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Start Here – Investing in Critical Metals



Start Here – Investing in Critical Metals

What are critical metals? And which ones should savvy investors focus on? Our overview of the space answers those questions and more.

Critical metals investing can be profitable, but getting into the space is tricky, especially for investors who are more familiar with precious metals like gold and silver, or even base metals like copper.

It's therefore crucial for those interested in critical metals to start by doing some research.

Table of Contents

  • How to Invest in Rare Earths
  • 10 Top Countries for Rare Earth Metal Production
  • Top Rare Earth Reserves by Country
  • How to Invest in Tungsten
  • Top 8 Tungsten-producing Countries
  • How to Invest in Magnesium
  • 10 Top Countries for Magnesite Mining
  • How to Invest in Tantalum
  • Top 5 Tantalum-mining Countries
  • How to Invest in Scandium

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Start Here - Investing in Critical Metals


 

Table of Contents


How to Invest in Rare Earths

10 Top Countries for Rare Earth Metal Production

Top Rare Earth Reserves by Country

How to Invest in Tungsten

Top 8 Tungsten-producing Countries

How to Invest in Magnesium

10 Top Countries for Magnesite Mining

How to Invest in Tantalum

Top 5 Tantalum-mining Countries

How to Invest in Scandium


How to Invest in Rare Earths

The 17 rare earth elements (REEs) are as diverse as they are challenging to pronounce.

The group is made up of 15 lanthanides, plus yttrium and scandium, and each element has different applications, pricing and supply and demand dynamics. Sound complicated? While the REE space is undeniably complex, many investors find it compelling and are interested in finding ways to get a foot in the door.

Read on for a more in-depth look at the rare earth metals market and the many different types of rare earths, plus a brief explanation of how to start investing in this arena.

What are the types of rare earths?

There are a number of ways to categorize and better understand REEs.

For example, they are often divided into “heavy” and “light” categories based on atomic weight. Heavy rare earths are generally more sought after, but light REEs are of course important too.

Rare earths can also be grouped together according to how they are used. Rare earth magnets include praseodymium, neodymium, samarium and dysprosium, while phosphor rare earths — those used in lighting — include europium, terbium and yttrium. Cerium, lanthanum and gadolinium are sometimes included in the phosphor category as well.

One aspect that is common to all the rare earths is that price information is not readily available — like other critical metals, rare earth materials are not traded on a public exchange. That said, some research firms do make pricing details available, usually for a fee. These include Strategic Metals Invest, Fastmarkets and SMM.

What factors affect supply and demand for rare earths?

As mentioned, each REE has different pricing and supply and demand dynamics.

However, there are definitely overarching supply and demand trends in the sector. Most notably, China accounts for the vast majority of the world’s supply of rare earth metals. As the world’s leading producer, the Asian nation accounted for roughly 70 percent of rare earths production in 2023, or 240,000 metric tons (MT), with the US coming in a very distant second at 43,000 MT. After the US, Myanmar is the third largest rare earths producer with total output of 38,000 MT last year. On top of that, China is also responsible for 90 percent of refined rare earths output.

The strong Chinese monopoly on rare earths production has created problems in the sector in the past. For instance, prices in the global market spiked in 2010 and 2011 when the country imposed export quotas.

The move sparked a boom in global rare earth metals exploration outside of China, but many companies that entered the space at that time fell off the radar when rare earths prices eventually sank again. Molycorp, once North America’s only producer of rare earths, is a notable example of how hard it is for companies to set up shop outside China. It filed for bankruptcy in 2015. But the story didn’t end there — MP Materials (NYSE:MP), the company that now owns Molycorp’s assets, went public in mid-2020 in a US$1.47 billion deal, and a year later was a US$6 billion company.

MP Materials is now the western hemisphere's largest rare earths miner, putting out high-purity separated neodymium and praseodymium oxide; a heavy rare earths concentrate; and lanthanum and cerium oxides and carbonates.

Concerns about China’s dominance are ongoing as the US/China trade war continues and as supply chain stability grows in importance. The Asian nation has tightly controlled how much of its rare earths products make into global markets through a quota system initiated in 2006. In 2023, China issued three rounds of rare earths output quotas for a record total of 255,000 MT, an increase of 21.4 percent over the previous year, reported Reuters. For 2024, analysts expect a slower rate of increase for China’s rare earths quotas of between 10 percent and 15 percent.

Sharing a border with China, Myanmar is the source of at least 70 percent of its neighbor’s medium to heavy rare earths feedstock. With that in mind, it's not surprising that a temporary halt in Myanmar’s production in late summer last year sent rare earths prices to their highest level in 20 months, as per OilPrice.com.

Outside of China, one of the world’s leading rare earths producers is Australian company Lynas (ASX:LYC,OTC Pink:LYSCF), which sends mined material for refining and processing at its plant in Malaysia. The Japan Organization for Metals and Energy Security and Sojitz (TSE:2768), through Japan Australia Rare Earths, inked an agreement last year to invest AU$200 million in the production and supply of heavy rare earths from Lynas, which will allow the mining company to expand its light rare earths production and begin production of heavy rare earths.

In the US, MP Materials is making good use of a US$35 million Department of Defense grant with the commissioning of an neodymium-praseodymium separation plant in 2023. The company is now working on the expansion of its downstream manufacturing operations to include alloys and magnets.

Looking at demand, many analysts believe the need for rare earths is set to boom on accelerating growth from top end-use categories, including the electric vehicle market and other high-tech applications.

As an example, demand for dysprosium, a key material in steel manufacturing and the production of lasers, has grown as countries increase their steel standards. Aside from that, rare earths have long been used in televisions and rechargeable batteries, two industries that accounted for much demand before the proliferation of new technologies. Other rare earth metals can be found in wind turbines, aluminum production, catalytic converters and many high-tech products.

According to Reuters, analysts are projecting a rebound in rare earths demand in the second half of 2024, particularly from the electric vehicle and wind turbine segments.

As can be seen, securing rare earths supply is an increasingly important issue. In addition to traditional rare earths mining, there has been growth in the rare earths recycling industry, which aims to recover REE raw materials from electronics and high-tech products in order to reuse them in new ways.

Exploring and extracting rare earth materials from deep-sea mud is one of the newest recovery methods, and it is gaining traction as more mining companies look offshore for resources.

How to invest in rare earths?

The possibility of higher rare earths prices in the coming years has been one of the catalysts for investors wondering how they can invest in rare earths. As it's not possible to buy physical rare earth metals, the most direct way to invest in the rare earths market is through mining and exploration companies.

Investing in rare earths stocks

While many such companies are located in China and are not publicly traded, there are a variety of options available on Canadian and Australian stock exchanges. Below is a selection of companies with rare earths assets or operations trading on the TSX and ASX; all had market caps of over $50 million as of April 25, 2024.

Small-cap REE companies are also listed on those exchanges.

Here’s a list of rare earths companies or companies with rare earths projects listed on the TSX, TSXV, CSE and ASX that had market caps of less than $50 million as of April 25, 2024:

Rare earths exchange-traded funds

Rare earths exchange-trade funds (ETFs) offer investors a diversified position in this market space, mitigating the risks of investing in specific companies.

  • The VanEck Rare Earths and Strategic Metals ETF (ARCA:REMX) tracks an index of global mining companies, as well as refiners and recyclers of rare earths and strategic metals. Its top holdings include Lynas, MP Materials and Iluka Resources.
  • The Sprott Energy Transition Metals ETF (NASDAQ:SETM) tracks an index of US and foreign companies related to energy transition materials. Lynas and MP Materials are also among its top holdings.
  • The Global X Disruptive Materials ETF (NASDAQ:DMAT) tracks materials companies that derive at least half of their revenues from the exploration, mining, production and refining of one or more of 10 materials categories, including rare earths. In addition to Lynas and MP, this ETF also provides exposure to multiple Chinese rare earths companies, and one of its top holdings is China Northern Rare Earth High-Tech Company (SHA:600111).

This is an updated version of an article first published by the Investing News Network in 2020.

Don’t forget to follow us @INN_Resource for real-time news updates!

Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: Aclara Resources, Appia Rare Earths & Uranium, Carmanah Minerals, DY6 Metals, Energy Fuels, Heavy Rare Earths and Marvel Discovery are clients of the Investing News Network. This article is not paid-for content.

Additional information on Critical Metals stock investing — FREE


Top 11 Countries by Rare Earth Metal Production

Rare earth metal production was on the rise again in 2023, jumping to 350,000 metric tons (MT) worldwide — that’s up significantly from 190,000 MT in 2018, just five years prior.

Demand for rare earth metals is increasing as renewable energy becomes more important across the globe. Rare earths such as neodymium and praseodymium, which are important in clean energy applications and high-tech industries, are in the spotlight, particularly as electric vehicles and hybrid cars gain further popularity.

Ongoing tensions between the US and China, along with other geopolitical factors, are impacting the outlook for rare earths investing. Since China is the world’s largest producer of rare earths by far, the fraught relationship between the countries is directing attention to global supply chain disruption in the rare earths industry.

With that in mind, it’s worth being aware of rare earth metal production by country figures. Here’s a look at the 10 countries that mined the most rare earths in 2023, as per the latest data from US Geological Survey (USGS).

1. China

Mine production: 240,000 metric tons

In 2023, China's domestic output of rare earths was 240,000 metric tons, up from 210,000 MT the previous year.

As mentioned, China has dominated rare earths production for quite some time. While China dominates global production of the vast majority of the 17 different rare earth elements, its output is heavily concentrated in light rare earths, specifically the magnet rare earths neodymium and praseodymium.

The largest rare earth mining company in the world is China Northern Rare Earth High-Tech (SHA:600111), which owns the prolific Bayan Obo rare earth mining complex in Inner Mongolia.

Chinese producers must adhere to a quota system for rare earths production. The 2023 quota for rare earths mining and rare earths separation was set at to 240,000 metric tons and 230,000 metric tons of rare earth oxides (REO) equivalent, respectively. Interestingly, this system has led China to become the world’s top importer of rare earths since 2018.

The quota system is a response to China’s longstanding problems with illegal rare earths mining. For more than a decade, the country has taken steps to clean up its act, including shutting illegal or environmentally non-compliant rare earths mines, and limiting production and rare earths exports.

China’s rare earths industry is controlled by state-owned miners, in theory allowing China to keep a strong handle on production. However, illegal rare earths extraction remains a challenge, and the Chinese government continues to take steps to curb this activity.

The Chinese government is set to introduce even tougher regulations requiring companies involved in the mining, smelting and trading of rare earths to maintain detailed records of product flow and input this data into a traceability system. These new regulations are set to take effect in October of 2024.

2. United States

Mine production: 43,000 metric tons

The US produced 43,000 metric tons of rare earths in 2023, up from 42,000 MT in the previous year.

Rare earths supply in the US currently comes only from the Mountain Pass mine in California, which is owned by MP Materials (NYSE:MP). Mountain Pass is producing high-purity neodymium and praseodymium (NdPr) oxide, a key material for high-strength neodymium iron boron (NdFeB) magnets.

The mine has had an interesting decade. Previously owned by Molycorp, the mine was put on care and maintenance in 2015 due to low rare earths prices and Molycorp filing for bankruptcy. Mountain Pass re-entered production in Q1 2018 under its new ownership.

The US is a major importer of rare earth materials. The USGS estimates the value of US rare earth imports for 2023 at US$190 million, down from US$208 million in 2022. The country has classified rare earths as critical minerals, a distinction that has come to the fore due to trade issues between the US and China.

Aiming to bolster its domestic supply, the US government is implementing a 25 percent tariff on rare earth magnet imports from China. “The tariff rate on natural graphite and permanent magnets will increase from zero to 25 percent in 2026. The tariff rate for certain other critical minerals will increase from zero to 25 percent in 2024,” states a May statement from the White House. “Concentration of critical minerals mining and refining capacity in China leaves our supply chains vulnerable and our national security and clean energy goals at risk."

3. Myanmar (also known as Burma)

Mine production: 38,000 metric tons

Myanmar mined 38,000 metric tons of rare earths in 2023. This was an increase of more than 216 percent from the 12,000 MT Myanmar produced in 2022, as supply was down due to a temporary halt in production associated with the turmoil following the 2021 military coup.

Its 2023 production rebounded to surpass the 35,000 MT Myanmar produced in 2021. According to the International Energy Agency (IEA), since 2015, Myanmar's share of global rare earth production has surged from 0.2 percent to 14 percent. Unsurprisingly, the temporary halt in Myanmar’s production in the late summer of 2022 sent rare earth prices to their highest level in 20 months, as per OilPrice.com.

China, who shares a border with Myanmar, obtains 70 percent of its medium to heavy rare earths feedstock from its neighbor, including dysprosium and terbium. Myanmar's rare earths industry is plagued with controversy as much is reportedly carried out by unregulated small-scale miners and linked with armed militia groups with no environmental best practices or remediation plans in place.

Ironically, the act of mining these metals critical for clean energy technologies such as EVs and wind turbines is itself fraught with environmentally destructive practices that are harming the waterways, wildlife and vegetation in Myanmar.

4. Australia

Mine production: 18,000 metric tons

In 2023, Australia's rare earths production came in at 18,000 metric tons, on par with 2022 after rising steadily for the last few years. representing more than 5 percent of the global total. That's compared to the 24,000 MT produced in 2021. The country holds the world's sixth largest rare earths reserves, and is poised to increase its output. According to the IEA, Australia's share of global rare earth elements production is projected to rise to 18 percent by 2030.

Lynas (ASX:LYC,OTC Pink:LYSCF) operates the Mount Weld mine and concentration plant in the country, and is slated to complete its expansion project to boost production to 12,000 MT per year of NdPr products by 2025. Mount Weld ranks among the world's top rare earth mines, and Lynas is the the leading producer of rare earths outside of China.

Australian company Northern Minerals (ASX:NTU,OTC Pink:NOURF) is undertaking a definitive feasibility study for its Browns Range mining and process plant to process, which is due for completion in Q4 2024 with a final investment decision targeted for Q1 2025. Its main products will be terbium and dysprosium.

5. Thailand

Mine production: 7,100 metric tons

Thailand’s rare earths production came in at 7,100 metric tons in 2023, level with the prior year. However, the country's rare earth production has ramped up rapidly in recent years. Thailand's output of rare earths in 2018 was just 1,000 MT and by 2021 it had hit 8,200 MT.

While there's not much information available on Thailand's rare earth industry, after Myanmar, the country is a major source of rare earth imports for China. As far as downstream rare earths product makers, Neo Performance Materials' (TSX:NEO) subsidiary Neo Magnequench operates a rare earth magnetic materials manufacturing facility in Korat, Thailand.

Recently, Chinese electric vehicle giant BYD (OTC Pink:BYDDF,HKEX:1211,SZSE:002594) is opening a US$486 million EV manufacturing facility in the country. The Financial Times reports that "analysts expect Chinese EV makers to penetrate further into south-east Asia because Thailand has lower tariffs on fully assembled EVs for companies that have pledged to build EV factories there, and most of them are Chinese."

6. India

Mine production: 2,900 metric tons

India’s 2023 production was 2,900 metric tons, unchanged from the previous year. The country's output represents less than 1 percent of global rare earths supply. India’s rare earths production is far below its potential, considering the nation holds almost 35 percent of the world’s total beach sand mineral deposits, which are significant sources of rare earths.

India joined the Minerals Security Partnership (MSP) in mid-2023, a multi-nation group led by the United States and focused on the creation of critical mineral supply chains, including for rare earths.

Much of the country's rare earth exploration and mining is being conducted under the auspices of the Government of India via Indian Rare Earths Limited (IREL), which was established in 1950. Furthermore, the government is establishing research and development into new technologies for extracting and processing rare earth minerals.

7. Russia

Mine production: 2,600 metric tons

Russia produced 2,600 metric tons of rare earths in 2023, nearly the same level as the previous five years. In terms of global rare earths reserves, Russia ranks third after China and Brazil. TriArk Mining, a joint venture owned by industrial conglomerate Rostec and billionaire Alexander Nesis, is the main player in Russia's rare earth sector, and is developing the Tomto rare earths deposit.

Prior to the country’s aggressive war against Ukraine, the Russian government was allegedly “unhappy” with its supply of rare earths. The Russia-Ukraine war has raised concerns over disruptions to the US/Europe rare earths supply chain.

Russia has reportedly reduced mining taxes and offered discounted loans to investors in nearly a dozen projects intended to increase the nation’s share of global rare earths production from the current 1.3 percent to 10 percent by 2030.

8. Madagascar

Mine production: 960 metric tons

Madagascar recorded rare earths extraction of 960 metric tons in 2023, on par with the previous year and down dramatically from 6,800 MT in 2021.

The country's Ampasindava peninsula is reportedly home to 628 million metric tons of ionic clays with a significant concentration of rare earths, particularly dysprosium, neodymium and europium. It's considered one of the largest rare earth deposits outside China. Whether or not it is ever developed is up in the air.

The declining in rare earths production in recent years is due in large part to increasing opposition to rare earths mining on the part of farmers who are strongly against mining activity in their communities.

In April 2024, Energy Fuels (TSX:EFR,NYSEAMERICAN:UUUU) agreed to acquire Base Resources and its advanced Toliara heavy mineral sands project in Southwest Madagascar. Energy Fuels plans to separate monazite sands from Toliara's Ranobe deposit at its White Mesa mill in Utah, US.

9. Vietnam

Mine production: 600 metric tons

Vietnam’s rare earths production came in at 600 metric tons in 2023, a fall from 1,200 MT in 2022. Vietnam holds the world's second largest known rare earths reserves, including several rare earth deposits against its northwestern border with China and along its eastern coastline.

The country's government is interested in building its clean energy capacity, including solar panels, and is said to be looking to produce more rare earths for its supply chain for that reason. It has set a goal of extracting and processing 2 million metric tons of rare earths per year by 2030.

However, serious corruption charges in October of 2023 that led to the arrests of top industry executives, including the chairman of Vietnam Rare Earth JSC, has hamstrung those plans. "The arrests stalled government plans to auction new rare earth mining concessions and cast a cloud of uncertainty over the industry that has given foreign investors pause," reported Asia Times.

10. Brazil

Mine production: 80 metric tons

Brazil produced just 80 metric tons of rare earths in 2023, although the country holds reserves of 21,000,000 MT. Back in 2012, a US$8.4 billion rare earths deposit was discovered in Brazil.

In August 2024, St. George Mining (ASX:SGQ) announced its plans to acquire the Araxa niobium-rare earths project located in Minas Gerais, Brazil. It is adjacent to CBMM's flagship niobium mine, which is a prolific producer of niobium.

Another significant rare earths project in Brazil is Resouro Strategic Metals' (TSXV:RSM,ASX:RAU) Tiros titanium-rare earths project located in Minas Gerais. In July, Resource published a maiden JORC-compliant mineral resource estimate for the central block of Tiros; the resource estimate stands at 1.7 billion MT, divided into 1 billion MT in the measured and indicated category, and 700 million MT in the inferred category. It contains 3,900 parts per million (ppm) total rare earth oxides, 1,100 ppm magnet rare earth oxides and 12 percent titanium dioxide.

10. Malaysia

Mine production: 80 metric tons

Malaysia produced 80 metric tons of rare earths in 2023, on par with its output in the previous year and tying with Brazil for 10th place. Malaysia hosts the world's fourth largest rare earth reserves.

Malaysia represented the second biggest source for US rare earth imports in 2023 at 11 percent, according to the USGS, up from 8 percent in the previous year. Australia's Lynas (ASX:LYC,OTC Pink:LYSCF) sends its mined material for refining and processing to its plant in Malaysia.

The Malaysian government has imposed a temporary ban on the export of unprocessed rare earths materials as of January 1, 2024, in an effort to grow its downstream value-added rare earths industry.

Don’t forget to follow us @INN_Resource for real-time news updates!

Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: Energy Fuels is a client of the Investing News Network. This article is not paid-for content

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Rare Earths Reserves: Top 8 Countries

The outlook for rare earths is supported by strong supply and demand fundamentals as the world heads into a new economic era with a focus on clean energy and technological advancements.

But with supply chain worries rising, it’s worth looking at which countries have the highest rare earths reserves. Many of the world’s major rare earths producers have large reserves, but some countries with high reserves have low output.

Case in point — mines in Brazil produced only 80 metric tons (MT) of rare earth elements in 2023, but Brazil’s rare earths reserves are tied for third highest in the world. Countries like this could become bigger players in the space in the future.

Top rare earths reserves by country

Here’s an overview of rare earths reserves by country, with a focus on the eight countries whose reserves are over 1 million MT. Data is taken from the US Geological Survey’s latest report on rare earth elements.

Reserves information is unavailable for a few rare earths producers, including Myanmar, which took the third spot for rare earths production last year.

1. China

Reserves: 44 million MT

Unsurprisingly, China has the highest reserves of rare earth minerals at 44 million MT. The country was also the world’s leading rare earths producer in 2023 by a long shot, putting out 240,000 MT.

Despite its top position, China remains focused on ensuring that its rare earths reserves remain elevated. Back in 2012, the Asian nation declared that its reserves of these materials were declining; it then announced in 2016 that it would raise domestic reserves by establishing both commercial and national stockpiles.

The country has also been reining in illicit rare earths mining for a number of years, shutting illegal or environmentally non-compliant rare earths mines and limiting production and exports. These production limits have been easing, and last year the country raised mining quotas by more than 8 percent over 2022 in its sixth consecutive increase.

China’s dominance in both rare earth elements production and reserves has caused problems in the past. Rare earths prices surged when the country cut exports in 2010, resulting in an ongoing rush to secure supply elsewhere.

In recent years, China has begun importing more heavy rare earths from Myanmar, for which the US Geological Survey does not have rare earths reserves data. While China has stricter environmental regulations, the same cannot be said for Myanmar, and the mountains along its border with China have been heavily damaged by rare earths mining.

Rare earths prices soared to their highest level in 20 months, according to OilPrice.com, in early Q3 2023; this jump coincided with a temporary production halt in Myanmar, which accounted for 38 percent of China's rare earth materials imports in the first seven months of 2023.

2. Vietnam

Reserves: 22 million MT

Vietnam’s rare earths reserves stand at 22 million MT. It reportedly hosts several deposits with rare earths concentrations against its northwestern border with China, and along its eastern coastline. The majority of rare earths in the country can be found in primary ore deposits, with a smaller amount located in coastal placer deposits. While this potential was previously untapped, that has now changed as the country looks to become an alternative to China.

Vietnam’s rare earths production was minuscule in 2022 at 1,200 MT, but it was even less in 2023 at 600 MT. Vietnam is the only country outside of China to have a vertically integrated rare earths magnet supply chain, according to Reuters, and it has attracted interest from companies in a variety of sectors.

The country's goal is to produce 2.02 million MT of rare earths by 2030. However, the arrests of six rare earths executives, including the chairman of Vietnam Rare Earth (VTRE), in October 2023 may put a kink in those plans. "VTRE’s chairman, Luu Anh Tuan, was accused of forging value-added-tax receipts in trading rare earths," reported Asia Financial.

3. Brazil

Reserves: 21 million MT

Although Brazil has the third largest rare earths reserves, the nation was not a major producer of rare earths in 2023, with production flat at a tiny 80 MT, on par with the previous year and even lower than its 2021 total of 500 MT.

However, that will soon be changing as rare earths company Serra Verde began commercial production from its Pela Ema rare earths deposit at the top of 2024. Pela Ema is an ionic clay deposit that will produce the four critical magnet rare earth elements: neodymium, praseodymium, terbium and dysprosium. According to the company, it is the only rare earths operation outside of China to produce all four of those magnet rare earths.

4. Russia

Reserves: 10 million MT

Russia produced 2,600 MT of rare earths in 2023, more than Brazil and Vietnam. The Russian government shared plans in 2020 to invest US$1.5 billion in order to compete with China in the rare earths market.

Russia’s invasion of Ukraine caused some concern over possible disruptions to the rare earths supply chain in the US and Europe, and there are signs the government has had to put its domestic rare earths sector development plans on ice while it's mired in war.

5. India

Reserves: 6.9 million MT

India’s rare earths reserves sit at 6.9 million MT, and it produced 2,900 MT of rare earths in 2023, which is on par with the previous year. India has nearly 35 percent of the world’s beach and sand mineral deposits, which are significant sources of rare earths. The country's Department of Atomic Energy released a statement in December 2022 breaking down its production and refining capacity when it comes to rare earths.

More recently, the Indian government was reported to be putting policies and legislation in place to establish and support rare earths research and development projects to take advantage of its reserve base.

6. Australia

Reserves: 5.7 million MT

While Australia was the fourth largest rare earths-mining country in 2023 at 18,000 MT of production, it has the sixth largest reserves in the world. Currently, its reserves stand at 5.7 million MT. Rare earths have only been mined in Australia since 2007, but extraction is expected to increase moving forward. Lynas Rare Earths (ASX:LYC,OTC Pink:LYSCF) operates the Mount Weld mine and concentration plant in the country; it also runs a rare earths refining and processing facility in Malaysia. The company is considered the world’s largest non-Chinese rare earths supplier.

Hastings Technology Metals' (ASX:HAS,OTC Pink:HSRMF) Yangibana rare earths mine is shovel ready, and the company recently signed an offtake agreement with Baotou Sky Rock for concentrate produced at the mine. Hastings expects the operation to produce up to 37,000 MT of rare earths concentrate annually and deliver first concentrate in Q2 2025.

7. United States

Reserves: 1.8 million MT

While the US reported the second highest output of rare earths in 2023 at 43,000 MT, the country takes only the seventh top spot when it comes to global rare earths reserves.

Rare earths mining in the US now happens only at California’s Mountain Pass mine. Over the past few years, the Biden administration has made several moves toward strengthening the nation's rare earths industry.

In February 2021, President Joe Biden signed an executive order aimed at reviewing shortcomings in America’s domestic supply chains for rare earths, medical devices, computer chips and other critical resources.

The next month, the US Department of Energy announced a US$30 million initiative to research and secure domestic supply chains for rare earths and battery metals such as cobalt and lithium. The government released a follow-up fact sheet about the progress made in these initiatives in February 2022. The Department of Energy announced a US$32 million investment in new rare earths production facilities in July 2023.

8. Greenland

Reserves: 1.5 million MT

Although Greenland’s rare earths reserves number is close to that of the US, the island nation currently doesn't produce the metals. However, it does have two significant rare earths projects with large reserves: private company Tanbreez Mining's Tanbreez project and Energy Transition Minerals' (ASX:ETM,OTC Pink:GDLNF) Kvanefjeld project.

The US Geological Survey only measures proven economic reserves, but in terms of total reserves for rare earths projects globally, they placed first and third, respectively, with 28.2 million and 10.2 million metric tons of total rare earth oxides.

After signing an exploitation license with the government in 2020, Tanbreez is working on securing financing for its project's development; avenues being explored include discussions with independent oil and gas executives and the creation of critical metals NFTs. The company has its sights set on 2024 for production.

While Energy Transition Minerals had previously signed a license for Kvanefjeld, it was revoked by Greenland's current government due to the company's plans to exploit uranium. The company submitted an amended plan that did not include uranium, but the updated version was rejected as well in September 2023.

Don’t forget to follow us @INN_Resource for real-time news updates!

Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.

Additional information on Critical Metals stock investing — FREE


How to Invest in Tungsten

Tungsten was discovered in Sweden in the 18th century, and since then has found diverse uses.

About two-thirds of demand for this critical metal is from the mining and drilling industry for use in cemented carbides; mill products and chemicals account for the rest. However, while tungsten has many key uses, the market has been quite turbulent for the last several years — low prices have led to reduced output in some parts of the world.

Global tungsten production came to 84,000 metric tons (MT) in 2022, slightly above the 83,800 MT put out in 2021. As with many metals, China dominates the tungsten-mining space. In fact, according to the US Geological Survey, production of tungsten concentrate outside the country accounts for less than 20 percent of total global supply.

Interestingly, despite being the biggest tungsten producer, China is limited in how much it produces. The Asian nation's government has restricted the number of tungsten mining and export licenses that it awards, and has also imposed quotas on concentrate production and placed constraints on mining and processing.

Tungsten demand has faced pressure from recession threats, but use of the metal is still seen increasing. A global tungsten market report by Business Research Insights forecasts that the sector will grow at a CAGR of 8.71 percent to reach US$17.96 billion by 2027. Drivers will include an expansion of the mining and drilling industry, the growing use of tungsten in everyday and industrial products and the increasing adoption of tungsten in medical applications.

That optimism has left investors wondering whether tungsten investment is a good idea. Read on for a brief overview of tungsten supply and demand dynamics and ways to invest in tungsten.

What drives tungsten supply and demand?

Tungsten is mined all over the world, although as mentioned China is the world’s largest producer by far.

In 2022, the country mined 71,000 MT of the metal, far ahead of the 4,800 MT produced in Vietnam, the world’s second largest tungsten miner. China also leads in reserves with 1.8 million MT; Russia is in second place with 400,000 MT.

Typically, tungsten deposits are found near orogenic belts, which are areas where tectonic plates have collided to form mountains. These belts run through East Asia, the Asiatic part of Russia, the east coast of Australia, the Rocky and Andes mountains and the Alpide belt, which spans over 15,000 kilometers across Eurasia's southern margin.

One issue surrounding tungsten supply is the fact that the metal can be found in war-stricken countries like the Democratic Republic of Congo. For over a decade, the extraction of mineral resources in these areas has been linked to conflict, human rights abuses and corruption; for that reason, tungsten is known as a conflict mineral.

Some government bodies have put rules in place to ensure that companies disclose where the conflict minerals they use come from. For example, the EU has taken action to strengthen its conflict minerals rules.

In addition to being the world’s top tungsten producer, China is also the top tungsten consumer. Looking more closely at tungsten uses, it's clear many of them are correlated to the global economy.

For example, tungsten carbide, alloy and chemicals are used in the construction, electronics, mining and automotive industries; they can also be found in oil operations, as well as mineral exploration and mining. Mill products require tungsten too — these include tungsten rods, sheets, wires, light bulb filaments and electrical contacts; that said, tungsten’s use in light bulb filaments is declining due to new lighting technologies.

The chemical industry also consumes tungsten — tungsten compounds are used as lubricants, catalysts, pigments and enamels, as well as in electronics and for other electrical applications.

How to invest in tungsten stocks?

Investors who believe tungsten prices will rise in the future may want to enter the space today.

However, getting into the tungsten market can be a little difficult — as with many critical metals, getting direct exposure to physical tungsten is tricky as the metal does not trade on an exchange.

As a result, many market participants who are interested in tungsten investment turn to tungsten-focused companies. Most tungsten-producing companies are located in China, and are either privately owned or listed only on Asian exchanges; however, tungsten investing options do exist elsewhere.

A few options are listed below; all companies are listed on Canadian, Australian and London exchanges, and had market caps above $5 million as of September 15, 2023:

This is an updated version of an article originally published by the Investing News Network in 2013.

Don’t forget to follow us @INN_Resource for real-time news updates!

Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: Fireweed Metals and Pivotal Metals are clients of the Investing News Network. This article is not paid-for content.

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Top 10 Tungsten-producing Countries

Tungsten has many applications. It's used in electrical wires, as well as in welding, heavy metal alloys, turbine blades and as a lead substitute in bullets. The metal can also be found in heating and electrical contacts.

According to the US Geological Survey, global tungsten production came in at 78,000 metric tons (MT) in 2023, down slightly from 2022's 79,800 MT. The vast majority of tungsten mining and processing occurs in China. Looking forward to 2024 and 2025, increased production is seen coming from mines in South Korea, Russia, Spain and the UK.

Tungsten’s importance in a wide range of industrial categories, from smartphones to car batteries, means demand is likely to rise. At the same time, supply chain disruptions and increased production costs are weighing on global supply.

Tungsten prices have traded upward in recent years, and the industry's supply and demand dynamics are expected to push the metal higher in 2024 and beyond. Total revenue for the tungsten market is expected to grow at a compound annual growth rate of 8 percent through 2024 to 2030 to reach nearly US$9.51 billion in value.

With that in mind, it’s worth being aware of which countries produce the most tungsten. Here’s an overview of the top tungsten-producing countries last year, as per data from the US Geological Survey.

1. China

Mine production: 63,000 MT

China's tungsten production fell by 3,000 MT from 2022 to 2023, but the country remained the world’s largest producer by a wide margin. That said, China’s tungsten production has been falling in recent years — the Asian nation has limited the quantity of tungsten-mining and export licenses it awards, and has imposed quotas on tungsten concentrate production. The country has also recently increased environmental inspections.

In addition to being the world’s largest tungsten producer, China is the world’s top consumer of the metal. Aside from that, China has been the main source of tungsten imported into the US since 2017, reportedly representing 27 percent of total American tungsten imports between 2019 and 2022. Tighter tungsten supply out of China in 2024 may lead to higher prices for the metal despite growing production from ex-China sources.

2. Vietnam

Mine production: 3,500 MT

Vietnam’s tungsten production in 2023 came to 3,500 MT, down by 500 MT from the previous year. Privately owned Masan Resources runs the Vietnam-based Nui Phao mine, which it says is the largest tungsten-producing mine outside China. It is also one of the lowest-cost producers of tungsten in the world.

3. Russia

Mine production: 2,000 MT

Russia’s tungsten production remained flat in 2023. The war between Russia and Ukraine has hampered Russia's ability to trade and make deliveries of tungsten to the world market as it continues to face sanctions.

Russia is a significant supplier of the metal to Europe, but restrictions have increased the continent’s dependency on Chinese imports. At the same time, the war is fueling tungsten demand given the metal's use in ammunitions.

4. North Korea

Mine production: 1,700 MT

North Korea's annual tungsten production rose by 180 MT over the previous year to reach 1,700 MT in 2023. The Mannyŏn mine in South Hamgyong province is the country's largest tungsten mine.

Tungsten ore is North Korea's top export, worth nearly US$31 million in 2022, with the majority being consumed by China. Tungsten's top spot in North Korea's export market may be due to the fact that it's one of the few metals not listed under UN sanctions on the country's trade.

5. Bolivia

Mine production: 1,500 MT

Bolivia has increased its tungsten production since 2014 as a result of moves to promote its tungsten industry. The South American nation's output increased to 1,500 MT in 2022 from 1,360 MT the previous year.

The Bolivian mining industry is heavily influenced by Comibol, a state-owned mining umbrella company.

5. Spain

Mine production: 1,500 MT

Spain’s tungsten production tied with Bolivia in 2023 after rising by 87.5 percent over the previous year.

There are a number of companies engaged in the exploration, development and mining of tungsten assets in Spain. Examples include Almonty Industries (TSX:AII,OTCQX:ALMTF) and Australia's EQR Resources (ASX:EQR), which acquired tungsten producer Saloro last year.

7. Rwanda

Mine production: 1,400 MT

Rwanda produced 1,400 MT of tungsten in 2023, on par with 2022's output. Tungsten is one of the most common conflict minerals in the world, meaning that at least some of it is produced in war zones and is sold to perpetuate fighting.

While Rwanda has promoted itself as a source of conflict-free minerals, concerns remain about its tungsten output. Nevertheless, it is an important exporter of tungsten, accounting for 31 percent of global tungsten trade in 2022.

8. Austria

Mine production: 910 MT

Austria was the eight largest producer of tungsten in 2023, putting out 910 MT of the material, on par with the previous year. Much of that production can be attributed to Wolfram’s Mittersill mine, which is located in Salzburg and hosts Europe's largest tungsten deposit.

9. Australia

Mine production: 800 MT

Australia's tungsten production increased by 300 percent to overtake Portugal for the ninth spot on this list. The country's 2022 output of the metal came to 200 MT compared to 800 MT in 2023.

Companies with Australia-based tungsten projects include Tungsten Mining (ASX:TGN), whose properties include Mount Mulgine, Big Hill and Kilba in Western Australia, as well as Watershed in Northeast Queensland and Hatches Creek in the Northern Territory. There's also EQR Resources with its Mount Carbine asset in North Queensland, and Group 6 Metals (ASX:G6M), which recently brought the historic Dolphin tungsten mine back into production.

10. Portugal

Mine production: 500 MT

Portugal is another country on this list that saw its tungsten production remain flat in 2023. It put out 500 MT of the metal, on par with the 500 MT produced in the previous year.

The European country has the lowest-known tungsten reserves figure out of all the nations on this list, totaling just 4,000 MT. The Panasqueira mine is Portugal’s largest tungsten-producing operation.

Don’t forget to follow us @INN_Resource for real-time news updates!

Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.

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How to Invest in Magnesium

With important roles in healthcare and industrial applications, magnesium is worthy of investor consideration.

Not to be confused with manganese, which is also crucial for the development of a healthy body, magnesium, along with sulfur and calcium, is one of three secondary plant nutrients found in abundance on land and in water.

Necessary for over 300 biochemical reactions, magnesium is vital for healthy bones and good circulation. Magnesium oxide is produced when magnesium and oxygen combine, and is commonly used in heartburn and indigestion remedies.

Magnesium metal plays a key role in various industrial applications. The metal is 40 percent lighter than aluminum, but as strong as steel, making it crucial for strengthening aluminum alloys.

Magnesium alloys can be found in airplanes, automobile parts and in electronic devices that benefit from being lightweight. Magnesium is also used to remove sulfur when iron and steel are produced and to inoculate cast iron. Magnesium carbonate salts are primarily used in calcining, as well as in the agricultural and construction sectors.

Magnesium’s wide array of high-tech applications make it a compelling investment, but it's often difficult for investors to find information about the magnesium metal market. Here’s a quick overview of magnesium industry supply and demand dynamics, as well as a brief introduction to investing in magnesium.

What drives magnesium supply and demand?

Demand for magnesium has grown steadily in recent years, driven largely by the car parts industry, where magnesium is used for die casting. Specifically, magnesium can be found in components like car steering wheels and support brackets.

According to IndustryARC, the CAGR in the global magnesium metal market is expected to average 6.7 percent between 2022 and 2027 to reach US$7.5 billion. In the forecast period, the firm expects magnesium alloys to display stronger market growth over more traditional uses such as steel desulfurization. This is mainly due to environmental pressures as vehicle makers view alloys as a means of reducing vehicle weight and, in turn, emissions.

China is experiencing the greatest growth in market share versus the rest of the world. It is the largest global vehicle market, and the Chinese government has predicted that its automobile output will reach 35 million units by 2025.

In terms of supply, magnesium is the eighth most abundant element in the Earth’s crust and the third most abundant element dissolved in ocean water. Around 87 percent of magnesium production in the world comes from Chinese mineral deposits. Other major high-purity magnesium-producing countries include Israel and Russia; Russia also holds the highest magnesium compound reserves in the world at 2.3 million metric tons.

How to invest in magnesium stocks?

As with many other critical metals, there is no formal magnesium market. For that reason, it is difficult to gain exposure to the metal. However, one way to do so is to invest in magnesium resource companies.

A few options are below; all companies are listed on Canadian, US and Australian exchanges:

This is an updated version of an article originally published by the Investing News Network in 2011.

Don’t forget to follow us @INN_Resource for real-time news updates!

Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: Inomin Mines and West High Yield Resources are clients of the Investing News Network. This article is not paid-for content.

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10 Top Countries for Magnesite Mining

Magnesite plays a key role as a refractory material in steel fabrication, as a catalyst and filler in the production of synthetic rubber and as a material in the production of magnesium chemicals and fertilizers.

The global magnesite market had an estimated value of US$12.37 billion in 2023, and is projected to reach US$14.9 billion in 2028 on rising demand from the construction, chemical, metallurgical and automotive industries.

The US Geological Survey estimates that worldwide magnesite reserves stand at 7.7 billion metric tons (MT). Worldwide, magnesite production reached 22 million MT in 2023, mostly on par with the previous year.

While Russia dominates in terms of magnesite reserves, China leads the world in magnesite production. Here the Investing News Network looks at the top countries for magnesite mining.

1. China

Mine production: 13 million MT

China is the world's top country for magnesite mining by far, accounting for roughly 60 percent of global output. The country's production saw no growth compared to last year's output. The Asian nation is also the principal exporter of the material to the US and many other markets across the world. In 2023, China's magnesite exports to India grew by 9 percent due to increased demand for steel fabrication to supply the latter's infrastructure projects.

China represents a major market for magnesite in its own right, accounting for about 65 percent of total global consumption. However, strict environmental regulations have resulted in the closure of several key magnesite mines.

2. Turkey

Mine production: 1.8 million MT

Next is Turkey, whose magnesite output came to 1.8 million MT in 2023, just 20,000 MT fewer than it produced in 2022. Magnesite production in the country has significantly decreased in recent years, falling from 2.7 million MT in 2017.

Turkey has a long history of magnesite mining, both for export and for use at domestic refractories. Akdeniz Mineral Resources, a joint venture with private company Grecian Magnesite, is a large producer and exporter of caustic calcined magnesite products.

3. Brazil

Mine production: 1.7 million MT

Brazil's magnesite production has remained relatively flat in recent years.

A critical point in Brazil's magnesite industry came in 2017 with the merger of RHI of Austria and Magnesita Refratários of Brazil to form RHI Magnesita, which then became the world's largest refractory materials producer. RHI Magnesita is reported to own the largest magnesite reserves outside of China.

5. Russia

Mine production: 950,000 MT

Russia's magnesite-mining output has dropped significantly in recent years, sinking from 1.5 million MT in 2020 to 950,000 MT in 2023. The country hosts the largest reserves of magnesite in the world, coming in at 2.3 billion MT.

One of the key players in the Russian magnesite space is Magnezit Group, which is actively working to expand production capacity at its Kirgiteiskoye and Talskoye deposits by overhauling existing facilities and building new facilities.

5. Australia

Mine production: 860,000 MT

Australia's magnesite production has risen steadily in the past few years, moving it up from near the bottom of the list of top magnesite-mining countries to the second spot in 2021 with 2.7 million MT. However, the nation recorded a dramatically reduced magnesite-mining output of 860,000 MT in both 2022 and 2023.

Private company Queensland Magnesia (QMAG) is responsible for the bulk of Australia's magnesite production. QMAG, part of the Refratechnik Group, is mining one of the world's largest magnesite mines, the Kunwarara deposit in Central Queensland. An example of a magnesite-focused junior mining company operating in Australia is Lachlan Star (ASX:LSA) with its Princhester magnesite project, also situated in Queensland.

6. Austria

Mine production: 810,000 MT

Austria's magnesite output has remained relatively flat in recent years, ranging from 760,000 MT to 810,000 MT. Austrian magnesite producer Styromag operates five mines in the country; it produces roughly 120,000 MT of material per year.

"In January 2023, an Austria-based magnesia and refractories company acquired a leading refractory producer in China, allowing it to expand production in China and the east Asia region," reported the US Geological Survey.

7. Spain

Mine production: 670,000 MT

Spain's magnesite output has more than doubled since 2016, coming in at 670,000 MT in 2022.

Spain's Magnesitas Navarras is a leading European magnesia producer. In early 2024, the company received government approval for a project that will allow it to operate a new mine in the Erdiz region for 25 years.

8. Slovakia

Mine production: 510,000 MT

Slovakia produced 510,000 MT of magnesite in 2023, a slight decrease of 2,000 MT versus what it produced a year earlier. Slovakian producer SLOVMAG is majority owned by Russia's Magnezit Group. It specializes in mining magnesite ore and producing refractory products from sintered magnesia.

9. Greece

Mine production: 380,000 MT

Greece produced 380,000 MT of magnesite in 2023, on par with the year before. The nation's magnesite mines and production facilities are located on the Chalkidiki peninsula in Northern Greece.

The country is home to one of the top magnesia producers in the world, Grecian Magnesite, which has facilities in Spain, Turkey and the Netherlands. The Turkish subsidiary of the Greece-based magnesia producer is slated to construct a new rotary kiln in 2024, which the US Geological Survey says is expected to double "its current production capacity of caustic-calcined magnesia to around 50,000 tons per year."

10. Saudi Arabia

Mine production: 340,000 MT

Rounding out the list, Saudi Arabia put out 340,000 MT of magnesite in 2023, displacing Iran for the 10th spot on this list. The country's major producer is Ma’aden Industrial Minerals Company, which produces caustic calcined magnesite from its a high-grade magnesite mine at Al Ghazalah.

Don't forget to follow us @INN_Resource for real-time news updates!

Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.

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How to Invest in Tantalum

With impressive ductility and the ability to resist heat and corrosion, critical metal tantalum is one of the five major refractory metals, as well as an important industrial commodity.

Due to its high thermal conductivity, about two-thirds of tantalum is used in electronic capacitors, a key component of cell phones and other modern technologies. Tantalum's high melting point and corrosion resistance are also important properties for use in superalloys. Additionally, because it causes no immune response in humans, the metal is used in surgical appliances as a replacement for bone, as a connector of torn nerves and as a binding agent for muscles.

The tantalum market can be difficult to understand, but because it is essential for electronics companies and other industrial end users, some consider the metal a compelling investment. Read on for a brief overview of tantalum supply and demand dynamics, and a look at how to invest in this critical metal.

What factors impact tantalum supply and demand?

Tantalum is rare, averaging only 2 parts per million in the Earth's crust. There are few mines solely dedicated to production of the refractory metal, meaning tantalum is mainly produced as a by-product; a significant portion of conflict-free tantalum products are mined as a by-product of lithium production.

The Democratic Republic of Congo (DRC) is the world's largest tantalum producer, putting out 860 metric tons in 2022, the latest year for which data is currently available. Brazil stands in second place, with tantalum-mining production reaching 370 metric tons that same year. Rwanda, Nigeria and China are other key tantalum producers.

The DRC is a major producer of many metals aside from tantalum, but for over a decade the extraction of these resources has been linked to conflict, human rights abuses and corruption. For that reason, tantalum is known as a conflict mineral; other common conflict minerals are cobalt, tin, tungsten and gold.

To curb the production of conflict minerals, some government bodies have put rules in place to ensure that companies disclose which mines the metals they use come from. In 2021, the EU strengthened its conflict minerals regulations, and in the US the Dodd-Frank Act outlines when and how companies must disclosure their use of conflict minerals.

Looking more closely at tantalum supply, demand for lithium has been impacted by China's cuts to electric vehicle (EV) subsidies. As mentioned, tantalum is a common by-product of lithium, and tantalum supply from lithium producers such as Talison Lithium and Pilbara Minerals (ASX:PLS,OTC Pink:PILBF) can be impacted when lithium demand is lower. However, China's government is now offering tax breaks for purchases of EVs in 2024 and 2025.

Aside from mine supply, there is also a developing tantalum-recycling market that does not rely on new tantalum ore production, but instead uses waste and scrap metal to fill its reserves.

In terms of the value of the tantalum market, Future Market Insights is forecasting a compound annual growth rate of 4.9 percent from 2023 to 2033, reaching US$519.3 million by the end of the forecast period.

"Due to factors including rising demand for tantalum in the production of electronic devices and gadgets, the tantalum market is growing," as per the firm. "On the other hand, increasing technological development and the replacement of aging power infrastructure, a rise in mining activities, along with long-term supply agreements, will further contribute by generating enormous opportunities that will fuel the expansion of the tantalum market in the anticipated timeframe."

How to start investing in tantalum?

While tantalum is essential for many products, the tantalum market is extremely small. Like most critical metals, it is not traded on a commodities exchange, and as a result investors can have a hard time gaining exposure to it.

One way investors can play the tantalum market is by looking at the mining industry and researching tantalum resource companies. Pure tantalum companies are few and far between because so little tantalum is produced and so much of the tantalum that is mined is produced by artisanal miners and small-scale mining.

What's more, many tantalum-producing companies are privately owned — Global Advanced Metals, which holds interests in the tantalum production at the Wodgina and Greenbushes operations, is one such company.

Allkem (TSX:AKE,ASX:AKE,OTC Pink:OROCF), which produces tantalum and lithium at its Western Australia-based Mount Cattlin operation, is an example of a large public company that produces tantalum.

Investors willing to dig a little deeper may be interested in tantalum exploration companies. Again, these companies are few and far between, and they often focus on more metals than tantalum.

That said, there are certainly some options to choose from, and many of them are appealing because they operate outside contentious areas like the DRC. Here are a few juniors with exposure to tantalum that are currently listed on the TSXV and ASX; all had market caps over $10 million in their respective currencies as of January 22, 2024:

This is an updated version of an article originally published by the Investing News Network in 2013.

Don't forget to follow us @INN_Resource for real-time news updates!

Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.

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Top 5 Tantalum-mining Countries

Tantalum is a key material in steel manufacturing, as well as many modern technologies — the critical metal is used in capacitors for everything from computers and mobile phones to air conditioners and refrigerators.

Yet despite its importance in the world today, tantalum mining takes place in very few countries. What's more, much of the world’s tantalum is mined in areas known for issues related to conflict minerals, such as the Democratic Republic of Congo (DRC) and Rwanda. Together they account for more than half of global production.

Brazil, Nigeria and China were the other top countries for tantalum mining in 2023. Read on to learn more about the world’s largest producers of the metal based on the US Geological Survey’s most recent report on tantalum.

1. Democratic Republic of Congo

Mine production: 980 MT

The DRC, the world’s biggest tantalum producer, has increased its tantalum-mining activities in recent years. In total, it put out 980 metric tons (MT) of the metal in 2023, producing nearly 41 percent of the world’s mined supply. Much of the tantalum produced in the DRC comes from coltan, a mineral that hosts tantalum and niobium.

As mentioned, the DRC has a reputation for human rights violations in its mining sector, including child labor. Various organizations have taken steps to discourage companies from purchasing tantalum produced unethically in the country. For instance, in the US, the Dodd-Frank Wall Street Reform and Consumer Protection Act was designed in part to stop the flow of conflict minerals from countries like the DRC. However, companies have faced challenges in ensuring their supply chains are clear, and their efforts have not always been effective.

In 2023, the DRC accounted for 11 percent of US tantalum imports. The US is involved in the development of the Lobito Corridor and the Zambia-Lobito rail line connecting the DRC and Zambia to Angola’s Port of Lobito.

"When complete, the project is expected to reduce transportation time, lower costs, and decrease the carbon footprint associated with exporting metals and other products," the US Geological Survey states.

2. Rwanda

Mine production: 520 MT

Rwanda is the world’s second biggest tantalum producer, with output of 520 MT in 2023.

However, it is difficult to know how much tantalum is actually produced by Rwandan mines. It is an open secret that much of Rwanda’s purported mineral production is smuggled from countries like the DRC, where conflict minerals are a problem, and Rwanda is associated with conflict minerals issues as well.

Intel (NASDAQ:INTC) is one company aiming to make the Rwandan tantalum-mining industry more transparent as it uses the metal in manufacturing. UK-based technology company Circular has designed a blockchain tracing system to help determine the origins of tantalum produced in Rwanda.

In 2023, Rwanda was the third largest source of tantalum ore and concentrate imports to the US.

3. Brazil

Mine production: 360 MT

Brazil is the third largest tantalum-producing country, and one of only two top miners of the material located outside of Africa. Overall Brazil is home to 40,000 MT of tantalum reserves.

The country’s largest tantalum mine is the Mibra lithium-tantalum mine, which began operations in 1945 and is owned by Advanced Metallurgical Group (AMS:AMG). In light of issues facing tantalum from Rwandan and Congolese suppliers, Brazil could become a major source of tantalum for end-use companies around the world in the coming years.

4. Nigeria

Mine production: 110 MT

Nigeria came in as the fourth largest tantalum-mining country in 2023. The country produced 110 MT of tantalum last year, some of which came from artisanal mining.

The nation is believed to have large tantalum reserves, although the exact figure remains unknown. Nigeria is another country that extracts tantalum from coltan. Much of its tantalum is found in tantalite ore in the Nigerian states of Nasarawa, Kogi, Osun, Ekiti, Kwara and Cross River.

5. China

Mine production: 79 MT

China is the fifth largest tantalum producer, but its production has decreased in recent years. The country has large reserves of 240,000 MT of the metal; however, it currently has only one operation that produces substantial tantalum, the Yichun tantalum and niobium mine.

What is Australia's role in tantalum mining?

While Australia did not make the top tantalum-mining countries list for 2023, the Oceanic country hosts the world’s second largest tantalum reserves with a total of 110,000 MT, 28,000 MT of which are JORC compliant.

Australia is now the largest import source of tantalum ore and concentrates to the US, supplying 54 percent of this category in 2023. Production over the past five years has fluctuated between 20 and 57 MT.

Tantalum exists in the country alongside lithium deposits, such as in the Bald Hill mine, the Kathleen Valley lithium project and, of course, Talison Lithium’s Greenbushes mine in Western Australia.

Greenbushes is owned and operated by Talison Lithium, which is 51 percent controlled by Tianqi Lithium Energy Australia, a joint venture between China’s Tianqi Lithium (SZSE:002466,HKEX:9696) and Australia’s IGO (ASX:IGO,OTC Pink:IPDGF). The remaining 49 percent stake in Talison is owned by Albemarle (NYSE:ALB).

The mine produces tantalum as a by-product. Allkem (TSX:AKE,ASX:AKE,OTC Pink:OROCF) also produces tantalum as a by-product at its Western Australia-based Mount Cattlin lithium operation.

Another company looking to bring a lithium project into production with tantalum credits is Liontown Resources (ASX:LTR,OTC Pink:LINRF). The company is on track to begin first production at its Kathleen Valley lithium project in mid-2024, and is exploring offtake arrangements with potential buyers for its tantalum by-product.

Don’t forget to follow us @INN_Resource for real-time news updates!

Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.

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How to Invest in Scandium

Scandium is a critical metal that is as strong as titanium, as light as aluminum and as hard as ceramic.

While it is more abundant than lead, mercury and all the precious metals, there are no pure scandium-producing mines. The rare earth element is often a by-product, produced from refining metals such as uranium.

Pure scandium metal rarely concentrates at higher grades alongside other metals, making commercially usable scandium deposits very rare. What's more, even when scandium is found at elevated levels, processing it can be difficult, leading to very few stable sources of this critical metal. Unsurprisingly, that means scandium has seen very little commercial adoption.

However, as John Kaiser of Kaiser Research has pointed out several times in recent years, there has been promising research on how scandium could be used in the future, with research continuing to develop.

"Hundreds of applications (have been) filed, many of them related to alloys with aluminum," he said in an interview with the Investing News Network. "This obscure metal is going to go ballistic in the next few years." Kaiser made that statement in 2015, and scandium has yet to go ballistic. But he still has hope for the metal, and it may yet have its day in the sun.

Read on to learn more about scandium production, players in the space and the metal's potentially bright future.

Where is scandium produced?

The first known large-scale scandium production was associated with Russian military programs. Details are lost to history, but Russians reportedly alloyed the metal with aluminum to make lightweight MiG fighter parts. Mining at these historic Russian production sites has ceased, but stockpiles of scandium oxide and scandium master alloy remain in Russia. These stockpiles are rumored to be dwindling, but continue to be offered for sale on the market.

Today, most scandium is produced as a by-product during the processing of other ores, such as uranium or rare earths; it can also be recovered from previously processed tailings. As a result, scandium supply is tied to the supply and demand dynamics of the metals it is produced with, making the metal's already tough-to-follow dynamics even more difficult to understand.

According to the US Geological Survey, scandium-producing countries include China, where the critical metal is a by-product of iron ore, rare earths, titanium and zirconium; and the Philippines, where it is a by-product of nickel. Scandium is also produced as a by-product of uranium in Russia, Ukraine and Kazakhstan.

Scandium resources have been identified in minerals-rich regions across the world, most notably in Australia, where a number of junior mining companies are working to develop scandium deposits in New South Wales. These include Scandium International Mining (TSX:SCY), which controls the Nyngan project; and Sunrise Energy Metals (ASX:SRL,OTCQX:SREMF), which holds the Sunrise project. In August 2023, Rio Tinto (NYSE:RIO,ASX:RIO,LSE:RIO) acquired the Owendale project from Platina Resources (ASX:PGM,OTC Pink:PTNUF). Once operational, the project is expected to produce up to 40 metric tons per year of scandium oxide.

In the US, a decades-long hiatus in domestic scandium production may be nearing the end — NioCorp Developments' (TSX:NB,OTCQX:NIOBF) Elk Creek critical metals project holds probable reserves of an estimated 36 million metric tons containing 65.7 parts per million scandium. In the fall of 2023, the company successfully demonstrated pilot-scale production of 1 kilogram of aluminum-scandium ingot.

It's worth noting that the US Department of Defense (DOD) is supporting the development of domestic scandium production. In 2022, the government body approved US$30 million in grants under the Defense Manufacturing Community Support Program. About US$4.7 million of the funding is earmarked for the SAE Government Technologies-led Supply Chain of Recovered Elements Consortium (SCORE).

“The first focus of SCORE will be the extraction of scandium and integration into the aluminum alloys supply chain, supporting domestic manufacturing through castings, welding, and additive (3D printing) pathways,” states a Department of Defense press release.

How is scandium priced and traded?

The global scandium market is small compared to most other metals, but it is growing. This is exemplified by global supply and consumption, which the US Geological Surveys estimates at 30 to 40 metric tons annually for 2023 compared to 15 to 25 metric tons annually in 2021.

The US Department of Commerce and the International Trade Commission do not have specific trading data for the metal. Further, there is no formal buy/sell market — scandium is not traded on an exchange and there are no terminal or futures markets.

Instead, the metal is traded between private parties, mostly at undisclosed prices and in undisclosed amounts. For that reason, understanding the precise volume of production and cost of scandium is difficult, and independent estimations are more relevant.

Production estimates are based on levels of trader activity and interest, as well as the knowledge that some traders deal in the critical metal from very small operations.

The estimates also include consumers believed to be sourcing their own scandium through small, controlled recovery operations, but don't consider amounts of the metal contained in the master alloy currently being sold from Russian stockpiles.

What is the outlook for scandium?

IMARC analysts expect the global scandium market to grow at a compound annual growth rate of 6.3 percent between 2024 and 2032. "There is a considerable rise in the demand for solid oxide fuel cells (SOFCs) for producing electricity. This represents one of the key factors strengthening the growth of the market," the firm notes.

Despite the lack of known, stable supply, scientists and engineers have been working hard to develop new products incorporating the metal. Scandium's potential in high-tech applications is well documented. Highlights of the metal's properties include:

  • It can be used in the creation of stronger, corrosion-resistant, heat-tolerant and weldable aluminum alloys for lightweight aircraft and automobiles.
  • Its outstanding electrical properties and heat resistance are valuable for solid oxide fuel cells.
  • It has unique optical properties for high-intensity lamps.

A recent Kaiser Research report on scandium details the wide variety of end uses for scandium now and into the future, as well as where potential supply to meet that demand may originate.

potential scandium oxide supply and demand

Potential scandium oxide supply and demand.

Graphic via Kaiser Research.

As Kaiser has said, "There's an enormous latent demand for scandium if it ever became available on a primary, scalable basis."

In other words, the only barrier to accessing demand from a new family of high-performance aluminum materials and energy/lighting products is the lack of commercially viable larger-scale scandium production. Interestingly, Kaiser's work highlights two important scandium market events that may "have the potential to launch scandium demand growth over the next decade towards a 1,000 (metric ton per annum) market worth US$2 billion."

For one, Rio Tinto announced in 2020 that it has developed a route to recovery for scandium at its Sorel-Tracy facility in Québec, where it produces titanium slag from the Lac Tio iron-titanium deposit.

In mid-2021, Rio Tinto began commercial-scale operations at its new scandium oxide production facility. By mid-2022, the company had announced the production of its first batch of high-purity scandium oxide at Sorel-Tracy. "The Rio Tinto development is a game changer for the scandium sector," said Kaiser, who believes the increase in scandium production could help boost the sector.

Commenting on Rio Tinto's recent acquisition of the Owendale project from Platina, Kaiser said, "The surprise decision by Rio Tinto to purchase Owendale for USD $8 million up front can be interpreted as meaning that Rio Tinto does see scandium offtake demand growing but it will take quite a few years."

Secondly, Scandium International Mining filed an application in late 2019 for a patent protecting a method for recovering scandium and other metals from the waste streams of copper oxide leaching operations. In mid-2020, the company announced that copper raffinate tests showed its patent-pending process could recover enough scandium to match the supply being added to the market by Rio Tinto.

As of October 2023, Scandium International Mining had broken ground on development work at the Nyngan project, which has scandium as a primary metal. "Given our ability to produce 38 tons annually under our mining license, we believe the Nyngan deposit is the most advanced Scandium project and will be one of the first projects to be developed when the market demand for Scandium becomes more mature," states a press release. A final investment decision is dependent on the company securing offtake agreements and strategic partnerships, which management says remain under discussion.

This is an updated version of an article originally published by the Investing News Network in 2014.

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Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

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