Tantalum Market Overview Launch
Metals Pro Climate

The magazine of the Minor Metals Trade Association

January 2013www.mmta.co.uk

INSIDE THIS ISSUE
New Chinese Leadership ....... 2
Letter from North America .. 3
Diary Dates ................................ 3
Metals Pro Climate .................. 4
New Members........................... 5
Credit Insurance ....................... 6
MMTA Conference .................. 8
Travel Security Pt2 ................... 10
Tantalum Report....................... 12
Firth Rixson Site Visit .............. 14
Focus on Washington.............. 15
Sub-Committee Changes ....... 16
Member Benefits....................... 16

MINOR METALS INSIDER
Real tests lie ahead for the new
Chinese leadership
In early November of 2012, while theworld was watching closely for the US
election, a transfer of power was happening in a seemingly placid way in China following the emergence of Xi
Jinping, after months of backstage positioning and political elbowing, who will
become the leader of the party, the government and the military. Together with
6 other members of the Politburo Standing Committee, this new Communist
Party leadership will start to take charge
in March 2013.
As China's first phase of development
and modernization, initiated by Deng
Xiaoping in 1978, comes to a critical
turning point, the new leadership is fac-housing prices in the country from 2005
to 2011. Between 2000 to 2011, residential housing investment as a share of
China's GDP has tripled from 2% to 6%,
similar to the peak of the U.S. housing
bubble. Although the bubble has been
deflated to a certain extent since summer 2011 by a series of policies fromthe government, but it's also seen as oneof the primary causes for China's declining economic growth in 2012; China’s
dependence on real estate for growth
has now put the government into a dilemma.
On the other hand, risks to China's financial system are rising, stemming
mainly from the property sector andlocal government debt. The risks arecompounded by local governments' reliance on short-term funding for longer“Export, which used to be the biggest engine for China's economic growth, has slowed
down significantly since 2008's world financial crisis and now has given its place to real estate….which is feeding steel, concrete and dozens of other industries”

MMTA’S 2013
INTERNATIONALMINOR METALSCONFERENCE

Mandarin Oriental
Hotel, Washington DC
April 24th—26th 2013
Go to pages 8 & 9 formore information anddelegate companies
already signed up.

2

ing a far more complicated and delicate
situation than its predecessor, both economically and politically. Since 1980's,
China's economy has been growing witha striking speed, which today makes it
the world’s second biggest economy,
however the cost is also huge -- environmental problems, housing bubble, corruption, widening gap between the richand poor, moral decline... all these problems are becoming even more visible when the whole world is under the
shadow of the worldwide economic setback, as the country's economy slows to
its worst pace in years.

term projects, and the rapid expansionof loans in China's banking system inrecent years has created new risks. If
this shaky banking system is not sustainable and eventually collapses, theconsequences for savers and investors
could be extremely serious and will trigger more social instability.

Export, which used to be the biggest
engine for China's economic growth, hasslowed down significantly since 2008's
world financial crisis and now has given
its place to real estate. Real estate investment constituted 13 per cent of thecountry’s gross domestic product lastyear, which is feeding steel, concrete anddozens of other industries, and selling
real estate is a major source of income
for local governments. During the past
10 years, China's overheated property
market is one of the few investments
available to the rising middle classes, as
they are not able to find many other effective alternatives to prevent their savings from shrinking due to the high inflation rate, and tripling of average

How to create an innovative economic
model for a less wasteful and more sustainable development, how to promoteand maintain the rule of law, how tobuild a fairer society withless authoritarianism and the immense
privileges of the elite... all these challenges are lying ahead for the new leadership at this inflection point in China's
development, and they will be using thenext 10 years to prove that they
have enough wisdom and determination, and have eventually executed allthese transitions smoothly and successfully.

Politically, the new leadership is also
facing increasing pressure for political
reform, with more and more appeals
from the people whose resentment has
been continuously inflamed by the rampant corruption and increasing social
inequity.

Vicky Zeng, Vital Materials Co Ltd.

DIARY DATESLETTER FROM NORTH AMERICA
Dear Members
New York doesn’t seem to know what it is at the moment: fall or winter. One day
it is beautifully mild, the next there’s a chilly wind and ice on the ground inmorning. Who knows what it is going to do next.

Barrowboy andWhatever it may have been like outside, inside the Cornell Club it was warm andcomfortable on the evening of Wednesday, December 5th when, after a fine long
“Networking Drinks Reception” with delicious hors d’oeuvres, members, guests
and others at the MMTA annual New York dinner, enjoyed both an excellent
meal and absorbing after dinner speech. This last, entitled Progress & Challenges Facing the US and Europe, was provided by that old friend of the association,
Mickey D Levy PhD, Chief Economist at Bank of America.
Perhaps sympathetic to a certain ennui felt by many of us under constant bombardment from the media about our forthcoming approach to the edge of the“fiscal cliff”, Dr Levy eschewed precipitous finance to stand back and look more
broadly at where the US and Europe currently stands. Perhaps surprisingly, hedidn’t consider the prospects for either too depressing. On the one hand he waspersuaded that the European Union was not going to fall apart. On the other
hand, he doesn’t think the prospects for the US in the coming year look too bad.
If, however, there was one issue about which he continued to be particularly concerned, it was the educational, and skill, levels of the country’s workforce. The
levels of both, especially when viewed alongside those of emerging countries’
workforces, should really give domestic policy makers pause for immediate
thought.

Banker Pub,
London, UK from
6pm, 13th March MMTA’s

International
Minor Metals
Conference,
Mandarin
Oriental Hotel,
Washington DC,

Dr Levy wrapped up by taking a number of questions from diners, including several on just how difficult it sometimes can be to engage suitable employees, evenwhen higher educational levels are not required. A thoroughly enjoyable evening
was, I believe, had by all.
Since I last wrote from here in New York, we have, of course, had Sandy. Following the storm, I having been thinking whether there is anything I could say about
it that might be informative to members not actually affected by it. A particularexperience of some seemed salutary to me. And may well be to other members.

USA, 24—26 April

 MMTA’s 40th

Anniversary
Dinner,Ownership of them aside, we probably don’t usually worry too much about thewarehouses or vaults in which we keep our metals. Following Sandy, and in viewof a potentially rising sea level everywhere, it may be as well to take a second lookat where your inventory is stored. Some companies in Manhattan’s financial district with safekeeping vaults (whether for metals, or the likes of stock certificatesetc) were very hard hit, with vaults flooded and considerable damage sufferedfrom the storm. Damage to any metals, as opposed to paper certificates, stored
therein was probably minimal, or non-existent. However, whilst force majeureis all very well, if you don’t have access to what you own for an extended period,
it can prove irksome.

With best wishes, from New York, for the New Year to MMTA members everywhere.
Tom Butcher, Hard Assets Investor© 2012 Tom Butcher

Informal Drinks

Intercontinental
Hotel, London,
UK, 8th October



Xmas Lunch,
Pewterers’ Hall,
London, UK, 18th
December 2013

The New York Dinner was kindly sponsored by American Flux & Metal.

3METALS PRO CLIMATE—SUCCESSFUL INDUSTRIAL
COMMUNICATIONSPONSORSHIPOPPORTUNITIES FOR
2013

Sponsoring an MMTA
event is not just about one
evening.
MMTA communications andmarketing reach the inboxes ofdecision-makers and key influencers within the MMTA membership and outside it for theentire duration of the marketing of an event, as well as inpost-event reviews.
Our new website offers great
opportunities for sponsors.
Take advantage of the MMTA’s
contacts and distribution channels by using us to help target
your marketing activity within
the minor metals sector.
MMTA sponsorship also offers
the opportunity to work with atrusted partner over an extended period of time, maximising
return on your financial investment.
This year, our flagship 40th
Anniversary Dinner, willtake place at the InterContinental Hotel, Park Lane on 8th October.
Details of specific sponsorshippackages are available on request by contacting
maria@mmta.co.uk

4

The MMTA was interested to learn
more about an exciting company initiative, created and promoted by the German non-ferrous metals sector. What
started in Germany has become an international initiative in cooperation
with Eurometaux. As part of a continuous dialogue, this non-ferrous metals
industry initiative emphasises the message that ecology and economy do nothave to be in conflict.
The “Metals Pro Climate” company initiative was created at a time when climate policy issues were becoming the
focus of social attention. The challenges facing the non-ferrous metal indus-

tems/measures, society and industry on‘Island Europe’. Yet the disharmonies
between the systems in operation fromnation to nation are now so striking
that their usefulness, in relation to theeffective global climate protection objectives, must be challenged.
While European and national policyemphasises regulation by constantly
imposing new directives, the metals
industry is already successfully implementing climate protection, energy andresource efficiency at its plants.
The Metals pro Climate initiative has
positioned itself as a pace setter for in-“Metal stays metal – metals are notconsumed but used.”
try were clear from the start: it was amatter of breaking down old reflexes
and apparent contradictions, in orderto define the sector by the positive images and successes of which it is justly
proud. From the very beginning, theinitiative set itself the aim of communicating with all social actors, by focussing on continuity and dialogue. From
the outset, gaining acceptance within
the industry and raising awareness ofenvironmental and economic issues
were some of the key objectives of themember companies.
In 2008, ‘Metals pro Climate’ entered
the stage, at a time when climate policy
was linked to great hopes and ambitions. For example, the fact that the1997 Kyoto Protocol was signed by 193
nations is the greatest success so far
achieved by the international community of nations, in terms of global climate protection. However, progress
more recently has not been smooth. It
is symptomatic of developments at previous climate conferences and the collapse of a wide-ranging global climate
alliance that national and international
climate policy is faced with a paradox:
there is no global strategy in place thatwill guarantee effective climate protection. Consequently, great demands areplaced on European and national sys-

telligent climate protection. Chaired by
Oliver Bell, Executive VP Rolled Products of Norsk Hydro ASA, with Peter
Willbrandt, CEO of Aurubis AG as Vice
Chairman, Metals pro Climate believes
that education, new technologies andresource efficiency will be the foundations of a new European climate strategy to counter current disillusionment
following the stalling of global climate
talks post Kyoto. This new climate
strategy will be based on growth anddevelopment. Metals pro Climate focuses on intelligence, innovation andefficiency in climate protection linked
to modern production processes, innovative products and recycling superiority in technology, illustrating thatknowledge- and technology-based climate protection is more sustainable
than setting rigid reduction targets andcurtailing opportunities for growth.
CORE EXPERTISE—ENERGYEFFICIENCY
Since 1990, the non-ferrous metals industry has reduced its specific energy
consumption by 28%. Company employees see energy efficiency as part ofthe everyday operation at their plants.
Energy efficiency is a core area of expertise for the industry, and employees

METALS PRO CLIMATE—SUCCESSFUL INDUSTRIAL
COMMUNICATION
are experts in this field. For a long time,
and without political intervention, awide range of systems and improvement
processes have been helping to achieveenergy efficiency.

significant contribution to resource efficiency and security.

This enables Metals Pro Climate member companies to return the recycled
metal to the material cycle without any
The companies have a major potential to quality losses, using intelligent processsave energy by using waste heat. Heates.
recovered in an energy-efficient way is
Our industry is not simply protecting
used to produce new process heat or
the status quo – it is actively committed
added to the heat supply. But intelligent
to planning for the future and sustainability of our society. When it comes tofuture technologies, metals provide materials that are vital for these innovations. 60kg more copper, 50kg morealuminium, 20kg more steel and 10kg
more nickel are needed to make an electric car, compared to conventional vehicles. Less is therefore not always more.
THE SUCCESS CONCEPT OF METALSPRO CLIMATE

construction technology, the use of efficient technologies in processes and theconversion of furnaces also make a major contribution to energy efficiency forthe companies.
RESOURCE EFFICIENCY—METALSTAYS METALResource efficiency is now a burning
issue at European and national level.
The European Commission’s flagshipinitiative ‘Resource-Efficient Europe’,
which forms part of the Europe 2020
Strategy, promises ‘intelligent, sustainable and integrative growth’. The efficient use of resources is described as adecisive factor for growth and employment policy in Europe.

The future challenges facing a company
can only be achieved in cooperation with
politicians, society and industry. The
importance of this dialogue, which involves all sections of society, has beenshown by the positive reaction to theregional events organised as part of the‘Metals Pro Climate’ Initiative. Bothpoliticians and media representatives
contributed to dialogue with the companies on climate protection, energy andresource efficiency in the non-ferrous
metals industry.

The member companies identify withthese positive effects and share thesesuccesses with their employees. This
increases awareness of the benefits ofefficiency measures for their own plants,
as exploiting energy – and materialsaving potential also means reducing
costs and increasing the value of thecompany. At the same time, success
German industry is a pioneer in terms ofconcepts are made clear and accessible
recycling and resource efficiency. For
to the general public.
their own business interests and due toThis company initiative clearly demonincreasing prices on the commodity
strates that climate protection technolomarkets, companies are taking adgy, efficient energy use, innovative prodvantage of all methods of achieving reucts or the economical use of resources
source efficiency.
would not be possible without the nonMetals stand for resource efficiency beferrous metals industry.
cause metal stays metal. Metal is neverconsumed, but only used. By recycling
Metals Pro Climate
and exploiting recycling potential, thewww.MetalsproClimate.com
non-ferrous metals industry makes a

NEW MMTA
MEMBERSThe MMTA would like towelcome its two newest
members:

Metal Partner GmbHwww.metalpartner.de
Metal Partner is based in
Cologne and trades inmanganese metal, silicon
metal, ferro bar, ferro
molybdenum, ferro
vanadium, titanium sponge
and ferro titanium.

Select Alloys &Materials Ltd

www.selectalloys.net
Select Alloys is based in
Rotherham and is a trader /processor of nickel andcobalt based alloys andassociated raw materials

5

EULER HERMES—CREDIT INSURANCE FOR THE
MINOR METALS SECTOR

ADVERTISE YOURGOOD NEWSSTORIES ON THE
MMTA WEBSITE

Does your company
have a good news story
you would like to sharewith visitors to the
MMTA website andreaders of the Crucible?

We would like to shareyour good news.

Following the meeting between the MMTA and Euler Hermes in October, we aredelighted that Shannon Murphy, Risk Manager, and Paul Oxley, Head of Risk
Underwriting, accepted our invitation to write a short piece for MMTA members.
Global Network
A number of MMTA members will have no doubt have had some dialogue with
us in the past. Our underwriting philosophy is very much based on proximity torisk, and we draw upon the local expertise of the underwriter in the country of
the buyer for their local knowledge and expertise. Euler Hermes employs 6,000
staff members worldwide and our mission is to help our clients grow by insuring
them against the risk of buyer default - whatever their size, sector or country oforigin. Our market presence in over 50 countries means we have local contacts to
speak with who understand the market dynamics. This is supplemented with theexperience of our clients, including payment performance.
Understanding the local market conditions is critical and the aim of our advice is
not just to avoid an insolvent event, but also counterparty default. It pays to re-“[It is] extremely important to understand a company’s financial flexibility and scope for growth or to deal withexternal shocks.”
visit supply contracts to ensure they provide as much protection as possible, sothat a change in economic circumstances does not give an excuse not to perform.
Information Requirements

Please forward any
contributions orsuggestions tomaria@mmta.co.uk

MMTA JOINS THE
AMRC FORUM.
The AMRC Forum is an amalgamation of Sheffield University’s Advanced Manufacturing
Research Centre, Boeing’s Advanced Manufacturing Forumand the National Metals Technology Centre (NAMTEC)
Manufacturing Forum. As
members, MMTA will have access to information relating tohigh-value manufacturing sectors, focusing on aerospace anddefence; power generation,
including nuclear and renewables; and oil and gas.

6

What is key for us is to really understand your business, so proprietary information flow is vital for our underwriting.
Typical information requested will be the background to the business, the up-todate financial performance, and key suppliers and customers. This is to enable us
to gain a better understanding of where the company sits in the supply chain,and to assess strengths and weaknesses, opportunities and trends.
The financial statements provided should include the full profit and loss, balance
sheet, and cash flow, year end budgets/forecasts, and sometimes an aged creditor/debtor list. The minimum requirement will be the latest statutory accounts,
but sometimes if the credit limit request is high or we already have a sizable exposure running, we will require more detailed information.
With the volatility often seen in commodity prices and changes in end user demand, it helps to have an understanding of contracts in place, with order bookdetails and any committed forward orders and price.
Full funding details are also extremely important to understand a company’s financial flexibility and scope for growth or to deal with external shocks. Over thelast few years we have seen much stricter lending requirements and tighter credit
lines from the banks. It is therefore important for us to understand the cash flow
cycle and to identify any potential pinch points. In terms of understanding acompany’s working capital, we need to know the size of the facility, current, average and peak usage, maximum drawdown (if an ID facility), and renewal date of
the facility along with any covenant details.
The level of information will vary with the size of the business, however the more
information available, the better informed. We have a national coverage of Risk
Analysts around the country and a buyer line (08444 122041) so when the buyer
calls, they are automatically routed to the local Risk Office. Our local Risk Office
Analysts conduct regular buyer meetings (around 3,500 a year) and our underwriters meet clients on a regular basis, and when all this information is

EULER HERMES—CREDIT INSURANCE FOR THE
MINOR METALS SECTOR (CONT’D)
pooled together, it gives us an in-depth view of the market place. We make decisions on cover based on the buyer’s own merits, and never a broad sector-based
response.
Political Risk
At our meeting, members of the MMTA’s Insurance Task Force expressed aninterest in understanding the political risk side of the credit insurance policy.
This is an area that has understandably attracted increasing interest. Traditionally, political risk cover has been associated with the desire to protect payment
for exports to difficult emerging markets. The Iraqi invasion of Kuwait in 1990
shows how stable markets can suddenly expose exporters to unforeseen politicalrisk. We have seen in more recent years how foreign exchange issues produced
political risk claims in Argentina, Russia and Venezuela. However, we have seena new trend and increasing interest from British companies over the last 12
months for political risk cover for exports to the Eurozone. This is unsurprisingin light of all the speculation and media hype about whether Greece might leave
the Eurozone and revert to the Drachma or Spain revert to the Peseta.
Our Commercial and Political Risks policy offers comprehensive political risk
cover for your export sales should payment not be made due to one of the following events occurring:

Inconvertibility – Your customer is unable to transfer money out of theircountry due to foreign exchange controlsContract Frustration – Payment is prevented due to the occurrence in yourcustomer’s country of a natural disaster or war / civil war / revolution orother similar events

Contract Cancellation – The government of your customer’s country cancels
the contract between you and your customerImport or Export Restriction – A trade embargo is imposed by the government of your customer’s country or by the government of the country from
where the goods are being shipped“We have seen a new trend and increasing interest from British
companies over the last 12 months for political risk cover forexports to the Eurozone.”

Public Buyer Default – Your customer does not pay and is a government
body

Our economic research department monitors country risks for countries all over
the world, enabling our underwriters to make an informed decision on whether
to grant cover in a particular country and on what terms of payment. The teamfine-tune on a daily basis their assessment of potential risks according to theeconomic conditions and outlook.
Further information can be found at: www.eulerhermes.com, where you cansign up to our free Weekly Export Risk Outlook, as well as find an array of relevant information.
Conclusion
At Euler Hermes UK we have been proud of our long term commitment to themetals industry and this includes the Minor Metals Trade Association members
and their customers. Our ability to get close to our clients customers, and really
understand their businesses remains vitally important. Our aim is to continue tosupport the members of the MMTA as well as the industry as a whole.

Umicore ispleased to
inform youthat we areranked as the most sustainable
company in the “Global 100 Most
Sustainable Corporations in theWorld” index. The announcement
was made by Corporate Knights,
an independent media and investment research company based in
Toronto, Canada.
Corporate Knights mentioned that
Umicore achieved the top overall
ranking in the 2013 Global 100 due
to its strong, across-the-board sustainability performance.
We have made significant investments in clean technologies and areable to make a real difference with
our unique closed-loop businessapproach. This enables us to help
address global issues such as resource scarcity, clean mobility andthe sustainable generation andstorage of energy. We complement
this by ambitious objectives to further improve our environmental
and social performance.
Our CEO Marc Grynberg expressed his delight and reinforced
Umicore’s commitment to continue its sustainable development efforts as part of the company’s Vision 2015 strategy and beyond. Hestated: “Being recognized as themost sustainable company is foremost an encouragement to continue to grow our business in a sustainable way. While we still havemuch work to do, this recognitionshows that we are on the righttrack”.
For more information: http://
www.umicore.com/en/media/news/
We are looking forward to continuing our sustainable journey withyou as our valuable stakeholder.
Yours faithfully,
UmicoreBrussels, 25th
January 2013

7

MMTA’S

MMTA’S INTERNATIONAL MINOR METALSCONFERENCE 24—26 APRIL 2013 ATTENDEESINTERNATIONALMINOR METALSCONFERENCESILVER SPONSORS

85N Plus
Advanced Alloy Services Ltd
Advanced Metals Technology Inc
AIM Specialty Materials
Alcoa
Alcoa Howmet
Alex Stewart (Assayers) Inc
Alfred H Knight International Ltd
Amalgamated Metal Corporation
Amalgamet Canada LP
American Flux & Metal
Areva
Atlantic Metals & Alloys LLC
Aurubis AG
Beijing JiYa Semiconductor Material
Co LtdBrown Brothers HarrimanBuss & Buss Spezialmetalle GmbH
C. Steinweg (Baltimore) Inc.
C. Steinweg Handelsveem BV
C. Steinweg N.V.
Changsha of Kailida
Changsha Zhong Gui Nonferrous Co Ltd
Climax Molybdenum
CMK Ltd
Darton Commodities Ltd
Deer Horn Metals Inc
DLA Strategic Materials
EAC Corporation
EAG Labs
Earth Metals LLC
Exotech Inc
F.W. Hempel Metallurgical GmbHGE Aviation
GE Global Research
Global Advanced Metals
Greenbriar Partners
Hard Assets Investor
H.C. Starck GmbH
Hudson Metals Corp
ICD Metals LLC
ik Intertrade & Capital Management
GmbHIndium Corporation of America
International Cadmium Association
Jiujiang Jinxin Nonferrous Metals Co
Ltd
Jurametal SA
Kennecott Molybdenum Company
KLS Recycling OU
Kohsei Co Ltd

Lambert Metals International Ltd
Lipmann, Walton & Co Ltd
Maritime House Ltd
Materion Corporation
Martin Alloys Corp
Metal Bulletin
Metalink International Co Ltd
Metal-Lynx Ltd
Metal-Pages Ltd
MetalPrices.com
Minelco Asia Pacific Ltd
MolymetPacorini Metals Rotterdam BV
Phoenixx International L.P.
Plansee SE
Powmet Inc
Quest Rare Minerals Ltd
Retorte GmbH
Rhenium Alloys
Rittenhouse International Resources
LLC
ROC International Co Ltd
Rolls-Royce Group PLC
Roskill Information Services Ltd
Sargon Holdings
Scandinavian Steel AB
SFP Metals Ltd
Shaanxi Huadian Fine Chemicals Co Ltd
Shengyuan Metal Company Ltd
Sovereign Int’l Metals & Alloys Inc
Ssp B.V.
Stapleford Trading Limited
Stifel, Nicolaus & Company Inc
The Chem-Met Company
Toma Group
Thompson Creek Metal Company
Tradium GmbH
Tranzact Inc
Traxys Europe SA
Traxys North America
Tremond Metals Corp
Umicore Marketing Services USA
Umicore Precious Metals Refining
US Department of Energy
US Geological Survey
VDM Alloys B.V.
Vital Chemicals
Wogen Resources Ltd
Womet GmbH
Yale University

CONFIRMED CONFERENCE SPEAKERS“Critical metals and issues of future sustainability – how can the industry be encouraged to recycle and reuse?” by Thomas Graedel, Professor of Industrial Ecology, Yale University, USA

MMTA ANNUAL
REVIEW 2013

“The strategies being pursued for the use of critical metals in clean energy technologies” by Diana Bauer, Office of Policy & International Affairs, US
Department of Energy, USA“The global economy and outlook for the metals industry” by Scott Clemons,Chief Investment Strategist, Brown Brothers Harriman, USA“Outlook for tantalum in capacitors and how supply-side issues are affecting manufacturers” by Andrew O’Donovan, President, Global Advanced Metals,
USA“Tungsten: How China pulls the strings in unlocking potential ROW supply” byRobert Baylis, Managing Director, Roskill Information Services Ltd.,UK“Everything you always wanted to know about rhenium…..” by Anthony Lipmann, Managing Director, Lipmann Walton & Co Ltd., UK
A presentation on selenium by Bernd Treiber, Managing Director, RetorteGmbH, Germany“Applications for indium”, by Brian O’Neill, Indium Materials Manager,
AIM Specialty Materials, USA“Cadmium usage in batteries and electric vehicles,” by Hugh Morrow, Senior
Consultant, International Cadmium Association, Canada

CONFERENCE TIMINGSAs usual, the programme will be the focus of this event, with an excellent line-upof speakers. We expect a good number of attendees again in 2013, following on
from the 2012 conference in Cologne, which attracted around 250 participants.
Wednesday 24 April
16:00 – Conference registration
18:00 – 20:00 Welcome reception
Thursday 25 April
08:30 – 15:30 Conference Sessions
15:30 – 16:00 MMTA’s AGM
18:00 – 22:00 MMTA’s Conference Dinner at Hill Country Barbeque(only for delegates with prepaid tickets)
Friday 26 April
09:00 – 14:30 Conference sessions & luncheon

Following the success oflast year’s MMTA
Annual Review, we areagain offering advertising
space in the 2013
edition. Copies of theAnnual Review will be
distributed to alldelegates at the MMTA’s
International Minor
Metals Conference inWashington DC, as well
as being sent to all
MMTA member
companies. During thecourse of the year, theAnnual Review is one of
our key marketing tools.

Don’t delay—contact
Maria Cox for prices ofremaining advertising
space.
maria@mmta.co.uk

9MMTA INFORMALDRINKSKEY CONSIDERATIONS WHEN TRAVELLINGABROAD FOR BUSINESS—PART TWO
Having followed the advice in the last Crucible on pre-travel research, the savvy traveller
should be aware of basic precautions to takewhen passing through transport hubs andwhen staying “in country”. A few “do anddon’ts” are outlined below.

THE BARROWBOYAND BANKER PUB,LONDON
March 13th from 6pm

At the Airport
Even after a long flight, remain alert and beaware of what is happening around you.
Where possible complete all the immigration and customs forms prior to exiting
the aircraft - borrowing a pen and asking fellow travellers for flight numbers willslow down your progress through immigration. Similarly, having the correct visa inyour passport will remove the need to queue for and pay visa charges upon arrival.
When interacting with the authorities remain polite and answer any questions they
may ask. Laptops and computer equipment may be taken from you by customs/
security officials to be checked. If so, make sure all your equipment has been returned to you in the presence of that official. It has been known for laptops to be
swapped with obsolete equipment by unscrupulous officials – this is also a goodreason not to have sensitive documents or business material on the laptop.

Whether you are
based in London or
are travelling to thecity for an event or
meetings, why notfinish the day by
joining MMTA
members and guests
for an informal drink
at the Barrowboy andBanker.

“ You may wish to consider carrying a dummy
wallet containing low value currency which may
satisfy a mugger and allow you to make anescape...”Keep your luggage with you at all times once you have collected it, and watch whenyour bags are loaded onto a vehicle, so that nothing is left kerbside. In higher risk
countries, consideration should be made to have driver details, including their photograph, sent through prior to departure; the traveller can then easily identify andconfirm who they will be meeting. Name boards at arrivals should only display yourcompany name or local host name.
Ensure you have a small amount of local currency to pay for incidental items suchas taxi fares, drinks, food and gratuities. This avoids having to change money at the
airport.
At the HotelBar snacks will beavailable until they run
out!

Having safely negotiated the airport and arrived safely at the hotel, a few points
need to be remembered when checking in. Using your company address to registermeans that your home address remains secure; your passport may be retained make sure you have a copy for identification purposes during your stay.
Don’t be satisfied with any room allocation - it is preferable to have a room on the 2– 4 floors, to the rear of the building and away from the main reception and publicareas. Upper floors generally experience more crime, or may not be reached by the
emergency services, while rooms looking onto the main entrance may be vulnerable
in the event of an explosion. Rooms that can be accessed via balconies or fire escapes or which are near emergency exits are to be avoided (these are used as escaperoutes by criminals) as well as ground floor rooms, which are more vulnerable tocriminal activity.
When checking in ensure you accompany the bags to your room; do not discuss
your room numbers within earshot of others, such as in lifts or in the bar.

*Cash bar event
10

When you get to your room, check where the emergency exits are and the routes toreach them, and make sure the windows and any connecting doors are locked. Keepyour door locked at all times while you are in your room - use the chain or otherlocking device, or use portable travel locks to secure doors and windows.

KEY CONSIDERATIONS WHEN TRAVELLINGABROAD FOR BUSINESS—PART TWO (CONT’D)
Check with reception prior to allowing hotel employees into your room and conduct
meetings in public areas.

REVIEW—
MMTA’S CHRISTMASLUNCH 2012

Do not hang the “Please Service Room” tag on the door; this indicates the room isempty. Put the “Do Not Disturb” sign on your door; leave the television and a lighton while you are out. Lock away valuables in the room safe or at reception.
Travelling in country
The key to safe travel is maintaining a low profile, varying routines, being aware ofyour surroundings and remaining mindful of local laws and behaviour. Speak withyour country host and get them to give you local insight into potential problems andadapt your behaviour to fit the nature of any identified risks.
At all times remain vigilant, make sure your mobile phone is charged and plan yourmovements carefully, whether by car, taxi, public transport or on foot. The last thing
you want is to be stranded, having missed the last train or run out of petrol!
Only use bona fide taxi or car services, preferably booked by your host or the hotel.
In countries where there is a higher risk from terrorism, it is advisable not to wait in
the hotel lobby. Wait in an area away from the front entrance and have reception or
your driver call you when the vehicle is outside.
Agree taxi fares in advance if there is no meter (try and get an idea of the price fromthe hotel). Sit behind the driver, make sure your doors are locked and have yourdestination address written down to prevent confusion. When using public
transport, avoid unoccupied carriages on trains and opt for aisle seats (you can be
more easily blocked in when sitting by the window). On buses, sitting near the driver is preferable to the rear of the vehicle or on upper decks - if you feel uncomfortable, get up and move to a different seat. Keep your valuables out of sight, look out
for potential threats and be aware of pickpockets. Carry cash in small denominations and do not keep it all in one pocket, wallet or purse.
In some countries it is inadvisable to walk on the streets, particularly after dark, andtravel advisories and country profiles will highlight this. If you are leaving the hotel
on foot, take advice from the hotel as to safe locations/routes and notify colleaguesof where you are going and when you
will be back.

This year’s lunch in London
took place at Pewterers’
Hall, just off the historic
London Wall. Over 70
guests were welcomed witha glass of fizz in the grand
Oak Room, whilst enjoying
a chat with industry
colleagues.
The great Christmas tree
and carol singers added to
the festive atmosphere,
before guests headed downstairs to enjoy a delicious
three-course meal, and ofcourse, plenty of wine!

If you are involved in an incident, suchas a robbery, stay calm and do what
you are told. You may wish to consider
carrying a dummy wallet containing
low value currency which may satisfy amugger and allow you to make an escape. Immediately report the incidents
to the local police and your embassy.
Makes sure you get a copy of the police
report for insurance purposes.
While the vast majority of trips will proceed without problem, when travelling youneed to stay alert to the different risks of an unfamiliar location. If you are unsure,or feel uneasy, trust your instincts and put your own safety first.

The lunch was kindly
sponsored byCrowe Clark Whitehill.

Angus Darroch-Warren, CSyP, Linx International Ltd
Linx International Ltd is an MMTA member company providing security advice andrisk management support to a number of corporate clients.

For all your auditing andtaxation needs, including inwarehouse metals audits.

11

TANTALUM MARKET OVERVIEWThis overview of the tantalum market is made up of extracts from a more comprehensive piece on the subject, jointly authored by Patrick Stratton of Roskill Information
Services and David Henderson of Rittenhouse International Resources and available
on the MMTA website. Read the full article.
Properties
Tantalum was identified in Sweden in 1802 and has several defining characteristics.
One is that it has a very high melting point, 3,017°C, which is exceeded only by that oftungsten, rhenium, osmium and carbon. It is also highly corrosion-resistant to mostacids below 150°C, hard (Mohs hardness of 6.5) and in most cases chemically inert.
This combination of attributes means that it has a wide range of applications. The main use for tantalum derives from its
high volumetric efficiency, which makes it a key material used in electronic capacitors.
Occurrence and Resources
Tantalum occurs almost always with niobium, an element with some end-uses in common, in a wide range of minerals thathave greatly varying proportions of both metals. Some of these minerals are mined exclusively for the niobium values andthe tantalum is probably rarely recovered during processing. The Araxá pyrochlore deposit in Brazil is a good example ofthis; it is by far the world’s largest source of niobium but produces no marketable tantalum. Some others, such as the
Wodgina mine in Australia, are exploited for the tantalum and the niobium is disregarded. Yet others contain commercially
viable proportions of both elements and the two can be considered as co-products, even if the tantalum commands a muchhigher price, perhaps in a ratio of 10:1. Such deposits are widely distributed around the world and form the basis of much of
the artisanal columbite-tantalite mining that takes place, particularly in Central Africa. Read More….
SupplyThe supply of tantalum to the market derives from several sources: hard rock or artisanal mining; tin slags and synthetic
concentrates; scrap; and stockpiles. Tantalum production from conventional/hard rock and artisanal mining represents by
far the largest part of tantalum supply. In 2011, these sources accounted for 74% of the 3.75Mlb Ta 2O5 (1,393t contained Ta)
supplied to the market. This has been the case since the start of the 2000s, with mining making up 55-75% of overall supply, and typically 60-70%.
The contribution of artisanal mining to primary supply can be split into mainstream artisanal mining, which has been undertaken for many years in Brazil, Nigeria and other areas of Africa, including Central Africa. This made up 16% of primary
supply in 2011, while the other part is often described as conflict tantalum. This is artisanal mining in areas of the DRC
that are largely under the control of warring militias, and the proceeds from mining are used to fund the ongoing conflict.
Tin slags were once the largest contributor to tantalum supply, making up about two thirds of total supply. In recent years
they have become far less important, contributing probably less that 10% of total primary supply, in line with a large reduction in tin mining in countries that host tin ores with higher tantalum contents. There are three types of tantalum-bearing
slag to consider: slags from current tin smelting; lowgrade slag dumps; and large slag dumps. The last
category is possibly of most interest at present. There
are several slag dumps in Brazil that are large enoughto be considered almost as tantalum resources. They
are being actively examined and could become major
sources of tantalum supply for some years.
Sales of tantalum from the US strategic stockpile,built up during the Cold War years were a large contributor to supply during the first half of the 2000s,
but the inventory was largely exhausted by the middleof the decade. Inventories throughout the supply
chain are a significant factor in determining tantalum
pricing and the demand for primary tantalum.
Tantalum wastes and scrap form an important part ofover tantalum supply, accounting for 15-30% of total
supply between 2000 and 2011. Secondary materials
include processors’ own internal scrap, consumer scrap returned for recycling and tantalum-bearing residues. More secondary tantalum is traded than is reported. Super-alloy scrap, for example, would typically be described as nickel scrap incustoms documentation. It does, however, contain significant quantities of tantalum, rhenium and other metals and those
Read More….
metals are recovered during processing.

Figure 1: World Tantalum Supply, 2005 - 2011, (000lb
Ta2O5) Source: Roskill

12

TANTALUM MARKET OVERVIEW.. CONTD
International trade
Tantalum enters international trade in a number offorms: ores and concentrates; slags; K-salt and otherchemical intermediates; worked and unworked metal;
and scrap/residues. Official trade statistics for tantalum are generally poor, owing to data being withheld
for reasons of confidentiality, aggregated tariff codes
and, as outlined above, the opaque nature of much of
the trade in artisanal production. Read More….
DemandTantalum is a high value market, with 99.9% min. metal trading at more than US$500/kg during the second
half of 2012. It is, however, not large in tonnage terms.
Demand peaked during the internet bubble of 2000
and reached an estimated 2,300t, but has been rather lower in later years. The most recent peak in demand was in 2008 (est. 1,855t); however the global economic downturn
had a major impact on demand for tantalum, which fell overall by 40% in 2009. No segment of the tantalum market was left untouched, although the individual decreases varied
considerably. There was strong recovery in 2010, when an estimated 1,765t were consumed, before the market eased in 2011. When available, data for 2012 will probably
show stagnant demand, at best. A return to slow but steady growth in demand is probable from 2013 onward. Read More…

KEEPING YOURDETAILS
UP-TO-DATE

Applications
The use of tantalum can be broadly broken down into four product types. Tantalum powder is used mostly in electronics. Tantalum metal has many applications in chemical processing, medical devices and alloys. High-grade tantalum oxide is used in camera lenses
and X-ray equipment. Tantalum carbide is used in cutting tools.
Tantalum has a wide range of markets, the largest of which is the electronics industry.
The principal use (40% in 2011) is in capacitors, which are found in all electronic devices.
Other significant electronic uses for tantalum are sputtering targets (12% of 2011 consumption) and surface acoustic wave filters. The principal non-electronic application for“There are several slag dumps in Brazil that are large
enough to be considered almost as tantalum resources. ”
tantalum (21% in 2011) is in super-alloys, which are used in aerospace and land-based gas
turbines. Super-alloys, along with sputtering targets and tantalum chemicals, have probably the highest demand growth potential in the coming years. Combined, carbides andmill products made up the remaining 21% of tantalum consumption in 2011 and are expected to show growth of 5%pa through 2016.
Read More….

Is your member listing
up-to-date? We will
shortly be asking you
to confirm we havethe correct company
details.
Please take a few
minutes to check yourwebsite contact andother details to ensure they are as you
would like to see
them:Prices

Are contacts current?

Tantalum prices are most commonly described in terms of the Ta 2O5 content of ores andconcentrates, on a 30% contained basis. These prices are the reference point for the industry, although information is available on prices for other tantalum products. The two
principal mechanisms for Ta2O5 prices are long-term contract prices and spot prices.
Most production is usually from hard rock mines, such as those in Australia and Brazil,
and is sold to processors on long-term contracts, the details of which are seldom madepublic. The balance, much of it artisanal production, is typically traded on the spot market. Contract prices are usually higher than market prices, although the gap narrowed in2009 and there was convergence in 2010 and 2011. Read More….

Do we have all themetals listed that you
are involved in?

Patrick Stratton, Roskill Information Services and David Henderson, Rittenhouse International Resources

Contact
emma@mmta.co.uk if
you would like tomake changes.
13

MEMBER LETTERS

MMTA FIRTH RIXSON SITE VISIT

Firth Rixson Site Visit.
alloys industry and Firth Rixson’srole in it. The presentation explained
how different alloy bases (Al, Ni, Ti,Fe) each have specific strengths
within different temperature ranges,
and what role the various elements
play in providing strength, corrosion
resistance and long term stability.

For me it was one of the best
events I have attended so far.
The speakers were great andthe information provided wasvery useful.
Best Regards
Dennis Borchers
Innova Recycling GmbHThe visit to Firth Rixson was athoroughly enjoyable experience where we were privileged
to be guided and briefed by ahighly professional group ofpeople who were justifiably
proud to be part of a world
leading company. The processes that we witnessed were fascinating and the works was
immaculate.
Kind regards
David McDowell
Technical Manager Inspection
ALS Minerals Division
It was good to meet a valued
and important customer in amore informal setting. It gave a
supplier the opportunity to ask
questions which they normally
wouldn’t be able to.
Mike Chandar
Westbrook Resources Ltd

As our minibus snaked its way towards Firth Rixson’s factory, the picture-perfect Peak District National
Park seemed an unlikely setting for
one of the world’s leading producersof super-alloys. The mines nestlingin those craggy hills, which once
yielded lead, copper, zinc, iron, manganese and silver, had long since
fallen silent.
A warm Yorkshire welcome and ahard hat was bestowed upon each ofus as we arrived, and we soon set off
for a guided tour of Firth Rixson’splant, observing at first hand theprocess of producing super-alloys.
Our guide explained Firth Rixson’s
automated stock management system, and we watched as the high purity ingredients were carefully
weighed out by hand and loaded into
the VIM furnace, which purifies themolten mix, removing heavy metals,
tin, calcium, sulphur and so on.
Then we saw how the material is further purified through a series of ceramic filters, before being cast, remelted (by either VAR or ESR remelting) and recast at the appropriate rate to achieve the required physical properties, purity and homogeneity in the billet.
The final process we observed was
grinding to remove surface oxidation
before shipment to consumers,
where the alloys are destined for service in some of the most extreme anddemanding environments such as
aerospace engines, industrial gas
turbines, orthopaedics, and auto turbine wheels.

One of the MMTA groups just about
to embark on the Firth Rixson site
tour.

14

After the tour, delegates enjoyed abuffet lunch, followed by an interesting presentation about the super-

It was explained how different elements can result in beneficial lattice
deformation by means of substitutional, or interstitial, atoms. Precipitate strengthening, grain boundary
strengthening, corrosion resistanceand creep resistance were also on thesyllabus for this class of budding materials scientists. We learned, forinstance, that the disc in a jet engine
turbine uses few elements in order tohave exceptional fatigue strength
whereas the blades must contain alarge number of elements in order tohave high creep resistance. The various processing routes and advancesin processing and composition employed by Firth Rixson to achieve
optimal properties in their products
were outlined.
The five generations of super-alloys,
from the wrought alloys of the
1940’s, through to today’s single
crystal and thermal coated alloys
each have their own temperaturecapabilities and microstructures. We
learned which impurities are becoming more and more critical andwhich elements are coming in, andgoing out of fashion in this fascinating, kaleidoscopic industry. The needto develop alloys that operate at
higher temperatures, as well as theneed to improve safety are the driving forces of development, and it was
an inspiration to learn about themeasures this dynamic company istaking to meet these challenges.
The day at Firth Rixson was very
useful and informative for anyone
interested in the super-alloys industry.

Peter Nicholson
London Chemicals &Resources Ltd.

FOCUS ON WASHINGTON DC
Pulsing with life, America's capital city isan eclectic entity. The District, centers on
the Capitol and then spreads out into avariety of distinctive neighborhoods. They
include funky Adams-Morgan, Downtown
with its art galleries and nightlife, Dupont
Circle with its hip clubs and Connecticut
Avenue shopping, and upscale
Georgetown. Capitol Hill and the National
Mall feature many of the city's most prominent buildings and museums, including
stately presidential monuments and mostbranches of the world-famous Smithsonian Institution.

city enjoys thriving and diverse dining, nightlife and retail scenes. The
bulk of this activity can be found infour neighborhoods — Downtown,
Adams-Morgan, Dupont Circle andGeorgetown. Great restaurants thathighlight the town's multiculturalism
and culinary quality include Old
Ebbitt Grill (American), Oyamel(Mexican), Rasika (Indian), Clyde’s(American), Jaleo (Spanish), Filomena (Italian), Proof (Wine Bar/
American), The Source (Pan-Asian),
Oceanaire (Seafood), Zaytinya(Greek/Lebanese), Fiola (Italian),and upscale Citronelle (French). After-hours, nightlife awakens in thepolicy-making town, and folks flock
to hot spots like POV at the top of
the W Hotel overlooking the WhiteHouse and Washington Monument,
and Poste the bar at Hotel Monaco.
Although most neighborhoods boast
great restaurants and clubs,
Georgetown leads the pack in shopping. Not only does it feature stately
antique stores, but it also throws in
independent boutiques, upscale
chains and the much-frequented
Shops at Georgetown Park.

For history-lovers and culture fans, DC isreplete with world-class museums and arts
venues. The Smithsonian alone includes 19
distinct museums with vast collections ofart and artifacts, including the Air andSpace Museum and the Museum of American History. At the Kennedy Center for the
Performing Arts, visitors can catch live
theater and music performances, and theFolger and Shakespeare Theatres stage
classics that resonate with modern audiences. The most popular new additions to
the museum scene include the International Spy Museum and Newseum (mypersonal favorite). Each better than the
next, plan to spend countless hours wondering the exhibits... and wear comfortable If you relish physical activity, DC
shoes!!!
delivers that as well. For pro sports
enthusiasts, the Washington RedWell-planned from its inception, the city
skins get fans riled up when autumn
approaches, playing to packed houses at FedEx Field; the Verizon Center
downtown hosts the NBA Washington Wizards and NHL Washington
Capitals; and 2005 saw Major
League Baseball return to the Capital
thanks to the Washington Nationals.

was provided early on with beautifulparks, gardens and public spaces. The National Mall, in particular, grants lovely
views of the Capitol on one end and the
Lincoln Memorial on the other. Walking
the length of the Mall, visitors can take inthese green spaces and even relax on apark bench as the hustle and bustle of the
big city continues beyond.
Since DC's population includes residents
and visitors from around the globe, theIt comes as no surprise, then, that
DC has an allure all its own. The city
unites politics, cosmopolitan energy
and culture with first-class dining,
shopping and nightlife, crafting amelting pot of international influence and homegrown practicality
that's not only a perfect destination
spot but a chunk of the American
experience itself.

Edited by David Gussack, of
Exotech and Brook B.
Singer, Esq

MEMBERS’-ONLY
RESOURCE CENTRE
Log in to the resource centre
to find presentations from
Mining Masterclass: China,organised by the Association of
Mining Analysts and Minsouth,and hosted by Simmons & Simmons. Presentations include:
Zhenzhen Liu, Senior Consultant, CRU Strategies:
An overview of Chinese
mineral demand and supply. This presentation includes
a macro economic outlook on
China’s resource production
and their demand for steel,zinc, lead, aluminium and copper, and reviews the potential
for China to become selfsufficient in the future.
Vivien Yang and David
Bridge, Simmons & Simmons: Doing business with
Chinese counterparties:
enforcement issues. Information on resolving disputes
with Chinese counterparties,
choice of law, disputes resolution (arbitration or court) andother information about enforcement issues when doing
business with Chinese companies.
Allan Zhang, Director,
PwC: Investing overseas –What’s new under China’s
new leadership? A presentation including information on
global investment in Chinesecompanies, and where China isinvesting and the impact thishas on global markets.
Go to Members’ Area
Request Your Log-in Details
15

MEMBER BENEFITSMembers-only early-bird discount on
registrations for the MMTA’s
International Minor Metals
Conference, offering substantial
savings on the full conference fee

MMTA SUB-COMMITTEE CHANGESMETAL NORMS WORKING GROUP
Michael Ihlenfeld, FW Hempel MetallurgicalSignificant member discount on all
MMTA event bookings, including theprestigious Anniversary dinner

Steven Munnoch, Avon Metals Ltd

Joel Nields, Tranzact Inc

Access to free meeting/training room
space in central London

Martin Stepper, FW Hempel MetallurgicalFree advertising in members’
directories on the MMTA website andother MMTA marketing publications

BUSINESS & SOCIAL EVENTS SUB-COMMITTEE

25% discount on Gold level membership of REACHReady
A range of educational & social events
offering extensive networking
opportunities
A dedicated Mediation & Arbitration
service for MMTA members
A network of MMTA-approved
warehouses, each independently
inspected and having Indemnity
Insurance to cover unexplained losses
Regular updates on the activities &
accomplishments of the Association
Use of the MMTA logo & ‘Member of
MMTA’
Trade Regulations
Awareness raising on a wide range ofissues of importance to the minor
metals sector
Free job vacancy advertising
Dedicated members’ area of thewebsite with members’ resources anddiscussion group

The MMTA promotes essential
elements that add quality,
safety and enjoyment to ourlives.



James Peer, Maritime House Ltd—ChairCharles Reynolds-Payne, C Steinweg NVDavid Gussack, Exotech Inc

CONFERENCE SUB-COMMITTEERoy Walton, Darton Commodities Ltd—ChairRachel Carnac, Metal Events LtdDavid Craik, Amalgamated Metals Corporation



Chris Edler, Lambert Metals International

Jill Fitzgibbon, Metal Events Ltd

Anthony Lipmann, Lipmann Walton & Co

Volker Mertens, Womet GmbHIf any member wishes to become involved in one of the
MMTA’s sub-committees, or has any suggestions, please contact the Executive at executive@mmta.co.uk

Minor Metals Trade Association (MMTA)
326A City Road
Angel Gate (Unit 26)
LondonEC1V 2PT

YOUR LOGO HERE

The MMTA is the world's leading
minor metals industry organisation.

Telephone: +44 (0)207 833 0237/+44 (0)207 713 7099
Fax: +44 (0)207 183 9933
Email: executive@mmta.co.uk