I noticed Emanuel Datt in the Talk Ya Book interview said the...

I noticed Emanuel Datt in the Talk Ya Book interview said the price of ferroniobium (FeNb) is about US$45,000 per tonne. I think he should have said per tonne of Nb. FeNb typically contains about 65% Nb by weight. Assigning a zero value to the Fe implies the price of 1t of FeNb should equal the price of about 0.65t of Nb. A FeNb price of US$45,000/t implies a Nb price of US$69,231/t at 65% concentration, which seems obviously too high.

There is confusion around this, including in early WA1 announcements and some posted calculations. It is not helped by this quote from Global Metals & Mining (ASX: GBE) appearing if you google either niobium price or ferroniobium price, “US$45,000 per tonne for standard ferroniobium metal”.

WA1 have included advice on the selling price of FeNb with their assay announcements. Starting at 26.10.22, they advised US$45,000/t (the same as Datt and GBE) but corrected that to A$45,000/t on 1.5.23. At that time (and currently) the exchange rate was about 0.65 and using that exchange rate gives US$29,250/t for FeNb which then implies US$45,000/t for Nb (at 65% concentration).

So based on WA1’s corrected advice, using a Nb price of US$45,000/t or a FeNb price of US$29,250/t for current value calculations for a FeNb project seems appropriate. The clearest evidence I’ve seen backing that up is this extract from CMOC’s 2022 Annual Report (CMOC - owner of Boa Vista- Catalao 2 mine in Brazil) giving 2022 and 2021 international market prices for FeNb with units of US$/kg of niobium.


The best data I’ve seen on FeNb prices going back a few years is this graph taken from NioCorp’s June 2022 Feasibility Study for the Elk Creek Project. I’ve modified it to make the year timing clearer. The y-axis is the FeNb price with units also in US$/kgNb.



It’s clear to a lot of us that Luni is shaping up to be a world class niobium discovery. So far the focus has been on a potential FeNb project. WA1 will no doubt also consider the niobium oxide route with its specialised niobium pentoxide end products - including product for the developing niobium battery value chain (with all its excitement about blue sky potential). CBMM Araxa is the only one of the 3 existing producers with both niobium oxide and FeNb process facilities; CMOC and Niobec have FeNb facilities only.

GBE are also taking the niobium oxide route with their Malawi project and its refinery in Namibia (a project that seems unlikely to me). GBE consider niobium pentoxide a premium product and expect premium prices. They based their August 2021 Feasibility Study on “a base price of US$55/kg for Nb2O5”. Given that Nb₂O₅ contains 69.9% Nb by weight, this implies a contained Nb price of US$71,531/t, a 59% premium to the US$45,000/t discussed above for a FeNb product. I haven’t researched Nb₂O₅ prices - no doubt a complex area with its variety of products - but it does seem logical that a premium for contained Nb would apply, considering the more complex processes and specialised expertise involved.

Interesting times to come and role on the next assays.