for tantalum capacitor powders and other electronic components is low and has been sluggish through most of 2023, but buying in central Africa has ramped up over the past few weeks as smelters look to boost their inventories while prices are low.
