Specialty Metals: A summary of how some of Canada’s rarer elements

ANTIMONY

Canada’s antimony production in 1990 was 653 tonnes (t) valued at $1.4 million, compared with 2,818 t and $7 million for 1989. The dramatic decline in production stemmed from the January, 1990, closure of the Durham mine of Dominion Explorers.

The closure of Durham, situated in Lake George, N.B., was the result of continued depressed antimony markets. The annual output from North America’s only primary mine, represented about 10% of the Western world’s mine production. Following the closure, Dominion Explorers sold the property to Antimony Products of Canada (Apocan), a subsidiary of Amspec Chemical Corp. Durham was Amspec’s second Canadian antimony acquisition in recent years. In 1988, Apocan acquired the idled antimony trioxide research facilities from Enhanced Recovery Systems in Chatham, N.B.

Antimony is produced in the form of antimonial lead at Cominco’s smelter in Trail, B.C., and as antimony slag by Brunswick Mining & Smelting at Belledune, N.B. Last year, Minnova shipped antimony-containing copper concentrates from its Samatosum gold-silver mine to European customers. Samatosum, which also produces lead concentrates, is about 40 km east of Barrie, B.C.

Recently discovered antimony deposits in Canada include the Beaverbrook deposit of Noranda Exploration in Newfoundland and the Tulsequah deposit of Dominion Explorers in B.C. Both deposits, though not yet defined, contain massive lenses of coarse-grained stibnite (Sb2O3).

Free market antimony prices dropped to a historic low of $US1,580 per t by year-end. The dealer market started the year at 88 cents to 90 cents per lb. and declined to 78 cents to 80 cents per lb. toward year-end. Despite steady demand, oversupply of low-priced materials from China was the key factor behind the continuing price erosion for antimony.

BERYLLIUM

Although there are occurrences of beryllium minerals throughout Canada, the two promising prospects are the Thor Lake deposit in the Northwest Territories and the Strange Lake deposit on the Labrador-Quebec border. In February, 1990, Hecla Mining Co. terminated its joint venture with Highwood Resources for development of the beryllium-rare earth deposit at Thor Lake. Proven reserves at Thor Lake total 4,000 t of beryllium. Later in the year, Hecla signed a letter of agreement with the Iron Ore Co. of Canada (IOC) to conduct a feasibility study of IOC’s Strange Lake deposit. This deposit contains yttrium, zirconium, niobium and rare earths, in addition to beryllium. The study was under way at the end of 1990.

BISMUTH

Preliminary figures indicate that Canada’s bismuth refinery production in 1990 was 188 t, marginally higher from 179 t in 1989. Concurrently, the mine output decreased to 118 t from 205 t as a result of the strike at Brunswick Mining & Smelting’s (BM&S’s) Bathurst mine. The processing of stockpiles and imported lead-bismuth concentrates accounts for the difference in mine output and refinery production.

In Canada, bismuth metal is recovered at Cominco’s Trail, B.C., electrolytic lead refinery and is refined to 99.99+% purity. BM&S produces lead-bismuth alloys at its pyrometallurgical lead refinery at Belledune, N.B.

Bismuth prices (in U.S. dollars) started 1990 at about $3.91 per lb. In June, 1990, following aggressive trader selling in thin market conditions, the price of bismuth was pushed down to $2.50 per lb. At year end, bismuth prices continued in the doldrums with material available in the free market at $2.50 per lb. However, Metal Bulletin prices for December, 1990, averaged $4.48 per lb.

CADMIUM

In 1990, Canada, the fourth-largest source of refined cadmium in the world, produced 1,643,185 kg, valued at $14.4 million compared with 1,710,527 kg in 1989, valued at $28 million. The 3.9% decline in production was due to strikes at two zinc mines.

The dramatic value decline was precipitated by falling prices, the combined effects of previous “hedge” buying and the economic slowdown in North America. Producer prices (in U.S. dollars) peaked at $6.91 per lb. in 1988, declining to $6.28 in 1989 and to $3.38 in 1990.

Demand is only expected in the Ni-Cad battery market. Other markets will probably remain flat or decrease; many users are searching for unregulated substitutes.

CALCIUM

Timminco produces all of Canada’s calcium metal at its Haley, Ont., operation. Timminco has an annual production capacity of about 900 t. The capacity is variable; the operation can switch a portion of its production between calcium and magnesium metal. Reported Canadian calcium metal consumption was 57 t for 1989.

During 1990, calcium metal prices (in U.S. dollars) averaged about $2.50 per lb., compared with $2.25 per lb. in 1989.

COBALT

Canadian cobalt production in 1990 was an estimated 2,290 t valued at $52.5 million, compared with 2,344 t at $45.8 million for 1989.

Inco and Falconbridge both produce cobalt as a by-product of nickel-copper operations. Sherritt Gordon of Fort Saskatchewan, Alta., also produces cobalt from toll refining and from purchased materials. Falconbridge’s total cobalt output for 1990 was about 1,800 t, somewhat less than its target of 2,000 t. The drop in production was partly due to a lower nickel output and partly to reduced supplies of raw materials. Sherritt’s cobalt production during the first nine months of 1990 was about 454 t, the same as in 1989.

Geddes Resources continued exploration and evaluation of its Windy Craggy copper-cobalt deposit. The deposit is in northwestern B.C., near the Alaska border. According to company estimates, besides large and high-grade copper deposits, cobalt reserves are equivalent to about six years of the Western world’s annual demand.

Cobalt prices (in U.S. dollars) started the year at $7.55 to $7.75 per lb. This was the equivalent of the producers price minus discounting of 50 cents to $1.00 per lb. Prices rose gradually before exceeding the producer price of $8.40 per lb. in July. Then prices increased steadily, reaching $12.50 to $13.00 per lb. in September. In October, news of a cave-in at Zaire’s Kamoto mine resulted in a further price increase to between $13.50 and $14.50 per lb. — the highest level in nine years. Prices, however, dropped back to between $12.30 and $12.70 per lb. at year-end, after Zaire assured customers that commitments would be met for the balance of 1990 and into 1991.

The producer price, on the other hand, remained at $8.40 per lb. for cathode throughout 1990 — the level the two major African producer countries, Zaire and Zambia, have held since November, 1988. At the end of September, these two producers announced a joint price increase to $11.00 per lb., effective Jan. 1, 1991.

Despite Zaire’s plan to increase its output by 30% in 1991, the market in the short term will probably remain in short supply if demand remains strong. Zambia’s output is on a decline because of decreasing ore grades. Canada’s cobalt production will probably remain at the 1990 level as it will take some time for the new mines to reach their planned production goals. The recession and lower nickel prices could also result in production cutbacks in coming years.

RHENIUM

Rhenium is a minor byproduct of molybdenum, produced from some western Canadian porphyry copper mines. The Island Copper mine in Port Hardy, B.C., has molybdenum concentrates that grade about 900 parts-per-million Re, high enough to warrant separate payment for the contained rhenium. The Island Copper mine is owned by The Broken Hill Proprietary Co. of Australia.

Rhenium prices averaged $US700 per lb. in 1989. Rhenium prices can be volatile.

SELENIUM AND TELLURIUM

Canada produced 390 t (estimate) of refined selenium in 1990. All three copper refineries in Canada produce copper anode slimes containing byproducts such as selenium, tellurium, gold, silver and platinum group metals. Falconbridge’s Kidd Creek copper refinery in Timmins, Ont., sends its anode slimes to Noranda’s ccr copper refinery in Montreal East, Que., for recovery of selenium and tellurium. Noranda’s ccr facility also takes blister copper containing selenium and tellurium from Noranda’s Horne and Gaspe smelters and from Hudson Bay Mining & Smelting’s Flin Flon smelter. Further, Noranda obtains selenium and tellurium feed contained in imported blister or contained in domestic and imported scrap.

In Sudbury, Inco recovers selenium and tellurium from its copper refinery, purifying these metals to a crude stage only; customers complete the final process stage. Canadian selenium consumption was reported by consumers as 14.8 t in 1989 (based on preliminary data).

Tellurium statistics are not widely reported, as tellurium is found with selenium in copper ores.

Metal Bulletin’s European free market selenium prices (in U.S. dollars) for 99.5% material averaged $5.45 per lb. in 1990, a decrease from $6.60 per lb. in 1989. Average 1990 tellurium prices were estimated at about $32 per lb.

STRONTIUM

Canada is the world’s leading strontium metal producer. Timminco Ltd. produces all of Canada’s strontium metal at its oxide reduction plant in West Meath, Ont. The company has the capacity to produce between 400 and 500 t per year of strontium metal and alloys.

World production of strontium metal was estimated at 400 t in 1990, compared with 425 t in 1989.

Strontium metal prices (in U.S. dollars) averaged $7.90 per lb. in 1990, down from $8.20 per lb. in 1989.

TANTALUM

Canada is the second-largest primary tantalum producer in the world after Australia. The Bernic Lake mine of Tantalum Mining Corp. (Tanco) in Manitoba was operating at capacity in 1990.

In addition to tantalum, Tanco produces low-iron, ceramic-grade spodumene concentrates, and cesium and rubidium materials. The addition of the spodumene circuit in 1986 made Tanco more competitive in the tantalum market. Tanco has instituted a secondary mining program to reduce its large pillars, which has raised the average mill feed grade and kept costs down.

The tantalum market improved slightly during the first half of 1990, but prices remained about 30% below the early 1989 levels. The free market tantalum prices (in U.S. dollars) started the year at $25.00 to $26.00 per lb. of Ta2O5 and rose steadily to $34.00 to $36.00 per lb. by July. However, prices dropped slightly during the second half, closing the year at $32.00 to $34.00 per lb.