technical report on the nechalacho deposit, thor lake project ...

Table 18-24 World Niobium Production
Avalon Rare Metals Inc. – Thor Lake Project
Origin 2004 2005 2006 2007 2008
CAGR
%
Mineral Production (tonnes contained Nb)
Brazil 23,779 39,162 48,129 57,267 58,000 19.5
Canada 3,559 3,710 4,157 4,337 4,383 4.25
Other 262 228 514 396 517 14.56
Total 27,600 43,100 52,800 62,000 62,900 17.9
FeNb Production (tonnes contained Nb)
Brazil 25,169 38,819 41,566 52,442 52,500 15.84
Canada 3,559 3,710 4,157 4,337 4,385 4.25
Other 72 71 77 121 115 9.81
Total 28,800 42,600 45,800 56,900 57,000 14.63
FeNb as% all Nb Production 104.3 98.8 86.7 91.8 90.6
Source: USGS, Niobium, 2008
The rapid increase in niobium production (and consumption) is attributed to very significant
increases in world steel production and a change in the mix of steel production to higher
performance grades requiring niobium addition.
Niobium Supply
The niobium production industry is closely controlled with three producers essentially holding a
monopoly position. All three companies are primary producers of niobium concentrates for
internal consumption. The dominant producer is Comphania Brasileira de Metalurgia e
Mineração (CBMM) in Brazil. CBBM is a fully integrated producer and the only company
producing all forms of niobium. CBBM holds an approximate 70% share of the world market for
FeNb products and a significant share of the world market for pure niobium, NiNb and TiNb and
other specialty alloys, niobium chemicals and niobium powder
The other major primary producers of niobium are Mineração Catalão de Goias S.A. (Catalão)
in Brazil and Niobec in Canada. These latter two companies control about 20% of the total
niobium market and share the FeNb market approximately equally with about 15% market share
each. Together with CBBM, they control essentially 100% of the FeNb market. CBBM, Catalão
and Niobec are fully integrated producers sourcing their niobium feedstock from pyrochlore ore.
Mineração Taboca, also in Brazil, produces a mixed FeNbTa alloy which is subsequently
processed by others to produce separate niobium and tantalum products.
Technical Report 43-101 – March 13, 2011 Page 18-85
Prepared by Avalon Rare Metals Inc.