Niobium is a scarce metal applied in manufacturing of tough and heat-resistant alloys. The most promising and rapidly advancing sector posing demands for metallic niobium is ‘plasma taming’, or to be more precise manufacturing of niobium-based main screen
NIOBIUM: THE METAL OF THE PLASMA AGE
Niobium is a scarce metal applied in manufacturing of tough and heat-resistant alloys. The most promising and rapidly advancing sector posing demands for metallic niobium is ‘plasma taming’, or to be more precise manufacturing of niobium-based main screen shields of nuclear and thermonuclear pulse generators (electron-beam accelerators for military and scientific needs). By the end of the 90s, construction of nuclear reactors using fast neutrons, nuclear fusion reactors and other advanced units has become an integral part of any developed economy. This gave niobium the name of a metal of the plasma age.
However for the time being, new nuclear technologies are just taking shape. Optics and medical industries contributed about 3% to industrial consumption of niobium in 1999, manufacturing of complex composite alloys in aircraft and missile engineering consumed some more 10%, while automotive industry used another 12% for exhaust pipe coating, etc.
In 1998-1999, the major portion of consumption (more than 70%) fell on ferroniobium metallurgy. This alloy has found its main application in tube-rolling, in particular in manufacturing of tubes to be used in oil and gas pipelines in the permafrost area. Utilization of niobium in manufacturing of these tubes boosts operating efficiency as high as at least 10 times. Besides, 1996-1999 saw a large increase in consumption of ferroniobium-coated tubes in liquefied gas industry.
In 1999, global output of niobium concentrate amounted to more than 32 ths. metric tons, which is almost twice as high as the 1995’ level of 17.5 ths. metric tons. The major consumers of niobium products are the USA (which imported 8 ths. metric tons of ferroniobium in 1998), Canada (which consumed 5 ths. metric tons of this alloy), Japan (imported 4 ths. metric tons of alloy) and Russia (consumed 2 ths. metric tons).
As it was mentioned above, owing to strong demands for ferroniobium in oil & gas industry, output increased stepwise. Certain big oil and gas companies invested quite a lot in niobium manufacturing back in the 80s, which helped satisfying demand in this alloy.
European oil and gas giant Shell-Billiton Metals is represented on the niobium market by its specialized affiliate Consolidated Smelting Inc., which owns Canadian mill Cambior and Brazilian metallurgic mill Katalon di Goas. In 1999 the Brazilian mill manufactured some 8 ths. metric tons of niobium ore concentrate. Pyrochlorine from the Arash deposit is the main raw materials for concentrate manufacturing. The mass media quotes that this deposit has mineral inventories of niobium ore coming to 8 mln. metric tons pure metal value. Canadian Cambior, the other subsidiary of Consolidated Smelting Inc., uses Brazilian ore concentrate and ore from Ghanaian, Surinam and Malaysian deposits belonging to Canadian company East Coast Smelting.
The second largest niobium manufacturer is the US oil and gas company Unocal. On the market for scarce metals, this company is represented by its specialized affiliate Molly Inc., Canada. The corporation owns Brazilian metallurgic mill Moreira Salil, which produced 23 ths. metric tons of niobium ore concentrate in 1999 and has enough capacities to manufacture 30 ths. metric tons per year.
Figures on sale volumes prove that the largest western consumers of ferroniobium (mainly, oil and gas companies) control virtually all the niobium manufacturing facilities. A similar situation can be traced on the markets for other scarce metals. In 1999, US company FMC made more than a half of the global lithium purchases; RGC Hunson, Great Britain, purchased 60% of the global zirconium oxide turnover; whereas branch offices of Union Carbide consumed a half of the global vanadium trade turnover. Such monopolization is a result of multibillion investments in technological and licensing cartels, mining corporations and infrastructure. In most cases, investment money is contributed by the leading financial and industrial corporations, such as Iminorco/De Beers (in case of RGC Hunson and Union Carbide), Chevron Oil (in case of FMC) and Mobil Oil/Exxon.
Considering all this, it seems natural that Russian JSC Gazprom, which ranks the third in ferroniobium consumption posterior to Canadian and US companies, practically has no access to raw niobium. Along with that, prior to launching a large-scale program on development of oil and gas deposits of the arctic north, Russia consumed about 2 ths. metric tons of ferroniobium and 1 ths. metric tons of metallic niobium per year (unlike in Western countries, aircraft and spacecraft manufacturers are the major consumers of this commodity in the Russian Federation). Russia imported 80% of the consumed niobium. At the moment, JSC Yekaterinburg Nonferrous Metal-Working Plant and Krasnoyarsk Nonferrous Metal Works own moderate capacities for production of powdered niobium and niobium-based alloying agents. Once being part of the military industry of the former USSR, these two companies specialized on small-scale output of composite alloys based on osmium, molybdenum, tantalum, niobium, rhenium and rhodium.
A number of African countries were among the major suppliers of niobium ore to these companies (e.g. scarce metal ore from the Altu Ligonia deposit made up some 80% of Soviet trade with Mozambique). Following collapse of the USSR, Yekaterinburg Nonferrous Metal-Working Plant has merged with financial corporation of Zoloto-Platinoviy Bank (Gold and Platinum Bank) and has reoriented towards imports of Malaysian raw materials.
After commencement of the project on development of offshore deposits in the Barents Sea and Yamal peninsular, Russia has gained true prospects that ferroniobium consumption may gain some 70-80%. In 1998-1999, Russia mainly managed to start execution of the program for local manufacturing of ferroniobium-coated large-diameter tubes using the available industrial facilities. It should be mentioned that it is scheduled to build tube-rolling facilities in Orenburg region, i.e. in the birthplace of Viktor Chernomyrdin, the founder of Gazprom.
In 1997-1999, Russian consumers clearly revealed their intention to abandon the old practice of importing large- and medium-diameter oil & gas tubes with corrosion-resistant coating, including Ukrainian commodities. A good examples to this statement is expansion of output of large-diameter cold-resistant tubes with ferroniobium coating at JSC Magnitogorsk Iron and Steel Works.
This project is not directly related to Ukrainian producers, which do not export this particular type of tubes to Russia. However, Ukrainian producers have the upper hand on the market for large-diameter tubes with corrosion-resistant coating. Following privatization of Ukrainian JSC Novomoskovsk Tube Rolling Works and Khartsyzsk Tube Works, the shareholders of these enterprises took advantage of the mighty Ukrainian ferroalloy industry to boost output of medium- and large-diameter tubes with corrosion-resistant coating in 1997-1998. Huge unsatisfied demands on the Russian market spurred large investments in shops, where corrosion-resistant coating is applied. According to Gazprom estimates, 70% of the Russian network of gas-main pipelines (one third of which is located in the utmost northern areas) requires urgent replacement of tubes with corrosion-resistant coating. The Russian project for domestic manufacturing of ferroniobium-coated large-diameter tubes is a clear sign that Ukrainian tube exports will soon face significant problems in Russia.
Experts believe that intensification of hi-tech cooperation between Ukraine and Brazil will help averting the negative prospect of Ukrainian tube, ferroalloy and chemical and metallurgic plants becoming elbowed from the traditional Russian market. The world leadership of Ukraine in powder electrometallurgy and nice research and development activities of Ukraine in manufacturing of a number of scarce metals are quite enough to grant domestic producers efficient access to cheap foreign raw materials and to retain leadership on the traditional foreign markets.
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