Why Germanium is the metal y to watch?

Minor Metals Americas Conference,, Sept.
p 26-27
Why
y Germanium is the metal
to watch?
• Juncong Feng,
Feng Shiela Ju
• Beijing Antaike Information Development Co
Co., Ltd
Ltd.
Page 1
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Page 2
are
copyright
Global germanium market to change because of
China
China, as the No.1 germanium resource country, is also
the largest producer and exporter in the world.
Supply/demand pattern in China began to change since
pp y unstable,, consumption
p
ggrowing
g fast and
2010,, with supply
prices volatile, which is expected to continue in the next
future years.
Page 3
China Germanium Resources
Proved resource of germanium in China by 2010 (ton)
Qinghai Gansu Ohters
2%
2%
Guizhou 2%
Jilin 3%
4%
Guangxi
4%
Statistics from the
Mi i t off Land
Ministry
L d
and Resources
show 39
germanium
Shanxi
5%
Inner Mongolia
47%
Sichuan
5%
deposits had been
discovered by
2010, the proved
Yunnan
11%
resources were
6,213 tons and
Guangdong
15%
basic reserve was
1,574 tons.
Page 4
China Germanium Resources
Deposits bearing germanium
In China, germanium is mainly associated with lignite and lead and zinc ores.
Germanium can be economically recycled from the lignite in Inner Mongolia and
Yunnan. In addition, Fankou Lead and Zinc Mine in Guangdong Province, and Huize
Lead and Zinc Mine in Yunnan Province can produce germanium as by-products
Province/Region
Yunnan
Inner Mongolia
G
Guangdon
d
Deposit
Minerals
Huize
Lincang Bangmai(Dazhai
and Zhongzhai)
Ladong (Baita)
Cangyuan Manghui
Luxidengga
Shengli Coal
Yimin Coal
F k
Fankou
Lead and zinc
Page 5
Li i
Lignite
Lignite
Lignite
Lignite
Lignite
Lignite
L d andd zinc
Lead
i
Raw Materials of Germanium Metal in China
Recycling
from
wastes,
was
es, 5%
Lead and
zinc
concentrate
co
ce a e
, 25%
Lignite,
70%
Raw Materials of
Germanium Metal in China
70% of the raw materials comes from lignite,
lignite 25%
comes from lead and zinc ores, and 5% comes from
recycling.
y g
Page 6
Refined Germanium Production in China
China Refined Germanium Ingot
g
Production (ton)
100
80
60
40
20
0
2008
2009
2010
2011
2012
According to the statistics of CNIA Indium, Bismuth and
Germanium Branch, China produced 84 tons refined germanium in
2012, 2 tons lower than the previous year.
Page 7
Regional Distribution of Germanium Production
氧化锗
20吨
Page 8
Major Germanium Producers in China
Company
Yunnan KIRO-CH
pphotonics Co. Ltd.
Location
Yunnan Province
Raw Materials
Zinc smelting slag
Shenzhen Zhongjin
Guangdong
Lingnan Nonfemet Co., Province
Ltd
Ltd.
Yunnan Germanium Co., Yunnan Province
Ltd.
Zinc smelting slag
Inner Mongolia Tongli
Germanium Co., Ltd.
Inner Mongolia
Mengdong Germanium
Co., Ltd.
China Germanium Co.,
Ltd.
Inner Mongolia
Lignite
Inner Mongolia
Zinc smelting slag,
dust
Jiangsu Province
Zinc smelting slag
Others
--
Zinc smelting slag,
etc.
Lignite
Page 9
Products
Capacity, tpa
Germanium dioxide, germanium
10
tetrachloride,, refined
germanium, monocrystalline
germanium
Refined germanium
10
Germanium dioxide, germanium
tetrachloride, refined
germanium,monocrystalline
germanium, germanium wafters,
infrared devices
Germanium dioxide, refined
germanium
Germanium dioxide, refined
germanium
Germanium dioxide, germanium
tetrachloride, refined
germanium, monocrystalline
germanium germanium wafters,
germanium,
wafters
infrared devices
Refined germanium
30
10
10
10
20
Limited Production Growth in Next 3 Yrs
 The production of germanium is to be more consolidated and more orderly.
The expansion
p
is limited due to the increasingg cost of environmental
protection and other key cost.
 Two producers in Inner Mongolia to be merged.
 Lignite resources in Yunnan is controlled by Yunnan Germanium Company,
which has no expansion plan
 Slag generated by zinc smelters are not likely to grow because of the
environmental protection pressure and soft refined zinc prices.
M
More strict
i environmental
i
l protection
i requirements
i
lead
l d to the
h closure
l
off
secondary producers.
 The strong price of germanium will probably stimulate the recycling of
germanium, but not likely in large volume.
Page 10
End Users of Germanium
 The major end users of germanium in China are fibre and infrared
devices the share of new fields such as solar cell is very small.
devices,
small
End users of Gemanium in China in 2012
Others
8%
Infrared
devices
38%
Fibre
54%
Page 11
Growing Demand
 Demand from fibre industry has been increasing the country
implement the “Broadband China Strategy” and 3G, which contributes
to over 5% growth in the use of GeCl4
 There are 8 manufacturers including Fenghuo Telecommunication,
W han Changfei,
Wuhan
Changfei producing
prod cing fibre preform,
preform which
hich demands nearl
nearly 20
tons GeCl4 or 7 tons germanium metal. 70% of GeCl4 is from domestic
production and 30% is imported.
 The infrared devices consumed around 5 tons germanium in 2012,
which is expected to rise briskly in 2013, benefiting from the strong
demand from military industry
 In solar sector, germanium is only used in some satellite in China. But
the demand from thin film solar is recovering
g worldwide.
 Demand for organic germanium from Japan is rebounding in 2013
Page 12
Demand to be Driven by Fibre and Infrared
 China Association of Communication Enterprises says the
demand for pperform in 2012 was 4,750
,
tons,, accountingg for 52%
of the global total. China’s production was 2,565 tons, accounting
for 54% of its demand. With the implementation of Broadband
China Strategy,
Strategy the fibre industry will remain a growth of over
10% annually. It is estimated the capacity of perform will break
4,500tpa by 2015, triple of that in 2011.
 The modernization of national defense will drive up the demand
for germanium from the military sector.
 Th
The demand
d
d for
f infrared
i f
d devices
d i
from
f
autos andd fire
fi protection
i to
grow gradually.
Page 13
China is a Net Exporter of Germanium Products
China’s Import and Export of Germanium Products 2010-2012 (kg)
USA
Germany
Japan
Canada
Russia
2010
13,172
7,411
4,963
2,000
3,556
Export
p
2011
12,238
8,211
2,029
300
3,119
2012
18,523
4,242
2,450
2,490
2,204
Belgium
7,422
5,850
1,827
344
300
155
204
41,676
1,211
1,203
,
170
0
802
33,361
Hong Kong
UK
Thailand
South Korea
Netherland
Total
2010
3,668
6,525
1,215
0
100
Import
p
2011
645
0
510
0
60
2012
209
4
254
0
0
2,069
38
26
399
601
231
130
17
0
33,030
0
0
0
0
0
11,552
0
5
0
0
0
1,305
0
11
0
0
0
951
Source: China Customs
Page 14
Valued by the Government
 Germanium is listed in the “Development Program of Rare
Metals in the 12th Five-Year Period (2011-2015)”
 20 tons germanium stockpile in 2013
 M&A encouraged
d
 CNIA Indium, Bismuth and Germanium Branch established
in September 2012
Page 15
Trading Platform Drawing Attention
 Germanium has been traded on The Fanya Metal
Exchange for 2+ years, extensively supported by major
producers The domestic spot transaction prices have
producers.
been impacted.
Page 16
Conclusion

China germanium producers are paying increasingly attention to
extend industrial chain and exploiting the end using market. The
development of resources and the production is to be more
consolidated. The market is to be more orderly and pricing
mechanism is being improved.
 In the near term, China’s germanium products still rely on export.
China’s germanium industry and global germanium industry will
share
h rise
i andd fall
f ll together.
h
Page 17
Thank You
Juncong Feng
Pt@ t ik
Pt@antaike.com
Shiela Ju
Shiela.ju@antaike.com
2nd Floor, 12B Fuxing Road
Haidian District, Beijing 100814
P. R. China
Tel: 0086 10 63965283
Fax: 0086 10 63971647
www.antaike.com
Page 18
About Antaike

Antaike is the leading Information Provider and
Consulting Firm on Nonferrous Metals in China.
 With a total employment of 150, 40 of which are
g at minor metals including
g rare earth,,
looking
indium, bismuth, germanium, antimony,
magnesium,
i
silicon,
ili
cobalt,
b lt ttungsten,
t
molybdenum and gallium, etc. The research has
been widely appraised.
Page 19