Reuters reported that Tantalite prices are likely to test new highs above USD 120 per lb next year as industrial consumers scramble for ethically mined material outside of the Democratic Republic of Congo. But mine restarts and new projects in other, conflict free countries may take years to get underway or require a sustained period of high prices to become economically viable.

Prices for tantalite TANT LON which is used to make tantalum metal for iPods and BlackBerry smart phones have soared by about 150% this year. The minor metal traded at about USD 87.50 per lb on the European spot market well below USD 36 per lb hit in January.

Eastern Congo is in the grip of conflict years after the formal end of 1998 to 2003 war which sucked in 6 neighboring armies and led to an estimated 5 million deaths. International pressure on DRC is growing to stop armed groups profiting from mining but analysts say a clampdown on so called conflict minerals will be difficult because government troops are themselves heavily involved in the trade.

According to exploration company Commerce Resources Corporation, production data is complicated by a considerable black market but output in the DRC last year accounted for about 90% of global production at around 2 million lbs.

Commerce Resources said that the electronics industry accounts for 75% of tantalum consumption, aerospace companies 15% and medical industries 10 percent. The Canadian firm added that China was the world's top importer.

(Sourced from Reuters)