Uncategorized
Cobalt:
The Essential Resource of the New Millennium
Just as gas powered autos have depended on oil for the past 100 years, the world’s future fleet of electric vehicles may very well depend on a strategic element mined in a primary capacity in only a handful of locations. This essential element is cobalt.
Cobalt (Co) is a hard, lustrous, silver-grey metal that based on its unique properties has many applications. Although cobalt has been used since ancient times to impart a rich blue colour to glass, glazes and ceramics, it wasn’t until 1735 that the free metallic form was prepared and discovered. Since then, the applications have been varied and the element has played a significant role in industrial uses, the hi-tech industry, medical uses, environmental operations and strategic purposes.
There has been growing momentum in recent years around environmental sustainability and as the socio-economical impact of environmental issues rises, green initiatives have become a global focus.
Cobalt is an element of critical importance to the future energy economy due to its critical role in rechargeable Lithium-ion batteries. The primary use of these batteries is in Hybrid Electric Vehicles (HEVs). Due to escalating gas prices and concerns around fossil fuels more and more nations have recognized the importance of HEV production. HEVs not only reduce air pollution but also cut back on fuel consumption by more than 50% compared to conventional vehicles. This trend has increased HEV production on a global scale with an estimated 8 million units by 2015, thereby increasing annual cobalt demand by nearly 22,000 tonnes/year. The HEV also offers a more environmentally friendly “plug-in” which includes an extra Cobalt-bearing battery, further increasing cobalt demand.
Although some primary Cobalt operations do exist, supply generally comes from the byproduct of Nickel and Copper production and has varying degrees of cost dynamics. A large portion of Cobalt is produced in the Democratic Republic of Congo (DRC) and Zambia as such a byproduct. Puget Venture’s Werner West Cobalt mine is one of the few cobalt resources aiming to be a primary cobalt operation. Werner West is located in the geo-politically stable and progressive jurisdiction of Ontario, Canada.
Puget Ventures has strategically positioned itself in the forefront of the Cobalt industry to supply the growing demand for this essential resource in the near future.
COBALT AT A GLANCE
Chemical Symbol Co
Atomic Number 27
Description Transition Metal
Properties Shiny, grey, brittle metal
Atomic Weight 58.9332
Density (g/cm2) 8.90
Melting Point (K) 1768
Boiling Point (K) 3201
Av. Abundance 25 ppm
UNIQUE PROPERTIES MAKE COBALT AN ESSENTIAL ELEMENT
- High melting point (1493 *C) and retains its strength to a high temperature
Applications: Cutting tools, superalloys, surface coating, high speed steels, cemented carbides, diamond tooling
- Ferromagnetic (nickel and iron are as well) and retains this property to 1100*C, a higher temperature (Curie Point0 than any other material
Applications: Alnico magnets, recording tape, soft magnetic materials, saarium cobalt, NdBFe + cobalt
- Produces intense blue colours when with silica
Applications: Cobalt Blue in paints, glazes, enamels, etc.
- Multivalent
Applications: Catalytic action is enhanced –OXO reaction, Fischer-Tropsch, oil desulphurisation, paint and ink drier, tire adhesives
Cobalt’s green applications extend beyond rechargeable batteries and hybrid vehicles and into the following sectors:
- Renewable Energy
– solar panel technology
– wind generation (turbine blades),
- Emissions Control
– oil desulphurization
– gas to liquid technology
- Digital Revolution
– Cell phones and PDAs
– Computers and electronics
Article Contributed by:
Click on either banner or HERE for more information.
Rare Earths – The Writing is on the Wall
Found this small blurp from the China People’s Daily floating around the ‘Net today.
China is nto going to wait until it is running out of its strategic metals. They will take action to ensure a viable future supply. Keep your eye on those companies with Rare Earth exposure like Avalon Rare Metals (TSX:AVL), Great Western Minerals (TSXv:GWG), Quest Uranium (TSXv:QUC), Strategic Resources (TSXv:UVR) and newcomer Tasman Metals (TSXv:TSM).
China has more than 50 percent of global reserves of rare earth resources, but China has no pricing rights or discourse powers in international markets. China’s rare-earth has been sold as cheap as cabbages in the past two decades. Energy experts warn that with the current mining rate, strategic resources will be exhausted soon.
China’s total reserves and production scale of rare earth ranks first in the world. The output of wolfram, indium and rare-earth in China accounted for more than 80 percent of the global output.
In Europe, U.S., Japan and ROK, the rare metals are also called “strategic metal” widely used in national defense. However, many countries began to import rare metals from China and other developing countries instead of mining in their countries.
In 1980s, China’s rare-earth industry was in a mess and no one pay attention to it, which resulting in oversupply, thus rare-earth prices have been artificially lowered. China’s rare earth industry is facing a non-profit dilemma. And foreign countries took their chance hoarding much of the market supply.
China’s rare-earth production has reached 96 percent of all global production and exports reached over 60 percent in 2005. However, the pricing right is not reserved for Chinese enterprises. Compared with 1998, China’s rare-earth exports have increased ten times, but the price has decreased by about 36 percent.
Energy experts warn that with the current mining rate, mining area in Baiyunebo, China’s Inner Mongolia will turn to non-rare-earth in the coming 30 years. Rare-earth resources in Jiangxi will be exhausted in the next 20 years and China’s world largest tungsten resources will also be exhausted in 14 years.
In recent years, China has realized the strategic importance of rare-earth. In 2005, crude rare earth ore was listed in the non-exportation catalogue. Foreign countries could only buy purified rare earth materials. And in the same year, export tax of rare earth substantially increased.
In April, Ministry of Land and Resources of China released a new standard of rare earth mining and cut down the output of rare earth; meanwhile, mining permits are still frozen.
By People’s Daily Online Monday November 16th
Article contributed by http://www.investingsuccess.ca
Rare Earths – The Writing is on the Wall
Found this small blurp from the China People’s Daily floating around the ‘Net today.
China is nto going to wait until it is running out of its strategic metals. They will take action to ensure a viable future supply. Keep your eye on those companies with Rare Earth exposure like Avalon Rare Metals (TSX:AVL), Great Western Minerals (TSXv:GWG), Quest Uranium (TSXv:QUC), Strategic Resources (TSXv:UVR) and newcomer Tasman Metals (TSXv:TSM).
China has more than 50 percent of global reserves of rare earth resources, but China has no pricing rights or discourse powers in international markets. China’s rare-earth has been sold as cheap as cabbages in the past two decades. Energy experts warn that with the current mining rate, strategic resources will be exhausted soon.
China’s total reserves and production scale of rare earth ranks first in the world. The output of wolfram, indium and rare-earth in China accounted for more than 80 percent of the global output.
In Europe, U.S., Japan and ROK, the rare metals are also called “strategic metal” widely used in national defense. However, many countries began to import rare metals from China and other developing countries instead of mining in their countries.
In 1980s, China’s rare-earth industry was in a mess and no one pay attention to it, which resulting in oversupply, thus rare-earth prices have been artificially lowered. China’s rare earth industry is facing a non-profit dilemma. And foreign countries took their chance hoarding much of the market supply.
China’s rare-earth production has reached 96 percent of all global production and exports reached over 60 percent in 2005. However, the pricing right is not reserved for Chinese enterprises. Compared with 1998, China’s rare-earth exports have increased ten times, but the price has decreased by about 36 percent.
Energy experts warn that with the current mining rate, mining area in Baiyunebo, China’s Inner Mongolia will turn to non-rare-earth in the coming 30 years. Rare-earth resources in Jiangxi will be exhausted in the next 20 years and China’s world largest tungsten resources will also be exhausted in 14 years.
In recent years, China has realized the strategic importance of rare-earth. In 2005, crude rare earth ore was listed in the non-exportation catalogue. Foreign countries could only buy purified rare earth materials. And in the same year, export tax of rare earth substantially increased.
In April, Ministry of Land and Resources of China released a new standard of rare earth mining and cut down the output of rare earth; meanwhile, mining permits are still frozen.
By People’s Daily Online Monday November 16th
Article contributed by http://www.investingsuccess.ca
The natural tendency of people to apply physics to finance explains why successful traders are so rare and why they are so immensely rewarded for their skills.
There is no such thing as a “born trader,” because people are born — or learn very early — to respect the laws of physics. This respect is so strong that they apply these laws even in inappropriate situations. Most people who follow the market closely act as if the market is a physical force aimed at their heads. Buying during rallies and selling during declines is akin to ducking when a rock is hurtling toward you.
Successful traders learn to do something that almost no one else can do. They sell near the emotional extreme of a rally and buy near the emotional extreme of a decline. The mental discipline that a successful trader shows in buying low and selling high is akin to that of a person who sees a rock thrown at his head and refuses to duck. He thinks, I’m betting that the rock will veer away at the last moment, of its own accord. In this endeavor, he must ignore the laws of physics to which his mind naturally defaults. In the physical world, this would be insane behavior; in finance, it makes him rich.
Unfortunately, sometimes the rock does not veer. It hits the trader in the head. All he has to rely upon is percentages. He knows from long study that most of the time, the rock coming at him will veer away, but he also must take the consequences when it doesn’t.
The emotional fortitude required to stand in the way of a hurtling stone when you might get hurt is immense, and few people possess it. It is, of course, a great paradox that people who can’t perform this feat get hurt over and over in financial markets and endure a serious stoning, sometimes to death. Many great truths about life are paradoxical, and so is this one.
The natural tendency of people to apply physics to finance explains why successful traders are so rare and why they are so immensely rewarded for their skills.
There is no such thing as a “born trader,” because people are born — or learn very early — to respect the laws of physics. This respect is so strong that they apply these laws even in inappropriate situations. Most people who follow the market closely act as if the market is a physical force aimed at their heads. Buying during rallies and selling during declines is akin to ducking when a rock is hurtling toward you.
Successful traders learn to do something that almost no one else can do. They sell near the emotional extreme of a rally and buy near the emotional extreme of a decline. The mental discipline that a successful trader shows in buying low and selling high is akin to that of a person who sees a rock thrown at his head and refuses to duck. He thinks, I’m betting that the rock will veer away at the last moment, of its own accord. In this endeavor, he must ignore the laws of physics to which his mind naturally defaults. In the physical world, this would be insane behavior; in finance, it makes him rich.
Unfortunately, sometimes the rock does not veer. It hits the trader in the head. All he has to rely upon is percentages. He knows from long study that most of the time, the rock coming at him will veer away, but he also must take the consequences when it doesn’t.
The emotional fortitude required to stand in the way of a hurtling stone when you might get hurt is immense, and few people possess it. It is, of course, a great paradox that people who can’t perform this feat get hurt over and over in financial markets and endure a serious stoning, sometimes to death. Many great truths about life are paradoxical, and so is this one.
-
I know Mike is a very solid investor and respect his opinions very much. So if he says pay attention to this or that - I will.
~ Dale G.
-
I've started managing my own investments so view Michael's site as a one-stop shop from which to get information and perspectives.
~ Dave E.
-
Michael offers easy reading, honest, common sense information that anyone can use in a practical manner.
~ der_al.
-
A sane voice in a scrambled investment world.
~ Ed R.
Inside Edge Pro Contributors
Greg Weldon
Josef Schachter
Tyler Bollhorn
Ryan Irvine
Paul Beattie
Martin Straith
Patrick Ceresna
Mark Leibovit
James Thorne
Victor Adair