Category Archives: Metals

PGM Prices Continue to Weaken

20 November, 2008. EIB Rhodium bullion prices continue to haunt the cold, murky pricing depths of the metals market. Today, Rhodium opened at US$1250/toz. That’s just 12 % of the June ’08 highpoint of US$10,100/toz. 

Rhodium demand is heavily dependent on automotive and industrial catalyst applications. While chemical plants may still be chugging out hydroformylation products at reasonable levels, automobile manufacturers are having a hard time getting citizens to buy new automobiles. And strapped to the undercarriage of each automobile is a metal cannister packed with PGM-laced ceramic material. It is no coincidence that Rhodium prices and automotive sales have collapsed together.

Platinum pricing has fallen considerably as well, from the Feb ’08 high of US$2275/toz to todays opening price of US$780/toz.  While Platinum does have considerable automotive and industrial catalyst application, it is also subject to demand from the global jewelry market, which acts to dampen the price collapse.

Two bits of Platinum news may be strengthening Pt prices. An incident at the Angloplats Polokwane smelter will lead to a shortfall in Pt output by an estimated 200,000 toz.  Johnson Matthey predicted a 240,000 toz Pt shortfall for 2008. It was unclear whether that estimate takes into account the production stoppage at Polokwane. Matthey cited general safety stoppages and skilled labor shortages as being behind the anticipated Platinum shortfall.

Clowns to the Left of Me, Jokers to the Right

Pity Larimer County in northern Colorado. We poor sods who live here find ourselves sandwiched between two unexploited deposits of natural mineral wealth. To the east of Fort Collins, near the hamlet of Nunn, is a fairly large uranium ore body. In the northwest, there may be an exploitable diamond deposit. Perhaps hundreds of Kimberlite pipes may be lying in the CO/WY region waiting to be exploited.

Diamonds have already been mined in northern Colorado, near the Wyoming border. The Kelsey Lake diamond mine closed in 2002 due to bankruptcy. The Kelsy Lake mine produced the 5th largest diamond ever found. The yield of the formation is reportedly 4 carats per 100 metric tons of ore.

Given that the Colorado Front Range has been substantially gentrified, the discovery of mineral wealth in the vicinity of hobby ranchers and McMansions will make for some interesting times for the county commissioners. Uranium and Diamonds. NIMBY.

Stealers Wheel Video 1972.

PGM Cu-Ni Strike Near Thunder Bay

10 September, 2008. Anglo American has acquired a 12 % stake in the Australian mining firm Magma Metals Limited. Magma Metals had previously announced “spectacular” results August 11, 2008, in its exploratory drilling activities in the Current Lake intrusive complex north of Thunder Bay, Ontario, Canada.

Magma reports a 2.5 kilometer long strike zone with mineralization varying from 5.6 g/ton to 26.5 g/ton of Pt + Pd from one drill hole. The drilling revealed concentrations as high as several percent of Cu and Ni as well. Magma Metals reports that it has been undergoing a 24,000 meter drilling program to map the Thunder Bay claims.

Zambian Copper Mine to Boost Output

Zambia’s largest mining operation, Konkola Copper Mines plc (KCM), is nearly ready to commission the Konkola Deep Mining Project.  This mine expansion project, in combination with the new Nchanga Smelter, will increase the mine’s output from 200,000 tonnes per year to 500,000 tonnes per year by 2010. 

In order to enable the increase in ore output, a new shaft was sunk. The new production shaft # 4 reaches to 1,490 meters below the surface and will service production levels at 1050, 1150, 1250, and 1350 meters depth.  The company anticipates returning 40 % of the tailings back underground for remediation purposes.

The Konkola underground mine is known as the wettest mine in the world. The mine must be continuously pumped to remove the copious water seepage.  Underground improvements will increase the “water make” from 290,000 cubic meters of water to 430,000 cubic meters of water per day.  The water pumps are expected to draw 90 MW of continuous power to do their job.

KCM has invested US$12 million in new sulfuric acid capacity at Chingola. This sulfur burning plant will produce 500 tonnes per day of sulfuric acid for use in the Nchanga Tailings Leach Plant.

KCM also operates an open pit mine nearby.

PGM Prices Tumble During Summer of 2008

22 August, 2008.  It is a remarkable collapse in pricing. Rhodium has fallen from a high of US$10,100/toz (toz = troy ounce) in early June of 2008 to opening price of US$3950/toz on 21 August, 2008, on the EIB.  Bad news from automotive manufacturers General Motors, BMW, and Nissan is cited by Reuters and posted on Mineweb as the principle cause of the collapse. According to Reuters, the automotive industry accounts for 80 % of the demand for rhodium. 

Other reasons are cited as contributing to the price fall.  Electrical distribution problems interrupting mine activities has reportedly eased, reducing the jitteryness of buyers.

The rhodium market is small and illiquid, and few traders are prepared to speculate on a floor for prices.

The metal’s recent price falls have been blamed by some traders on forward selling, or hedging, by producers. If this is the case, the market should stabilise as these sales tail off.

Mineweb, 15 August, 2008

Ruthenium prices have been sitting at US$300/toz for months now. Apparently the news that sparked the major uptick in Ru prices last year has failed to produce real demand.

Gold opened on the EIB yesterday at US$835.57/toz. This is down considerably from mid July, no doubt adding some tarnish to the spate of ads urging consumers to buy gold.

Palladium has fallen to US$295/toz from the recent high of US$480/toz in mid June of ’08. This is good news for the chemical industry and chemical researchers.

Finally, Platinum has seen a price decline as well, opening at US$1465/toz against the Feb ’08 high of US$2275/toz. This is also good news for the chemical industry. Hopefully chemical buyers are in a position to hedge their PGM positions a bit.

 

Platinum Group Metals Update

14 March, 2008. As the deepening US gravity well continues to tug at the recession asteriod that is looming ever larger in the sky, we see a steady line of investors boarding Platinum Group Metal (PGM) investment vehicles for immediate launch off this doomed planet. 

Monday and friday opening EIB prices over the week of 3/10/08 thru 3/14/08.

Silver–  US$19.70/toz;  US$20.77/toz.

Gold–  US$971.55/toz;  US$1,0005.86/toz

Palladium–  US$470.00/toz;  US$516.00/toz

Platinum–  US$1,960.00/toz;  US$2,110.00/toz

The geology of PGM deposits is quite interesting. There are numerous resources detailing the Bushveld Igneous Province (or Complex) in South Africa. Check it out.

PGM Prices Remain Strong

The Platinum Group Metals (PGM’s) continue to trend upwards.  Last friday 0n the EIB rhodium opened at US$9,050.00/toz. Rh remains in strong technical demand and prices are propped by a great many overlapping factors. Uncertainties in the mining business in South Africa buoy uncertainty among investors. Recent electrical distribution shortfalls and blackouts have interrupted production as have mine floods, labor disputes, and a shortage of experienced miners and managers.

Automotive pollution catalytic converters dominate the demand for platinum and rhodium. As demand for Pt and Rh continues to grow, look for companies to switch to palladium in key applications.  Russia holds a strong position in Pd inventories. As demand for Pd rises, look for Russia to exercise its muscle.

As Au and Pt prices continue to climb, look for jewelry demand for these metals to taper off.  Asian demand for these metals is substantial. Eventually, jewelry prices will temper demand for gold and platinum.  Meanwhile, interest grows in North American PGM resources.

Analytical Life Without NMR

We synthetikkers live in the gilded age of NMR. This analytical method is so fast and so rich in quantitative and structural details that we may forget what it’s like to produce materials that aren’t amenable to NMR rigged for liquid samples and H, C, F, B, Si, and P.

I’ve been busy making metal oxides and various complexes for sale that lend themselves to a very short list of analytical methods. When you make compounds for sale you have a responsibility to provide an unambiguous assay of purity for the lot.  Compounds that are poorly soluble, paramagnetic, or lack NMR active nuclei can be problematic for NMR assay in a production setting. Yeah yeah, I know- get a solid state NMR. Well, we don’t have one and it ain’t gonna happen in my lifetime. Meanwhile, I have 200 g of new product that needs to get certed and into inventory.

Lately I have been taking cues from catalog company web-sites and exploring other methodologies. Complexometric titrations for metals assay, AA, gravimetric AgX for halides, Karl Fischer for water, Loss On Drying (LOD) for volatiles (water, solvents), combustion analysis (C, H, & N), Glow Discharge MS (the Big Hammer) for refractory metal oxides, XRD for anything that could be in the xtal database, melting points, TGA, and I’m turning back to FTIR. 

I haven’t been using FTIR in a quantitative way, just looking for a “Conforms to Structure” result. But nonetheless, in the preparation of new compounds for the product list it is a life saver. I can convince myself that the desired ligands are there and use other methods to try to quantitate their wt %.

I always feel better if we can come up with 3 methods that corroborate the composition. You don’t always have to come up with methods that are on the specification either. It is reasonable to report results on a Certificate of Analysis that are “Report Only” and show general conformance rather than some percentage quantity.  Examples might be appearance, color, or even an NMR spectrum.

I have only recently begun to use XRD and am a mere novice in its intracies. I have sent solid solutions where components that I knew to be there were not detectable. I have also sent samples that came back with % compositions of several xtal phases. For characterization of production lots, it has utility in the detection of certain components. Amorphous phases and random, solid solutions are a blind spot for the method. On the other hand, there is ca one half million compounds in the database so it can detect xtal phases down to ~ 1%.

I have learned an expensive lesson in regard to ICP MS. The method is quite blind or unreliable with certain elements. Sulfur and halides in particular. A sample can be loaded with sulfur (often as sulfate) and the assay will come back with a wildly low value. An ICPMS assay of rare earth metal oxides can support a claim for 99.99 % total rare earth oxides. A GDMS of the same sample may show that it is 99.8x % in metals and even lower if you include halides, sulfur, and phosphorus. 

To be fair to purveyors of ICP MS, it is quite sensitive but standards at the lower limit of detection may not be available. Sub ppm numbers without an explanation of conditions and error are to be taken with skepticism.  Everything looks like a dogs lunch once you get down to the sub ppm level.

Aurum Oracle, What Say You?

Watching the market take on water like a leaky Liberian freighter, I’m wondering about the wisdom leaving my assets in the 401(k) plan.  It’s a fact that the market goes up and the market goes down. The question is, what kind of games do the fund managers play as share prices fall? Do they sell-off many low priced shares for fewer shares of stronger stocks? If so, how does that affect your recovery as the market strengthens? I don’t know. Sounds like its time to understand this better.

Gold has been steadily increasing in value since at least June of 03 (near the limit of my horizon). Since stock prices started to nose downward in early 4Q2007, the slope of gold price growth increased. The inverse price trend with investor confidence in stocks is normal behaviour for gold.

But looking at the upward trend in gold prices this decade, I’m left to wonder if there isn’t some fundamental change happening. If the price is rising due to global demand, who is out there steadily driving up prices? Are there big players who are in the know?  And what are the consequences for individuals?