SEIS LAGOS THE LARGEST NIOBIUM DEPOSIT IN THE WORLD

In the middle of the Amazon, 60km away from the Venezuelan border and 2km from a local road is the location of the largest Niobium deposit on the Earth.

It is called Seis Lagos and, believe it or not, is still waiting for the Brazilian Government�s decision to let miners extract and redistribute its enourmous wealth.

In 1975, during a geological mapping program, CPRM's geologists discovered the remarkable structures of Seis Lagos Alkaline Complex intruded in gneissic terrain. It comprises three different intrusive bodies.

Seis Lagos Property at the Amazonas State is the world�s largest niobium reserve of 2,897Mt @ 2.81% Nb₂O₅or 81Mt of Nb₂O₅and, possibly, a very large titanium and rare earths deposit.

The company that acquires this property will be in a position to control the largest niobium reserves in the world, and, likely become the main player in a very important, fast growing, industrial mineral market.

The element niobium (Nb), also named columbium, was discovered in 1802. Niobium is quite abundant in nature being present in the earth�s crust at the level of 24ppm. Its fusion point is high at 2468^oC.

Due to its favourable high-temperature strength and good low temperature ductility, niobium has been used as a prime material for the aerospace industries.

This metal is mostly used in special steels, microalloys and superalloys, automobile industry, nuclear reactors, catalizers, acoustics, electrooptics, high temperature applications, glass manufacture and superconductors. It is a versatile element which is considered to be the best way of accomplishing many technological goals in a most cost effective way. Modern niobium technology is replacing the use of several metals such as molybdenum, vanadium, nickel, chromium, copper and titanium in many industrial applications.

CBMM�s main product is the iron-niobium (65%Nb) alloy which is used as an important element in the high-strength low alloy steels, stainless steels and niobium pentoxide. Metallic niobium is used together the titanium in a NbTi alloy which is used in an important superconductor material.

Pyrochlore (A_2-mB₂O₆(O,OH,F)_1-n.pH₂O), probably the most abundant niobium mineral, has a extremely variable composition and occurs mainly in carbonatites. The pyrochlore group also includes betafite (2Ti>Nb+Ta), microlite (Nb+Ta>2Ti) and bariumpyrochlore which is the ore mineral at Arax�. Columbite is the second most important mineral of niobium and is, mainly, associated to pegmatites and tin bearing granites.

Carbonatites are specialised intrusive magmatic rocks which are important sources of niobium, rare earths, titanium, copper, vermiculite and phosphates.

In Brazil the extremely high grades of niobium and titanium in the deposits is a result of an intense leaching of the carbonatite which caused a well developed lateritic profile that can be as deep as 300m.

Total world reserves of Nb₂O₅ are estimated at 5.4Mt (excluding the Seis Lagos deposit) being 88% in Brazilian soil.

Known ore reserves, at the most important producing mines, are 464Mt @ 2.5% Nb₂O₅ at Arax� (Brazil) and 16Mt @ 0.68% Nb₂O₅ at St-Honor� (Canada). Other niobium resources are reported from Tapira (179Mt @ 0.67% Nb₂O₅), Catal�o (1.4Mt @ 2.19% Nb₂O₅) and Salitre (Brazil), Lueshe Lake, Panda Hill, Chilwa Island and Kalubwe (Africa), James Bay, Nemegosenda, Lackner Lake, Oka (6.3Mt @ 0.32% Nb₂O₅) and Manitou Island in Canada.

The S^t Honor� carbonatite complex (Cambior) hosts the most important niobium mine outside Brazil. This is an underground deposit of low grade (0.67% Nb₂O₅ ) where mining is executed by means of open stope and pillar. The mine depth surpasses 400m.

On the other hand, on the Arax� deposit, which belongs to CBMM, and combines the world�s largest reserve (excluding Seis Lagos) and highest grade (2.5% Nb₂O₅) , the ore is mined by open pit methods.

In Brazil, due to the deep weathering of the carbonatite, blasting is not required and mining costs are much lower than Canada.

Brazil has a leading position in technological development of special niobium alloys. The ore, at Arax�, is crushed, concentrated through grinding, magnetic separation, desliming and flotation to 60% Nb₂O₅ . The flotation concentrates are then treated in a calcining and leaching plant. The standard ferroniobium is produced by means of a new metallurgical process improved by CBMM, the aluminothermic reduction.

The Niobium price is been stable around 3-7US$/pound as can be seen on the graph.

There are more than 300 smelters world wide that use niobium in their production:

CONSUMPTION PATTERN FOR NIOBIUM IN THE USA
(US BUREAU OF MINES - 1,000 LBS.)
	1970	% OF TOTAL 1970	1971	1972	1973	1974	1975	1976	1977	1978	1979	1980	% OF TOTAL 1980
Steel
Carbon & HSLA	705	26	821	1874	2180	2291	1796	1882	2350	3011	3178	3204	48
Stainless Steel	522	19	588	644	712	564	379	491	588	805	827	696	10
Full alloy Steel	829	31	789	302	361	511	372	538	584	656	505	476	7
Steel Totals	2056	76	2198	2820	3253	3366	2547	2911	3522	4472	4510	4376	65
Superalloys	472	17	591	665	685	1097	359	423	796	1146	1777	1904	29
Other Alloys	36	1	37	57	67	82	35	50	65	60	32	15	-
Miscellaneous	24	1	51	131	48	78	78	50	20	16	17	7	-
Primary Totals	2588	95	2877	3673	4053	4623	3019	3434	4403	5694	6336	6302	94
Niobium Metal	119	4	115	251	262	161	108	99	190	225	331	346	5
Grand Total	2707	99	2992	3924	4315	4784	3127	3533	4593	5919	6667	6648	99

The main buyers of CBMM�s production are Nippon Steel, Mannesman (Germany), Ilva Spa (Italy), LVT steel (US), Usiminas, Cosipa and Gerdau.

SPECIFIC NIOBIUM CONSUMPTION-KILO/METRIC TON
RAW STEEL PRODUCED
	1973	1974	1975	1976	1977	1978	1979
USA	0108	0116	0118	0113	0140	0163	0166
Canada	0440	0324	0300	0326	0382	0436	0415
Japan	0068	0100	0142	0147	0136	0133	0138
Austria	0214	0096	0239	0178	0220	0267	0378
Belgium/Luxemburg	0093	0133	0096	0116	0077	0046	0066
France	0104	0130	0201	0168	0190	0193	0207
Germany	0158	0253	0275	0225	0226	0298	0340
Italy	0310	0318	0446	0484	0391	0346	0338
Netherlands	0161	0126	0177	0106	0112	0071	0086
Spain	0056	0052	0113	0118	0071	0088	0086
Sweden	0561	0567	0661	0500	0438	0279	0213
UK	0225	0286	0283	0228	0229	0246	0186
Australia	0091	0094	0127	0128	0137	0171	0185
Brasil	0160	0287	0387	0201	0170	0168	0339
So. Africa	0123	0155	0132	0127	0151	0089	0148

Cambior (Canada) sells to Canada, US and Japan. while Minera��o Catal�o (Anglo American Corporation) sales are directed mostly to US and Germany.

Niobium has been promoted, during the last 20 years into a very important component of the world steel industry. Forecasters are predicting that the consumption will continue growing at the rate of 8-10%.

PREDICTED WORLD HIGH PURITY NIOBIUM METAL CONSUMPTION, 1981-2000
		1981-1985	1986-2000
1	NMR and Lab Magnets	25	175
2	HEP	40	80
3	Computers and Instrumentation	2	18
4	Magnetic Separation	1	2
5	SMES	4	16
6	Levitated trains	-	4	subject to 1985 decision
7	Ship Propulsion	1	9
8	Current Limiters	1	4
9	Power Transmission	Negligible	70	mainly after 1944
10	Superconducting Generators	1	11
11	Fusion	20	230
12	MHD	2	65
13	Defense	5	50
14	Gyrotrons, Isotope Separators	1	3
	Total	103	737

In 1975, during a geological mapping programme CPRM�s geologists discovered the remarkable structures of Seis Lagos Alkaline Complex intruded in gneissic terrain. It comprises three different intrusive bodies. Only in 1982 that company started a detailed exploration programme.

The main carbonatite is an outstanding topographic feature which stands 300m above the local surface (see picture).

Seis Lagos main structure has a 5km diameter and is situated at the S�o Gabriel da Cachoeira municipality at the Amazonas State, only 60km away from the Venezuelan border and 2km from a local road. Seis Lagos is 97km from S. Gabriel port by the Negro River 900km upstream from Manaus.

The carbonatite is, also, characterized by its strong thorium anomaly which peaks at 35.344cps against a 1.300cps local background.

An intense supergene leaching process developed a 250m deep weathering profile. This is the main reason why this deposit is so rich in niobium (2.81% Nb₂O₅), titanium and rare earths.

At Seis Lagos the niobium is present in minerals such as niobium-rutile and niobium-brookite together with florencite and crandalite (rare earths).

This unusual mineralogy is a result of the destruction of pyrochlore during the supergene process causing the free niobium to combine with oxigen, forming these oxides. Niobium may be, also, in the structure of other supergene minerals such as goethite and hematite.

Technological studies have been made by CPRM and, apparently, the ore is amenable to treatment using known technology. A technical report done by INBRACEL confirms that the use of SAM for direct reduction of Seis Lagos ore will allow the introduction of niobium in common low carbon steels, at a very low price, which may change all the economicity of this metal.

Reserves, calculated by CPRM, after a preliminary drilling programme, are listed below.

Since niobium is associated to titanium it is possible that titanium reserves may be as large as the niobium ones.

CBMM is the leading niobium producer of the world and is controlled by the, Brasil Warrant Adm. De Bens e Empresas LTDA (Moreira Salles Group) with 55% and Molybdenum Corporation (Molycorp) with 45%.

CBMM produces about 65% of the world�s market and 100% of the Brazilian market with annual sales amounting to $150M. This is one of the most profitable mining companies in Brazil today.

ABREU, Sylvio Fr�es - Recursos Minerais do Brasil, Vol. II, EUSP, Ed. Edgar Bl�cher Ltda., S�o Paulo, 1973.

NIOBIUM : proceedings of the International Symposium - International Simposium, Niobium�81, Edited by Harry Stuart, New York, 1984.

ROSKILL Information Services - The Economics of Niobium, fourth edition, London 1983

Revista - Min�rios Minerales Extra��o & Processamento, Ano 18, n� 210, April 1996

ALVES, Benedito Paulo - Distrito Ni�bio-Titan�fero de Tapira, Boletim n� 108, Minist�rio da Agricultura, Rio de Janeiro, 1960.

GUIMAR�ES, Djalma - Relat�rio sobre a Jazida de Pirocloro de Barreiro, Arax�, Minas Gerais, Boletim n� 103, Minist�rio da Agricultura, Belo Horizonte, 1957.

PENA, Fernando Ernesto - Perfil Anal�tico do Pirocloro (ni�bio), Boletim n� 18, Minist�rio das Minas e Energia, DNPM, Bras�lia, 1989.

SEIS LAGOS THE LARGEST NIOBIUM RESERVE IN THE WORLD IS STILL WAITING TO BE DEVELOPED