Critical and Strategic Minerals: Potential and Projects

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1 Critical and Strategic Minerals: Potential and Projects Presented by Jack Lifton Founding Principal - Technology Metals Research, LLC Member of the Strategic Materials Advisory Council (USA) Simpósio Brasileiro de Exploração Minerao SIMEXMIN 2014 Parque Metalúrgico - Centro de Artes e Convenções UFOP May 14, 2014 Ouro Preto, Minas Gerais, Brazil

2 Disclaimer & Cautionary Statement The information contained in this presentation is provided by Technology Metals Research, LLC ( TMR ) and the author, for general educational purposes only. Certain information herein is based on third-party sources that are believed to be reliable, but whose accuracy is not guaranteed. It may also contain statements that could constitute forward-looking statements, describing expectations, opinions or guidance that are not statements of fact. Forward-looking statements may include, among others, statements regarding future market supply and demand, government policies, and other market dynamics, or the assumptions underlying any of the foregoing. In this presentation, words such as "may", "could", "would", "will", "likely", "believe", "expect", "anticipate", "intend", "plan", goal, "estimate" and similar words and the negative forms thereof are used to identify forwardlooking statements. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that are beyond TMR's control, and which may cause actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. This presentation is provided on an as is basis, and neither TMR nor the author make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the third-party information, data or charts contained herein, for any purpose. Use of all information herein is voluntary, and reliance on it should only be undertaken after an independent review of its accuracy, completeness, efficacy and timeliness. Any reliance placed on such information is therefore strictly at the risk of the user. In no event will TMR or the author be held liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this presentation or the information contained within it.

3 How to Define Critical and Strategic Materials The terms, Critical and Strategic Metals and Minerals, are relative. They are each defined by and for specific situations of TIME and PLACE. Changing situations create the DEMAND and determine the urgency of the search for a SUPPLY to match. A Critical Material is one without which a specific product or end result cannot be accomplished. For example: The mass production of economical rechargeable storage batteries is critically dependent on the base metal, lead. The physical and electronic properties of lead enable the storage and controlled release of electricity reliably. Lead is widely found in nature; easy to refine; and easy to recycle A Strategic Material is one that is necessary to accomplish a social goal. For example: The metal, copper, is the key strategic metal for the production and wide distribution of electricity. Individual access to electricity is a strategy of every nation on earth. Like lead copper is widely found, easily refined, and easily recycled. The Human Race cannot utilize scarce materials to accomplish social goals, so although, for example, the rare earths are critical for the miniaturization of personal electronics such a goal is not strategic for our quality of life or standard of living., 3

4 Demand and Supply Demand can always be described in terms of nations and regions, Supply can only be described by specific reference to geography The two descriptions historically coincided but today they only rarely match, but when they do, today, history may be determined by the match. A prime example of this is the fact that China today is the overwhelming supplier of rare earths and is also the location of more than 80% of the demand for rare earth separation, metal making, and rare earth enabled component (magnets, phosphors, steel additives) production. 4

5 Iron replaces Copper Metallic was considered to be a quality of matter from the ancient world until the 19 th century. The idea of metal as a category only occurred when the periodic table was discovered and the reasons that certain elements were metallic, i.e., ductile, malleable, and conductors of electricity began to be discovered and understood. Iron was used principally for edged weapons and individual firearms until the middle of the nineteenth century when the modern methods for the mass production of steel were invented. Copper and its alloys, bronze and brass, were used for weapons and tools up until that time, because copper, bronze, and brass were much easier to work than iron. From the mid-nineteenth century iron soon surpassed copper and its alloys and then became, as steel, the most important metal of all time as it still is today, by the end of the nineteenth century. It has enabled the construction of tall buildings, ocean going transportation, and personal conveyances of all kinds for use on land. It is also the basis of every projectile weapon made. 5

6 Steel is Critical and Strategic Our civilization s critical metal is steel. Without its tensile strength we could not construct our tall buildings, or contain the chemical explosions, and heat we use to produce electricity and motive power. Most of our use of other metals produced in quantities above one million tons per year is for alloying with iron to produce steels that resist sudden changes of temperature and pressure without fracturing and resist corrosion evn at high temperatures and pressures. We produce 1.5 billion tons of steel per year today, in As recently as 1947 only 10% of that amount was produced globally. The expansion of our technological civilization is reflected in the last 75 years is measured by the 900% increase in the volume of steel production in that time. The strategic advance of the PRC has been driven by the production of steel. 6

7 Strategic, Critical and IMPORTANT Metals and their Overall Economics Aluminum is the second most produced metal. 50 million tons per year are produced globally. I do not consider it either critical or strategic. Copper, produced at million tons per year is, after iron as steel, the key critical and strategic metal of our civilization. The total world production of the rare earths is 100,000 tons per year with a selling price in metallic form (for those of them that are used as metals) of less than 4 billion dollars China exported 70 million tons of steel in 2013 with a market value of 280 billion dollars China exported much less than 1 billion dollars of rare earth metals and alloys in Rare earths are commercially important in the consumer sector, but they are not strategic and probably not critical. 7

8 Thank You Jack Lifton Founding Principal Technology Metals Research, LLC