GOOD NEWS
Hybrid-Energy Vehicles (HEVs) will be replacing present day hydrocarbon--powered autos and trucks
in the foreseeable future. As I understand it, an HEV typically has, besides an ordinary hydrocarbon-powered engine, an
electricity-powered engine. The electrical energy is generated by a fuel-cell which uses cobalt as one of its
components. The immediate advantages of using HEVs are reduction of
1. operational costs and
2. reduction of environmental and atmospheric pollution.
Considering that the NICO gold-cobalt-bismuth deposit of Fortune Minerals in the Northwest Territories,
Canada, contains substantial amounts of cobalt, the metal that will be used for the fuel-cells of HEVs, the monetary value of the NICO property is significantly
increased. To be sure, this bodes well for Fortune Minerals and its investors. In my opinion,
investors may, as I have indicated in a prior post, add significantly, with little or no risk, to their current holdings.
What's more is that projections of current values suggest that the share price could well double in the foreseeable
future, now that several mutual funds have acquired substantial numbers of shares in Fortune Minerals.
Herewith is some interesting information from the
Cobalt Development Institute, a non-profit association representing the cobalt industry:-
Consumption of cobalt was 43,000 tonnes in 2003, up 8% from the prior year, and annual growth in years previous to 2002 has averaged ~5-6%. Growth is estimated to be significantly greater with increasing usage of cobalt-bearing lithium ion and nickel-cobalt metal hydride batteries, particularly from increasing production of hybrid electric vehicles (HEV's) and electric vehicles (EV's).
Resources were recently estimated for the NICO deposit by MICON International Limited using cobalt prices of US$10 and 15/pound, very conservative considering the current price is ~US$25/lb. Production is expected to total 1,200 tonnes of cathode cobalt from the mine using a combination of underground and open pit methods. Production can be increased incrementally as new markets are developed.
Highlights of the CDI article include:
1) There are 700 million light vehicles (automobiles) in use today (mostly powered by gas combustion engines) and 50 million new units are produced/yr. By 2025, the number is expected to total 1.25 billion units, and by 2050, 2-3.5 billion units.
2) Most forecasts suggest the need to convert from our current petroleum based transportation system to other less expensive and less polluting systems.
3) The likely repalcements in the short-term will be HEV's and fuel cells in the long-term.
4) There are in excess of 200,000 HEV's in use today.
5) Toyata alone expects to sell 150,000 HEV's this year, and 300,000 units/yr therefter to 2006.
6) GM announced it would develop the manufacturing capability to produce 1,000,000 units/yr by 2007.
7) HEV market penetration will likely be 10-15% by 2015.
8) The nickel-cobalt metal hydride battery in the current Toyata models contains 7 pounds of cobalt and would be double if better performing lithium ion batteries were used. Performance of the batteries is proportional to the amount of cobalt used.
9) Performance of the Toyota HEV is comparable to gas combustion technology (0-60 Mph in 9.8 seconds), achieving fuel economy of 60 miles/gallon in the city at a base price of $21,000 for the Toyata Prius. Additional models are being offered by Toyota, Honda and other manufacturers.
10) Additional annual cobalt consumption for the batteries used in HEV's is expected to increase by 5,300-10,000 tonnes by 2007.
11) In the event the US Department of Transportation meets its full HEV penetration goal by 2030, cobalt consumption in batteries alone could total 283,000 tonnes, 6 times total current consumption of cobalt for all uses. Battery production will likely consume 130,000 tonnes cobalt by only 2020.
For more info about HEVs, go to
ott.doe.gov
detnews.com
cleancarcampaign.org
directory.google.com |
