A rebel group known as M23 has taken control of the North Kivu mining town of Rubaya in the Democratic Republic of Congo (DRC), disrupting coltan mining operations in the area.
Rubaya, northwest of North Kivu's capital Goma, is a major coltan mining hub and the takeover could significantly impact coltan production and the conflict-free supply chain, market participants told Argus.
Staff from the International Tin Supply Chain Initiative (ITSCI) have left the town and the wider Masisi territory and travelled to Goma for safety, Argus has heard.
Market participants anticipate that local supply in North Kivu will tighten because of the conflict in Rubaya, adding further upward pressure to international prices in an already rising market.
"The situation is very fluid but the main concern is a human one and making sure people are safe," ITSCI governance committee member Ian Margerison told Argus.
ITSCI has suspended all its programmes in the Masisi territory although it is unclear whether any mining activities are still ongoing in the area. It is also recommending companies update their risk assessment plans. State services in charge of tagging material at mine sites have also stopped and left the area, ITSCI said.
ITSCI is a raw materials traceability and due diligence scheme for the 3T raw materials — tungsten, tantalum and tin. ITSCI mostly operates in the Great Lakes region of central Africa and more than 300 member companies use the scheme to asset with their due diligence.
Coltan is made up of tantalite and columbite and is the raw material used to produce tantalum and niobium metals. Niobium is used to strengthen super alloys and steel, while tantalum is used in super alloys, capacitor powders and sputtering targets for semiconductors.
Tantalite and columbite prices have been rising since mid-November in response to increased spot demand from Chinese smelters. Argus last assessed tantalite prices at $105-108/lb cif main port, up by almost 30pc from November. Columbite prices were last assessed at $15.50-16.50/lb cif main port, up from $12-13.50/lb in November.
