Junior undertakes to supply unnamed client with 1000 t/y of niobium produced at Malawi mine

Jonathan Faurie
MiningWeekly.com

Junior undertakes to supply unnamed client with 1000 t/y of niobium produced at Malawi mine.

Australian mining junior Globe Metals & Mining has signed a deal in terms of which it will supply an international client with 1000 t of ferroniobium each year when its Kanyika niobium mine, in Malawi, attains full production, a milestone expected to be reached in 2012.

Globe executive director for exploration Dr Julian Stephens reports that 1000 t of ferroniobium equates to about 700 t of niobium metal, or about 23% of the Kanyika mine’s planned annual production of 3000 t.

“The new memorandum of understanding (MoU) increases the proportion of annual production that is subject to a customer supply MoU to 35%,” says Stephens, adding that the company expects to make further supply arrangements as it progresses the development of the project.

Globe MD Mark Sumich reports that the company has not been adversely affected by the economic crisis, as demand for niobium remains strong. He adds that it is apparent that consumers are looking to position themselves for a recovery in late 2009 and beyond by securing additional, and alternative, supply arrangements.

Meanwhile, Stephens reports that there is strong community involvement in the Kanyika project. “The local community is closely involved in the development of the project. Regular community meetings are held on site to inform all local stakeholders of the project’s progress and potential impacts. “The company employs about 44 local people in various capacities during its drilling campaigns.

“If the project is successfully commissioned, between 300 and 500 people will be employed during operation, and up to 2000 during the construction phase,” says Stephens. He states that the company will complete its minipilot metallurgical programme, designed to produce between 5 kg and 10 kg of standard steel-grade ferroniobium in September.

The project’s prefeasibility study will be completed in the fourth quarter of the year, with a bankable feasibility study started soon after. Niobium is used mostly in alloys, the biggest application being in special steel, such as that used in gas pipelines. Although alloys contain only a maximum of 0,1% of niobium, that small percentage improves the strength of the steel. The temperature stability of niobium-containing superalloys is important for its use in jet engines and rocket engines. Niobium is also used in various superconducting materials.

These superconducting alloys also contain titanium and tin, and are widely used in the superconducting magnets of magnetic resonance imaging scanners. Niobium is used in the nuclear, electronics, optics, numismatics and jewellery industries. In the last two applications, niobium’s low toxicity and ability to be coloured by anodisation are particular advantages.