Niobium prices and demand still high - Globe

Claire Svircas
MiningNews.net

GLOBE Metals and Mining managing director Mark Sumich says despite the global economic crisis, the overwhelming demand for niobium raw materials and end products shows no signs of abating in the foreseeable future.

Commenting on the recent Tantalum-Niobium International Study Centre Conference in Shanghai, Sumich said both prices and demand for all niobium products remain strong and there was considerable interest mounting in the niobium to be sourced from Globe's Kanyika project in Malawi.

Sumich said the current benchmark ferro-niobium contract prices were recently increased to $US43-46/kg, up from $41/kg in the last quarter. He said the price stability has historically been a feature of the contract ferro-niobium price, which has added to the product's overall attractiveness.

Meanwhile, spot prices for niobium raw material, columbite, has remained stable at $US20/lb and spot prices for tantalum raw material remains stable at $45/lb. Sumich said the conference heard CBMM, the dominant supplier of ferro-niobium, plans to increase its production of the material from 85,000 tonnes per annum in 2008 to 100,00tpa in 2009 and 150,000tpa in 2013.

"This considerable investment in capacity underlines the steel industry's appetite for niobium and the growth in niobium consumption, which historically has been significantly in excess of overall steel consumption," he said. Sumich said Globe's main focus remains in the multi-commodity Kanyika project, which contains 56 million tonnes of JORC inferred resources, including niobium.