57
3 Rare and Strategic Metals
Several reasons point towards a restriction in the supply of rare metals: exhaustion
of natural minerals; difficulty and/or cost of extraction and processing; dependence
due to the limited number of mines and their location; increase in demand due to
new technologies.
The pivotal question is whether the necessary mineral resources will be available in time and at an acceptable cost to meet the demand of both developed and
emerging countries. With this as a backdrop, the notion of “critical metals” began to
emerge a few years ago. A mineral is critical if it is both greatly used and subject to
strong potential for supply restriction. Based on these criteria, the data, information
and research required to attenuate potential restrictions in supplies of such a mineral
can be determined. Criticality also depends on the degree of difficulty in rapidly
finding substitutes.
For instance, platinum group metals and rare earths are fundamental for catalytic
converters in the automotive industry. To date, no viable replacement product exists
for these metals. Similarly, in response to an increase in demand for indium, used
in the manufacture of flat screens, the price per kilo of indium rose from around
US $ 100 in 2003 to US $ 980 in 2006.
Within this context, it is important to have good knowledge of data on the availability of these metals and to conduct research to fully understand natural concentration processes.
Factors Affecting Mineral Availability
In the medium and long term (over ten years), availability is related to five factors:
geological (does the resource exist?), technical (can the ore be extracted and processed?), environmental and social (can metals be produced in an ecologically and
socially acceptable manner?), political (how can governments influence availability
through their actions?) and economic (can metals be produced at a cost that users
are prepared to pay?).
Many existing and emerging technologies require minerals which are not available in western countries. Dependence on imports can expose a range of industries
to political and economic risks. To maintain economic growth, it is important to
be familiar with deposit types on a global scale, as well as the restriction potential
and the solutions to remedy this situation. In the short and medium term, major
restrictions in supply can occur, leading either to the unavailability of the mineral
or a rise in prices.
2010. The reasoning behind this decision is based on the desire to preserve
rare resources and the environment. Chinese mineral ores contain a total of
a few percent of rare earth oxides. This context further supports the need to
diversify supply. Rare earth extraction and processing prove to be very costly
and it may take two to ten years to open up new mines.
3 Rare and Strategic Metals
Several reasons point towards a restriction in the supply of rare metals: exhaustion
of natural minerals; difficulty and/or cost of extraction and processing; dependence
due to the limited number of mines and their location; increase in demand due to
new technologies.
The pivotal question is whether the necessary mineral resources will be available in time and at an acceptable cost to meet the demand of both developed and
emerging countries. With this as a backdrop, the notion of “critical metals” began to
emerge a few years ago. A mineral is critical if it is both greatly used and subject to
strong potential for supply restriction. Based on these criteria, the data, information
and research required to attenuate potential restrictions in supplies of such a mineral
can be determined. Criticality also depends on the degree of difficulty in rapidly
finding substitutes.
For instance, platinum group metals and rare earths are fundamental for catalytic
converters in the automotive industry. To date, no viable replacement product exists
for these metals. Similarly, in response to an increase in demand for indium, used
in the manufacture of flat screens, the price per kilo of indium rose from around
US $ 100 in 2003 to US $ 980 in 2006.
Within this context, it is important to have good knowledge of data on the availability of these metals and to conduct research to fully understand natural concentration processes.
Factors Affecting Mineral Availability
In the medium and long term (over ten years), availability is related to five factors:
geological (does the resource exist?), technical (can the ore be extracted and processed?), environmental and social (can metals be produced in an ecologically and
socially acceptable manner?), political (how can governments influence availability
through their actions?) and economic (can metals be produced at a cost that users
are prepared to pay?).
Many existing and emerging technologies require minerals which are not available in western countries. Dependence on imports can expose a range of industries
to political and economic risks. To maintain economic growth, it is important to
be familiar with deposit types on a global scale, as well as the restriction potential
and the solutions to remedy this situation. In the short and medium term, major
restrictions in supply can occur, leading either to the unavailability of the mineral
or a rise in prices.
2010. The reasoning behind this decision is based on the desire to preserve
rare resources and the environment. Chinese mineral ores contain a total of
a few percent of rare earth oxides. This context further supports the need to
diversify supply. Rare earth extraction and processing prove to be very costly
and it may take two to ten years to open up new mines.