It’s solely mined in Brazil and Canada, with three mines producing 90 p.c of the world’s niobium. There’s vital potential for progress in Canada, providing a possibility for buyers to assist increase the supply of an in-demand mineral.
Provide chain resilience, plus the geopolitical stability and beneficial environmental and labour situations in Canada, make it interesting for the enlargement of niobium mining.
Niobium functions
The metallic niobium is used primarily as an additive for numerous supplies together with metallic alloys.
Its identify is derived from the goddess Niobe, who’s the daughter of Tantalus. It’s so much like the aspect tantalum, named for Tantalus, that they have been as soon as regarded as the identical aspect.
Niobium is used in steel, chrome steel, digicam lenses, slicing instruments, digital circuits, medical tools and generators. It has a variety of interesting properties. It might probably make supplies stronger, it’s gentle transmitting, refractory and immune to corrosion. It may be fused to make an array of brilliant colors, so it’s used to make hypoallergenic costume jewelry.
About 20 p.c of niobium used within the US helps make high-temperature superalloys for the transportation and manufacturing industries. It’s used within the Giant 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 p.c CAGR.
World provide
“Exceptionally concentrated” has been a time period used to explain the availability chain for niobium. About 90 p.c of worldwide provide comes from simply three mines: two of them in Brazil and one in Canada. Given this dynamic, the availability chain resilience danger for niobium is considered very high.
Brazil is by far the most important producer of niobium on this planet, with 16 million tonnes of reserves; its two massive mines produce 66,000 tonnes, accounting for 88 p.c 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 answerable for 9.9 p.c of world manufacturing. Different nations mine a minimal share of world totals.
The only Canadian mine, the Niobec niobium mine, is positioned 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 contains amenities for milling and changing.
Nationwide priorities
Each the US and Canada have earmarked an inventory of essential minerals, niobium included, as being necessary for financial improvement.
The US Secretary of Vitality has included niobium on probably the most recent critical materials and minerals list, which suggests it is wanted within the nation’s move to green energy. Demand is anticipated to soar, and niobium’s inclusion on this listing might open up opportunities for funding.
The Canadian Critical Minerals Strategy considers niobium a precedence for financial improvement underneath an inventory of uncommon earth parts necessary for export functions. Federal cash has been earmarked to help 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 variety of smaller deposits throughout the nation, among the bigger discoveries make up Taskeko Mines’ (TSX:TKO,NYSEAMERICAN:TGB) Aley venture in Northeastern BC, which encompasses a deposit of 84 million tonnes. The corporate is enterprise environmental monitoring and product advertising and marketing initiatives. It’s pilot testing a converter and doing a scoping examine for a manufacturing facility.
In July, Auking Mining (ASX:AKN) accomplished the acquisition of the Myoff Creek venture, which spans eight contiguous claims and is positioned 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 buyers 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 venture’s mineral potential.
James Bay, owned by NioBay Metals (TSXV:NBY,OTCQB:NBYCF), is a venture in Northern Ontario primarily based 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 buyers to look to the way forward for this under-the-radar metallic as funding alternative.
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