Niobium: A metal of the future - Mining.com.au

A ductile, refractory metal, highly resistant to heat and corrosion, niobium has for the most part flown under the radar in the world of commodities.

But that’s no comment on its value as an economic input. Some 90% of all niobium produced globally goes into the steel industry, largely as a micro-alloy with iron. This small, cheap addition results in the significantly increased strength and reduced weight of steel products for use in construction, oil and gas, and the automotive industry.

Alloyed with nickel, niobium also produces a superalloy for use in more hi-tech applications, such as in blades for jet engines and gas turbines. Other applications for niobium include glass for corrective spectacles and camera lenses, jewellery, prosthetics and medical implants, and cutting tools.

Given its many applications, particularly those related to advanced technologies, niobium has been listed as a critical mineral by the Australian Government — the metal is considered vital for the well-being of the world’s economies, but is nevertheless exposed to supply chain disruptions.

Indeed, global niobium production comes primarily from just three mines around the world. Brazil is the global hotspot, with the Araxa mine owned by Companhia Brasileira de Metalurgia e Mineracao (CBMM) and the Boa Vista mine owned by China-based CMOC Group (SSE:603993).

The only other dedicated niobium-producing asset is the Niobec mine in Québec, Canada, owned by Magris Performance Materials, which also hosts milling and converting facilities.

Together, the three companies account for roughly 90% of the world’s total niobium production, mostly in the form of ferroniobium, an iron-niobium alloy. In 2023, that total was 83,000 tonnes, with 75,000 tonnes coming from Brazil and 7,000 tonnes from Canada, according to the US Geological Survey, as well as nominal amounts from the Democratic Republic of the Congo, Russia, and Rwanda.

The primary mineral from which niobium is obtained is known as pyrochlore, which is refined to deliver a concentrate ranging from 55% to 60% niobium oxide, which is then further processed into ferroniobium and other products.

Niobium can also be found in columbite, which occurs predominantly across Africa. However, unlike pyrochlore, columbite is not processed at or near the mine site, but is instead transported to the same facilities that receive raw tantalum materials. The columbite is processed in the same way as tantalite, and the niobium is recovered alongside any tantalum.

At the start of April this year, niobium oxide was fetching roughly US$58,000 ($88,100) per tonne, according to Asia Metals.

Given the steel industry’s dominance over global niobium production, it stands to reason that it has been a major influence on supply and demand dynamics.

Recent data show China’s behemoth steel sector racked up losses of US$5 billion between January and September this year after mills were forced to slash their output in a hedge against the country’s ongoing property crisis.

However, a package of incremental stimulus policies are currently being rolled out in an effort to turn things around. They include counter-cyclical adjustments to fiscal policy, as well as measures to address local government debt and instability in the real estate market.

“These measures aim to leverage government spending to stimulate overall social investment and consumption, thereby increasing effective market demand,” China’s Vice Minister of Finance Liao Min said last week.

The potential real-word effect of those stimulus measures has divided analysts, and some are more optimistic than others.

Harry Murphy Cruise, an economist at Moody’s Analytics, says the initiatives are likely to propel China’s economy to its roughly 5% GDP growth target this year, but added that “more is required if officials are to address the structural challenges in the economy”.

But with an increasing variety of applications for niobium, the state of China’s tepid economy could come to matter less.

Jean-Sebastien David, CEO of NioBay Metals (TSX-V:NBY) which owns — among others — the Crevier Niobium-Tantalum Project in Québec, cites pipelines as a major demand factor.

The movement of oil and gas from remote and rugged locations to the necessary marketplaces requires transmission pipelines to be particularly tough and capable of withstanding a wide variety of temperatures and pressures. As such, the constantly climbing need for more energy has seen niobium attain an increasingly prominent role in pipeline manufacturing in recent years.

Though the world is short on mines dedicated to niobium production, that could change over the next few years as a number of late-stage developers make the jump to mining.

One of the most prominent near-stage assets is NioCorp Developments’ (NASDAQ:NB) Elk Creek Project in Nebraska. Located 129km south of Omaha, the project — when it comes online — will be the only niobium mine and the primary niobium processing facility in the US.

Already, NioCorp has secured all the necessary construction permits and contracted 75% of its planned ferroniobium production for the first 10 years of operation. According to a 2022 Feasibility Study, Elk Creek is expected to produce almost 7,500 tonnes of ferroniobium annually over a 38-year life, with production due to begin at the start of 2026.

Similarly close to first production is the Kanyika Niobium Project in central-west Malawi, owned by Globe Metals and Mining (ASX:GBE). With a resource measuring 68.3 million tonnes @ 2,830 parts per million (ppm) niobium oxide, the project is anticipated to deliver 3,250 tonnes of niobium each year during its projected 23-year life.

Kanyika is expected to be Africa’s first niobium mine when it starts production in early 2026.

Though it’s not quite as advanced, the Dubbo Project in New South Wales currently being developed by Australian Strategic Materials (ASX:ASM) boasts a polymetallic resource measuring 75.18 million tonnes @ 0.44% niobium oxide.

Australian Strategic Materials is currently working towards a final investment decision in 2026, with 2,650 tonnes of ferroniobium due to be produced annually from 2028.

Even less advanced, but nevertheless notable for its size, is the niobium resource at WA1 Resources’ (ASX:WA1) West Arunta Project located 490km south of Halls Creek in Western Australia.

Measuring 200 million tonnes @ 1% niobium oxide, with a higher-grade subset of 53 million tonnes @ 2.1% niobium oxide, West Arunta’s Luni deposit is billed by WA1 as being “the best niobium discovery in the world in the last 70 years”. The deposit was discovered during a maiden drilling program at West Arunta in 2022, and as such no timeline to first production has yet been published.

According to research firm Mordor Intelligence, the current global niobium market is estimated to be 106,850 tonnes, and is expected to grow to 171,490 tonnes by 2029.

Of course, the COVID-19 pandemic dealt a blow to the market in 2020 as plants and manufacturing facilities were forced to shutdown, while issues in logistics created further hindrances.

The industry enjoyed a recovery in 2021, and stimulus measures in China could further extend that trajectory. The pace of economic growth in India, especially the country’s construction sector, is also likely to help.

But some of the world’s biggest niobium players are seeking to forge entirely new applications related to the hi-tech fields of aviation, space, and defence.

CBMM, for example, has established a dedicated research and development business — Switzerland-based CBMM Technology Suisse — which focuses on the development of new niobium products and applications, contributing to the growth and diversification of the market.

Niobium’s use in advanced lithium-ion batteries is being studied for its ability to improve charging capabilities, stabilise energy densities, and increase durability. The metal is also being used in next-generation vehicle designs to reduce weight and improve power.

“To me, there is room for a new, small producer for a niche market,” Jean-Sebastien David, CEO of NioBay Metals, tells Mining.com.au.

“This is what we are working on.”

Add to that the proposed economic stimulus measures in China, and niobium could indeed be a metal of the future.

Write to Oliver Gray at Mining.com.au