Objective Capital's Rare Earths, Speciality & Strategic Metals Investment Summit 2011
Ironmongers' Hall, City of London
17 March 2011
Speaker: Peter Willis, Oakdene Hollins
1. RARE EARTHS, SPECIALITY
& STRATEGIC METALS
INVESTMENT SUMMIT
Recycling strategic & speciality metals
Peter Willis – Technical Consultant, Oakdene Hollins
IRONMONGERS’ HALL, CITY OF LONDON ● THURSDAY, 17 MAR 2011
www.ObjectiveCapitalConferences.com
2. Oakdene Hollins
Opportunities in Recycling
“Critical Raw Materials”
Peter Willis
17th March 2011
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3. Disclaimer
Oakdene Hollins Ltd believes the content of this presentation to be correct as at the date of writing. The
opinions contained in this presentation, except where specifically attributed, are those of Oakdene Hollins
Ltd. They are based upon the information that was available to us at the time of writing. We are always
pleased to receive updated information and opposing opinions about any of the contents.
The listing or featuring of a particular product or company does not constitute an endorsement by Oakdene
Hollins, and we cannot guarantee the performance of individual products or materials. This presentation
must not be used to endorse, or suggest our endorsement of, a commercial product or service.
All statements in this presentation (other than statements of historical facts) that address future market
developments, government actions and events, may be deemed "forward-looking statements". Although
Oakdene Hollins believes the outcomes expressed in such forward-looking statements are based on
reasonable assumptions, such statements are not guarantees of future performance: actual results or
developments may differ materially. Factors that could cause such material differences include emergence
of new technologies and applications, changes to regulations, and unforeseen general economic, market or
business conditions.
We have prepared this presentation with all reasonable skill, care and diligence within the terms of the
contract with the client. Although we have made every reasonable effort to ensure the accuracy of
information presented in this presentation, Oakdene Hollins cannot expressly guarantee the accuracy and
reliability of the estimates, forecasts and conclusions herein. Factors such as prices and regulatory
requirements are subject to change, and users of the presentation should check the current situation. In
addition, care should be taken in using any of the cost information provided as it is based upon specific
assumptions (such as scale, location, context, etc.). Clients should satisfy themselves beforehand as to the
adequacy of the information in this presentation before making any decisions based on it.
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4. Oakdene Hollins’ Work
Study into the feasibility of protecting and recovering
critical raw materials through infrastructure
development in the South East of England
(European Pathway to Zero Waste, 2011)
Assessing rare metals as supply chain bottlenecks in
priority energy technologies
(European Commission Institute of Energy, 2011)
Lanthanides resources and alternatives
(Department for Transport, 2010)
Materials security: Ensuring resource availability for
the UK economy
(Resource Efficiency KTN, 2008)
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5. Agenda
What are the EU “Critical Raw
Materials”?
Best Opportunities for Investors:
Aerospace
RE Magnets
Flat Panel Displays
Batteries
Gap Analysis of Opportunities
Conclusions
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6. Defining “Critical Raw Materials”
European Commission (2010) study
“Critical Raw Materials for the EU”
41 metals and minerals assessed
Combination of 2 factors:
Economic Importance
Main applications
Substitutability
Supply Risks
Stability of producing countries
Diversity of supply
Recycling
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7. 14 “Critical Raw Materials”
Production Volumes (tonnes)
Large Volumes Small Volumes
Fluorspar – 5,100,000 Indium – 1,200
Graphite – 1,130,000 Tantalum – 1,160
Magnesium – 760,000 Platinum Group – 445
Antimony – 187,000 Beryllium – 140
Rare Earths – 124,000 Germanium – 140
Tungsten – 94,000 Gallium – 118
Niobium – 62,000
Cobalt – 62,000
Source: mostly USGS for 2009;
includes recycling where available 7
8. Current Importance of China
China as leading producer of 9 materials:
Rare Earths (97%) Germanium (71%)
Antimony (91%) Fluorspar (59%)
Tungsten (81%) Indium (50%)
Magnesium (77%) Gallium (32%)
Graphite (71%)
Other Leading Producers:
Brazil: Niobium (92%) Tantalum:
US: Beryllium (86%) Australia (48%)
Platinum Group: Congo Kinshasa:
South Africa (61%) Cobalt (40%)
Source: USGS for 2009 8
12. Dominant Applications
Seven raw materials have over half their
consumption in a single application:
Antimony (Flame Retardants – 72%)
Fluorspar (Chemicals - 60%)
Gallium (Integrated Circuits – 66%)
Germanium (Optics – 55%)
Indium (Flat Panel Displays – 74%)
Magnesium (Casting Alloys – 50%)
Niobium (Steel Alloys – 83%)
Platinum Grp (Catalysts – 60%)
Tungsten (Cemented Carbides – 60%)
Source: European Commission (2010)
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13. Screening Methodology
Selection Criteria:
Include all dominant applications
Analyse markets using multiple raw materials
Rank economic value of raw material contained
Examine carbon impacts of markets
Selected 12 markets for further analysis:
Supply chain maps
Existing practice infrastructure
Technical feasibility & economic viability
Stakeholder consultation
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14. High Opportunities – Aerospace
Up to 12,000 aircraft to
retire by 2020
Move away from ‘wild
destruction’
Smart dismantling can
recover 85% of weight
Reuse superalloys in
engines (Co, Nb, Ta) &
landing gear (Be)
Recycle (Al-Mg alloys)
Implementation by
accreditation & standards
Source: Airbus
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15. High Opportunities – RE Magnets
Hard disk drives (HDD)
as current opportunity
Hitachi with process to
cut HDD & remove RE
magnets for recycling
Need to segregate, not
shred with WEEE
Wind Turbines & (H)EVs
as long term opportunity
due to long lifetimes
Source: Hitachi
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16. High Opportunities – Flat Panel Displays
80% of In used to make
ITO (mostly for FPs)
Recycling of In process
waste common
Easy to separate FPs
from WEEE as easily
recognisable
Pilot scale technologies
being developed to
remove ITO to recycling
Medium timeframe for
Source: Valpak
FPs in waste stream Source: WRAP
Solar PV for long term 16
17. High/Med Opportunities – Batteries
800 t of NiMH, 600 t of
Li-ion in UK waste
Low collection rates for
portable batteries: NiMH
(2%) & Li-ion (1.5%)
Need for better collection
& labelling
Co recovered but RE &
Graphite lost in slag
Optimise recycling
(H)EV batteries as long Source: Valpak
term opportunity
Possible (cascaded) reuse 17
19. Raw Material Consumption (%)
0
10
20
30
40
50
60
70
80
90
100
76
Indium 72
Antimony
68
Magnesium
60
Tungsten
54
Cobalt
52
Platinum Grp
43
Rare Earths
15
Beryllium
8
Niobium
Gap Analysis on Recycling
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Graphite
5
Tantalum
2
Gallium
Consumption in High & Medium Opportunities
1
Fluorspar
0
Germanium
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20. Conclusions
Recycling not enough:
High demand growth
Long product lifetimes
Problem of dispersive usage
Recycling can contribute to supply:
Improve collection
Advanced sorting techniques
Implement new technology
Design for disassembly & reuse
Some raw materials with little opportunity:
Dispersive applications
Consumed in process
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