Reuters reported that Australia's Talison Minerals plans to reactivate its Wodgina mine in mid 2010 amid forecasts of a looming supply squeeze for the metal widely used in aerospace and computer manufacturing.

A Talison spokesman said that "Based on expectations that demand will pick up, the plan is to restart in the middle of 2010."

Privately held Talison supplied about a third of the world's tantalum before suspending operations at its Wodgina mine in northwest Australia last November, citing low demand and weakening prices. Talison has since agreed to allow another Australia miner, Atlas Iron to use its tantalum milling facilities for iron ore processing.

Roskill Information Services said that Talison's closure along with other producers, threatens to create a supply shortage that could last several years.

Roskill said that "Inventories are running down, scrap is in shorter supply because of a fall in capacitor manufacture and it is quite possible that legislation under consideration in the United States could severely restrict or even halt the supply of tantalum from central Africa. It is almost certain that a tantalum squeeze is approaching.”

(Sourced from Reuters)