Prices of mineral commodities, like those of most things, vary over time according to supply and demand and natural and geopolitcal events that artificially inflate or deflate prices. Tariffs and government regulations can impact prices too, as can market speculators.
Copper’s price has been driven in recent decades mostly by the rate of building construction in the biggest consumers – the US for all of the 20th Century, and China since 2002. Half the copper used in the US goes to building construction. During the 1990s, copper’s average price for the year ranged from a high of $1.38/lb in 1995 to a low of 76¢ a pound in 1999. It remained below $1.00 per pound until 2004; in 2006, the price nearly doubled to an average of $3.15/lb and has remained above $3.00/lb on average every year since then (except 2009, at $2.37). Copper was near or above $4.00/lb briefly in 2006 and again in 2008. A general upward trend in 2010, to more than $3.50 now, may signify an improving economy – or at least a perception of one in the markets.
Neodymium, critical in many applications but in rather low quantities, was around $6/kilogram (2.2 kg/lb) in 2003 but as demand increased (for magnets in electric motors for cars and windmills, among other things), the price reached $60/kg in 2007 and has been in the $40-$46 range since then.
Indium, an important component of thin films in liquid crystal displays and flat-panel TVs and computer screens, ranged in average annual price from $120 to $375 per kilogram from 1991 to 2001, and reached a low in 2002 at $60/kilo. As technology improved and we began to buy more and more flat-panel products, indium’s price climbed dramatically in the 2000s — $176/kg in 2003, $643 (2004), $961 (2005), $815 (2006), $637 (2007), $519 (2008) and $390 in 2009 as economic problems reduced its consumption. In April 2010, indium was at about $625/kg. Indium is three times more abundant in the earth’s crust than silver, but it forms few minerals and almost never in economic concentrations. The 600 tons per year produced on earth come mostly as byproducts of zinc mining; half the world production comes from China.
Even a common commodity like rock salt shows price fluctuations. From 1991 to 2003, its price hovered between $19/ton and $23/ton. Since 2004 the price has climbed steadily, to $35/ton in 2009. In the same time frame, US imports of salt nearly doubled, from 11% in 1991 to 20% in 2008-09. The biggest consumer of salt is the highway deicing business (43% of consumption), with the chemical industry in second place (35%).
When you compare prices, be aware that different materials may be priced differently. It could be pure metal, or a metal oxide, or a metal concentrate that’s priced, but all under the heading of cobalt (or whatever).
Image from Wikivisual under the terms of the GNU Free Documentation License.
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Showing posts with label neodymium. Show all posts
Showing posts with label neodymium. Show all posts
Tuesday, April 13, 2010
Tuesday, March 23, 2010
More about neodymium
One of the most common search words used by people who end up here is neodymium, the rare-earth element critical to powerful magnets in applications such as electric cars, wind turbines, and MRI machines. So I decided to write a bit more about rare earths and their worldwide occurrence.
The Bayan Obo deposit in northern China, about 100 km from the Mongolian border, is presently the most productive mine complex for all rare earths. China produces 97% of the world's rare earths. Two North American deposits have recently attracted attention, because Americans are increasingly aware of our use and dependency on China for these elements (averaging 91% of U.S. imports), and because the price for some of the 17 rare earths is approaching levels to make mining them here economic once again.
The mine at Mountain Pass, in California’s Mojave Desert, was the largest rare-earth producer in the world until the 1990s when China took over. Molycorp, owner of the deposit there, has been processing accumulated ores for a couple years, although the mine itself has not reopened. And for final processing, they must ship their product to—you guessed it—China, the site of the only separation plant. Constructing one in the U.S. would be a huge investment, one nobody is presently willing to undertake.
Another promising undeveloped rare-earth deposit lies along and adjacent to the Continental Divide between Montana and Idaho, centered on the Lemhi Pass area. Two sites are held by U.S. Rare Earths, Inc., a private company.
The Idaho deposits were discovered and initially investigated in the late 1940s and 1950s because they held radioactive thorium, important in nuclear weapons development. The geologic setting is complex: igneous (formerly molten) rock bodies that were once thought to be part of the Idaho Batholith (around 100 million years ago, but with a wide range of dates) are now considered to be Mesoproterozoic (something like 1300 million years ago) in age, and to have metamorphosed (changed by heat and pressure) the surrounding rocks of somewhat older age. Sedimentary rocks of the Gunsight and Apple Creek Formations became quartzites and gneisses thanks to that metamorphic cooking. They also became the host rocks for the veins containing rare earths, gold, and other minerals.
The whole area is complicated further by thrusting – faulting, breaking rocks, by pushing older layers up and over younger layers, sometimes on scales of tens of kilometers or more, something that probably happened over tens of millions of years around 60-70 million years ago. Then, about 40 or 50 million years ago, Nature put a pile of volcanic rocks on top of the whole mess.
With all that going on, you can imagine that geologists are still working out the details, and what I write above is just a broad-brush overview. Some of the basic geologic mapping by U.S. Geological Survey, Idaho Geological Survey, and other scientists was published only a few years ago. It is not completely clear (at least not to me) when the valuable minerals came in—some indications say it was associated with the early metamorphic cooking, some suggest later. But the high grade of the ore at Lemhi Pass and near Salmon, Idaho, is clear, making the two sites perhaps the highest potential in the U.S. as undeveloped rare-earth resources.
Exploration and economic evaluation is underway for two other isolated rare-earth deposits, one near Sundance, Wyoming, and one beneath 600 feet of rock in southeastern Nebraska. Another potentially important North American rare-earth deposit is being investigated at Thor Lake, north of Yellowknife, Northwest Territories, Canada. We’ll save these possibilities for another post.
Tuesday, December 29, 2009
Who cares about neodymium?
You should. It’s in your CDs and CD player, computer hard drive, TV tube, sunglasses, and cigarette lighter flints. It helps lasers speed communications through fiber optic networks. Neodymium magnets are critical for MRI scanning devices. Loudspeakers, headphones, guitar pick-ups, model airplanes, welder’s goggles all have some. Geologists and astronomers use neodymium and its isotopes to understand the universe around us. But as Americans become more concerned about the price of gasoline and its availability, it is in electric car motors that neodymium makes news.
A typical Prius contains two pounds of neodymium, mostly in magnets that help drive the motor. Where does it come from? Virtually all the world’s neodymium comes from one location: the Bayan Obo Mine in northern China. You can see the mine in Google Earth by searching on "Bayan Obo, Baotou, Inner Mongolia, China"—the mine is north of the city. China’s virtual monopoly—and trust me, they know what they have—on this and other rare-earth elements has some car makers worried, enough so that they’re exploring arrangements with Viet Nam and other nations that have smaller, undeveloped supplies of these critical elements.
The U.S. was once the largest producer of rare-earth elements, mostly from one mine in California’s Mojave Desert. But China’s vast reserves catapulted it into first place in 1992, and pretty much put that mine out of business in the late 1990s. The U.S. has had no primary mine production of rare earths since 2002, and imports, 87% from China, account for all our consumption today. The mine at Mountain Pass is mothballed, but prices and worries about supply are encouraging the owners to explore the idea of re-opening it.
A typical Prius contains two pounds of neodymium, mostly in magnets that help drive the motor. Where does it come from? Virtually all the world’s neodymium comes from one location: the Bayan Obo Mine in northern China. You can see the mine in Google Earth by searching on "Bayan Obo, Baotou, Inner Mongolia, China"—the mine is north of the city. China’s virtual monopoly—and trust me, they know what they have—on this and other rare-earth elements has some car makers worried, enough so that they’re exploring arrangements with Viet Nam and other nations that have smaller, undeveloped supplies of these critical elements.
The U.S. was once the largest producer of rare-earth elements, mostly from one mine in California’s Mojave Desert. But China’s vast reserves catapulted it into first place in 1992, and pretty much put that mine out of business in the late 1990s. The U.S. has had no primary mine production of rare earths since 2002, and imports, 87% from China, account for all our consumption today. The mine at Mountain Pass is mothballed, but prices and worries about supply are encouraging the owners to explore the idea of re-opening it.
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