European Rare Earths Production
Magnesium Metal Market Overview

The magazine of the Minor Metals Trade Association

1st Edition 2014/February

www.mmta.co.uk

MMTA’S INTERNATIONAL MINOR METALS CONFERENCE,
INSIDE THIS ISSUE

27th-29th APRIL 2014, VICTORIA PARK PLAZA, LONDONMMTA Conference Update………………….2
Rolls-Royce Visit.…………………..……………...3
Materials Critical to US Security……...…4
Magnesium Market Overview……..……...6
European Rare Earths Resource…...….9
Critical Metals Handbook Review….…12
Letter From North America…………..…..13
The New Age of Robots……………….….…..14

We anticipate another sell-out conference, with bookings already aheadof previous years for THE minor metals conference of 2014.
We have a first class programme of speakers:
28th APRIL—Guest speaker: Mark Miodownik, Professor of Materials &Society at University College London, University of London, United
Kingdom;

Keynote presentation — “China: Great expectations?” by Dennis Unkovic,
Partner, Meyer, Unkovic & Scott LLP, USA;

Session 1: Automotive and aerospace:
CONFERENCE SPONSORS:“Sourcing critical metals and raw materials for the automotive industry: Latest
developments for electric, hybrid and low carbon emission vehicles”, byPhilippe Schultze, Expert Leader Environment-Energy-Strategic Raw
Materials, Direction Strategie & Plan Group, Renault SA, France;
Is magnesium on the threshold of dynamic new applications in both aerospace and automotive?, by Graham Wardlow, Managing Director UK
Operations, Magnesium Elektron, United Kingdom;“Recovery of rhenium in Poland”, by Kamil Kozub, Production Manager,
KGHM Group, Poland;

Session 2: Recycling and secondary:“Latest developments in minor and electronics metals recycling”, by Christina
Meskers, Business Development, Umicore Precious Metals Recycling,
Belgium;“A day in the life of a specialty metals scrap yard”, by Duncan Birchley, Sales& Marketing Executive, Select Alloys & Materials Ltd, United Kingdom;

15.15 MMTA AGM
19:00-21:00 Tate Britain Reception – join us for canapés & drinks atGallery 9 at the newly reopened Tate Britain kindly sponsored by
Lipmann Walton Ltd

29 APRIL—Session 3: Markets in steel, specialty and stainless:Keynote presentation – “Global trends for specialty, tool and stainlesssteels”, by Marcus Moll, Managing Director, SMR, Austria;“Vanadium market overview: Rebar, redox – reasons to be optimistic?, by Jack
Bedder, Senior Analyst, Roskill Information Services Ltd., United
Kingdom;

Session 4: Refractory metals and applications:“Hafnium and zirconium: Growing demand in alloys?” by Cyrille Rontard,
AREVA – Fuel Zirconium Sales, France;“Minor metals in catalysts”, by Andrew Hinkly, Executive Head ofCommercial, Anglo American Platinum, United Kingdom;“New applications for antimony: Challenges/potential in the flame retardant
market”, by a senior representative of Campine, Belgium;“Fanya Exchange: Its role in the global minor metals industry”, by Zhang
Peng, Vice President, The Fanya Metal Exchange, China;

2

MESSAGE FROM THE EXECUTIVE TEAM
Welcome to the latest edition of the Crucible. As you will see, we have been extremely busy setting up what wehope will prove to be interesting partnerships and benefits for MMTA members, as well as putting together our firstquarter’s events programme.
We are again offering the Import Training Course, the first of this year’s professional development courses, so for anyone wishing to learn
more from either a trading or shipping perspective, this will be 2 days well spent.
The highlight of the calendar is our International Minor Metals Conference. As you will see, we have an excellent line up of speakers, aswell as visits to the LME and Rolls-Royce, and a Reception at the wonderful Tate Britain Gallery, sponsored by Lipmann Walton in supportof the CMCPT charity working with the community in Mufulira, Zambia.
I would like to remind you that this year's AGM will take place during the conference—all members are encouraged to attend and hear
about the activities of the various MMTA committees. We very much hope to see you there.
Finally, if you would like to advertise in this year’s Annual Review, please contact Maria or Tamara.

VISIT TO ROLLS-ROYCE, DERBY
30th APRIL 2014

To round off the MMTA conference, Rolls-Royce has kindly offered to host the MMTA at its
heritage centres in Derby.
Take the coach with us from London Victoria for the tours and lunch,
returning to London by early evening.
The first tour is an overview of the Rolls-Royce story from its beginnings to present day product range.
We will then be taken by coach for a three-course lunch with wine.
After lunch, there will be a tour of the Light Alloy Foundry, where we will see the largest collection of aeroengines in the country, ranging from World War 1 era piston engines, the famous Merlin, right up tomodern day jet engines. The collection also includes examples across Rolls-Royce's product range
including marine and industrial applications. There are a small number of vintage cars, some of whichhark back to the early days of Rolls-Royce and the start of the motor car era. There are also examples ofengines and motor cars from distinguished names such as Armstrong Siddeley and Napier, whose
companies became part of the Rolls-Royce group in their latter years.
The MMTA Member cost for this event including lunch and transport will be £70 (+ vat).
Places are strictly limited for this event. To book, click HERE.

MMTA CONFERENCE
ATTENDEES

PUBLIC PROCUREMENT OF MATERIALS CRITICAL TO US
NATIONAL SECURITY(as at February 12th)
5N Plus
Aaron Ferer & Sons Co
ABS Alloys & Metals
Advanced Alloys Services Ltd
AIM – Indium Materials
Alex Stewart Assayers Inc
Alfred H Knight International Ltd
All Metals & Materials Inc
Amalgamated Metal Corporation
Ampere Alloys
Anglo American PLC
Anglo American Platinum
AON Commodity Trade Insurance
AREVA – Fuel Zirconium Sales
A&R Merchants Inc
Atlantic Metals & Alloys LLC
Aurubis AB
Avon Metals Ltd
Beijing Jiya Semicondutor Materials Co Ltd
Buss & Buss Spezialmetalle GmbHCampine is
CMK Ltd – The Gallium Arsenide Company
Codelco USA Inc
C. Steinweg
C. Steinweg Belgium NV
Cronimet Central Africa AG
Darton Commodities Ltd
DK Associates
EAG
E&C Trading Ltd
EAC Corporation
Earth Metals LLC
Exotech Inc
Firth Rixson
F.W. Hempel Metallurgical GmbHGE Aviation
Greenbriar Partners
Hard Assets Investor
Heraeus Metal Processing Limited
Hudson Metal Corporation
Hydrometal SA
Indium Corporation
Innova Recycling
Jean Goldschmidt International SA
Jiujiang Jinxin Non Ferrous Metals Co Ltd
Johnson Matthey Plc
Jurametal S.A.
Kazakhmys PLC
KBM Affilips BV
KGHM GroupKGHM Polska Miedz SA
Lambert Metals International Ltd
Lipmann Walton & Co Ltd

4strategic and critical materials
from excess materials madeavailable for recovery purposesby other Federal agencies.” In thepast, even when DLA-SM could
prove significant cost savings or
benefits to the DoD or a military
service, the absence of this small
clause prevented DLA-SM fromundertaking commonsense
programs like recycling andstockpiling valuable strategic
materials.

In the December “Letter from
North America”, Tom Butcher
provided an overview of thepotential acquisition of a range ofmaterials by the Defense
Logistics Agency-Strategic
Materials (DLA-SM). Althoughmany Members may be familiar
with DLA-SM’s acquisition anddisposition procedures, this isjust one part of an increasing
focus by the U.S. Government —and the Department of Defense(DoD) in particular — on the
procurement of materials criticalto national security. In short,
despite many years of reliance
upon global supply chains to
support government
requirements, there is a growing
effort among DoD leaders anddefense prime contractors toactively manage their upstream
supply, including supplies of raw
materials such as minor metals,
to ensure that systems areavailable on time and on budget.
Aside from the DLA-SM
acquisitions mentioned above,
the National Defense
Authorization Act for Fiscal Year2014 (Public Law 113-66)
provided additional authority to
DLA-SM to initiate programs to“provide for the recovery of any

One immediate candidate isrhenium. Rhenium is among themost expensive metals due to its
rarity, and it composes between
3% and 6% of some nickel-based
superalloys in jet engines. The
Tinker Air Force Base (AFB) Air
Logistics Complex had operated
a highly successful rhenium
recycling pilot program from2008 to 2011, with an estimated
US$2 million (£1.22 million) insavings annually. However,
because DLA-SM did not have theauthority to take-over the
program from the Air Force after
the pilot phase, it was cancelled.
Another strong candidate, per the
Annual Materials Plan (AMP)
mentioned by Mr. Butcher, isyttrium oxide. Presently, nearly allof the world’s primary productionof yttrium occurs in China, butseveral companies have begun
recycling yttrium oxide fromcompact fluorescent lighting (CFL).
Existing DoD regulations alreadyrequire the collection CFL, and if
only 25% of DoD CFL weredeliberately recycled for future
stockpiling, up to 58 tonnes ofyttrium oxide, 4 tonnes of
europium oxide, and 3 tonnes ofterbium oxide could be recovered.
While not a total supply solution
for DoD, this option might
preclude the rather ironicpurchase of Chinese yttrium oxide
to mitigate a risk of Chinese
export and production
restrictions.

The latter material, yttrium oxide,
is especially noteworthy because it
typifies the shift in DoD thinking
from a predominant reliance upon
global supply chains to a morenuanced, hedging approach, as
deemed appropriate.
Yttrium oxide often is analyzed as
one of the “rare earth elements,”
in conjunction with the lanthanide
series and, occasionally, scandium.
For many years, the DoD has
maintained that rare earth
elements “are not uniquely
important” to the DoD. The
agency subsequently planned topursue a multi-pronged approachthat focused on long-termmaterial substitution research,
reclamation programs,
diversification of supply driven by
private markets, and — ifnecessary — the invocation of the
Defense Priorities and Allocations
Systems (DPAS). [The latter
authority, found in Title 50 UnitedStates Code Appendix §2061 etseq., provides the DoD withpriority claim on U.S. supplies andforeign supplies that are imported
into the United States.]
In no small measure, DoD relied
upon market forces, notgovernment intervention, tocorrect supply chain imbalance.
Nevertheless, today DoD isstarting to take note of the issues
raised by the defense industrial
base and espousing a morenuanced view, as noted in themost recent Annual Industrial
Capabilities Report:
The market for rare earth
elements, though, is nothomogeneous, as eachelement has its own
distinct market
fundamentals. Thus, there
are individual rare earthmaterials and processing
capabilities for which
concerns remain
regarding their availability,and for which the
Department has taken
action to address supply
concerns. These include
certain heavy rare earth
elements and the ability to
produce related highpurity oxides, metals,
alloys, and rare earth
permanent magnets.
This nuance is part of a muchlarger “second look” at rare earth
policy urged by the United States

Congress and underway at the
DoD. It is undertaking
investigations into the extent towhich its diversification of supply
efforts are cost-effective andevaluating the impact of applying
DPAS to the supply chains of theUnited States and its allies. A
second investigation, using the
Joint Strike Fighter as a casestudy, will consider whether
material substitution of rareearths is cost-effective andtechnically-feasible, also taking
into account indirect cost likeengineering changes.
Each of these changes in policy
points to more deliberate focus
by DoD on the potentiallyvulnerable stages of the supply
chain, colloquially known as“downstream weak links.” This
new focus fills a longstanding gap
between mineral analyses, as
typified by the U.S. Geological
Survey, and high level industrial
base studies, focusing more on
upstream processing andmanufacturing activity, largely
related to the metals sector. Thisis a healthy evolution of industrial
base policy, but arguably, this iseven better for industry. Now,
there is a considerably betterchance to find an attentive
audience with defense customers
and policymakers to proactively
manage upstream supply issues.

Jeffery A Green, President,
J. A. Green & Company

WOULD YOU LIKE TO ADVERTISE
YOUR COMPANY IN THE MMTA’S
ANNUAL REVIEW 2014?
The Annual Review is distributed to
all conference delegates as well as
to all MMTA members. It is also
used as marketing material forprospective new members andthose taking an interest in the workof the Association.
For information on pricing, pleasecontact Maria.

MMTA CONFERENCE
ATTENDEES CONT’D
LS Nikko Copper Inc
Magnesium Elektron
Maritime House Ltd
Metalink International Co Ltd
Metal-Pages Ltd
Metherma KG
Meyer, Unkovic & Scott LLP
MMTA
MolymetNatureo Finance
Pacific Materials (UK) Ltd
Pacorini Metals Rotterdam B.V.
Penningtons Manches LLP
Phoenix Infrared
Plansee SE
PM Recovery Inc
Portal Capital
Powmet Inc
RC-Inspection
Renault
Retorte GmbH
Rhecodor Special Metals
Rhenium Alloys Inc
Rio Tinto London Ltd
Rittenhouse International Resources LLC
Rolls Royce Plc
Roskill Information Services Ltd
S&A Alloys Inc
Sekom Handeles.m.b.H & Co Kg
Select Alloys & Materials Ltd
Shaanxi Huadian Fine Chemical Co Ltd
Siegfried Jacob Metallwerke GmbH & Co
KG
Sims F E Mottram Ltd
SMR
Sovereign Int’l Metals & Alloys Inc
Stapleford Minerals & Metals
Strategic Metal Investments Ltd
Tasman Metals Ltd
Terra Commodities
The Chem-Met Company
The Fanya Metal Exchange
Todini & Co SPA
TRADIUM GmbH
Tranzact Inc
Traxys Europe
Traxys North America
TropagUmicore Precious Metals Refining
Vital Materials Co Limited
Voyager Group
Wogen Resources Ltd
Womet GmbH

5

MAGNESIUM METAL MARKET OVERVIEW
About Magnesium

MMTA AGM
The MMTA’s AGM 2014
will take place during
the conference at
15.15 on Monday 28th
April 2014.
Venue: Victoria Park
Plaza Hotel, London,UK
All Members areencouraged to attend.
The Notice of AGM
and Agenda will becirculated to all
Members in due
course.

Magnesium was first found in an area of Thessaly, Greece called Magnesia. It is
the third most abundant metallic element in the earth’s crust, however it israrely found in its pure form due to the fact that it bonds with other elements
easily. Magnesium metal was first produced from ore in 1808 in small quantities
by Sir Humphrey Davy, and industrial production first began in 1886 inGermany.

Magnesium Facts
Magnesium is the lightest of all commonly used structural materials with adensity of 1.7g/cm3 (106.13lb/ft3), approximately one-third that of aluminium
and titanium, and one-quarter that of steel. Despite this advantage, output ofprimary magnesium in 2012 at 905kt was only 2.5% of primary aluminium
output (45.2Mt) and 0.06% of crude steel output (1,546Mt). Magnesium output
did, however, exceed that of titanium (211kt).
Small additions of magnesium to aluminium impart heat treatability andstrength. Magnesium’s affinity with sulphur makes it indispensable in the
production of certain grades of crude steel. It also reduces titanium
tetrachloride to titanium metal in the Kroll process, and nodularises iron to
produce very high cast iron grades. Together these four applications accounted
for 61% of magnesium use in 2012. Thus despite its relative minnow status in
structural materials output, magnesium plays a central part in the manufacture
and use of competing metal products.

Magnesium Supply
World production of primary magnesium is estimated by Roskill to haveincreased from 499kt in 2002 to 905kt in 2012, a compound annual growth rate
(CAGR) of 6.1%. Production of primary magnesium metal is confined to ten
countries. China dominates the industry, with output of 680kt in 2012 (75% of
the global total) up from 200kt in 2001.
World: Primary production of magnesium by country, 2012

The AGM offers an
ideal opportunity tohear about theongoing work andprojects of the MMTA.

Minor Metals Trade Association
Suite 53
3 Whitehall Court
LondonSW1A 2EL
Telephone: +44 (0)207 833 0237
Fax: +44 (0)207 839 1386
Email: executive@mmta.co.uk

6

Source: “Magnesium Metal: Global Industry Markets & Outlook 2012”, Roskill Information
Services Ltd.

Despite recent efforts by the Chinese government to consolidate the industry,
most Chinese production capacity is still spread across relatively small plants,
with consolidation mainly occurring at a corporate level. Eight Chinesecompanies are in the top-10 of world suppliers by capacity, each exceeding50ktpy, although in 2011 only five produced more than 30kt and one closed
in 2012. The number of companies with a capacity below 50ktpy, andproducing much less than 30ktpy, is unknown but Roskill understands they
total around 50. Combined, these smaller plants accounted for around athird of global capacity in 2012.
The main primary magnesium producers outside China are VSMPO-Avismaand Solikamsk Magnesium Works in Russia; US Magnesium in the USA;
Dead Sea Magnesium in Israel; Ust-Kamenogorsk Titanium and Magnesium
Plant in Kazakhstan; Rima Industrial in Brazil; CVM Minerals in Malaysia;
Magnohrom in Serbia; and, POSCO in South Korea.
Secondary magnesium from recycled magnesium alloys, and as aconstituent of recycled aluminium alloys, is an important source of supply,
particularly in the USA, where it accounts for about half of the total. It is ofmuch less importance elsewhere. Global capacity and production of
secondary magnesium (excluding aluminium alloys which form a closedloop cycle) is estimated at over 200ktpy by Roskill, about 40% of which iscentered in the USA.

Magnesium Trade
The bulk of international trade in magnesium is dominated by exports from
China, which accounted for half of <99.8% Mg unwrought magnesium
exports and two thirds of >99.8% Mg unwrought magnesium exports in2012. This material is largely imported by Canada, Japan and Europe. The
US market is protected from Chinese imports by high antidumping duties
and is supplied instead by Israel and domestic primary and secondary
production. According to data from Global Trade Atlas analysed by Roskill,international trade in unwrought magnesium fell from roughly 500kt in2007 to 305kt in 2009. It rebounded to 480kt in 2011 but fell slightly in 2012.
About 50kt of waste and scrap was traded in 2012 (down from 62kt in 2007),
largely comprising exports from Canada, Germany and Austria, and imports
into the USA, Czech Republic and Hungary. In addition, around 110kt ofraspings, turnings, granules and powders were traded in 2012, mainly
exports from China and imports into Germany, Turkey and Canada. Finally,
37kt of wrought articles were traded in 2012 (down from 46kt in 2011),
consisting mostly of exports from China, Austria and Germany, and imports
into Taiwan, New Zealand and the UK.

Magnesium Demand
Global apparent consumption (production + imports – exports) ofmagnesium reached 1,050kt in 2007, a CAGR of 8% from the 630kt
consumed in 2001, before falling by 11% in 2008 and by 15% in 2009, to
840kt, as the global economic downturn significantly decreased demand formagnesium containing products. Apparent consumption reboundedthrough to 2012 to reach what Roskill estimates as a new peak in use of justunder 1.1Mt.
China dominates world consumption at 340kt in 2012, 33% of the global
total. Other major markets for magnesium include North America (23% of
global consumption) and Europe (18%). Russia and Japan are also large
consumers, together accounting for 12%.
Historically, aluminium alloys have been the primary use for magnesium
worldwide, although in 2012 this end-use was tied with magnesium
die-casting alloys, each accounting for around 365kt, or 33%, of total
consumption. The packaging industry is the largest market for magnesiumin aluminium alloys, followed by transport, construction and consumer
durables.
The automotive industry is by far the largest user of magnesium die-castcomponents. Die-cast magnesium alloy is used for housings, assemblies,
brackets and other components for all sections of motor vehicles; theaverage use of magnesium per vehicle in 2012 was 2.3kg, but was as high as
26kg for some models. Magnesium die-cast housings for communication
devices (such as cell/mobile and smart phones), laptops, tablet andnotebook computers, and other electronic equipment is the next largest
use after automobiles.

DIARY DATES
Import Training Course
13th -14th March,
MMTA Office, London
Informal Drinks & Dinner
13th March 2014
The Bank Westminster,LondonMMTA’s International
Minor Metals Conference
27th -29th April 2014
Victoria Park Plaza, London
Rolls-Royce Visit
30th April 2014
London/Derby
41st Anniversary Dinner
21st October 2014
Intercontinental Hotel,
London
New York Dinner
December, New York
Christmas Lunch
17th December 2014
Ironmongers’ Hall, London
7

ISTA IMPORT TRAINING
COURSEMAGNESIUM METAL MARKET OVERVIEW CONT’D….
World: Consumption of magnesium by end-use, 2012

The MMTA will again be hosting
the successful Import Training
Course in partnership with ISTA.
Date: 13th-14th March 2014
Venue: MMTA Office
Cost: £395 (+vat) for MMTA
Members
Course Content: Operational Issues
for International Traders &Importers, including:

The Import Chain
The new Incoterms 2010 (andcomparison with Incoterms
2000)
Customs Formalities
VAT/Duty
Methods of Shipment
Cargo Insurance
Documentation
Methods of Payment (1) – brief of
each method; selection of
payment methods; negotiationof payment method
Methods of Payment (2)payment in advance; open account; bank collections; bills of
exchange
Methods of Payment (3) Lettersof Credit: how they work;
procedures; types

Source: “Magnesium Metal: Global Industry Markets & Outlook 2012”, Roskill
Information Services Ltd.

Titanium sponge (i.e. crude titanium metal) was the third largest use ofmagnesium, accounting for about 123kt, or 11% of total global
consumption in 2012, and desulphurising of steel the fourth largest use,accounting for 119kt in 2012. The use of magnesium in steel manufacture
has slowed in recent years, due to the global economic downturn andresultant slowdowns (or declines) in steel output in many countries. On
average, magnesium is used globally at a rate of about 50g/t steel.
Magnesium is also used in other applications, such as the nodularisationof cast iron and cathodic protection, a method of preventing corrosion by
forcing all surfaces of a metal structure to be cathodes through theprovision of external anodes of active metals. Roskill estimates thatmagnesium use for these two applications was in the order of 65kt and
60kt in 2012.

Magnesium Prices
There is no terminally traded market for magnesium and therefore themajority of business comprises contracts negotiated between producers
and consumers. Nevertheless, a large volume of Chinese material is soldon spot basis by traders and Chinese producers into the European,
Japanese and domestic markets. Key magnesium spot prices, therefore,
are the Chinese domestic and export prices for 99.8% Mg metal, and theEuropean price ex-Rotterdam warehouse. Some magnesium is tradedoutside of China from other countries, but this forms a smaller part of theoverall open market.

Contingency insurance cover

Rising demand, particularly inside China, resulted in rapid price increases
in the fourth quarter of 2007 and the first half of 2008. At their peak in thefirst half of 2008, prices had soared above US$6,000/t FOB China formagnesium 99.8% ingot. Prices have since retreated to lower levels,
though still higher than the pre-2007/08 peak, driven lower by diminisheddemand due to the global economic downturn. The cessation of China’s
10% export tax at the end of 2012 has had a ripple effect on both
European prices and Chinese prices for export, with 2013 prices between
US$2,500-3,000/t FOB China. Because of antidumping tariffs on Chinesematerial, magnesium sells at a premium in the US.

To book, click HERE.

Provided by: Roskill Information Services, November 2013

Opening an L/C; Responsibilities;
International Standard Banking
Practice
Discrepant documents; disputes;
topical issues

8RARE EARTH ELEMENTS: SUSTAINABLE EUROPEANRESOURCE?

INFORMAL DRINKS AND
DINNER

China produces well over 90% of the world’s REE supply but only has around
37% of known reserves.
This edition’s Critical Raw Material subject is focused on Rare EarthElements (REEs), and whether we are on a path to a sustainable andreliable European supply after the 2011 supply shock and subsequent
exploration investment frenzy. Triggered by severely reduced Chinese export quotas and a sudden media awareness of the dependence of many
new technologies on REEs unique properties, REEs came under the
spotlight in the mainstream media.
Here we will look at the recent unstable story of REEs and how thechallenges of providing diversified sources of raw material are being
resolved. REEs, according to CRM innovation network, are not prime
candidates for substitution. In many of their applications REEs are only
substitutable at high cost and loss of performance. One of the properties ofsome REEs includes the formation of extremely strong magnets, meaning
they are essential for computing, communication, medical, transport, clean
energy and defence applications. Very few metals can form magnets,
meaning the option to substitute REEs for lower cost material does notexist.
In August 2010, China cut export quotas of REEs by 40% resulting in a pricespike by 10-20 times, as well as a large price difference between Chinese
domestically consumed material and Chinese export material. Stockpilingbegan in some countries, attempts to reduce consumption were
investigated, the research into using REEs in new applications was delayed
and we saw the large scale shift of western manufacturers to China tosecure raw material supply and lower their costs.
These events highlighted the risks of limited production sources andreliance on ‘market-based’ supply strategies. Before this price hike,
European REE mining was not considered or researched, as REEs wereconsistently available at an accessible price from Chinese suppliers. A lot of
learning was required to place Europe at the forefront of REE supply.
Research projects were launched by large industrial companies into how
these materials were used and their future supply trends. This interest led
to hundreds of exploration projects being identified with the aim of finding
new Western resources to insulate industry against future Chinese pricefluctuations. In 2012 REE prices fell back to a more reasonable level, leaving
little time for these explorations to bear fruit.

Whether you are attending
the Import Training Course ornot, come and join fellow
MMTA members and guests
for informal drinks followedby dinner.
Date: Thursday 13th March
Venue: The Bank
Westminster
Cost: for MMTA Members is£50 (+ vat) incl wine
Time: Drinks from 17.30
Dinner 19.00 for 19.30
Situated in the heart of St
James, this charming venue
has a fantastic bar, great foodand a lovely private dining
room, where the dinner will
be held. The date is perfectly
timed for those who aretaking the Import Training
Course, but can be booked
separately to the course.

Figure 1:
Global Distribution of REE
reserves, (Hedrick 2010),(The British Geological Survey
Commodity Profiles 2010)

http://nora.nerc.ac.uk/12583/1/Rare_Earth_Elements_profile.pdf

The informal drinks will be acash bar and are an excellent
opportunity to join us afterwork, even if you are not able
to stay for dinner. Guests arewelcome.
To book, click HERE.
9FICTIONAL ALLOYSRARE EARTH ELEMENTS: SUSTAINABLE EUROPEANRESOURCE? CONT’D...
‘Consumers and investors felt less pressured to find new sources of

As a Sci-Fi, super hero andmaterials fan, fictional alloys andtheir properties are often not only
the key to the character’s powers,
but may also offer clues to where
future alloy developments could
be heading!
Below is a selection of ourfavourites:

Adamantium - Wolverine’s
skeleton in the X-Men series –described as a nearly indestructible
alloy made of iron mixed withchemical resins.

Unobtanium - is a mineral anda room-temperature superconductor for energy. In the film
Avatar, it is mined on Pandora andhas an Earth value of $40 million
per kilogram when refined.

Bolonium - an element that canbe used for everything andnothing, often referred to in
Futurama and The Simpsons.

Mithril – a durable silvery metal
mined in Moria in Middle Earth thatis extremely light and strong. It also
has the ability to capture
moonlight.

Vibranium - A rare, naturally
occurring metallic substancetheorized to be of extra-terrestrial
origin. The material was used toconstruct Captain America's shieldand is also cited as one of theadditives in Adamantium.
If any Members are currently
trading in these materials, pleasecontact the executive team.

material with the drive for substitution, reduction and recycling alsowaning. (REEs remain prominent on criticality lists by governments as seenin previous editions).

At the end of this period of turmoil less than 10 exploration projects
globally are still in the pipe line. These have risen above their peers, areprofessionally managed, quality projects with real chances to go into
production. If these projects succeed they will provide more raw material
than the western market requires, but China has shown interest in
securing alternative supply options and have bought into a number ofWestern REE companies. The challenges for the remaining projects are insupply chain development rather than the finding of suitable material tobe mined.
The EU is actively supporting policy to promote the domestic supply ofstrategic metals to secure high-tech industry. Here we will look at the caseof REE mining in Sweden and the company which has undertaken thechallenge, Tasman Metals Ltd.

Tasman Metals Ltd is a European focussed strategic metals company,
which holds a portfolio of exploration projects with potential for rare earth
elements ("REE"), zirconium, hafnium, and niobium.’
In conversation with Jim Powell, Vice
President - Corporate Development at
Tasman Metals.

Why was Tasman Metals able to keep goingwhen the vast majority of the other new REE
projects failed?
At the peak of the market, there was asubstantial pool of financing available for
REE exploration projects. As prices
retreated, however, the REE explorationindustry was subject to additional
scrutiny, with many projects deemed too
remote, too early stage or inunfavourable jurisdictions and therefore
investors and end consumers
understandably lost interest. Tasman’s
Norra Karr project is more strongly
weighted towards the higher value,
heavy rare earth production and has extensive existing infrastructure,
which means economic viability has remained after the prices fell.

What are the key barriers for entering the REE market and how will they beovercome?
The main barrier has to do with supply chain complexity. Developing a
supply chain outside China is a challenge and at present there are few
options. An integrated robust supply chain with western REE separators,
metal makers and magnet manufactures needs to be created to guarantee
supply. The quality of the product from Tasman (extracted from themineral eudialyte) and the presence of existing supply-chain participantsin Europe will help to ensure Tasman’s success in this regard.

When will Tasman be ready to sell their material?

10

At the moment we are in a detailed feasibility phase with the earliest
projected date for producing material late 2016.

As mentioned, before 2011 it wasn’t economically viable to consider European
mining. Has the legislative side proven to be a large hurdle in terms ofEnvironmental standards required?
As a Canadian company operating in Sweden, Tasman is used toworking to strict EHS requirements under scrutiny and ensuring wehave a low environmental impact. Tasman’s Norra Karr project is
unique in that radioactive metal content is extremely low and thus not
an issue requiring additional legislation. Ultimately, creating asustainable, traceable and reliable supply of REEs is our aim. In general
operating in Sweden is not significantly different to operating inAustralia or Canada.

Based on some literature sources there is little information on the availability of
REEs and other minor metals in Scandinavia, is making people aware of
information a key challenge for Tasman?
Sweden has a long history of working with REEs as many of the elements were discovered there historically. Tasman’s Norra Karr projectis a relatively new discovery made by the company in 2009, and so was
not previously reported in databases of the US Geological Survey or
British Geological Survey. As a result, we have had to work hard toensure consumers and investors know that the project is now the 4thlargest heavy REE project in the world. Supplying sustainable andethically sourced REEs to Europe is possible from Tasman’s Swedish
projects for at least 40 years, allowing supply risk for REEs to be a thingof the past.

And in Conclusion….
These developments in Europe, as well as other viable projects in the
USA and elsewhere, will hopefully provide more secure and predictablesupplies for the different regions. Demand for REEs will continue togrow and establishing alternative sustainable sources for supply isimportant to ensure that innovation is not hindered by unreliable
resources. Scandinavian mining of REE provides high quality productswith political and economic stability. The development of new sourcesof REEs takes many years of sustained investment, and despite therelative stability of the current price, industry is seeking moreenvironmentally sustainable and secure supplies.

Tasman Metals Ltd is a Canadian mineral exploration anddevelopment company focused on Strategic Metals in the European
region. Tasman was formed in October 2009, from the amalgamationof private Canadian company Tasman Metals Ltd and two capital poolcompanies Ausex Capital Corp and and Lumex Capital Corp. The public
entity began trading on the Toronto Venture Exchange (TSX.V) on 3rd
November, 2009 under the symbol "TSM".

THERE IS STILL TIME TO COMPLETE OUR TRADE CREDIT AND MARINE
INSURANCE SURVEY.
CLICK HERE
We will be publishing our findings in the next edition of the Crucible and theInsurance Task Force will be using the responses we receive to set up
meetings with relevant brokers and underwriters on behalf of the MMTA
Membership.
Many thanks to those who have already responded.

THE GOLDEN AGE OF POISONThe Victorian era (1837-1901) was
considered a ‘Golden Age’ for poisoning,
and arsenic was a favourite amongpoisoners. Why? There were several key
reasons:
Arsenic was literally everywhere andwould not have raised the slightest
suspicion when purchased over thecounter. Arsenic was used in the colours
in flooring, wallpaper, furnishings andeven children’s toys: 3 different arsenic
compounds created yellow, red andgreen pigments. Medically, it was used asa general tonic, one of the earliest
treatments for syphilis, and as atreatment for arthritis, tuberculosis,
diabetes, malaria, with varying degrees ofsuccess. Arsenic compounds were used
in insecticides, rat poisons, herbicides andwood preservatives, as well as cosmetics.
By the mid 1800’s, however, although it
was still in widespread use, for medicinalas well as domestic purposes, Drs werebeginning to have doubts about its safety.
Arsenic had many advantages for themurderer: the crime could be committed
secretly - arsenic trioxide being
colourless, soluble in liquid and almost
tasteless in food or drink - and quietly,leaving no evidence until thedevelopment of a test to identify it in the
body in the 1830s. Even once tests weredeveloped, juries were reluctant toconvict on forensic evidence alone, often
considering it as circumstantial because
they did not understand it.
It may be a coincidence, but this periodalso coincided with the introduction of a
new financial product, namely life
assurance. Some believe that poisoning
was a common defence against domestic
abuse, and during the Victorian period,
although 40 women were tried for
poisoning their husbands, this figure isbelieved to be only a small percentage ofthe real figure.

11

THE TRANSATLANTICTRADE &INVESTMENTPARTNERSHIP (TTIP)— IS IT THE RIGHT
DEAL FOR GLOBALTRADE?

The TTIP is not just a classic free
trade agreement; the EU and US
economies are deeplyinterdependent and theagreement, if successful, will not
only be important for the GDP ofboth parties, but will be the 1st
step towards creating a templatefor future agreements withemerging markets.
The MMTA recently attended ameeting with representatives of
the European Commission andParliament, as well as lead
members of the negotiatingteams. They are adamant that if
they didn’t think it could be done,
they wouldn’t have started theprocess, and if successful, theTTIP will not only streamline andremove barriers to EU-US
markets, but will also allow bothto compete more favourably on
world markets. The agreement
aims to create jobs and growth,
as well as drive down prices.
The terms of this agreement will
surely impact not only the two
trade entities concerned, but will
also have a direct or indirect
impact on other countries.
Read a full report of theconference in the Members’ Area.

12

BOOK REVIEW—CRITICAL METALS HANDBOOKMankind is using a greater variety ofmetals in greater quantities than everbefore. As a result there is increasing
global concern over the long-term
availability of secure and adequate
supplies of the metals needed bysociety. Critical metals, which are thoseof growing economic importance thatmight be susceptible to future scarcity,
are a particular worry. For many ofthese we have little information on
how they are concentrated in the
Earth’s crust, how to extract them fromtheir ores and how to use, recycle anddispose of them effectively and safely.

supply risks for each. Chapter 1 of the
CMH introduces the concept ofcriticality and sets the scene for the
rest of the book.

The CMH will not be used byprofessionals to learn more about theirown field, but rather to provide themwith key information from the otherdisciplines. For example, an expert on
deposits of cobalt may not find a great
deal new about this in the CMH, but,
hopefully, he or she will find out more
about other parts of the cobalt life
cycle or about other commodities suchas, for example, rare earths or gallium.

We will shortly be contacting

The CMH provides a unique, one-stopsource of information on diverse
aspects of the critical metals and iswritten in 3 introductory chapters,
followed by 13 commodity-specificchapters written in a readily accessiblestyle using a common template.

Directory.

I have attended numerous meetings on
critical/strategic minerals in recent
years and many/most of these haveidentified high-level generic solutions
for resource security based essentiallyon the diversification of the supply
base, substitution, recycling andimproved resource efficiency. While
such approaches are, indeed, generally
potentially very useful, I am convinced
that, given that the life cycle of eachcommodity (from exploration andThis book brings together a wealth ofknowledge on critical metals and thus mining through to manufacture,
recycling and disposal) is unique, eachprovides a foundation for improving
the future security and sustainability of commodity requires separate
individual analysis and thecritical metal supplies. Written by
development of tailored solutions. One
international experts, it provides aunique source of authoritative
size does not fit all!
information on diverse aspects of the
The commodity-specific chapters in thecritical metals, including geology,
CMH aim to provide essential
deposits, processing, applications,background for individual critical
recycling, environmental issues andmetals which can better inform themarkets. It is aimed at a broad nondevelopment of supply risk mitigation
specialist audience, including
and related policy and research.
professionals and academics working
in the exploration and mining sectors,
in mining finance and investment, inmineral processing and manufacturing. A G Gunn, British Geological Survey
It will also be a valuable reference forpolicy makers concerned with resource Editor, Critical Metals Handbook
management, land-use planning,
eco-efficiency, recycling and related
ANNUAL REVIEW 2014
fields.

I also wanted to clarify the current
meaning of the term ‘critical’ and therelated implications for the security ofsupply of mineral commodities. Thereis no single, correct or fixed list of‘critical metals’ but we do need an‘early warning system’ to flag up thosefor which there is a possibility of supply
disruption. Having done that, we canbegin to think about mitigation of the

MMTA Member companies toverify their contact details
are correct for entry into theAnnual Review Members’
Please take 2 minutes toreview this information andconfirm or amend.
Thank you for yourassistance.

LETTER FROM NORTH AMERICA
Dear Members
A belated Happy New Year! And may 2014 be bothprosperous and happy for you all.
As many of you may have seen, it has been a wee bit
chilly here recently. And we’ve also had a smatteringof snow. In fact, to-day, as I look out of my window, it
is snowing so hard I can see few of the nearby buildings very clearly: hey ho! Yes, the snow may be an
inconvenience, but it does mean that, when it melts,
our reservoirs get fuller. And that’s no bad thing. We
can always do with the water.
Taking a somewhat similar view, but with a different
riff on it - we can always do with minor metals - recent
research here in the U.S. has come up with someinteresting findings. Two sets of research deal withthe potential use of what we would most usually termindustrial waste as a resource for various minor
metals and, in particular, rare earths.

nothing, but things that are actually not very nice, likepolluting water supplies.)
In both instances, I think what’s encouraging is thatpeople are looking around at what’s out there andthinking: “Hmm, I wonder if there’s anything in thatpile of …. that may be valuable and wasn’t the reason
it was dug up/produced/by-produced in the first place.
I think I’ll have a look…”
Will anything be extracted from either the fly ash or
the tailings any time soon? Who knows? But if thelikes of Tsumeb in Namibia are anything to go by, then
we’ll probably have a long wait ahead of us.
Finally, fellow members, a quick plug for the Critical
Metals Handbook, edited by Gus Gunn of the British
Geological Survey and just published by Wiley. Fellow
member Anthony Lipmann (rhenium), and I (gallium),both had the honour of contributing to it. And, I haveto say, it really is a good read.

Back in July last year, the U.S. Geological Survey (USGS) See you, I hope, at the MMTA conference in London in
published a short piece entitled Mine Tailings andApril. And, from a wintery NY, my best wishes, as
Forgotten Rocks Key to New Technology?, fromalways.
which we learned that it is “reanalyzing rocks,

minerals and associated mine tailing samples – somecollected 120 years ago – to assess their rare andcritical elements, which could become potential for
economic development”.

Tom Butcher
Hard Assets Investor

As can be imagined, the popular press had a field day,with the wildest stories of riches to be made, and eventhe possibility of a new gold rush. However it didn’t
take long for the more sober press, and various
experts, to scotch such notions. But the concept still
remains an interesting one.
Whilst the presence of rare earths in coal ash may be
no new story (as long ago as September 1935, V.M.
Goldschmidt of the Mineralogical Institute at the
University of Göttingen in Germany, published a paper
entitled Rare elements in coal ashes), recent
research from sources as disparate as the Universityof Kentucky, an environmental and risk science
consulting firm, and a company providing contract
research and development services (both here in
Massachusetts) has addressed anew the fact that not
only the rare earths, but also the likes of gallium,
germanium, indium and tellurium can often be foundin fly ash.
Perhaps understandably, the various papers andpresentations dealing with the subject did not receive
as wide (or wild) coverage as the USGS story. But it isnevertheless an interesting idea, not least because
there is so much fly ash just sitting around doing
nothing. (Or, as many environmentalists think, not

MMTA
MEMBER
OFFER

20% discount for MMTA members on the price ofboth the book and e-book editions of the Critical
Metals Handbook, published in February 2014 by
Wiley.
For more information and the Member purchasecode, please log in to the Members’ Area of the
MMTA website.
To view the book, or for non-member orders, click
HERE.
13

REPORT FROM THE
COMMODITIESASSOCIATIONSDIALOGUE MEETING INLONDON
The MMTA recently attended
the 2-day Commodities
Associations Dialogue meeting
hosted by Rio Tinto in London.
The aim of the meeting was fora wide range of metals relatedcommodity associations to
discuss issues common to all
metals, and all metals’
associations, to determine
which issues allow the metals
industry to speak with one
voice, and to establish an early
warning system for potential
threats coming down thepipeline, particularly on theregulatory front.
We discussed:- Ongoing REACH-related
issues- Changes in the systems forhazard classification, as well aslack of harmonisation which
creates challenges forparticular metals attempting togain agreement on which datais correct for the purposes ofhazard classification- The development of green
building standards coming outof the building andarchitectural sectors, wherematerials life cycle impact
assessments will haveincreasing relevance for the
metals sector.
We will be reporting on
developments in these areas
over the coming months.
14

THE NEW AGE OF ROBOTS: THE FUTURE IS COMING
Recent news has been awash with
reports about Robots; could thisindustry become the next big
growth area for minor metals? For
decades we have been hearing how
robots will make our lives easier,taking on unpleasant householdchores and enriching our lives by
increasing our leisure time. Until
now, the necessary robot innovation has failed to materialise andhas remained alive only in Sci-Fi
films and futurist fantasies.
Recent developments suggest,
however, that perhaps the robot isfinally coming of age, and alongsideit, there is a growing demand forminor metals. Investment in robotic
technologies has been massive overthe past few years, with Google
recently purchasing Boston Dynamics, a US military contractor specialisingin animal robots, this being the eight robotics company bought by Google
this year. Boston Dynamics is famous for creating the world’s fastest robot
and others that can successfully navigate over rubble and inhospitableenvironments. The price Google paid for this company is unknown.
In addition to great mechanics and physiological advances, artificial intelligence research is on the rise, too. Again Google has acquired the London
start-up DeepMind for a reported £400 million, which is developing
sophisticated ‘machine learning’ technology, through which computers will
be able to teach themselves new skills without the need for humans. It is
not known what the aim of Google’s secretive robotics arm is, but they are
not the only prominent company pushing the development of thistechnology.
The manufacturing industry has already been taken over by robots
performing the mindless and repetitive tasks which once gave employment
to thousands of assembly line workers, and anyone visiting an automotive
production line is likely to be impressed by their speed and precision, butwith the new generation of mobile and intelligent robots, it is interesting to
speculate what other jobs may become obsolete. Sir James Dyson has justannounced that he is working toward creating an affordable household
android able to carry out menial chores, and will be investing £5 million toachieve this vision.
He stated that the robots Dyson will create are a “new generation of robotthat understands the world around them” and “will be able to clean thehouse, put out the bins and even keep an eye out for intruders”.

Not very good news for some jobs, but Robot engineering, design, programming and related functions will grow massively if the aim is to have a ‘robot
in every home’. Access to raw materials to create these machines is a key
consideration; the new generation of robots are mobile computers and soheavy users of minor metals - a further pressure on sometimes limited
resources. LCD screens, LEDs, sensors and special alloys are all minor metal
intensive components often appearing in new models.
At the moment, it seems that we are still a few years away from truly ‘useful’robots that will impact our day to day lives. Events such as the Robot
Olympics and Robot football World Cup clearly show that research andinvestment in these technologies is strong and growing.

A recent visitor to the MMTA office was Nao, a humanoid robot made by
Aldebaran, a French robotics company, and standard platform of the Robot
World Cup (RoboCup). He is autonomous and programmable and is used inresearch institutions around the world, as well as playing football very well.
Some of Nao’s features include HD cameras, anti-collision sensors, 14 LEDs,
circuit boards and voice recognition capability.

MMTA OFFICEMEETING ROOM

Research has shown an interest in using these robots as lab assistants, anda Japanese university is currently training a team of Nao robots to perform
this function. Nao also has an interesting effect on children, being childsized himself. Children seem to trust Nao and see him as a confidante. Thispotentially opens up further careers in the field of forensic interviewing, as
children may be less distrustful of Nao than of an adult. Studies have also
shown that autistic children can relate and communicate with Nao.

FREE USE FOR
MEMBERS

Looking at the specificanatomy of Nao, minor
metals are abundant. After abrief examination of his data
sheet and of the technicalcomponents inside him, I wasable to identify: tantalumoxide, arsenic, gallium,
indium and REEs, as the mostobvious minor metals
without the need for a fullrobot autopsy!
Based on these newadvances, over the next few
years the new robotics age
will prove to be a real growtharea, with minor metals
playing a crucial role in its
success.

Tamara Alliot, MMTA

Click here to book the
See the video of Nao talking
about Minor Metals

NEW MMTA PROFESSIONAL PARTNERSHIPS
The MMTA has recently become members of IOM3, theInstitute of Materials, Minerals & Mining, and ASM
International, the US-based materials science andengineering society. Both of these organisations offer
information, professional development opportunities and

MMTA meeting room.

The MMTA promotes
essential elements thatadd quality, safety andenjoyment to our lives.
The MMTA is the world's
leading minor metals
industry organisation.

research materials. We will be working with IOM3 and ASM
to bring benefits to MMTA Members.
15