It’s solely mined in Brazil and Canada, with three mines producing 90 % of the world’s niobium. There’s important potential for development in Canada, providing a possibility for traders to assist increase the supply of an in-demand mineral.
Provide chain resilience, plus the geopolitical stability and beneficial environmental and labour circumstances in Canada, make it interesting for the growth of niobium mining.
Niobium functions
The steel niobium is used primarily as an additive for numerous supplies together with steel alloys.
Its title is derived from the goddess Niobe, who’s the daughter of Tantalus. It’s so just like the aspect tantalum, named for Tantalus, that they have been as soon as regarded as the identical aspect.
Niobium is utilized in metal, stainless-steel, digicam lenses, chopping instruments, digital circuits, medical gear and generators. It has a spread of interesting properties. It may possibly make supplies stronger, it’s gentle transmitting, refractory and proof against corrosion. It may be fused to make an array of vivid colors, so it’s used to make hypoallergenic costume jewelry.
About 20 % of niobium used within the US helps make high-temperature superalloys for the transportation and manufacturing industries. It’s used within the Massive Hadron Collider in Switzerland, the place niobium-titanium magnets create the magnetic fields within the collider.
Demand for niobium is rising steadily. The 2024 market stands at 106.85 kilotonnes, and is predicted to extend to 171.49 kilotonnes by 2029, rising at 9.92 % CAGR.
World provide
“Exceptionally concentrated” has been a time period used to explain the provision chain for niobium. About 90 % of worldwide provide comes from simply three mines: two of them in Brazil and one in Canada. Given this dynamic, the provision chain resilience danger for niobium is thought-about very excessive.
Brazil is by far the largest producer of niobium on this planet, with 16 million tonnes of reserves; its two giant mines produce 66,000 tonnes, accounting for 88 % of world manufacturing. Canada is a distant second, with 1.6 million tonnes of reserves; its sole niobium mine produces 7,400 tonnes yearly, making it accountable for 9.9 % of world manufacturing. Different nations mine a minimal share of world totals.
The only real Canadian mine, the Niobec niobium mine, is situated in Central Québec, simply 200 kilometres from Québec Metropolis, and is owned by IAMGOLD (TSX:IMG,NYSE:IAG). The mine spans 1,735 hectares, has been in manufacturing since 1976 and consists of services for milling and changing.
Nationwide priorities
Each the US and Canada have earmarked an inventory of important minerals, niobium included, as being essential for financial growth.
The US Secretary of Power has included niobium on probably the most current important supplies and minerals checklist, which implies it is wanted within the nation’s transfer to inexperienced power. Demand is predicted to soar, and niobium’s inclusion on this checklist may open up alternatives for funding.
The Canadian Vital Minerals Technique considers niobium a precedence for financial growth underneath an inventory of uncommon earth components essential for export functions. Federal cash has been earmarked to assist supplies listed within the technique.
Canada’s potential
There are ample undeveloped niobium sources throughout Canada, together with in BC, Ontario and Québec.
Whereas niobium been present in a spread of smaller deposits throughout the nation, a few of the bigger discoveries make up Taskeko Mines’ (TSX:TKO,NYSEAMERICAN:TGB) Aley mission in Northeastern BC, which incorporates a deposit of 84 million tonnes. The corporate is endeavor environmental monitoring and product advertising and marketing initiatives. It’s pilot testing a converter and doing a scoping research for a manufacturing facility.
In July, Auking Mining (ASX:AKN) accomplished the acquisition of the Myoff Creek mission, which spans eight contiguous claims and is situated in resource-rich South-Central BC. The location has confirmed and potential niobium and uncommon earth oxides, and is near established infrastructure.
The acquisition indicators Auking’s newest foray into the uncommon earths and niobium house, which the corporate’s Managing Director Paul Williams mentioned is an “glorious alternative” to draw traders with robust curiosity in these metals. The corporate plans to start assessing potential drill websites on the property and to develop a drilling marketing campaign to judge the mission’s mineral potential.
James Bay, owned by NioBay Metals (TSXV:NBY,OTCQB:NBYCF), is a mission in Northern Ontario based mostly round a deposit found in 1966. The two,530 hectare website has indicated and inferred deposits of greater than 65 tonnes. The corporate has a safety settlement in place with the close by Moose Cree First Nation.
Prairie Lake, close to Terrace Bay, Ontario, is owned by Nuinsco Sources (CSE:NWI,OTC Pink:NWIFF); it incorporates 15.6 million tonnes indicated and 871.8 million tonnes inferred niobium, phosphate and uncommon earth oxides. The location is near inhabitants centres, ports and airports.
Investor takeaway
Demand for niobium worldwide is rising, with nations such because the US and Canada involved about provide chain stability.
Canada has beneficiant confirmed and suspected deposits, with elevated curiosity in niobium mining throughout the nation. It’s time for traders to look to the way forward for this under-the-radar steel as a very good funding alternative.
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