Cellphone Sales Slowdown Closes Tantalum Mines
An Australian firm recently announced that it is shutting down production at the worldÃ's largest Tantalum mine - which supplies around a third of the world's demand for the metal ore. The major use for tantalum is in the production of electronic components, mainly capacitors and some high-power resistors - and its properties make it very important in the production of electronics for mobile phones.
Tantalum electrolytic capacitors exploit the tendency of tantalum to form a protective oxide surface layer, using tantalum powder, pressed into a pellet shape, as one "plate" of the capacitor, the oxide as the dielectric, and an electrolytic solution or conductive solid as the other "plate". Because the dielectric layer can be very thin (thinner than the similar layer in, for instance, an aluminium electrolytic capacitor), a high capacitance can be achieved in a small volume.
It is because of the size and weight advantages that tantalum capacitors are attractive for portable electronics.
Talison Minerals said that it would be shutting down the tantalum mine at Wodgina in Western Australia primarily due to the economic slowdown which is hitting sales of consumer electronics.
However, the company also blamed a long-term and increasing trend to reduce material costs in the electronics supply chain, which it says is encouraging increased tantalum supply from Central Africa, and particularly from the Democratic Republic of Congo (DRC).
Tantalum from Central Africa, known locally as Coltan is available at relatively low prices because it is often mined illegally or without regard and commitment to health, safety, environment and labour conditions and frequently transported in contravention of international regulations. Revenue from tantalum mining activities in the DRC is reportedly used to fund militias involved in the ongoing civil war in the north east of the Country, as well as damaging the habitat of the endangered Mountain Gorillas.
Chief Executive Peter Robinson said it was extremely disappointing to be suspending operations at Wodgina due to economic conditions and industry activities beyond the CompanyÃ's influence. "Historically, Talison has provided a large, reliable supply source which has underpinned the entire tantalum industry. We have the capacity and the desire to continue in this role and we believe it is in the electronics industryÃ's interests for Talison to play a significant part in its future" he said.
"Our goal is to bring Wodgina back into production as soon as the global economic situation improves and demand and prices are stronger. Until then we will keep working with the electronics industry to encourage all participants in the supply chain to purchase tantalum from responsible sources and to assist in establishing a system that will give consumers confidence that tantalum is being produced in compliance with internationally recognised social, legal, ethical, safety and environmental standards."
Posted to the site on 21st December 2008
