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28

MODERN MINING

August 2015

NIOBIUM

N

iobium (which decades ago used

to also be known as columbium,

a name which still lingers on in

the term ‘columbite/tantalite’

or ‘coltan’) is not a well-known

commodity. Cradle refers to it as a ‘boutique

metal’ and it is mainly used as an alloy in

steel making, finding particular application

in the production of High Strength Low Alloy

(HSLA) steels. The metal has a long history

of stable prices – the price increased steadily

from US$34/kg in 2008 to US$42/kg in 2014

– and Cradle believes this upward trend will

continue, with a likely growth in demand of

around 25 % expected over the next six years.

Roughly 84 % of world production is in

the hands of one company – CBMM of Brazil,

a private company 70 %-owned by a Brazilian

banking family. The only other two producers

of any significance are Anglo American, which,

like CBMM, mines its niobium in Brazil, and

Magris Resources, whose niobium assets – pre-

viously held by IAMGOLD – are in Canada’s

Quebec Province. Africa has no formal niobium

mines although very small quantities of nio-

bium ore are produced from artisanal operations

in several African countries, including the DRC.

Since the existing players all reportedly have

the capacity to increase production, Cradle – if

it does mine at Panda Hill – will be entering a

market where there is no basic supply shortfall

and where price is largely dictated by CBMM.

It reasons, however, that the sheer quality of its

resource – which lends itself to low-cost mining

methods – plus the fact that Panda Hill would

account for only a tiny part – perhaps 5 % – of

world production should ensure that there is a

place for a new supplier in the market.

While Cradle has only been involved with

Panda Hill since 2013, the deposit has been

subjected to exploration over a period of

decades and in the 1950s and1960s was even

trial mined by a joint venture which included

the then NV Billiton, a predecessor company

of today’s BHP Billiton. With a total mineral

resource of 178 Mt at 0,5 % niobium pentoxide

or Nb

2

0

5

(and an exploration target of a further

200 to 400 Mt at between 0,4 and 0,6 % Nb

2

0

5

),

Cradle believes the deposit to be the most via-

ble undeveloped niobium project worldwide.

Apart from the excellent geology, another

plus for the project is its location just 26 km

from the major regional centre of Mbeya in

south-western Tanzania. The area is well-

served by infrastructure (including the new

Songwe international airport) and is also home

to a burgeoning mining sector based upon the

reopening of the old Lupa goldfield, which was

intensively mined from the 1930s to the 1960s

before production tailed off. Shanta Gold com-

missioned the New Luika Gold Mine, roughly

100 km north of Mbeya, in 2012 and there is a

strong possibility that at least one other opera-

tion will follow.

Cradle, which currently owns 50 % of Panda

Panda Hill

project makes progress

ASX-listed Cradle Resources (Cradle) is making good

progress on the development of its Panda Hill niobium

project in Tanzania and expects to make a decision on

whether to proceed with the construction of a mine

early next year. The results of a pre-feasibility study (PFS)

undertaken on the project were released earlier this year

and indicated that Panda Hill could be developed as

a highly economic operation based upon a base case

mining scenario of 2 Mt/a. If Panda Hill does become a

mine, it will mark the emergence of Cradle as the first new

commercial-scale niobium producer since the 1970s.