“We believe long term the sustainable price is somewhere between $60 to 80/lb,” he says. “We believe [the project in the DRC] will eliminate a lot of the volatility and speculation out of the market.”
Some may raise concerns that efforts to bring prices down may hurt artisanal miners in the DRC, but Perisco does not foresee this happening.
“When prices went from $45 to $150, the artisanal miners made no more money. It all went further down the supply chain,” he said.
OpportunitiesThat some users have become frustrated by market conditions and have abandoned the market, and capacitor manufacturers have taken it upon themselves to forge direct relationships in the DRC, should serve as a call for tantalum producers to carefully consider their pricing policies. The fact that capacitor manufacturers are leading the efforts to revive the DRC tantalum industry may also highlight opportunities for miners willing to assess that region. The DRC is considered one of the world's largest sources of tantalum. Perisco says that as far as he is aware, no one even knows for sure how much is there. But, he adds, the tantalum found thus far is high grade and easy to mine. Securities Disclosure: I, Michelle Smith, hold no equity interests in any company mentioned in this article. DRC: Re-Emerging as a Tantalum Hotspot from Tin Investing News