Ore Price Hike could Lift Tantalum Products

World largest tantalum miner, Talison Minerals of Australia offered ore price hike for tantalum powder makers in USA and Europe. The miner apparently seeks US$ 110 per pound of tantalum pentoxide, which represents double of recent spot international market price, according to sources. The powder makers are likely to pass the higher cost price on the market. Talison Minerals has Wodgina mine, which is 120 kilometers south of Port Hedland, and Greenbushes mine, which is 210 km south of Perth. The firm succeeded no.1 suppliers’ position from Sons of Gwalia, which bankrupted in August 2004 despite of the production at around 60% of world tantalum ore production. Tantalum powder major suppliers of Cabot Supermetals of USA and H.C. Starck of Germany purchase tantalum ore from Talison Minerals through long term contracts. The powder makers make powder, rolled products and oxide products at plants in USA, Europe and Japan. A source from Japanese office of major powder maker said the firm would offer higher price for the buyers when the ore price would increase. Capacitor represents around 40% of around 2,000 tonnes per year of tantalum demand. Japan consumes around a third of world supply for capacitor, sputtering target materials and other applications. The higher ore price could impact on Japanese electronic parts and materials makers.