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Showing posts sorted by relevance for query world water and power. Sort by date Show all posts

Wednesday, July 15, 2009

Lithium: Electric cars as Distributed Energy Storage System TNR.v, CZX.v, SQM, ROC, FMC, DAI, NSANY, F, TTM, TM, BYD, GOOG, AAPL, RIMM, HUI, XAU, FXI,



Our Electric Cars will help us to grow solar and wind power to charge them.
"A single idle, electric-powered car could generate as much as 10 kilowatts of power, enough to meet the average demand of 10 houses, according to Willett Kempton, director of the Center for Carbon-free Power Integration at the University of Delaware. With vehicle-to-grid technology, controlled by an array of smart meters, car owners plugged in at home or work could allow the grid to draw off unused chunks of power at times when short-term demand is high. Conversely, cars could be recharged when demand is low."
Welcome to Energy business: Charge it Low, Sell it High!




It is a new way to look at our Green Mobility Revolution based on Electric Cars as a structural shift in all energy business. With enough penetration Electric Cars will implement an ideal Mobile Distributed Energy Storage Network, addressing concerns about terror or natural disasters and providing important link to solar and wind power utilisation. Lithium as a base for this applications will be realised in its status of a New Oil - powering the new sustainable economy.



3. Geopolitical implications: the only way, in our opinion, for US corp to survive and maybe one day prosper again. Options are not whether to chose or not, but how to be able to join Electric mobility revolution. You can not compete with China as a producer with electric mobility on the cost side against your oil addiction. With oil above 100USD/barrel wealth transfer is 1 trillion dollars per year. US Corp is bankrupt without this kind of hazard, but here we are talking about cash flow and mere market existence..."




On another front money are flowing in Lithium based batteries:






TOKYO, July 13 (Reuters) - Japanese battery maker GS Yuasa Corp (6674.T) said on Monday that it plans to sell 40 million shares in a public offering and up to an additional 6 million shares, depending on demand.
GS Yuasa plans to make lithium-ion batteries for hybrid cars from 2010 with Honda Motor Co (7267.T). (Reporting by Mayumi Negishi)"


"Billions are coming into our Next Big Thing: Green Mobility revolution - new factories for lithium batteries are under contraction and new Electric Cars models are rolled out. In Lithium Supply chain, which will benefit from newly born Bull, place is not very crowded, but success will depend on people involved, their energy and ability to develop the projects."





The challenge for green energy: how to store excess electricity
For years, the stumbling block for renewable energy has been how to store electricity for days when the sun isn't shining and the wind isn't blowing. But new technologies suggest this goal may be within reach, writes Jon R Luoma from Yale Environment 360, part of the Guardian From Yale Environment 360, part of the Guardian Environment Network
guardian.co.uk, Wednesday 15 July 2009 15.41 BST

"Why are we ignoring things we know? We know that the sun doesn't always shine and that the wind doesn't always blow." So wrote former U.S. Energy Secretary James Schlesinger and Robert L. Hirsch last spring in the Washington Post, suggesting that because these key renewables produce power only intermittently, "solar and wind will probably only provide a modest percentage of future U.S. power."
Never mind that Schlesinger failed to disclose that he sits on the board of directors of Peabody Energy, the world's largest private-sector coal company — a business with much to lose if a solar- and wind-powered future arrives. But at least he and his co-author got it partly right. The benefits from wind and solar are mostly intermittent — so far. But the pair somehow missed the fact that a furious search for practical, affordable electricity storage to beat that intermittence problem is well underway.
For decades, "grid parity" has been the Holy Grail for alternative energy. The rap from critics was that technologies like wind and solar could not compete, dollar-for-dollar, with conventional electricity sources, such as coal and nuclear, without large government tax breaks or direct subsidies. But suddenly, with rapid technological advances and growing economies of manufacturing scale, wind power is now nearly at grid parity — meaning it costs roughly the same to generate electricity from wind as it does from coal. And the days when solar power attains grid parity may be only a half-decade away.
So with grid parity now looming, finding ways to store millions of watts of excess electricity for times when the wind doesn't blow and the sun doesn't shine is the new Holy Grail. And there are signs that this goal — the day when large-scale energy storage becomes practical and cost-effective — might be within reach, as well. Some technologies that can store sizeable amounts of intermittent power are already deployed. Others, including at least a few with great promise, lie somewhere over the technological horizon.
New storage approaches include improvements to existing lithium ionbatteries and schemes to store energy as huge volumes of compressed air in vast geologic vaults. Another idea is to create a network of small, energy-dense batteries in tens of millions of homes. Under such a "distributed storage" scheme, utility computers could coordinate electricity flows over a "smart grid" that continually communicates with — and adjusts the flow of power to and from — local batteries. This would even include batteries in future plug-in hybrid or all-electric vehicles.
And one 2008 breakthrough could even fulfill chemists' long-held dreams of producing a squeaky-clean and storable fuel by using excess electricity generated from renewable sources to cheaply produce hydrogen, which could then be used in fuel cells to power homes and cars.
In a world run mainly on fossil fuels, finding ways to store electricity was not a pressing concern: Power plants across a regional electrical grid could simply burn more fuel when demand was high. But large-scale electricity storage promises be an energy game-changer, unshackling alternative energy from the constraints of intermittence. It would mean that if a wind or solar farm were the cheapest and cleanest way to generate power, it wouldn't matter when the sun shone or the wind blew.One storage approach seems obvious: to improve battery technologies. Picture efficient, enormous batteries that can store tens of millions ofwatt-hours of juice. Today, the vast majority of new rooftop solar photovoltaic panels are connected to the grid, using it as a giant battery, pushing excess power onto the grid when solar panels provide excess power. The building then draws power from the grid when the sun doesn't shine, with its meter spinning backward and forward with the ebb and flow of power. With relatively few solar roofs yet in play, utilities manage any ebb and flow by drawing down and ramping up generation at conventional power plants designed to balance fluctuating supply and demand.A more robust world of solar and wind power might be better served by some sort of giant battery — or, more likely, many of them, widely distributed. The basic concept has been proven. Since 2003, the world's largest battery backup has been storing energy for an entire city: Fairbanks, Alaska. Isolated as it is, and not part of any regional electricity grid, the metropolitan area of about 100,000 residents needs an electricity backstop more than most: In its sub-zero winters, pipes can freeze solid in as little as two hours. Six years ago, the city installed a huge nickel-cadmium battery, the same technology used for years in laptop computers and other portable devices.
Housed in a giant warehouse, the 1,300-metric ton battery is larger than a football field, and can crank out 40 million watts of power. Still, the Fairbanks battery provides only enough electricity for about 12,000 residents for seven minutes. That was enough to prevent 81 blackouts in the city in the battery's first two years of operation.
Yet effective storage of electricity from solar or wind arrays that generate power equivalent to one large coal plant implies batteries on a breathtaking scale — hundreds of units the size of the Fairbanks array.
One possible answer? In Japan, so-called "flow" batteries have been used for years to store backup power at industrial plants. Conventional batteries store energy in chemical form.With flow batteries, charged chemicals are pumped into storage tanks, allowing still more chemical to be charged and pumped away, then pumped back into the active portion of the battery and drawn down as needed. One big advantage: Battery "size" can be expanded by simply adding more chemicals and more storage tanks. In 2003, the local utility on small King Island, off the coast of Australia, installed a large flow battery to sop up and later release excess power from a wind farm.As with the alternative generation technologies, cost will be key for determining which battery or other storage technologies might prevail. Aside from such typical economic concerns as raw material and maintenance costs and durability, storage technologies all face some losses in "round-trip efficiency." Inevitably, some energy is lost as it goes into storage, and more is lost as it comes out.
Right now, hopes are riding high on lithium ion batteries, because they have impressive round-trip efficiencies, can pack in high densities of energy, and can charge and discharge thousands of times before becoming degraded. Because of those attributes, lithium-ion battery technology has become increasingly dominant in laptop computers and cell phones. On a far larger scale, a powerful lithium ion battery pack powers the pricey all-electric Tesla Roadster, and is slated to power the plug-in hybrid Chevy Volt next year.
On the grid, lithium ion experiments are already underway. One company, General Electric-backed A123 Systems, announced late in 2008 that it had been contracted to install a two-megawatt lithium ion storage unit at a California power plant owned by global utility giant AES.
Still, lithium ion remains a relatively expensive technology — 10 times more expensive than lead acid batteries with equivalent capacity. Technological improvements and manufacturing scale should bring lithium costs down over time, but by the time that happens, the world could be beating a path to the door of someone who's found a way to build an even better battery.
Early this year, IBM revealed that it was launching a major research program into what looks like an even more promising technology — the lithium metal-air battery. Last month, a company called PolyPlus announced that it had already succeeded in developing one.
The PolyPlus battery and the IBM technology deliver an astonishing 10 times more energy density than even today's best lithium ion technology. That means that, pound for pound, they offer about the energy density of gasoline. The key reason they can store so much energy is that they use oxygen, drawn from the air, in place of some of the chemical reactants used along with lithium in their lithium ion cousins.There's one big rub: Air isn't just oxygen. Notably, it also contains humidity, and the lithium has a bad habit of acting like ignited gasoline when exposed to moisture, creating a real risk of fire and explosion. Chandrasekhar Narayan, manager of science and technology at IBM's Almaden Research Center near San Jose, Calif., has suggested that it will take five to 10 years to develop an effective membrane that will let oxygen into the battery while keeping moisture out.
Still in pie-in-sky mode, there's "vehicle to grid" storage, or "carbitrage." This enticing notion relies on idled storage in the batteries of the millions of plug-in hybrid or all-electric automobiles that will be in use in the future. There's reason to believe this scheme could work. More than 90 percent of the time cars sit idled, and aside from days they're used for long trips, most of their full energy storage capacity goes unused.
A single idle, electric-powered car could generate as much as 10 kilowatts of power, enough to meet the average demand of 10 houses, according to Willett Kempton, director of the Center for Carbon-free Power Integration at the University of Delaware. With vehicle-to-grid technology, controlled by an array of smart meters, car owners plugged in at home or work could allow the grid to draw off unused chunks of power at times when short-term demand is high. Conversely, cars could be recharged when demand is low.
The stored power in those electric cars, or anywhere on the grid, might not come from batteries after all. In March, Texas-based EEStor announced that it had received third-party verification of its "ultracapacitor" technology. The company claims the lightweight device, which was awarded a U.S. patent last December, can bottle up huge amounts of electricity far more quickly than any battery and can do so at lower cost.
Like batteries, capacitors store and mete out electricity. Small conventional capacitors have been ubiquitous in electronic devices as far back as the early days of radio. But capacitors, so far, haven't been able to store electricity for long enough to come close to competing with batteries. They have found use as devices that level out fluctuations in voltage or that briefly store power for near-instant release.
EEStor claims that its device, which is one-quarter the weight of a similarlithium ion battery, can hold a large charge for days. Its patent describes a 281-pound device that would hold almost the same charge as a half-ton lithium ion battery pack installed on the Tesla Roadster. The company's ultracapacitors have yet to prove themselves in commercial products. But industrial giant Lockheed Martin has already signed up with EEStor to use future ultra capacitors in defense applications, and Toronto-based Zenn Motors, which has also taken an ownership stake in EEStor, says it will have electric cars on the road using the technology in 2010.If advanced batteries or ultracapacitors aren't the ultimate answer, maybe using excess electricity to make hydrogen that can be stored will do the trick. Hydrogen can be produced through simple electrolysis, but technical and cost hurdles have made electrolysis impractical. Today, industrial-scale hydrogen is produced using natural gas as a not-so-clean feedstock.
But that may have begun to change last summer when MIT announced that a team lead by chemist Daniel Nocera had made a "major discovery" that employs a new kind of catalyst using cobalt and phosphate — abundant and non-toxic materials — to kick-start electrolysis.
Outside observers say the process could be revolutionary: opening up the possibility that electricity made at any time by the sun or wind could be stored by simply splitting (and later recombining) abundant water molecules, perhaps even undrinkable sea water. The breakthrough has been hailed by scientist British scientist James Barber of Imperial College London as having "enormous implications for the future prosperity of humankind." The website Xconomy reported in April that Nocera had quietly formed a startup company called Sun Catalytics. Efforts to reach Nocera for comment were unsuccessful.
And there is progress being made on an entirely different front — using excess electricity to pump compressed air into caverns, salt domes, and old natural gas wells, and then releasing the air to help state-of-the-art natural gas power plants spin turbines, lowering the amount of fuel consumed by as much as 70 percent. A consortium of utilities in Iowa, Minnesota, and the Dakotas is already working with the U.S.'s Sandia National Laboratories to develop a giant, 268-megawatt compressed air system. Called the Iowa Stored Energy Park, it would store excess energy from the region's burgeoning wind industry.
• This article was shared by our content partner Yale Environment 360, part of the Guardian Environment Network"




Tuesday, July 14, 2009

Lithium: Power battery: key to electric vehicle commercialization TNR.v, CZX.v, SQM, FMC, ROC, BYD, TTM, TM, NSANY, F, DAI, GOOG, RIMM, AAPL, HUI, XAU


Now we have more insight into power batteries market space in China. Lithium becomes the strategic commodity for Electric car revolution there and car sales are booming.




"China's precious metal reserves are shrinking at an alarming rate. Over-exploitation and cut-throat competition in exportation, on the other hand, have driven prices considerably low in the international market. Rare earth, for example, witnessed a reserves decline from 88 percent of the world's total more than ten years ago to 52 percent in 2008, while export increased almost 10 times."


China is moving into Canada junior market to secure supply of Lithium:

"TNR Gold has attracted interest from Canada Zinc Metals and its shareholders including Chinese Tongling and Lundin mining with opportunities opened in Lithium and REE market.Los Azules project is getting a new valuation with rising Copper prices, signs of recovery and its recent development.TNR Gold opens a new page in its history with access to Canada Zinc Metals solid record of developing mineral deposits and attracting Major industry players for financing and mine building expertise.Canada Zinc Metals with this move has secured its strategic entry into Lithium and REE markets and TNR Gold's Gold and Copper projects, including Los Azules opened for future strategic deals under further consideration of the company."

Power battery has become an attraction of automobile industry because of the series policies of the State, which encouraged the development of electric vehicle. The commercialization of high power battery has just started globally, it still remains elusive. This time, the power battery project in Jilin province, although at an elementary stage, still has something that the industry could learn from.
The two demonstration buses are equipped with high power and high capacity Lithium li-power battery manufactured by Lithium Energy (liao yuan) New Energy Co., Ltd. The reporter heard that on March 29th, FAW Bus and Coach Co., Ltd. has signed the purchase order of 2009 with Lithium Energy, covering 55,000 LY-LFP-300AH lithium batteries that could equip 500 buses and the order value was RMB148.5 million yuan. Cai Qingsong, Director General Manager of Lithium Energy (liao yuan) New Energy Co., Ltd., introduced that the company has delivered 550 batteries up to April 23rd.
The challenge of electric vehicle lies in power battery, and the key point of power battery is material selection. Lithium li-power battery is ferrous phosphate li-power battery developed by a group of people led by Professor Wang Rongshun, former Schoolmaster of Northeast Normal University. This kind of big power battery has advantages such as long lifetime, low cost, high power, high capacity, good security, green and non-pollution, high energy density and quick recharge, quite suitable for electric vehicle. Ordinary city buses, after being modified into pure electric busses, the one-time recharge driving distance could be maximum 300 km. The recharging time is also quite short; the life time of the battery could be as long as 600,000 km, which could be recharged for over 2000 times. The operation cost of modified busses is only between one tenths and one ninths fuel busses. This kind of pure electric bus with li-power battery, after being fully recharged, could run over 300 km; the maximum speed could reach 120 km and the electricity consumption per hundred kilometers is 35 KWH.
On March 27th 2009, Lithium li-battery passed 7 items of safety test co-conducted by eight departments including Jilin Provincial Science and Technology Commission, Jilin Province Electronic & Information Products Superintending & Inspecting & Research Institute, Northeast Normal University and FAW Academy of Electric Vehicle, etc. The tests covered stabbing, water-proof, short circuit, fire resistance, shock, extrusion, over (current, time) etc. Just after the test, Lithium received purchase order from FAW Bus and Coach Co., Ltd.
Doctor Xie Haiming from Northeast Normal University explained that Lithium li-battery mainly solved the two big problems of electric vehicle use power battery, like high power and safety. He said that taking 300AH battery for example, the battery may get overheat when 300A current lets through. Therefore the whole structure design and module management must have its own special craft so as to prevent high power battery from getting overheat and make sure its long lifetime. In addition, in order to guarantee the security of high power battery, Lithium battery selects high temperature resistant diaphragm, prevents electrolyte from burning from structure design aspect, and guarantees security from case design aspect. "The battery seems simple, but it includes lots of new and high technologies."
Lithium li-power battery project, invested by Beijing Fortune LT Investment Group, is currently planning to produce three kinds of power batteries: 300AH, 400AH and 160AH. The 300AH battery is mainly manufactured by Lithium Energy (liao yuan) New Energy Co., Ltd., and 400AH battery is mainly manufactured by Lithium Energy (Changchun) New Energy Co., Ltd. Cai Qingsong introduced that Lithium Energy (liao yuan) has one semiautomatic production line, the mass production has started from May 1st. The company plans to input RMB560 million yuan to build an automatic production line and a semiautomatic production line, then the company's yearly output is planned to be 0.12 billion AH. The expansion construction of Lithium Energy (Changchun) is fully underway too, and it is on trial running. Li Zaizhi, Director General Manager of Lithium Energy (Changchun) New Energy Co., Ltd., introduced that the company planned to achieve annual li-battery output of 0.12 billion AH and ferrous phosphate li-battery material output of 3000 tons, the project would be invested around RMB 70 million and would be completed and put into use on June 18th.
In order to improve the quality of battery, assure the consistency and steadiness of battery pack, and realize scale production, no matter Lithium Energy (liao yuan) that has been in production, or Lithium Energy (Changchun) that will be enlarged and put into production, are both introducing advanced technology and equipment and reinforcing management. For example, laser cutting pole piece technology and equipment for cutting piece burr-free production; ultrasonic welding technology and equipment for guarantying the consistency and reliability of battery internal resistance; lithium-ion battery plastic cover vibration and friction welding technology and equipment for assuring the welding gas tightness of shell and cover; battery capacity grading and grouping simulation testing machine for guarantying the consistency and lifetime of battery group, and so on.
The support of industrial chain is also very important for the commercialization of power battery. Looking at the upstream, Changchun and Liaoyuan are building manufacturing plants of doped lithium iron phosphate, which could provide raw materials for the two battery manufacturers. Liaoyuan is even intended to become the base of power battery. As Wang zhaohua, Mayor of Liaoyuan city, introduced that except for raw material factory with planned annual doped lithium iron phosphate output of 10,000 tons; another important battery material plant, namely a diaphragm paper plant with RMB220 million investment, is under construction, and the output of the plant is planned to be 40 million square centimeters. As far as the downstream is concerned, in addition to FAW Bus and Coach, Lithium li-battery project is jointly researching and developing the power system of electric car with FAW Car Co., Ltd. by using the 10 Besturn cars provided by FAW Car; at the same time, Lithium is also co-developing electronic control assembly of electric vehicle with Changchun Qiming In-car Electronics Co., Ltd.
We can describe the most the commercialization of Lithium li-battery as "just at the beginning". But Lithium is grasping the good opportunity of li-battery in the fastest way. At the same time, according to the introduction of Hei Liangqi, President of Beijing Fortune LT Investment Group, except for investing in power battery, the company has also made investment in electric vehicle motor and power assembly. From key components of electric vehicle to finally producing electric vehicles, Beijing Fortune LT Investment Group is grasping the direction of new energy vehicles and is following up rapidly.
Source:CE.cn"

Tuesday, August 25, 2009

Lithium and REE: World faces hi-tech crunch as China eyes ban on rare metal exports TNR.v, CZX.v, SQM, ROC, FMC, AVL.to, RES.v, WLC.v, LI.v, RM.v,



"Who will hold the keys to Green Mobility? Will western society with its almost forgotten memories about Freedom be able to protect one of its basic rights to move on a highway or all taxpayers bailout money will be spend on bonuses spiced by Front Running and Tipping along the way? These are the real questions. Who will finance our Junior Lithium and REE Bull to deliver Energy Security?"
We will have to now.


There are resources and there are people who are working on Energy security of the future - secured supply of Lithium and REE. Recent boom in Junior market related stocks confirms our observations.



"With Lithium and REE previous work was funded directly or via Majors by governments in the rush of a cold war and then properties were mostly abandoned once military needs were satisfied. Extensive data and even core from previous drilling programmes could be available on sites and it is as valuable in exploration as properties itself. REE market in the West was killed by China's pricing of hard rock mining and they have consolidated market after that. Now with Electric Cars and Green Mobility Revolution at our doorsteps Lithium and REE is a strategic commodity, when every government would like to have a certainty of supply and not to trade Oil dependence for Battery dependence. It is an opportunity to restart heavily indebted western economies and move it in the new high value added 21st century manufacturing space"




Beijing is drawing up plans to prohibit or restrict exports of rare earth metals that are produced only in China and play a vital role in cutting edge technology, from hybrid cars and catalytic converters, to superconductors, and precision-guided weapons.

By Ambrose Evans-PritchardPublished: 5:58PM BST 24 Aug 2009



China mines over 95pc of the world?s rare earth minerals and is looking to hoard its resources.
A draft report by China’s Ministry of Industry and Information Technology has called for a total ban on foreign shipments of terbium, dysprosium, yttrium, thulium, and lutetium. Other metals such as neodymium, europium, cerium, and lanthanum will be restricted to a combined export quota of 35,000 tonnes a year, far below global needs.
China mines over 95pc of the world’s rare earth minerals, mostly in Inner Mongolia. The move to hoard reserves is the clearest sign to date that the global struggle for diminishing resources is shifting into a new phase. Countries may find it hard to obtain key materials at any price.
Alistair Stephens, from Australia’s rare metals group Arafura, said his contacts in China had been shown a copy of the draft -- `Rare Earths Industry Devlopment Plan 2009-2015’. Any decision will be made by China’s State Council.
“This isn’t about the China holding the world to ransom. They are saying we need these resources to develop our own economy and achieve energy efficiency, so go find your own supplies”, he said.
Mr Stephens said China had put global competitors out of business in the early 1990s by flooding the market, leading to the closure of the biggest US rare earth mine at Mountain Pass in California - now being revived by Molycorp Minerals.
New technologies have since increased the value and strategic importance of these metals, but it will take years for fresh supply to come on stream from deposits in Australia, North America, and South Africa. The rare earth family are hard to find, and harder to extract.
Mr Stephens said Arafura’s project in Western Australia produces terbium, which sells for $800,000 a tonne. It is a key ingredient in low-energy light-bulbs. China needs all the terbium it produces as the country switches wholesale from tungsten bulbs to the latest low-wattage bulbs that cut power costs by 40pc.
No replacement has been found for neodymium that enhances the power of magnets at high heat and is crucial for hard-disk drives, wind turbines, and the electric motors of hybrid cars. Each Toyota Prius uses 25 pounds of rare earth elements. Cerium and lanthanum are used in catalytic converters for diesel engines. Europium is used in lasers.
Blackberries, iPods, mobile phones, plams TVs, navigation systems, and air defence missiles all use a sprinkling of rare earth metals. They are used to filter viruses and bacteria from water, and cleaning up Sarin gas and VX nerve agents.
Arafura, Mountain Pass, and Lynas Corp in Australia, will be able to produce some 50,000 tonnes of rare earth metals by the mid-decade but that is not enough to meet surging world demand.
New uses are emerging all the time, and some promise quantum leaps in efficiency. The Tokyo Institute of Technology has made a breakthrough in superconductivity using rare earth metals that lower the friction on power lines and could slash electricity leakage.
The Japanese government has drawn up a “Strategy for Ensuring Stable Supplies of Rare Metals”. It calls for `stockpiling’ and plans for “securing overseas resources’. The West has yet to stir."


Wednesday, March 24, 2010

Lithium ABCs by Rick Mills TNR.v, CZX.v, LMR.v, RM.v, ORE.ax, LI.v, WLC.v, HEV, AONE, F, NSANY, BYDDY, DAI, BMW, VLNC, FCX, GG, ABX, SNE, PC, GOOG,


Rick Mills has put together a very good overview of the Lithium sector, production cycles and basic economics for Lithium Brines and Hard Rock Lithium mining. For us it is interesting to use his check lists to evaluate properties of International Lithium Corp. in Lithium Brines and Hard Rock Lithium. Mariana project in Argentina fits very well into described model for Lithium Brine Deposit. Company has put in a new presentation its own exploration models for Mariana Salar in Argentina and its Brine Lithium projects in Nevada.




"Company has posted new presentations for TNR Gold and International Lithium from PDAC in Toronto in March 2010. Interesting to note here is that REE Big Beaverhouse property is presented in TNR Gold portfolio - can we expect company activities to be centered around REE after lithium assets spin out?


"TNR Gold Corp. is employing the project generator model. For those of you who may not know what a project generator model is, a word of explanation is in order. “Project generators” are companies that pick up early stage exploration ground when there are historical or scientific reasons to believe a property is prospective for a given mineral. Because these properties are obtained at an early stage of development, the cost of obtaining them is very low.As a project generator,TNR then uses its intellectual capital rather than hard currency capital to add value to its shareholders. By carrying out relatively low cost early exploration work, it demonstrates with greater confidence, the potential for a given property to host an economically viable mineral deposit. At that point in time, TNR hopes to bring in other companies that are willing and able to spend considerably more money to explore and advance those prospects toward production. TNR will generally retain a carried interest in those prospects into the future or at least a Net Smelter Return on any future production from the property. The prospect generator model is in theory a less risky model because, if other companies are spending considerable amounts of money, they can reduce the number of shares issued to raise capital."

We have a position in this company, please, do not consider anything as an investment advise as usual on this blog.


Lithium ABCs


Contributed by Rick Mills
24 March 2010 19:03
More stories from this contributor

As a general rule, the most successful man in life is the man who has the best information

The Puna plateau sits at an elevation of 4,000m, stretches for 1800 km along the Central Andes and attains a width of 350–400 km. The Puna covers a portion of Argentina, Chile and Bolivia and hosts an estimated 70 - 80% of global lithium brine reserves.

The evaporate mineral deposits on the plateau - which may contain potash, lithium and boron - are formed by intense evaporation under hot, dry and windy conditions in an endorheic basin - endorheic basins are closed drainage basins that retain water and allow no outflow - precipitation and inflow water from the surrounding mountains only leaves the system by evaporation and seepage. The surface of such a basin is typically occupied by a salt lake or salt pan. Most of these salt lakes - called salars - contain brines which are capable of providing more than one potentially economic product.

This Puna Plateau area of the Andean mountains - where the borders of Argentina, Bolivia and Chile meet and bounded by the Salar de Atacama, the Salar de Uyuni and the Salar de Hombre Muerto - is often referred to as the Lithium Triangle and the three countries mentioned are the Lithium ABC’s.

a Brine “Mining” Business Model

The salt rich brines are pumped from beneath the crust that’s on the salar and fed into a series of large, shallow ponds. Initial 200 to +1,000 parts per million (ppm) lithium brine solution is concentrated by solar evaporation and wind up to 6,000 ppm lithium after 18 - 24 months.

The extraction process is low cost/high margin and battery grade lithium carbonate can be extracted. The cost-effectiveness of brine operations forced even large producers in China and Russia to develop their own brine sources or buy most of their needed raw materials from brine producers.

The major lithium producers, from brine, are the "Lithium Three”: Sociedad Quimica y Minera (SQM), Rockwood/Chemetall and FMC.

The Lithium Three are all extracting lithium from Puna Plateau salar brines. The majority of lithium produced today comes from brines in Chile, Argentina and Nevada.

These brines are considered primarily potash deposits with lithium as a by-product.



The above diagram was designed to show that several commercial products can be recovered from typical brine and that the recovery takes place in a series of steps over the entire evaporation process. Note that the final product in each step may require processing in a specialized plant. Also please note that the actual sequence of process steps may vary from brine to brine, and as such, the process steps shown above may not be in the correct order for any specific brine.

SQM’s Atacama brine deposits have the highest lithium content on the Puna - yet just 11% of its 2009 revenues were from lithium - 70% of SQM's revenues are from fertilizers. SQM is the world's largest producer of lithium and lithium is SQM's highest gross margin product at +50%.





Potash is Fuel for Food

According to the United States Geological Survey (USGS) Canada has the world’s largest reserves of potash - roughly 50%. Coming in second is Russia with just over 25% and trailing a distant third is Belarus at 9% of world reserves.

In a presentation at the 2010 Prospectors and Developers Association Conference in Toronto Ontario, Canada, T.D. Newcrest minerals analyst Paul D'Amico forecast significant growth of offshore potash demand. D'Amico said the potash supply situation is complicated by the fact there hasn't been a green field potash development in 30 years. D'Amico also estimated that global annual potash demand growth will average 3% compounded annually.

Potash is used as a major agricultural component in 150 countries but the largest importers of potash are China, India, the US and Brazil.

Potassium sulfate is commonly used in fertilizers, providing both potassium and sulfur. Potash is the common name for potassium chloride.

Because the financial markets crashed and the economy contracted in 2008 farmers put off buying potash - potash use fell 20%, phosphate fertilizer use declined 10% and the price per tonne of potash dropped by two thirds. This lack of fertilization drastically depleted the soil nutrient base and global soil nutrient levels need to come back to the trend line.

“Failure to feed the fields is a trend that can’t last for long, while the global recession severely impacted fertilizer demand, the science of food production has not changed. The significant volumes of potash and phosphate that have been mined for crop production must be replaced to sustain the productivity of the soil.” Potash Corp.

The basic fundamentals of the global potash market are hard to ignore:

• An increasing global population - the world's population is steadily increasing and is expected to reach +9 billion people by 2050. The United Nations Food and Agriculture Organization (FAO) reported they think that the total world demand for agricultural products will be 60 percent higher in 2030 than it is today.

• Increasing incomes in developing countries will lead to more people being able to afford protein rich diets – a western style diet heavy in meat - which means more grain consumption.

• Decreasing arable land - arable land is being lost at the rate of about 40,000 square miles per year. Land is being used for production of bio-fuels, topsoil is eroded away by wind and water and the agriculture land base is being paved over as we become more and more urbanized. Farmers need to produce more food on less land. There is only one way this can be done and that’s with an increase in the use of fertilizer.

The current potash market is estimated at 50 million tonnes annually and is projected to grow at a compounded annual rate of 3-4%. Potash is a crucial element in fertilizer and has no commercial substitute. Quite simply, we have to grow more food on less land.

There are several ways farmers can get increased yields, Genetically Modified Organism (GMO) seed, pesticides, fertilizers, and satellite (GPS) farming.

Improved seeds, pesticides and new farming techniques are all going to be needed, improved and used. But the nutrients in soil are soon used up by ever more intensive farming - and Mother Nature can’t replace them fast enough. These nutrients need to be replaced or you have land where crops cannot grow.

Lithium

The world’s future energy course is being charted today because of the ramifications of peak oil and a need to reduce our carbon footprints.

A whole new industry - a global wide automotive and industrial lithium-ion battery industry - is going to be built. As a result of lithium-ion battery demand for hybrid-electric and electric cars the increase in demand for lithium carbonate is expected to increase four-fold by 2017.

Lithium-ion batteries have become the rechargeable battery of choice in cell phones, computers, hybrid-electric cars and electric cars. Chrysler, Dodge, Ford, GM, Mercedes-Benz, Mitsubishi, Nissan, Saturn, Tesla and Toyota have all announced plans to build lithium-ion battery powered cars.

Demand for lithium powered vehicles is expected to increase fivefold by 2012. The worldwide market for lithium batteries is estimated at over $4 billion per year.

Lithium carbonate is also an important industrial chemical:

• It forms low-melting fluxes with silica and other materials
• Glasses derived from lithium carbonate are useful in ovenware
• Cement sets more rapidly when prepared with lithium carbonate, and is useful for tile adhesives
• When added to aluminum trifluoride, it forms LiF which gives a superior electrolyte for the processing of aluminum
• Lithium carbonate can be used in a type of carbon dioxide sensor.

Demand today is in the range of 120,000 tonnes of lithium carbonate equivalent (LCE) annually. Lithium is not traded publicly - and is usually distributed in a chemical form such as lithium carbonate (Li2CO3) - instead it’s sold directly to end users for a negotiated price per tonne of Lithium carbonate (Li2CO3).

Production figures are often quoted in lithium carbonate equivalent quantities. By weight approximately 18.8% of lithium carbonate is lithium. Therefore 1kg of lithium is the equivalent of 5.3 kg of lithium carbonate.

"We are projecting 40% Li demand increase by 2014, with batteries accounting for 34% of use, the largest single end-use segment." Jon Hykawy, analyst Byron Capital Markets

Lithium-ion batteries are quickly becoming the most prevalent type of battery used in everything from laptops to cell phones to hybrid and fully electric cars to short term power storage devices for wind and solar generated power. At present, 39 per cent of lithium-ion batteries are produced in Japan, 39 per cent in China and 20 per cent in South Korea.

"With forecast 10% to 20% penetration rates by 2020 for pure and hybrid electric vehicles, we expect an incremental increase in demand of 286,000 tonnes of lithium carbonate equivalent, significantly outstripping current supply.” Canaccord Adams analyst, Eric Zaunscherb

“Our electric vehicle investment is not one-car innovation, it is a new way of looking at our industry. This is the beginning of the story.” Carlos Ghosn, Nissan chief executive officer

Sodium Chloride (rock salt or halite)

The principal use for salt is in the chemical manufacturing business - chloralkali and synthetic soda ash producers use salt as their primary raw material.

Salt is used in many applications and almost every industry:

• Cooking
• Manufacturing pulp and paper
• Setting dyes in textiles and fabric
• Producing soaps, detergents, and other bath products
• Major source of industrial chlorine and sodium hydroxide

Global demand for salt is forecast to grow 2.5 percent per year to 305 million metric tons in 2013.

Solar evaporation is the most popular and most economical method of producing salt. China is the world’s largest consumer of salt – other than the dietary needs of 1.3 billion people - there’s an enormous chemical manufacturing industry being built in China.

Boron

Boron combines with oxygen and other elements to form boric acid, or inorganic salts called borates.

Borates are used for:

• Insulation fiberglass
• Textile fiberglass
• Heat-resistant glass
• Detergents, soaps and personal care products
• Ceramic and enamel frits and glazes
• Ceramic tile bodies
• Agricultural micronutrients
• Wood treatments
• Polymer additives
• Pest control products
• Boron is an essential component in the manufacture of borosilicate glass used in LCD screens

Boric Acid uses:

• As an antiseptic/anti-bacterial compound
• Insecticide
• Flame retardant
• In nuclear power plants to control the fission rate of uranium*
• As a precursor of other chemical compounds

*Boric acid is used in nuclear power plants to slow down the rate at which fission occurs. Boron is also dissolved into the spent fuel cooling pools containing used fuel rods. Natural boron is 20% boron-10 which can absorb a lot of neutrons. When you add boric acid to the reactor coolant – or to the spent fuel rod cooling pools - the probability of fission is reduced.

The first half of 2009 saw a sharp drop in demand for borates, but in the second half of the year markets for both textile-grade fibreglass and borosilicate glass recovered.

World production of borates remains mostly concentrated in the US and Turkey – these two countries account for 75% of supply.

Chinese boron - both in terms of quantity and grade - is inadequate to meet domestic demand so the country is now the largest importer of both natural borates and boric acid.

Silly Putty was originally made by adding boric acid to silicone oil. J

Considerations – may I see junior’s grades?

The key factors that determine the quality, economics and attractiveness of brines are:

· Potassium content
· Lithium content
· Presence of contaminants ie magnesium (Mg)
· Porosity
· Net evaporation rate
· Recoverable by-products
· Infrastructure – or lack thereof
· Country risk
· 100% control over production
· Low capex, low production costs, high margin products

A common industry axiom says that the ratio of Mg to Li in brines must be below the range of 9:1 or 10:1 to be economical. This is because the Mg has to be removed by adding slaked lime to the brine - the slaked lime reacts with the magnesium salts and removes them from the water. If the ratio is 1:1 in the original brine, then the added cost (due to today’s present cost per tonne of slaked lime) is $180/tonne of lithium carbonate produced. If the Mg to Li is 4:1 than the cost of removing magnesium is $720.00 per tonne of lithium carbonate.

The porosity of a rock is expressed as a percentage and refers to that portion of the rock that is void space - rock that is composed of perfectly round and equal sized grains will have a porosity of 45%. Fluids and gases will be found in the void spaces within the rock.

Ten million cubic metres of brine bearing rock with a porosity of 10% will contain one million cubic metres of brine fluid. A cubic metre is equivalent to a kilolitre.

Salar de Atacama apparently has a porosity of about 8%. By oil and gas standards 8% is quite low, but brines are less viscous than hydrocarbon fluids and will flow more easily through rocks with lower porosity and permeability characteristics.


A major factor affecting capital costs is the net evaporation rate – this determines the area of the evaporation ponds necessary to increase the grade of the plant feed. These evaporation ponds can be a major capital cost. The Salar de Atacama has higher evaporation rates (3200 mm pan evaporation rate per year (py) and >

Contributing to efficient solar evaporation and concentration of the Puna Plateau brines are:

• Low rainfall

• Low humidity

• High winds

• High elevations

• Warm days

Though its evaporation rate is only about 72 percent of Atacama’s, Salar de Hombre Muerto is still commercially successful because costs are low and are further offset by the sale of recoverable byproducts like boric acid.

Rockwood Holdings recover moderate tonnages of potassium chloride as a co-product at their Chile operation. SQM recovers potassium chloride, potassium sulphate and boric acid.

According to FMC’s website they have:

• High concentrations of lithium - reportedly between 680 and 1210 ppm Li

• High in potassium - concentrations from 0.24 to 0.97 wt% K

Chile and Argentina supply 78% of global lithium carbonate and hold more than 90% of the proven lithium carbonate reserves.

The Salar de Uyuni (Bolivia) has the lowest average grade of Li at .028 and has an extremely high ratio of Mg/Li at 19.9

Uyuni’s higher rainfall and cooler climate means that its evaporation rate is not even half that of Atacama’s. The lithium in the Uyuni brine is not very concentrated and the deposits are spread across a vast area. Bolivia also has limited infrastructure - compared to that of Chile, Argentina or the US – and they lack free access to the sea.

Consider also the high “country risk” factor companies face doing business in Bolivia. Evo Morales, Bolivia’s President, has already nationalized the oil and gas industry - who’s next?

"The state doesn't see ever losing sovereignty over the lithium. Whoever wants to invest in it should be assured that the state must have control of 60% of the earnings." Morales at a March 2009 press conference

“The previous imperialist model of exploitation of our natural resources will never be repeated in Bolivia. Maybe there could be the possibility of foreigners accepted as minority partners, or better yet, as our clients. ” head of lithium extraction Saul Villegas

In 1990 hunger strikes and massive protests forced US based Lithco out of a $46 million investment into Bolivia’s Salar de Uyuni. The company set up operations at Argentina's Salar de Hombre Muerto, and eventually became part of FMC.

It’s not surprising to this author that while Chile and Argentina have thriving lithium and potash production Bolivia lags far behind.

A company should have 100% control over the production rate from their salar. It’s possible an aquifer can become diluted - over producing can impact the brine’s salt concentrations and chemical compositions - or depleted by too many wells sucking up more brine than should be produced.

If two or more companies have straws (wells) into the same salar legal battles might result over the sharing of the resources.

“Lithium production via the brine method is much less expensive than mining. Lithium from minerals or ores costs about $4,200-4,500/tonne (€2,800-3,000/tonne) to produce, while brine-based lithium costs around $1,500-2,300/tonne to produce.” John McNulty, analyst Credit Suisse.

Global lithium production was dominated by the US - until the 1980s - with hard rock mining from spodumene. The better economics of the Chilean/Argentine salars priced hard rock lithium mining out of the markets.

There are exceptions - Talison Minerals has its Greenbushes operation (a combined tantalum and lithium mine) in Australia. This is the largest, highest grade lithium (spodumene) pegmatite deposit in the world and recent price increases have enabled them to sell their production to China for transformation into lithium carbonate. Two other producers of lithium ore concentrates are mostly concerned with the glass industry.

Hard rock lithium miners have two large problems facing them when competing with brine economics – firstly most have large capital (capex) costs for start up and secondly their production cost is roughly twice what it is for the brine exploitation process. These higher production costs are because of the different extraction processes used.

When lithium chloride reaches optimum concentration - using nothing more than sun and wind - the liquid is pumped to a recovery plant and treated with soda ash, precipitating lithium carbonate. The carbonate is then removed through filtration, dried and shipped.

In the case of production from pegmatites the process is:

· Mining

· Concentration to a higher grade

· Calcination at 1100 degrees Celsius to produce acid-leachable beta spodumene

· Treated with sulphuric acid at 250 degrees Celsius

· conversion of the lithium sulphate solution with sodium carbonate

This author believes investors will see development financings and start-up capital flow towards advancing the easier, quicker to production and cheaper to produce brine deposits rather than the higher start up cost and more expensive to produce hard rock mining situations.

There is room in the market for first mover juniors now positioned with quality salar packages in Argentina and Chile. Competition in these markets will not hurt margins for any company, old or new, due to the potential for exponential demand growth of potash and lithium.

But

The prime candidates have to be the lowest cost producers from both a capital (land package costs and capex) and variable (ie removal of contaminents) cost point-of-view.


(Rick Mills has put information about some junior mining companies with an important disclaimer, we did not verify information about those companies and do not know them apart from Orocobre story, please, visit the article with the link at the headline - S.)

Conclusion

"We think lithium-ion batteries for electric vehicles are the best technology." Don Walker, CEO Magna International Inc.

"Magna wants to be on the leading edge of any new technology, and so we jumped on this technology a few years ago. The high-cost is the battery. So, working on the supply chain, getting the price down, and working on new composites for the battery are all things we are working on." Ted Robertson, Magna's chief technical officer

We seem to be going through an Eco-Energy Revolution - consider the ongoing nuclear renaissance, the surge towards energy retrofitting, cleaning up the environment and billions of dollars being given out to develop the technology behind the lithium-ion battery for the electrification of our transportation system.

This energy revolution is a serious investable long-term trend and we, as investors, have to take advantage of the opportunities being presented. We’d be smart to get in early, ahead of the herd, to take advantage of the coming global rush to electricity – generated by nuclear power and stored in lithium-ion batteries.

"The power of population is indefinitely greater than the power in the earth to produce subsistence for man". Thomas Robert Malthus

The U.N. calls the global food crisis a "silent tsunami” and faith in the ability of local and global commodity markets to fill 6.6 billion bellies, never mind the projected 2.7 billion more by 2050 (U.N. projections say the world's population will peak at 9.3 billion in 2050) has been shaken.

Are the words of Thomas Malthus coming back to haunt us?

In order for a plant to grow and thrive, it needs a number of different chemical elements. Three of these are the macronutrients nitrogen, phosphorus and potassium (a.k.a. potash, the scarcest of the three). Potassium makes up 1 percent to 2 percent of any plant by weight and is essential to metabolism. The availability of nitrogen, phosphorus and potassium in the soil, in a readily available form, is the biggest limiter to plant growth.

"Strong farmer returns, a depleted distributor pipeline and the agronomic need to replace soil nutrients have kick-started a potash rebound from 2009 lows." Potash Corp. CEO Bill Doyle

Potash Corp – the world's largest fertilizer maker - issued cautious guidance in January saying it expects first-quarter earnings to be between $1.30 and $1.50 per share which is well above its previous forecast of .70 - $1.00 per share.

"The upward revision reflects a sharp rebound in potash demand that is expected to drive a record quarter for North American sales volumes and strong offshore shipments," the company said in explaining the revision.

This Brine “Mining” Business Model should be on every investors radar screen.

Is it on yours?

Richard (Rick) Mills"

Sunday, June 26, 2011

Richard (Rick) Mills: Ahead of The Herd: Brine Mining the Puna for Potash and Lithium ilc.v tnr.v, czx.v, cgp.v, alk.ax, lmr.v, rm.v, nup.ax, srz.ax, usa.ax, jnn.v, abn.v, ura.v, mxr.v, tsla, res, mcp, avl.to, quc.v, cee.v, sqm, fmc, roc, li.v, wlc.v, clq.v, lit, nsany, byddf, gm, dai, rno.pa, hev, aone, vlnc

    

  We are following Richard Mills on this blog and he has written another very insightful article on the Brine  Mining and - what we call Investment For Life - Potash and Lithium. Richard provides a very deep knowledge of the industry, but can tell the story very efficiently in a straight forward language giving the necessary focus points for the investment decisions. His ability to spot the future trends and companies making it gives him a wide following among junior mining community. 
  Richard Mills follows a number of companies involved in Lithium and Potash Brine Mining and developing, you can find them on his website with another great articles. Recently he has wrote a piece on International Lithium - we are following here and our Top Pick in the sector; and he was one of the first letter writers to write about Lithium juniors in 2009 including TNR Gold - our Top Pick in Rare Earths, Gold and Copper, Rodinia Lithium - our another Lithium play, Western Lithium, Lithium One and Canada Lithium among others. His Lithium ABC became a classic in this investment sector.


ILC currently holds nine highly prospective projects for lithium and rare metals. One of the more prospective lithium properties in ILC’s property portfolio is the Mariana lithium brine project in the mining friendly province of Salta, Argentina.

The Mariana Lithium Brine project is on the Puna plateau which sits at an elevation of 4,000m, stretches for 1800 km along the Central Andes and attains a width of 350–400 km. The Puna covers a portion of Argentina, Chile and Bolivia and hosts an estimated 70 - 80% of global lithium brine reserves."



Please, do not forget, that we own stocks we are writing about and have position in these companies. We are not providing any investment advise on this blog and there is no solicitation to buy or sell any particular company here. Always consult with your qualified financial adviser before making any investment decisions.

By Richard (Rick) Mills
Ahead of the herd

As a general rule, the most successful man in life is the man who has the best information

The Puna plateau sits at an elevation of 4,000m, stretches for 1800 km along the Central Andes and attains a width of 350–400 km. The Puna covers a portion of Argentina, Chile and Bolivia and hosts an estimated 70 - 80% of global lithium brine reserves.

The evaporate mineral deposits on the plateau - which may contain potash, lithium and boron - are formed by intense evaporation under hot, dry and windy conditions in an endorheic basin - endorheic basins are closed drainage basins that retain water and allow no outflow - precipitation and inflow water from the surrounding mountains only leaves the system by evaporation and seepage. The surface of such a basin is typically occupied by a salt lake or salt pan. Most of these salt lakes - called salars - contain brines which are capable of providing more than one potentially economic product.

This Puna Plateau area of the Andean mountains - where the borders of Argentina, Bolivia and Chile meet and bounded by the Salar de Atacama, the Salar de Uyuni and the Salar de Hombre Muerto - is often referred to as the Lithium Triangle and the three countries mentioned are the Lithium ABC’s.

Brine “Mining” 

The salt rich brines are pumped from beneath the crust that’s on the salar and fed into a series of large, shallow ponds. Initial 200 to +1,000 parts per million (ppm) lithium brine solution is concentrated by solar evaporation and wind up to 6,000 ppm lithium after 18 - 24 months.

The extraction process is low cost/high margin and battery grade lithium carbonate can be extracted.

Hypothetical Brine Beneficiation Flowsheet

The above diagram was designed to show that several commercial products can be recovered from typical brine and that the recovery takes place in a series of steps over the entire evaporation process. Note that the final product in each step may require processing in a specialized plant. Also please note that the actual sequence of process steps may vary from brine to brine, and as such, the process steps shown above may not be in the correct order for any specific brine.

The key factors that determine the quality, economics and attractiveness of brines are:
  • Potassium content
  • Lithium content
  • Presence of contaminants ie magnesium (Mg)
  • Porosity
  • Net evaporation rate
  • Recoverable by-products
  • Infrastructure – or lack thereof
  • Country risk
  • 100% control over production
  • Low capex, low production costs, high margin products
A common industry axiom says that the ratio of Mg to Li in brines must be below the range of 9:1 or 10:1 to be economical. This is because the Mg has to be removed by adding slaked lime to the brine - the slaked lime reacts with the magnesium salts and removes them from the water.

The porosity of a rock is expressed as a percentage and refers to that portion of the rock that is void space - rock that is composed of perfectly round and equal sized grains will have a porosity of 45%. Fluids and gases will be found in the void spaces within the rock.

Ten million cubic meters of brine bearing rock with a porosity of 10% will contain one million cubic meters of brine fluid. A cubic meter is equivalent to a kiloliter.

By oil and gas standards a porosity of 10% is quite low, but brines are less viscous than hydrocarbon fluids and will flow more easily through rocks with lower porosity and permeability characteristics.

A major factor affecting capital costs is the net evaporation rate – this determines the area of the evaporation ponds necessary to increase the grade of the plant feed. These evaporation ponds can be a major capital cost. The Salar de Atacama has higher evaporation rates (3200 mm pan evaporation rate per year (py) and <15 mm py of precipitation) than other salt plains in the world and evaporation takes place all year long.

Contributing to efficient solar evaporation and concentration of the Puna Plateau brines are:
  • Low rainfall
  • Low humidity
  • High winds
  • High elevations
  • Warm days
A company should have 100% control over the production rate from their salar. It’s possible an aquifer can become diluted - over producing can impact the brine’s salt concentrations and chemical compositions - or depleted by too many wells sucking up more brine than should be produced.

If two or more companies have straws (wells) into the same salar legal battles might result over the sharing of the resources.

Potash is Fuel for Food

Potash is used as a major agricultural component in 150 countries but the largest importers of potash are China, India, the US and Brazil.

Potassium sulfate is commonly used in fertilizers, providing both potassium and sulfur. Potash is the common name for potassium chloride.

The basic fundamentals of the global potash market are hard to ignore:
  • An increasing global population - the world's population is steadily increasing and is expected to reach +9 billion people by 2050. The United Nations Food and Agriculture Organization (FAO) reported they think that the total world demand for agricultural products will be 60 percent higher in 2030 than it is today.
  • Increasing incomes in developing countries will lead to more people being able to afford protein rich diets – a western style diet heavy in meat - which means more grain consumption.
  • Decreasing arable land - arable land is being lost at the rate of about 40,000 square miles per year. Land is being used for production of bio-fuels, topsoil is eroded away by wind and water and the agriculture land base is being paved over as we become more and more urbanized. Farmers need to produce more food on less land. There is only one way this can be done and that’s with an increase in the use of fertilizer.
The current potash market is estimated at 50 million tonnes annually and is projected to grow at a compounded annual rate of 3-4%. Potash is a crucial element in fertilizer and has no commercial substitute.

Lithium

The world’s future energy course is being charted today because of the ramifications of peak oil and a need to reduce our carbon footprints.

A whole new industry - a global wide automotive and industrial lithium-ion battery industry - is being built. As a result of lithium-ion battery demand for hybrid-electric and electric cars the increase in demand for lithium carbonate is expected to increase four-fold by 2017.

Lithium-ion batteries have become the rechargeable battery of choice in cell phones, computers, hybrid-electric cars and electric cars. Chrysler, Dodge, Ford, GM, Mercedes-Benz, Mitsubishi, Nissan, Saturn, Tesla and Toyota have all announced plans to build lithium-ion battery powered cars.

Lithium carbonate is also an important industrial chemical:
  • It forms low-melting fluxes with silica and other materials
  • Glasses derived from lithium carbonate are useful in ovenware
  • Cement sets more rapidly when prepared with lithium carbonate, and is useful for tile adhesives
  • When added to aluminum trifluoride, it forms LiF which gives a superior electrolyte for the processing of aluminum
  • Lithium carbonate can be used in a type of carbon dioxide sensor.
Lithium is not traded publicly - and is usually distributed in a chemical form such as lithium carbonate (Li2CO3) - instead it’s sold directly to end users for a negotiated price per tonne of Lithium carbonate (Li2CO3).

Production figures are often quoted in lithium carbonate equivalent quantities. By weight approximately 18.8% of lithium carbonate is lithium. Therefore 1kg of lithium is the equivalent of 5.3 kg of lithium carbonate.

Lithium-ion batteries are quickly becoming the most prevalent type of battery used in everything from laptops to cell phones to hybrid and fully electric cars to short term power storage devices for wind and solar generated power.

Sodium Chloride (rock salt or halite)

The principal use for salt is in the chemical manufacturing business - chloralkali and synthetic soda ash producers use salt as their primary raw material.

Salt is used in many applications and almost every industry:
  • Cooking
  • Manufacturing pulp and paper
  • Setting dyes in textiles and fabric
  • Producing soaps, detergents, and other bath products
  • Major source of industrial chlorine and sodium hydroxide
Global demand for salt is forecast to grow 2.5 percent per year to 305 million metric tons in 2013.

Solar evaporation is the most popular and most economical method of producing salt. China is the world’s largest consumer of salt – other than the dietary needs of 1.3 billion people - there’s an enormous chemical manufacturing industry being built in China.

Boron

Boron combines with oxygen and other elements to form boric acid, or inorganic salts called borates.

Borates are used for:
  • Insulation fiberglass
  • Textile fiberglass
  • Heat-resistant glass
  • Detergents, soaps and personal care products
  • Ceramic and enamel frits and glazes
  • Ceramic tile bodies
  • Agricultural micronutrients
  • Wood treatments
  • Polymer additives 
  • Pest control products
  • Boron is an essential component in the manufacture of borosilicate glass used in LCD screens
Boric Acid uses:
  • As an antiseptic/anti-bacterial compound
  • Insecticide
  • Flame retardant
  • In nuclear power plants to control the fission rate of uranium*
  • As a precursor of other chemical compounds
*Boric acid is used in nuclear power plants to slow down the rate at which fission occurs. Boron is also dissolved into the spent fuel cooling pools containing used fuel rods. Natural boron is 20% boron-10 which can absorb a lot of neutrons. When you add boric acid to the reactor coolant – or to the spent fuel rod cooling pools - the probability of fission is reduced.

World production of borates remains mostly concentrated in the US and Turkey – these two countries account for 75% of supply.

Chinese boron - both in terms of quantity and grade - is inadequate to meet domestic demand so the country is now the largest importer of both natural borates and boric acid.


Conclusion

Potash and agriculture will be one of the top investment themes over the next 20 to 30 years - world population growth and three billion people climbing the protein ladder are elephants in the dining room. Our population has nearly doubled since 1970. We add 80 million people to our global population each year - tonight, there will be 220,000 new mouths to feed at the dinner table.

The rechargeable power needs of our modern society has made lithium a serious player in the commodity markets. Lithium makes an excellent battery for use in a wide range of applications - batteries using lithium have been found to have a high energy to weight ratio, can be moulded into amazing shapes and have longer lives than conventional batteries.

And when used as a rechargeable battery there is no memory effect.

There are significant savings to be had in the pricing of lithium from brines for lithium miners with quality projects close to all necessary infrastructure.

Investing in a macro trend has always been the most dependable way to make money - rising food prices are a macro trend with a long term time horizon, so is the electrification of our transportation system.

Are both these global macro trends on your radar screen?

If not, maybe they should be.

Richard (Rick) Mills
rick@aheadoftheherd.com
www.aheadoftheherd.com

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Richard is host of Aheadoftheherd.com and invests in the junior resource sector. His articles have been published on over 300 websites, including: Wall Street Journal, SafeHaven, Market Oracle, USAToday, National Post, Stockhouse, Lewrockwell, Uranium Miner, Casey Research, 24hgold, Vancouver Sun, SilverBearCafe, Infomine, Huffington Post, Mineweb, 321Gold, Kitco, Gold-Eagle, The Gold/Energy Reports, Calgary Herald, Resource Investor, Mining.com, Forbes, FNArena, Uraniumseek, and Financial Sense.

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Legal Notice / Disclaimer

This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. Richard Mills has based this document on information obtained from sources he believes to be reliable but which has not been independently verified; Richard Mills makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of Richard Mills only and are subject to change without notice. Richard Mills assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, I, Richard Mills, assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information provided within this Report.

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Richard Mills does not own shares of any companies mentioned in this report.
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