Indium—Critical?
Can you rely on frame contracts?

The magazine of the Minor Metals Trade Association

5th Edition/2013

www.mmta.co.uk

WAREHOUSES AND OTHER MATTERS
INSIDE THIS ISSUE
Warehouses & Other Matters…...2
In Memorium…………………..…3
40th Anniversary Dinner……...…4
MMTA Conference Update……...6In the Frame: Frame Contracts….7
Letter From America………….…9
Tighter Trace Element Control...10

The LME Warehousing Consultation Report
Some Members may have seen the LME Warehousing Consultation Report("LME Report") published in November 2013 which focuses primarily on theoperation of the LME warehousing system in the context of the issue of queuing.
The LME Report has been referred to in the press as confirming that C Steinweg- Handelsveem BV ("Steinweg") owns a trading company (see past Cruciblecomment on objections to Steinweg's status as an MMTA approved warehouse).
The LME report contains only one reference to Steinweg on page 18 in a table
listing LME warehouse operators, which under the heading "Ownership" states:

CRMs: The Case of Indium.... …..12
Conflict Materials Reporting……14

Don’t miss our new
MMTA member
profiles on pages 10,
11, 13, 14 & 15

The
MMTA promotes
essential elementsthat add quality,
safety andenjoyment to ourlives.
The MMTA is theworld's leading minor
metals industry
organisation.

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"N/A (not by a trading company although Steinweg do own anothertrading company)".
This reference is inaccurate in that Steinweg did not own the company referred
to, Raffemet, but shared the same ultimate parent company. One did not own
the other.
The LME have confirmed that the meaning of the phrase “trading company”,
used in the LME Report is the one used in the context of information barriers
namely, “any member or non-member company [of the LME] that enters into
LME Contracts or trades metal that is deliverable against an LME Contract” (seeLME Notice 11/334).
The regulation of any ownership relationship of a warehouse to a trading
company differs substantially between the MMTA and the LME. The LME is aregulated market that allows information barriers between warehouses and othergroup companies. The MMTA is a members’ organisation that has repeatedly
rejected any such “Chinese Walls”.
The explanation of Raffemet’s activities given to the MMTA Directors is
consistent with this LME definition of a trading company.
The LME Report does not purport to be a definition of a "trading company" forthe purpose of interpreting the MMTA Warehouse Rules. It follows that the LME
Report does not suggest non-compliance with these rules.

De-listing of Keystore
The MMTA advised the Membership on 11 December 2013 of the de-listing of
Keystore Ltd ("Keystore") as an approved MMTA warehouse.
This action was taken promptly following a Member advising the MMTA ofproblems experienced at Keystore involving the theft of material. After due
consideration, the Main Committee endorsed the Warehouse Sub-Committee’s
recommendation that this warehouse have its MMTA approval removed withimmediate effect.

Guidance on MMTA Warehouse Rule interpretation
To add clarity, the MMTA Directors are working on providing some guidance toApplicants for MMTA Warehouse Approval on the interpretation of a "trading
company" within the context of MMTA Warehouse Rules. This guidance will be
published in a future edition of The Crucible.
The MMTA Directors decided against devising a detailed definition of what
constitutes a "trading company" because it would be complex, potentially long-2

winded and risked being skewed by recent events.

IN BRIEF

Other Matters
The MMTA has had a full year, coupling its customary activities with an officemove to fantastic new premises and location and a change of staff with Tamara
Alliot joining the team. I would like to give special mention to Maria Cox who
is doing a great job as General Manager of the MMTA.
The MMTA Directors, who give their time for free, have worked diligently to
aid the developments in the MMTA this year and help ensure the Association
continues to bring value to its Members. On behalf of the MMTA, I would liketo thank my colleagues for the time they give the Association and for theexperience, professionalism, integrity and diligence they provide.

Click here to view
Industry Events.



Click here to bookthe MMTA meetingroom.

On behalf of the MMTA Directors I wish you all a Merry Christmas and a
Happy New Year.

RM Walton
MMTA Chairman

In Memorium – Suzanne Cammell

As many of you will know, the Minor Metals Industry, as well as all of us at Metal-Pages, have lost a dearcolleague and friend, Suzanne Cammell, who sadly passed away on October 3.
Suzanne was one of the first members of the Metal-Pages' team where she ran our pricing department, one of
the more challenging jobs in the business; but her extensive industry experience and professionalism held her
in good stead, and she was very well respected by her peers.
After studying physics at the University of Edinburgh, followed by a brief stint in the rag trade, her first job in
the metals industry was at Brandeis Goldschmidt where she specialised in vanadium and the Romanian andBulgarian markets.
Following Brandeis, she joined China Industrial Resources (CIR), where she ran a number of books on bothminor metals and ferro-alloys. When CIR was wound up, she started her own business specialising inimporting goods from Romania, before returning to the metals fold at London Metals.
We have lost a dear colleague and a friend who many in the association will have known for over thirty years.
Suzanne combined a generosity of spirit with a keen sense of humour. She always took great delight inpointing out the absurdity of the world.
I only wish she had known how many people have contacted me to say how sorry they were to hear the news
and how much she will be missed.
Our heartfelt condolences go out to her family, especially her sister Jo.

Nigel Tunna
Metal-Pages Ltd

MMTA’s 40th Anniversary DinnerThank you to all those who made the evening such a success.
Click HERE for more photos.

Our Sponsors:
The MMTA Founding Members
AMC plc, Lambert Metals Intl. Ltd. & Wogen Resources Ltd.

Dinner Sponsors
Alex Stewart Int’l & Avon Metals

Raffle in Aid of Cary Mufulira Community Partnership Trust
supporting the Zambian copper mining town of Mufulira.

Thank you to our Charity Raffle Sponsor, RC Inspection& our guests for their generosity.
We were pleased to be able to donate £2,500 to CMCPT.

4COMPANIES WHO HAVE ALREADY BOOKED FOR
THE MMTA’S INTERNATIONAL MINOR METALSCONFERENCE, VICTORIA PARK PLAZA, LONDON,APRIL 27-29 201414TH January 2014 is the
cut-off for the MMTA’s
International Minor
Metals Conference final
MMTA members’ earlybird rate of GBP800 plus
VAT, so take advantage ofyour member discountbefore the price goes up
to £1000 plus VAT.

ATTENDEES (AT DEC 6 2013)

Aaron Ferer & Sons Co
Advanced Alloys Services Ltd
AIM – Indium Materials
Alex Stewart Assayers Inc
Alfred H Knight International Ltd
Ampere Alloys
Anglo American
AREVA – Fuel Zirconium Sales
Avon Metals Ltd
Beijing Jiya Semiconductor Materials Co
Ltd
C. Steinweg
C. Steinweg Belgium NV
Cronimet Central Africa AG
The delegate fee includes all aspects
Darton Commodities Ltdof the conference:
E&C Trading Ltd
EAC Corporation
welcome reception, conference
Earth Metals LLC
sessions, tea/coffee breaks, lunchExotech Inc
eons, access to the presentations
Firth Rixson
and, new for 2014, it also includes
F.W. Hempel Metallurgical GmbHan additional networking reception
GE Aviation
Greenbriar Partners
on the second evening at Tate
Hard Assets Investor
Britain, kindly sponsored by
Heraeus Metal Processing Limited
Lipmann Walton & Co Ltd.
Indium Corporation
Innova Recycling
The MMTA’s nominated charity is
Jiujiang Jinxin Non Ferrous Metals Co Ltd
Mufulira, which Anthony Lipmann
Johnson Matthey Plc
has been involved with for many
Jurametal S.A.
years.
KGHM Polska Miedz SA
Lambert Metals International Ltd
If you would like to read more about
Lipmann Walton & Co Ltd
Mufulira and/or to make a donation,
Magnesium Elektron
you can click HERE.
Maritime House Ltd
Metal-Pages Ltd
Metherma KG
There will be a strong focus on the
Meyer, Unkovic & Scott LLP
key issues relating to the global
MMTA
minor metals' industry.
Natureo Finance
We have a number of top speakers already Penningtons Manches LLP
Phoenix Infrared
lined up, who will be covering the following
Powmet Inc
topics:Renault
Rhenium Alloys Inc
 New materials for aerospace
Rio Tinto London Ltd
Roskill Information Services Ltd
 Automotive supply chain
Select Alloys & Materials Ltd
 Outlook for alloys in stainless and specialty Shaanxi Huadian Fine Chemical Co Ltd
SMR
steelsSovereign Int’l Metals & Alloys Inc
 Minor metals in catalysts
Stapleford Minerals & Metals
Terra Commodities
 Growth markets for refractory metals
TRADIUM GmbHFor more information on the programme, Tranzact Inc
Traxys Europe
click on one of the below logos.
Traxys North America
TropagUmicore Precious Metals Refining
Vital Materials Co Limited
Wogen Resources Ltd
Womet GmbH

Welcome to the festive season!
There are two main mechanisms to
produce colour in fireworks:
incandescence and luminescence.
Incandescence is light produced
from heat; as the substancebecomes hotter, it glows red, thenorange, yellow and finally white. By
controlling the temperature of afirework, the glow can be
manipulated to the desired colour.
Metals such as aluminium,
magnesium and titanium burn very
brightly and are used to increase
the temperature of the firework.
Luminescence is light produced
using energy sources other thanheat, sometimes known as ‘cold
light’ because it can occur at room
temperature or cooler.
Colorants:
Red—strontium salts, lithium salts
Orange—Calcium salts/chloride/sulphate
Gold—incandescence of iron (withcarbon), charcoal or lampblack
Yellow—sodium compounds/
nitrateElectric White—white hot metalsuch as magnesium or aluminium,
barium oxide
Green—barium compounds +chlorine producer
Blue—copper compounds +chlorine producer
Purple—mixture of strontium(red) and copper (blue) compounds
Silver—burning aluminium, titanium or magnesium powder or flakes

5IN THE FRAME: CAN YOU RELY ON A FRAME CONTRACT?
The ability to rely on your contracts being performed is vital for traders. However, thelonger the period a contract covers, the greater the difficulty of agreeing in advance allof the elements that a contract for the supply or purchase of material should include.
How, for example, do you build sufficient flexibility into the delivery schedule for material due in 3 years’ time, or allow for changes in processing costs over a number ofyears?

MEMBER
ANNOUNCEMENT
Penningtons and Manches
combine to create 115
partner law firm
Member firm Penningtons
Solicitors LLP has recently
joined forces with
Manches LLP to become
one of the dominant legal
players in London and theSouth East of England. The deal sees all
265 Manches employees,
including 46 partners,
move to Penningtons
which will now operate
under the name of
Penningtons Manches LLP.
With a combined
turnover of £58 million,
together with 115
partners and over 600
staff, Penningtons
Manches is now
represented in seven UK
locations - London,
Basingstoke, Cambridge,
Godalming, Guildford,
Oxford and Reading. In
addition to adding depth
to the existing corporate,commercial, employment,
property and litigation
practice areas, theagreement also reinforces
sector capabilities,
particularly in technology,
life sciences, education,
private wealth andbanking, where both firms
have significant trackrecords.
This move follows aperiod of sustained
growth for Penningtons
over the last five years.

6

Parties often use frame contracts in such circumstances. The key parameters of thecontract will be fixed for the whole period of the contract, with some flexibility tochange certain elements of the contracts on say an annual basis. This works well forboth parties, unless a dispute arises. How then do you "fix" those details which were
not agreed in the frame contract? How does English law deal with this problem?
General Principles
Where contracts are made under English Law, they have to accommodate two generalprinciples:An agreement to agree on issues in the future is generally unenforceable; andA term of a contract cannot be so uncertain as to be meaningless andunenforceable.
Theory in practice
These issues came before the Court of Appeal earlier this year in the context of a dispute between MRI Trading and Erdenet Mining concerning three linked agreements,
each providing for the supply of 40,000 WMT per annum of copper concentrates.
The first two contracts were performed but a dispute arose over non-performance ofthe third agreement.
That agreement provided that three issues were to be "agreed between [the parties]
during the negotiation of terms for 2010 [a reference to annual negotiations during
Metals Week]". Those issues were:

1. "shipping schedule",
2. "treatment charge",
3. "refining charge".
The contract contained an LME arbitration clause so the issue went before arbitrators.
They decided that the contract was too uncertain to be performed or was an"agreement to agree" and therefore unenforceable. That decision was appealed to theCommercial Court, and then to the Court of Appeal.
Both the Commercial Court Judge and the Court of Appeal disagreed with the arbitrators and found that the contract for 2010 was enforceable.
The first point to note, before examining the specific reasons for these decisions, isthat English Courts strive to enforce commercial deals wherever possible. Theirstrong preference is to hold parties to their agreements. This in itself is a very positive
factor in favour of both choosing English Law for your contracts and choosing a dispute resolution process that will properly apply those principles (English Courts or
English arbitration).
The second point is that while the Courts were clear that the contract in question was
enforceable, trade arbitrators had reached a different conclusion. The words used
clearly left enough scope to be argued over and that uncertainly put the parties
through three rounds of litigation over three years, no doubt at great expense. Clearly,
those drafting contracts should strive to avoid leaving similar scope for argument intheir contracts.
How to avoid uncertainty?
The Courts questioned whether the parties had agreed a binding contract where someof the minor details were left incomplete ("to be agreed"), or whether the terms were
imprecisely expressed? If agreed terms were impliedly expressed, the Court could
imply an obligation that the reprocessing charge, for example, should be "reasonable".
Alternatively, was this a negotiation in which those "details" were intended to be left
sufficiently open so that either party could simply refuse to reach agreement, with theconsequence that there would be no binding contract?

The factors that the Court took account of included the following:

The contract was part of a wider agreement for delivery over three years andpart of that agreement had already been performed, making it unlikely that theparties had intended the balance to be unenforceable in the event of disagreement over these matters;

The contract included a clear obligation to deliver, "the seller shall deliver………". This showed that the parties intended to form a binding contract.
Scheduling of delivery, treatment charges and refining charges were subsidiarymatters and the Court or arbitrators could imply a term that they should be"reasonable";The parties had agreed all the key aspects of the contract including quantity,
specification, and price, which signified the making of a binding contract;

It was great to see
everyone at
The Minor Metals
New York Dinner at
The Water Club,New York 12/12/13

The inclusion of an arbitration agreement may assist the courts in finding that acontract is sufficiently certain as it provides a forum through which disagreements on issues such as the delivery schedule could be resolved using industry
experts.
It is also worth noting that Section 8 Sale of Goods Act 1979 provides that:
8 Ascertainment of price.
(1) The price in a contract of sale may be fixed by the contract, or may beleft to be fixed in a manner agreed by the contract, or may be determinedby the course of dealing between the parties.
(2) Where the price is not determined as mentioned in sub-section (1)above the buyer must pay a reasonable price.
(3) What is a reasonable price is a question of fact dependent on the circumstances of each particular case. [emphasis added]
So, if an otherwise binding contract does not specify the price to be paid, the buyer must pay a "reasonable price". The Courts are free to imply similar provisions
for other elements of a contract, such as the treatment charge in this case.
However, it must be remembered that each case must be judged on its own facts.
Additionally, if the parties have truly intended to leave some essential matter,such as price, quantity or quality completely open and "to be agreed" in their negotiations, then there will be no binding contract.
What to do
If you are negotiating long term contracts where certain elements will vary in the
future, or where you are not in a position to fix those elements when the contract
is made, a little care can prevent arguments over the enforceability of the wholecontract. Remember that an argument over say what is a reasonable delivery
schedule is likely to be much easier to resolve than a consequential dispute overwhether or not you have a contract at all.
In this case, that uncertainly would have been removed had the contract provided
that the delivery schedule was to be:"agreed by the parties by the end of October 2010 and in the absence ofagreement it shall be a reasonable schedule taking into account the reasonable requirements of both parties. Any dispute over what a reasonable schedule is shall be referred to arbitration under clause [ ] of thisagreement"

Sponsored by

Giving indications of objective criteria by reference to which the "reasonable"
schedule/price/cost in question can be arrived at will also make it easier for any
arbitrator or judge to resolve such a dispute.
For example, the obligation to agree a "treatment charge" for 2010 could havebeen qualified by saying that the charge was to be a "reasonable" or "market"
charge.
Reference could alternatively have been made to a "reasonable charge taking
account of the charges agreed for previous years and any movement in power andlabour costs in the interim".

7

MEMBERANNOUNCEMENTMMTA member, Jack Lifton, willbe speaking in Paris at a strategic
metals seminar: La France et la
Guerre des Métaux Stratégiques(France and the war of thestrategic metals). The seminar
will be held on 13 February 2014
in the National Assembly building,and it is planned that the French
Minister of Industry will be the
keynote speaker.
Jack will be speaking on the
differences between theAmerican and the EU viewpoints
on the security of supply formaterials strategic to consumer
high tech product manufacturing.
For more information on thisevent, please click HERE.

IN THE FRAME: CAN YOU RELY ON A FRAME
CONTRACT, CONT’D….?
If there was no agreement on this issue, that wording would at least direct an arbitrator or Judge to the factors to be taken into account in determining the"reasonable" charge and would make it harder to argue that the contract should be
void for uncertainty.
Another approach is to provide that in the absence of agreement, the issue in question shall be determined by an industry figure acting as an expert. Such expert
determination provisions are common ways of resolving weight/quality issues.
Those issues usually arise where it is said that performance has not matched thecontractual obligation.
However there is no reason why expert determination should not be used toresolve issues of the sort we have been discussing in this article, assuming that therelevant class of expertise can be identified and that an expert can be found who
would be willing to act. Trade arbitration bodies such as the MMTA or LME may bewilling to help identify such experts.

Summary
In summary therefore, parties can avoid costly and distracting litigation arisingfrom frame contracts by including wording suggesting a date for agreement and aprocedure to be followed if agreement is not reached. Adding some objective criteria by which agreement should be reached should also assist in ensuring the frame
remains structurally sound without being overburdened with the detail the parties
need not or cannot agree at the outset.

Donald Lambert is an MMTA board member and a Partner in theCommercial Dispute Resolution practice of member firm
Penningtons Manches LLP

THANK YOU!
MMTA members have already kindly
donated 3 shelterboxes to the RotaryInternational appeal to assist thoseaffected by the Philippines typhoon.
It is still possible to make a donation
by sending a cheque to MMTA. We will
be happy to pass on your donation.

8

LETTER FROM NORTH AMERICA
Dear Members

Here in New York, it is quite lovely. We are in the midst of autumn (fall)
and the leaves were really whirling around this morning as I walked myway through Central Park to my desk. We’ve already had a couple ofnights’ frost, but nothing too chilly!
Well, you’ll all have seen, the LME’s proposed solution to warehouse
queues. And, maybe surprisingly, it was upstaged neither by the regulators
nor the legislators. It remains to be seen, however, just how effective the
new measures will be. For a little bit of background, I would thoroughly
recommend reading its SUMMARY PUBLIC REPORT OF THE LME
WAREHOUSING CONSULTATION, which was published on November 6,
2013.
In the meantime, last week, over here, the Federal Register gazetted theannual “National Defense Stockpile Market Impact Committee Request
for Public Comments on the Potential Market Impact of the Proposed Fiscal Year 2015 Annual Materials Plan”. For those of you who may be in thedark as to exactly what this is, then, to put it simply, the committee is“seeking public comments on the potential market impact associatedwith the proposed FY [Fiscal Year] 2015 AMP [Annual Materials Plan]…”that covers the sale, upgrade, disposal and acquisition of various materials, mostly metals, in the stockpile.
The materials’ plan always provides a little insight as to what the Defense
Logistics Agency (DLA) may (or may not) be up to on the “strategic” materials front going forward. (I say “may (or may not) be up to” as, for the lifeof me, I couldn’t find germanium mentioned in any of the recent such notices and yet, in October last year, 5N Plus announced that a majorityowned subsidiary had been awarded a contract by the DLA “to upgrade a
portion of the National Defense Stockpile (NDS) high purity germanium
metal inventory to unfinished germanium substrates capable of being
ground and polished for use as epitaxial-ready substrates for multifunction photovoltaic solar cells employed in National Security Space (NSS)
applications.” But, there you go! Perhaps conversion doesn’t count.)
So, what’s on the menu this year? Beryllium still features with 17.5 shorttons (quantities are “the proposed maximum quantity”) noted this year as
being for upgrade or disposal. Last year the same quantity was noted, but
only for upgrade. Both ferro-chromium and chromium metal are slated forcontinued disposal, as are both ferro-manganese and metallurgical grade
manganese, together with tungsten metal powder, ores and concentrates.
For potential acquisition, three new metals or alloys appear: 104.5 tonnesof ferro-niobium, half a tonne of dysprosium metal and 10 tonnes of yttrium oxide. And three items appear once again on the menu: cadmium zinctellurium (CZT) substrates: 40k cm2; lithium cobalt oxide (LCO): 150 kg;
and, lithium nickel cobalt aluminum oxide (LNCAO): 540 kg.
For the non-metal-oriented reader, the DLA is also after 648 kg of mesocarbon microbeads (MCMB) – for, for example, Li-ion battery anodes, and16k lb of triamino-trinitrobenzene (TATB) – an explosive more powerfulthan TNT! (Hmm, I wonder where they get that…)
It will be interesting to see what sort of comments the committee receives.
I shall, if I can, report back when appropriate.
With best wishes for the forthcoming holiday season from New York to
MMTA members everywhere.

MMTA 2014
SUBSCRIPTIONRENEWALS
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for the 4th successive
year!
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offers many benefits, fromsignificant discounts on the
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Tom Butcher, 18th November, 2013 Hard Assets Investor© 2013 Tom Butcher

9

NEW MMTAMEMBERANGLO PLATINUM
MARKETING LTD

The MMTA is pleased towelcome Anglo Platinum
Marketing Ltd as a newmember.

THE NEED FOR TIGHTER TRACE ELEMENT CONTROLIN NI-BASE SUPERALLOY RAW MATERIALS
Ni-base superalloys account for approximately 40-50% of the total weight ofan aircraft engine, where they are predominantly used in the hot combustor
and turbine sections, withstanding temperatures that can exceed 1200°C. In
order to enhance engine efficiency and life, significant demand exists to increase the maximum operating temperatures of the engine and the time interval between engine overhaul; both of which are primarily inhibited by the capability of the materials in use.
Predicting engine life is an exercise in risk management. No component in anengine will last forever, and it is impossible to predict the exact moment any
particular component will finally fail. Therefore, components are tested and a‘safe’ life, defined below the average and any variability, is calculated.
In order to increase life and efficiency, materials engineers are presented withthree options. Firstly, non-metallic alternatives such as ceramics and complex
composite materials can be used; secondly, the design of new alloys capable ofwithstanding even higher operating temperatures; and thirdly, the control ofand tightening of elemental levels within existing alloys.
The first two options are both costly and require extensive lead times due tothe research and development work of the projects. Tightening the control on
existing alloys, however, is where the largest ‘bang for the buck’ lies, as it isrelatively inexpensive and can be done almost immediately.

Anglo Platinum Marketing
Ltd is the sales andmarketing arm of Anglo
American Platinum, and isactive in the markets of
Iridium
Ruthenium
OsmiumContact: Mark Booth
Website:www.angloplatinum.com

The mechanical properties of the components are directly affected by thechemical composition of the material and any variation in the composition
will, therefore, lead to variation in final properties.
In an attempt to tighten the control of existing alloys, OEMs are either rewriting specifications or requesting that primary melters aim for compositions
well within the specification itself. In typical single crystal Ni-base superalloys, specifications can allow for a variation of over 0.3wt% for the mainstrengthening elements of aluminium and titanium, and unwanted elements
can have maxima up to 25ppm. These allowable ranges give rise to variability
in the performance of the final material and, in turn, the need to reduce theideal service interval of the components.
The trend of reducing the trace level maxima can be seen in Figure 1, where
the lowest maximum requested for sulphur, zinc, and phosphorous is plotted
as a percentage of the relative values in 1996 for cast stick material orderedfrom Firth Rixson Metals. For all 3 elements the lowest maximum requested
in 2012 was less than 25% of that requested 10 years earlier.

Figure 1: The reduction in the lowest maxima of S, Zn, and P requested by customers of Firth
Rixson Metals since 1996

10

THE NEED FOR TIGHTER TRACE ELEMENT CONTROLIN NI-BASE SUPERALLOY RAW MATERIALS, CONT’D….
Likewise, the trend of tightening the elemental ranges can be seen in Figure 2,
where the average range of main strengthening elements requested in Ni-basesuperalloy melts can be seen to have reduced by approximately 40-60% between
2007 and 2012.

NEW MMTA
MEMBER
E & C TRADING LTD

The MMTA is pleased towelcome E & C Trading
Ltd as a new member.

E&C Trading Ltd., deals on aprincipal and agency basis withvarious commodities. We specialize in the trade of:

Figure 2: The reduction in the average range of primary strengthening elements requested bycustomers of Firth Rixson Metals since 2007

Increasing elemental control may seem simple, but there are many reasons it isdifficult to achieve. Primary melting furnace capability and reliability are key reasons, as is the uncertainty and repeatability of chemical analysis equipment. If aparticular element can only be measured to ±0.2% on industry standard laboratory equipment, developing specifications with a range tighter than this would becounterproductive. The main reason, particularly in the case of trace elements
however, is due to the quality control of starting material, be it virgin material orrevert.
It is possible to remove gaseous elements (oxygen and nitrogen) and high vapour
pressure elements (e.g. lead, selenium, and copper) simply by the vacuum process; and other unwanted elements (e.g. sulphur) can be controlled/removed bytailoring additions to promote specific reactions within the melt. However, manyother elements (e.g. tin, zirconium, and phosphorous) are almost impossible toremove from the melt once introduced, and the only guaranteed way of tightly
controlling these in the final product is not to add them in the first place.
Although contamination or poor quality in any raw material can be an issue, as
nickel contributes the largest percentage of Ni-base alloys, any variation in purityof virgin nickel can have a significant impact in the trace levels of the final product. For example, electrolytic nickel commonly has sulphur levels between 1 and6ppm, although most material is purchased with a certified ‘less than’ value.
Due to the criticality of input material, any process or certification advances
made by the raw material suppliers in terms of reducing the variability in chemical composition or in more accurate certification would have a positive knock-on
effect for the supply chain as a whole. It is a certainty that OEMs will continue todemand more stringent control on materials, and melters will have to move tosuppliers who can tightly control and accurately certify the composition of theirmaterials. Suppliers who take steps to advance their analysis and certification
systems now will find themselves ‘ahead of the game’ when these tighter controls
move from being just beneficial to melters to a necessity.
Dr Robert Guest, Technical Director, Firth Rixson Metals

MINOR METALSMINOR METAL RECYCLING
ORES AND MINERALSFERRO ALLOYS
COAL
E&C Trading Ltd., prides itself
on its sustained ability to tradeon all five continents.
E&C Trading Ltd., enjoys successful long standing relationships with the European metal
making community, as well as
being a reliable partner working
to supply other metal users in
the chemical / high tech industry
and traders with their needs.
Our well established relationships with forwarders and shippers, who know only too well
our commitment to an unrivalled service, enable you to rely
on E&C Trading Ltd. with complete confidence and peace ofmind.
Contact: Frank Dekker
Website: www.ectrading.com

11

CRITICAL RAW MATERIALS (CRMS): THE CASE OF
INDIUM

Christmas Lunch,18th December,
Pewterers’ Hall,
LondonThe MMTA’s Christmas
Lunch is the perfect way
to end the year and catch
up with colleagues in theminor metals industry.
The drinks reception iskindly sponsored by
Alfred H Knight

And the lunch by
Roskill Information
Services

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Following on from October’s edition of
The Crucible focussing on Critical Raw
Materials in relation to trade and innovation, this piece looks at the case of indium, which appears on both the EU CRMs
list and the US Department of Energy(DOE) list. The DOE definition of‘criticality’ differs from the EU list in that
it applies to materials that are at risk
from disruption for clean energy technology applications only, rather than the
broader applications considered by the
EU. Indium is sometimes cited as a candidate for substitution, which is an attractive solution for materials appearing
on these lists, however, research suggeststhat this may not be the most appropriate
means of decreasing the criticality of thismaterial. Malcolm Harrower, Indium
Corporation of America, offers some reflections for those considering the criticalstatus of indium, and illustrates that‘criticality’ does not necessarily meanthat there is a shortage of supply.
Indium is a key material in many modern
technologies, being used as a transparent
conductor in devices including
touchscreens, with one particularly useful property being its moisture resistance. Although an apparently expensive material, it makes up only a small
proportion of an item’s overall cost, anddue to the small quantities used, prices
have not historically been a deterrent to
its usage. Indium is a by-product of other mined materials, and is mostly generated during zinc ore processing. It is also
found in lead, copper and tin ores, and istherefore mainly found in South America, China, Canada and Australia.
A lot of indium is not recovered fromthese large mining operations, as thequantities are so small, for example,
when compared to zinc, in 2012 therewas 12,500,000 MT refined in total compared with only 1,500 MT of indium,with a large proportion of that amountcoming from internal recycling. However, large mining companies are startingto give greater consideration to the extraction of more minor metals, including
indium, to add value to their operations.
The large proportion of recycled indium

used comes from the Sputtering processes in which indium is often a component,with Sputtering targets being recycled
and the excess material re-incorporated
into the system, resulting in high process
efficiency. Research into retrieving theindium at the end-of-life stage is currently being undertaken, but is not yet considered to be economically viable.
Malcolm Harrower points to several key
facts relating to the supply and demandratio for indium, which have a direct
bearing on its designation as a CRM:
Demand for indium is increasing
at significant rates.



The amount of indium in provenreserves is sufficient for 50 -100
years to come.

Extraction and refining capacity
can be expanded to meet demand
for new technologies.



There will be both pricing and supply volatility, but there will beenough indium to meet demand
for a very long time.

There is a plentiful supply inzinc and copper concentrates.
Ref: The Indium Corporation of America

Malcolm Harrower also states that the
key reason for indium being considered
to have a risk of supply shortages andbeing therefore designated as ‘critical’ isthat 50% of the world’s indium is produced in China. However, it should be
noted that in recent years China has become a net importer of indium with little
effect on world supply availability. He
believes that opaqueness in the supply
chain is another factor which does nothelp create confidence in the sustainablesupply of indium.
The European Commission-funded CRM
Innovation Network* has published reviews of the 14 CRMs with analysis ofboth economic and technical possibilities
for replacing them in certain applications.
As a CRM, indium has been analysed interms of its suitability for substitution.
The results are that for its main application, that of flat-screen panel displays,indium is not a good candidate to be substituted, and achieving this would resultin ‘high cost and/or a loss in performance’. Malcolm Harrower points outthat one of the economic barriers is that
there have been large investments in thepast in indium machinery and infrastructure, creating a disincentive to change to adifferent material.
One of the key problems, however, lies ininconsistencies in the assessments of thelikelihood and desirability of substitution
from different parts of the EU, with a recent press release from the European
Commission stating, in direct contrast to
the CRM Innovation Network, that one of
the next key aims the European Innovation Partnership was:technical solution to criticality, which may
prove to be extremely costly and difficult
to implement without the required infrastructure and private investment.

MEMBER

Appendix*The CRM Innovation Network is madeup of experts linking academics and industry research and development departments, and indium’s status and possibilities for substitution are in the ‘raw material profiles’ produced by the network.
For those wishing to comment on any ofthese profiles, comments may be submitted until August 2014.

EU CRMs:
Antimony, Beryllium, Cobalt, Fluorspar,
Gallium, Germanium, Graphite, Indium,‘the substitution of indium in transpar- Magnesium, Niobium, PGMs (Platinum
ent conductive layers, such as those used Group Metals), Rare earths, Tantalum,
in touch screen devices, flexible electron- Tungsten
ics, solar energy and OLED lighting(organic light-emitting diode used to cre- (A revised list will be published in earlyate digital displays in devices such as2014, with an increase to 20 materials
television screens, computer monitors,
portable systems such as mobile phones, expected)
handheld games consoles and
The US Department of Energy has proPDAs’ (dated 26th September 2013)
duced a CRMs list based on the materials
used in energy applications, in particular
By contrast, in the USA Critical Materials clean energy technologies, split up according to their relative criticalities.
Institute at the Ames Laboratory, whichworks on various projects related to the
DOE CRM list, there are currently no acLess Critical
Most Critical
tivities related to indium, either for sublanthanum
dysprosium
stitution or for improving recycling andceriumneodymiumrecovery. Despite discrepancies in Europe
and inaction in the US, the fact that it ispraseodymium
terbium
perceived supply chain risks which makesamarium
europium
indium critical, indicate that focus in thecase of indium should be redirected away
terbiumyttriumfrom substitution research and instead
gallium
Indiumfocused on trade policies to ensure a sustellurium
tainable future supply.
Reliance on ‘technology breakthroughs’,
rather than improving trade relations andinvestigating other supply options does
not seem to be a sustainable or effective
approach to managing the availability of
CRMs that will be essential for many industries for the years to come. Focusing
on recovery and recycling, and designingfor end-of-life are actions that can be taken now to reduce the ‘criticality’ of someof these materials. Driving innovation andhigh-technology is a worthwhile aim, but
it is important to not look solely for a

NEW MMTATODINI & CO SPA

The MMTA is pleased
to welcome Todini &Co SPA as a new member company.

Todini & Co SPA is amulti-brand distributor
and agent of chemical
products.
Todini is European
leader in the distribution of salts and oxides
of non-ferrous metals
such as Nickel, Selenium, Cobalt, Iodine, Bismuth, Copper, Tin, Molybdenum, Vanadium
and Tellurium.

Contact:
Wouter van Loo

cobaltlithium
Additional Sources of Information:

Website:www.todini.com

http://europa.eu/rapid/press-release_IP13-863_en.htm
http://www.criticalrawmaterials.eu/
Tamara Alliot, MMTA, inconversation with Malcolm
Harrower, Indium Corporation ofAmerica13

NEW MMTAMEMBERTERRACOMMODITIES LLC

CONFLICT MINERALS REPORTING—WILL IT
AFFECT ME?
Conflict Minerals Reporting arises from the requirements of Section 1502 of the
Dodd-Frank Act as applied by the SEC to all issuers of stock in the United States
where Gold, Tin, Tantalum or Tungsten (“3TG”) are necessary to the functionality or production of a product manufactured or contracted by that issuer to be
manufactured.
On the face of it, this new law will impact about 8,000 public companies. However, those companies rarely purchase all components within their final productfrom the source of origin, instead relying upon extensive supply chains. By extension, the law could reach as many as 300,000 public and private entities
across a wide variety of industries.
What are the obligations on public companies and how will these affect their
supply chain?

The MMTA is pleased towelcome Terra Commodities
LLC as a new member
company.
Terra Commodities LLC is afull service physical metals,
chemicals, and minerals
merchant serving North
America, Europe, andAsia. Established in 2008, Terrais headquartered in the UnitedStates with representation
throughout Europe, Central
Asia and South Asia.
Terra specializes in supplying
primary materials, secondary
materials, and intermediary
products for use in superalloys,
specialty steels, optoelectronic,
microelectronics, thermal spray
powders, and photovoltaics.
Terra's product base of metals
and oxides includes, but is not
limited to: Cr, Dy, Gd, Hf, Nd,
Nb, Re, Ta, W, Y, and Zr.
Through strategic partnerships
and investment interest Terra
also supplies high purity
powders, zircon sand, andadvanced materials such as
sputtering targets andevaporation pieces.

Contact: Michael Rapaport
Website:www.terracommodities.com

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Public companies are required to disclose their use of Conflict Minerals in SEC
filings for the year ended 31 December 2013 by 31 May 2014. The SEC filingshould be accompanied by an audited Conflict Minerals Report if the company
has reason to believe it uses minerals sourced from the Democratic Republic ofCongo (DRC) or adjoining countries. For these purposes, the minerals currently
defined as Conflict Minerals are:
 Tantalum – extracted from columbite-tantalite (17% of world supply fromDRC)
 Tin – extracted from Cassiterite (4%)
 Tungsten – extracted from Wolframite (3%)
 Gold (2%)
Step 1

Determine the applicability of the rule.

Step 2

Conduct a Reasonable Country of Origin Inquiry (RCOI) to
determine whether or not there is reason to believe that conflict minerals from the DRC are present in any products.
Conduct due diligence to determine the source and origin of
conflict minerals and the smelter in which they were processed. Due diligence should be based upon a recognised
framework. The recognised framework is contained in guidance crafted by the Organisation for Economic Co-operation
and Development (OECD).

Step 3MMTA members may therefore form part of the supply chain of a company covered by the SEC filing requirements.
The process followed by companies covered by the filing requirements is a threestage process.
MMTA members may therefore receive inquiries, in the form of EICC / GeSI
templates, from their customers seeking specific data regarding the type andsource of minerals supplied. Additionally, customers may request information
on supplier sourcing policies and management controls related to the metals
they supply as the due diligence process is pushed down the supply chain.
Metal traders are termed “downstream companies” under the OECD guidancealong with exchanges, manufacturers and retailers. The Supplement on Tin,
Tantalum and Tungsten in the guidance recommends:‘that downstream companies identify, to the best of their effort, andreview the due diligence process of the smelters/refiners in their supply chain and assess whether they adhere to due diligence measures
put forward in this guidance’CONFLICT MINERALS REPORTING—WILL IT
AFFECT ME? (CONT’D)...
The guidance defines ‘red flag’
suppliers whom companies
are likely to seek to exclude
from their supply chain, unless they have appropriate
due diligence procedures inplace, as: Suppliers or upstream (frommine to smelter/refiner)
companies that haveshareholder or other interests in companies that supply minerals from or operate in red flag locations of mineral origin and transit.
 Suppliers or upstream companies known to have sourced minerals from red
flag locations of mineral origin and transit in the last year.
Red flag locations of mineral origin and transit are defined as: Minerals that originate or have been transported through a conflict affected orhigh risk area.
 Minerals that are claimed to originate from a country that has limited known
reserves, likely resources or expected production levels of the mineral inquestion.
 Minerals that are claimed to originate from a country in which minerals fromconflict affected and high risk areas are known to transit.
If a trader believes that they are, or potentially may be, a red flag supplier, theyshould consider establishing due diligence and management systems within thecompany to address risks associated with minerals from conflict affected or highrisk areas. The OECD guidance and SEC final rule recognise that a company’s
processes must be tailored to its particular facts and circumstances, taking into
account size, complexity and supply chain characteristics.
And Europe?
In Europe, the European Commission has now closed its consultation period andis likely to move towards draft legislation. During the process it was notable that
unlike the Dodd Frank Act, references were to conflict affected and high risk areas as in the OECD guidance, suggesting a wider definition than just the DRC andadjoining area. Whilst the ultimate legislation is likely to differ from that in the
United States, it will draw extensively on the processes highlighted in the OECD
Guidance. We would recommend that companies potentially affected by thislegislation start to consider embedding procedures into their control environment in line with OECD guidance.
Authors: Chris McClure & Ian Weekes, Crowe Horwath/Crowe Clark
Whitehill
Crowe Horwath International through its local offices is a leading provider of services tointernational traders and is currently advising companies on compliance with conflictmineral legislation. Chris McClure is a US based partner at Crowe Horwath with a specialism in providing consulting and audit services to corporations complying with SEC conflict metal filing requirements.
Ian Weekes is a UK based partner at national tax, audit and advisory firm Crowe Clark
Whitehill with extensive experience of working with international trading and warehousing businesses.

NEW MMTA
MEMBERNOBLE GROUP LTD

The MMTA is pleased towelcome Noble Group Ltd as a
new member company.
Noble is listed in Singapore(SGX: N21), with headquartersin Hong Kong and operates
from over 140 locations. We
are ranked number 76 in the2013 Fortune 500. Noble Groupis a market-leading global supply
chain manager of agriculturaland energy products, metals andminerals. Noble Group wasestablished in 1987 in the belief
that urbanisation would drive
demand for the products andservices that we aimed toprovide. We connect low costproducing countries with highdemand growth markets.
Our investments focus on key
stages of the supply chain tocreate and extract additional
value, manage risk and securelong-term flows of products andinformation.
Noble is committed to building
sustainable product flows ofcommodities that generate
long-term value. We manage adiverse – and diversified –portfolio of agricultural, energy
and hard commodity products
supported by integrated
sourcing, marketing, processing,financing and transportation
operations.

Contact: Stephen Jones
Website:www.thisisnoble.com

This information is published without responsibility on our part for loss occasioned to any
person acting or refraining from acting as a result of any information published herein.
Crowe Clark Whitehill LLP - 2012.

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