TELF AG comments on the discovery of a new mineral deposit in China
New discoveries
A new mineral discovery in the Chinese district of Bayan Obo, in Inner Mongolia, could further strengthen China’s dominant position in the global market of raw materials, and in particular, the rarest and most difficult to obtain ones (i.e., those that the European Commission defines as “critical,” precisely because of their characteristic of being at the same time very useful for industrial purposes and difficult to find). In recent weeks, some Chinese geologists have found a deposit of niobobaotite, an iron ore that contains niobium. This material, usually extracted from the columbite mineral, is used to make some specific components of jet engines and rockets but also has a fundamental role in the manufacture of conductors. It is a very rare raw material, not only for its density but also for its actual distribution within the earth’s crust, which is certainly very limited at the moment. But the most interesting aspect, in all likelihood, is that this metal would be able to adapt perfectly to the new electric vehicles that will invade the world market in the coming years.
The main deposits of this metal are found in Canada and Brazil, and China, before this important discovery, was used to import large quantities from these two large producers. According to some estimates, in fact, until recently, China was used to importing around 95% of its niobium needs, but what has been brought to light in the Bayan Obo district could change the cards on the table. China could, therefore also become self-sufficient in supplies of this particular metal, thus strengthening its stature in the steel industry and further consolidating its leadership in the global rare earth market, in which it already holds an enormously important position. Being the largest producer and consumer of steel in the world, this discovery is destined to have a truly significant impact on China’s specific weight in the raw materials market.
Niobobaotite minerals – usually classified among rare earths – are generally between 20 and 80 centimeters in size, and in addition to niobium, they also contain barium, titanium, iron, and chlorine. Among its industrial applications, in addition to those already mentioned, we can certainly list those linked to the production of iron and steel, in particular, due to the fact that with the addition of niobium, steel can increase its resistance by as much as 30%. In general, this metal has been appreciated above all for its high conductive capabilities, which have proven to be very useful in particular in the medical field, where it is used for the creation of magnetic resonance imaging devices, but also for the manufacture of some specific components of the nuclear magnetic resonance.
The fact that this metal can also easily adapt to the needs of electric vehicles is certainly good news, particularly for China, even if the EV sector is certainly not experiencing its best season. In addition to significant drops in prices of lithium, China has also recently seen a general slowdown in the sales of electric vehicles.
