Niobium: Niobay Metals delivers PEA for its James Bay Niobium project
roskill.com
Posted 22nd October 2020 in ?Industry news.
By Erik Sardain
Niobay Metals has announced the results of an independent preliminary economic assessment (PEA) for its James Bay Niobium project, located in Northern Ontario, Canada. The PEA assessed three mining scenarios, open-pit, underground and a combination of both. In 2020, combined inferred and indicated resources have been upgraded to 64Mt with an average grade of 0.53% Nb2O5. The PEA mentions a capex ranging C$482-579M (US$371-445M) and opex US$16.10-19.11/kg Nb depending on the mining scenarios. All-in costs would range from US$17.58-21.43/kg Nb. The PEA also states that annual production is targeted at 5,470-6,243t Nb over a 23-30-year mine life.
Roskill view
The niobium market is highly concentrated with three main producers’ (CBMM, CMOC, Magris) combined accounting for 95% of the market share. CBMM of Brazil, largely dominates with 80% market share. Niobay’s James Bay mine is one of several new projects which could enter the market during the current decade. Most of these projects are in their early development phase and no production is expected before H2 2023. First production from Niobay is expected for 2026.
The niobium market is driven by ferroniobium and therefore by the steel industry which accounts for more than 90% of niobium’s applications. Although mitigated by China’s performance, Roskill believes that niobium consumption will decline in 2020 compared to 2019 given that steel production has been falling in the world ex-China. Steel offers some upside for niobium consumption, primarily from developing countries, but with Chinese steel production expected to peak in coming years, the niobium industry needs to look for new opportunities. CBMM places high expectations on niobium demand from electrical vehicles through batteries (Nb-TIO and Nb-WO) but also electronics, in nano-crystalline devices. As it is the case for vanadium, which usage largely depends on the steel industry, diversifying from steel will be a major industry challenge for niobium over the rest of the decade.
Roskill’s NEW Niobium: Outlook to 2030, 16thEdition report will be published in November and will provide detailed analysis on supply, demand, trade, prices and forecasts. For more information or to subscribe, click here.
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