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Living the FATCA life in Africa: New U.S. tax regulations add to burden of compliance on financial institutions across Africa

Posted on 21 May 2013 by Eugene Skrynnyk

Eugene Skrynnyk

Eugene Skrynnyk (CIPM, MILE, BComm) is a senior manager and specialist for the asset management industry in the Africa Sub-Area at Ernst & Young in Cape Town, South Africa.

Eugene Skrynnyk is the Ernst & Young Senior Manager and specialist for the asset management industry in the Africa Sub-Area.

Eugene holds a Certificate in Investment Performance Measurement (CIPM), Master of International Law and Economics (MILE) and Bachelor of Commerce and Finance (B.Comm.).

 

When the U.S. Department of the Treasury (“Treasury”) and Internal Revenue Service (“IRS”) issued final Foreign Account Tax Compliance Act (“FATCA”) regulations in January of this year, there was a sigh of relief that the financial services industry in Africa could begin to digest FATCA’s obligations. However, achieving FATCA compliance remains a challenge for banks operating across Africa.

FATCA is already law in the U.S. but negotiations are under way to enshrine it in national law of countries around the world via intergovernmental agreements (“IGAs”) with the U.S. While a variety of African jurisdictions will each face unique obstacles with FATCA compliance, many in the industry share a general unease with FATCA’s scope, as well as scepticism that FATCA’s rewards (an estimated US$1 billion in additional tax revenue annually) justify its expenses. Generally, FATCA attempts to combat U.S. tax evasion by requiring that non-U.S. financial institutions report the identities of U.S. shareholders or customers, or otherwise face a 30% withholding tax on their U.S. source income. Overwhelmingly, FATCA compliance obligations apply even where there is very little risk of U.S. tax evasion and it impacts all payers, including foreign payers of “withholdable payments” made to any foreign entities affecting deposit accounts, custody and investments.

General issues in Africa

Concerns about privacy abound. FATCA requires financial institutions to report to the IRS certain information about U.S. persons. For this reason, IGAs are being put in place so that institutions could instead report information to their local tax authority rather than the IRS. In some jurisdictions, investment funds and insurance companies are permitted to disclose information with client consent. In other jurisdictions, such disclosure is prohibited without further changes to domestic law. The process to make necessary changes locally involves time and effort.

Cultural differences in Africa need to be considered. In certain situations FATCA requires that financial institutions ask a customer who was born in the United States to submit documents explaining why the customer abandoned U.S. citizenship or did not obtain it at birth. African financial institutions never pose such a delicate and private question to their customers. Even apparently straight-forward requirements may pose challenges; for example, FATCA requires that customers make representations about their identities “under penalty of perjury” in certain situations. Few countries have a custom of making legal oaths, so it would not be surprising if African customers will be reluctant to give them.

FATCA contains partial exemptions (i.e., “deemed compliance”) and also exceptions for certain financial institutions and products that are less likely to be used by U.S. tax evaders. It still has to be seen to what extent these exemptions have utility for financial institutions in Africa. For example, the regulations include an exemption for retirement funds and also partially exempt “restricted funds” — funds that prohibit investment by U.S. persons. Although many non-U.S. funds have long restricted investment by U.S. persons because of the U.S. federal securities laws, this exemption could be less useful than it first appears. It should be pointed out that the exemption also requires that funds be sold exclusively to limited categories of FATCA-compliant or exempt institutions and distributors. These categories are themselves difficult for African institutions to qualify for. For example, a restricted fund may sell to certain distributors who agree not to sell to U.S. persons (“restricted distributors”). But restricted distributors must operate solely in the country of their incorporation, a true obstacle in smaller markets where many distributors must operate regionally to attain scale.

Other permitted distribution channels for restricted funds are “local banks,” which are not allowed to have any operations outside of their jurisdiction of incorporation and may not advertise the availability of U.S. dollar denominated investments.

Challenges and lessons learned – the African perspective

Financial institutions will have to consider what steps to take to prepare for FATCA compliance and take into account other FATCA obligations, such as account due diligence and withholding against non-compliant U.S. accountholders and/or financial institutions.

The core of FATCA is the process of reviewing customer records to search for “U.S. indicia” — that is, evidence that a customer might be a U.S. taxpayer. Under certain circumstances, FATCA requires financial institutions to look through their customers and counterparties’ ownership to find “substantial U.S. owners” (generally, certain U.S. persons holding more than 10% of an entity). In many countries the existing anti-money laundering legislation generally requires that financial institutions look through entities only when there is a 20% or 25% owner, leaving a gap between information that may be needed for FATCA compliance and existing procedures. Even how to deal with non-FATCA compliant financial institutions and whether to completely disengage business ties with them, remains open.

The following is an outline of some of the lessons learned in approaching FATCA compliance and the considerations financial institutions should make:

Focus on reducing the problem

Reducing the problem through the analysis and filtering of legal entities, products, customer types, distribution channels and account values, which may be prudently de-scoped, can enable financial institutions to address their distinct challenges and to identify areas of significant impact across their businesses. This quickly scopes the problem areas and focuses the resource and budget effort to where it is most necessary.

Select the most optimal design solution

FATCA legislation is complex and comprehensive as it attempts to counter various potential approaches to evade taxes. Therefore, understanding the complexities of FATCA and distilling its key implications is crucial in formulating a well rounded, easily executable FATCA compliance programme in the limited time left.

Selecting an option for compliance is dependent on the nature of the business and the impact of FATCA on the financial institution. However, due to compliance time constraints and the number of changes required by financial institutions, the solution design may well require tactical solutions with minimal business impact and investment. This will allow financial institutions to achieve compliance by applying low cost ‘work arounds’ and process changes. Strategic and long-term solutions can be better planned and phased-in with less disruption to the financial institution thereafter.

Concentrate on critical activities for 2014

FATCA has phased timelines, which run from 2014 to 2017 and beyond. By focusing on the “must-do” activities, which require compliance as of 1 January 2014 – such as appointing a Responsible Officer, registering with the IRS, and addressing new client on-boarding processes and systems – financial institutions can dedicate the necessary resources more efficiently and effectively to meet immediate deadlines.

Clear ownership – both centrally and within local subsidiaries

FATCA is a strategic issue for the business, requiring significant and widespread change. Typically it starts as a ‘tax issue’ but execution has impacts across IT, AML/KYC, operations, sales, distribution and client relationship management. It is imperative to get the right stakeholders and support onboard to ensure that the operational changes are being coordinated, managed and implemented by the necessary multidisciplinary teams across the organization. These include business operations, IT, marketing, and legal and compliance, to name but a few. Early involvement and clear ownership is key from the start.

Understand your footprint in Africa

Many African financial institutions have operations in various African countries and even overseas, and have strategically chosen to make further investments throughout Africa. The degree to which these African countries have exposure to the FATCA regulations needs to be understood. It is best to quickly engage with appropriate stakeholders, understand how FATCA impacts these African countries and the financial institutions’ foreign subsidiaries, and find solutions that enable pragmatic compliance.

What next for financial institutions in Africa?

Negotiations with the U.S. are under way with over 60 countries to enshrine FATCA in national law of countries around the world via IGAs. Implementation of FATCA is approaching on 1 January 2014 and many local financial institutions have either not started or are just at the early stages of addressing the potential impact of FATCA. In South Africa, only few of the leading banks are completing impact assessments and already optimizing solutions. Other financial services groups and asset management institutions are in the process of tackling the impact assessment. Industry representative in Ghana, Kenya, Mauritius, Namibia, Nigeria and Zimbabwe have started engaging relevant government and industry stakeholders, but the awareness is seemingly oblivious to date. In the rest of Africa, FATCA is mainly unheard of.

Financial institutions choosing to comply with FATCA will first need to appoint a responsible officer for FATCA and register with the IRS, ensure proper new client on-boarding procedures are in place, then identify and categorize all customers, and eventually report U.S. persons to the IRS (or local tax authorities in IGA jurisdictions). Institutions will also need to consider implementing a host of other time-consuming operational tasks, including revamping certain electronic systems to capture applicable accountholder information and/or to accommodate the new reporting and withholding requirements, enhancing customer on-boarding processes, and educating both customers and staff on the new regulations. Where possible, institutions should seek to achieve these tasks through enhancing existing initiations so as to minimise the cost and disruption to the business.

Conclusion

Financial institutions in Africa face tight FATCA compliance timelines with limited budgets, resources, time, and expertise available. This is coupled with having to fulfil multiple other regulatory requirements. To add to the burden, FATCA has given stimulus to several countries in the European Union to start discussing a multilateral effort against tax evasion. The support of other countries in the IGA process indicates that some of these countries will follow with their own FATCA-equivalent legislation in an attempt to increase local tax revenues at a time when economies around the world are under unprecedented pressure. The best approach for African financial services industry groups is to engage their local governments in dialogue with the IRS and Treasury, while for African financial institutions to pro-actively assess their FATCA strategic and operational burdens as they inevitably prepare for compliance.

 

About Ernst & Young

Ernst & Young is a global leader in assurance, tax, transaction and advisory services. Worldwide, our 167,000 people are united by our shared values and an unwavering commitment to quality. We make a difference by helping our people, our clients and our wider communities achieve their potential.

The Ernst & Young Africa Sub-Area consists of practices in 28 countries across the African continent. We pride ourselves in our integrated operating model which enables us to serve our clients on a seamless basis across the continent, as well as across the world.

Ernst & Young South Africa has a Level two, AAA B-BBEE rating. As a recognised value adding enterprise, our clients are able to claim B-BBEE recognition of 156.25%.

Ernst & Young refers to the global organisation of member firms of Ernst & Young Global Limited, each of which is a separate legal entity. All Ernst & Young practices in the Africa Sub Area are members of Ernst & Young Africa Limited (NPC). Ernst & Young Africa Limited (NPC) in turn is a member firm of Ernst & Young Global Limited, a UK company limited by guarantee. Neither Ernst & Young Global Limited nor Ernst & Young Limited (NPC) provides services to clients.

For more information about our organisation, please visit www.ey.com/za

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Daily Analysis for Monday May 20

Posted on 21 May 2013 by Africa Business

This week begins with great anticipation for profitable trading opportunities. Banks in Europe and Canada will be closed on Monday, but traders could take advantage of the release of the Australian Monetary Policy Meeting Minutes. Later in the week, we are expecting inflation and retail sales data out the United Kingdom. These announcements will surely pave a clear direction for the British Pound. Meanwhile, home sales in the world’s largest economy will be put forth on Thursday. Whether the U.S. dollar is affected, that remains to be seen.

USD/CAD


Friday’s inflation report was softer than consensus expectations. Headline CPI is increasing at its slowest since October 2009 when the economy was still experiencing the consequences of the recession. In this environment, inflation is clearly not the main radar the Bank of Canada is looking at for now, but growth is. Given our expectations of subpar growth for 2013, rate hikes in Canada are unlikely anytime soon. Look for the Loonie to continue weakening in the coming days.

Stop loss 1.0250

Take profit 1.0315

Gold


The yellow metal started the new week on the wrong foot, tumbling during Monday’s morning session as traders increased their bearish bets on this commodity. It has been falling since October 2012, with the sharpest market movement taking place just last month. We have recently reached the lowest point last seen on April 14th. Traders are advised to hold onto their short positions until further notice. We expect to reach $1,300 within days, possibly by Thursday of this week.

Stop loss $1,370

Take profit $1,300

USD/ILS


The Bank of Israel surprised with a 25 basis point rate cut to 1.5% last week, an intra-meeting move. The next scheduled meeting is set for May 27th. We’ve been looking for more cuts, especially as the Shekel has strengthened in recent weeks. As it cut rates, the central bank noted that the shekel has been boosted by natural gas sales and global monetary easing. Furthermore, the Bank of Israel announced a plan to increase its holdings of foreign exchange in an effort to offset the money from gas sales. For now, the high probability of sequential rate cuts suggests this pair is likely to continue heading north. We’re currently aiming at 3.6370.

Stop Loss 3.6316

Take profit 3.6370

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Developing World’s Share of Global Investment to Triple by 2030, Says New World Bank Report

Posted on 18 May 2013 by Africa Business

Seventeen years from now, half the global stock of capital, totaling $158 trillion (in 2010 dollars), will reside in the developing world, compared to less than one-third today, with countries in East Asia and Latin America accounting for the largest shares of this stock, says the latest edition of the World Bank’s Global Development Horizons (GDH) report, which explores patterns of investment, saving and capital flows as they are likely to evolve over the next two decades.

Developing countries’ share in global investment is projected to triple by 2030 to three-fifths, from one-fifth in 2000, says the report, titled ‘Capital for the Future: Saving and Investment in an Interdependent World’. With world population set to rise from 7 billion in 2010 to 8.5 billion 2030 and rapid aging in the advanced countries, demographic changes will profoundly influence these structural shifts.

“GDH is one of the finest efforts at peering into the distant future. It does this by marshaling an amazing amount of statistical information,” said Kaushik Basu, the World Bank’s Senior Vice President and Chief Economist. “We know from the experience of countries as diverse as South Korea, Indonesia, Brazil, Turkey and South Africa the pivotal role investment plays in driving long-term growth. In less than a generation, global investment will be dominated by the developing countries. And among the developing countries, China and India are expected to be the largest investors, with the two countries together accounting for 38 percent of the global gross investment in 2030. All this will change the landscape of the global economy, and GDH analyzes how.”

Productivity catch-up, increasing integration into global markets, sound macroeconomic policies, and improved education and health are helping speed growth and create massive investment opportunities, which, in turn, are spurring a shift in global economic weight to developing countries. A further boost is being provided by the youth bulge. With developing countries on course to add more than 1.4 billion people to their combined population between now and 2030, the full benefit of the demographic dividend has yet to be reaped, particularly in the relatively younger regions of Sub-Saharan Africa and South Asia.

The good news is that, unlike in the past, developing countries will likely have the resources needed to finance these massive future investments for infrastructure and services, including in education and health care. Strong saving rates in developing countries are expected to peak at 34 percent of national income in 2014 and will average 32 percent annually until 2030. In aggregate terms, the developing world will account for 62-64 percent of global saving of $25-27 trillion by 2030, up from 45 percent in 2010.

“Despite strong saving levels to finance their massive investment needs in the future, developing countries will need to significantly improve their currently limited participation in international financial markets if they are to reap the benefits of the tectonic shifts taking place,” said Hans Timmer, Director of the Bank’s Development Prospects Group.

GDH paints two scenarios, based on the speed of convergence between the developed and developing worlds in per capita income levels, and the pace of structural transformations (such as financial development and improvements in institutional quality) in the two groups. Scenario one entails a gradual convergence between the developed and developing world while a much more rapid scenario is envisioned in the second.

The gradual and rapid scenarios predict average world economic growth of 2.6 percent and 3 percent per year, respectively, during the next two decades; the developing world’s growth will average an annual rate of 4.8 percent in the gradual convergence scenario and 5.5 percent in the rapid one.

In both scenarios, developing countries’ employment in services will account for more than 60 percent of their total employment by 2030 and they will account for more than 50 percent of global trade. This shift will occur alongside demographic changes that will increase demand for infrastructural services. Indeed, the report estimates the developing world’s infrastructure financing needs at $14.6 trillion between now and 2030.

The report also points to aging populations in East Asia, Eastern Europe and Central Asia, which will see the largest reductions in saving rates. Demographic change will test the sustainability of public finances and complex policy challenges will arise from efforts to reduce the burden of health care and pensions without imposing severe hardships on the old. In contrast, Sub-Saharan Africa, with its relatively young and rapidly growing population as well as robust economic growth, will be the only region not experiencing a decline in its saving rate.

In absolute terms, however, saving will continue to be dominated by Asia and the Middle East. In the gradual convergence scenario, in 2030, China will save far more than any other developing country — $9 trillion in 2010 dollars — with India a distant second with $1.7 trillion, surpassing the levels of Japan and the United States in the 2020s.

As a result, under the gradual convergence scenario, China will account for 30 percent of global investment in 2030, with Brazil, India and Russia together accounting for another 13 percent. In terms of volumes, investment in the developing world will reach $15 trillion (in 2010 dollars), versus $10 trillion in high-income economies. China and India will account for almost half of all global manufacturing investment.

“GDH clearly highlights the increasing role developing countries will play in the global economy. This is undoubtedly a significant achievement. However, even if wealth will be more evenly distributed across countries, this does not mean that, within countries, everyone will equally benefit,” said Maurizio Bussolo, Lead Economist and lead author of the report.

The report finds that the least educated groups in a country have low or no saving, suggesting an inability to improve their earning capacity and, for the poorest, to escape a poverty trap.

“Policy makers in developing countries have a central role to play in boosting private saving through policies that raise human capital, especially for the poor,” concluded Bussolo.

Regional Highlights:

East Asia and the Pacific will see its saving rate fall and its investment rate will drop by even more, though they will still be high by international standards. Despite these lower rates, the region’s shares of global investment and saving will rise through 2030 due to robust economic growth. The region is experiencing a big demographic dividend, with fewer than 4 non-working age people for every 10 working age people, the lowest dependency ratio in the world. This dividend will end after reaching its peak in 2015. Labor force growth will slow, and by 2040 the region may have one of the highest dependency ratios of all developing regions (with more than 5.5 non-working age people for every 10 working age people). China, a big regional driver, is expected to continue to run substantial current account surpluses, due to large declines in its investment rate as it transitions to a lower level of public involvement in investment.

Eastern Europe and Central Asia is the furthest along in its demographic transition, and will be the only developing region to reach zero population growth by 2030. Aging is expected to moderate economic growth in the region, and also has the potential to bring down the saving rate more than any developing region, apart from East Asia. The region’s saving rate may decline more than its investment rate, in which case countries in the region will have to finance investment by attracting more capital flows. The region will also face significant fiscal pressure from aging. Turkey, for example, would see its public pension spending increase by more than 50 percent by 2030 under the current pension scheme. Several other countries in the region will also face large increases in pension and health care expenditures.

Latin America and the Caribbean, a historically low-saving region, may become the lowest-saving region by 2030. Although demographics will play a positive role, as dependency ratios are projected to fall through 2025, financial market development (which reduces precautionary saving) and a moderation in economic growth will play a counterbalancing role. Similarly, the rising and then falling impact of demography on labor force growth means that the investment rate is expected to rise in the short run, and then gradually fall. However, the relationship between inequality and saving in the region suggests an alternative scenario. As in other regions, poorer households tend to save much less; thus, improvements in earning capacity, rising incomes, and reduced inequality have the potential not only to boost national saving but, more importantly, to break poverty traps perpetuated by low saving by poor households.

The Middle East and North Africa has significant scope for financial market development, which has the potential to sustain investment but also, along with aging, to reduce saving. Thus, current account surpluses may also decline moderately up to 2030, depending on the pace of financial market development. The region is in a relatively early phase of its demographic transition: characterized by a still fast growing population and labor force, but also a rising share of elderly. Changes in household structure may also impact saving patterns, with a transition from intergenerational households and family-based old age support to smaller households and greater reliance on asset income in old age. The region has the lowest use of formal financial institutions for saving by low-income households, and scope for financial markets to play a significantly greater role in household saving.

South Asia will remain one of the highest saving and highest investing regions until 2030. However, with the scope for rapid economic growth and financial development, results for saving, investment, and capital flows will vary significantly: in a scenario of more rapid economic growth and financial market development, high investment rates will be sustained while saving falls significantly, implying large current account deficits. South Asia is a young region, and by about 2035 is likely to have the highest ratio of working- to nonworking-age people of any region in the world. The general shift in investment away from agriculture towards manufacturing and service sectors is likely to be especially pronounced in South Asia, with the region’s share of total investment in manufacturing expected to nearly double, and investment in the service sector to increase by more than 8 percentage points, to over two-thirds of total investment.

Sub-Saharan Africa’s investment rate will be steady due to robust labor force growth. It will be the only region to not see a decrease in its saving rate in a scenario of moderate financial market development, since aging will not be a significant factor. In a scenario of faster growth, poorer African countries will experience deeper financial market development, and foreign investors will become increasingly willing to finance investment in the region. Sub-Saharan Africa is currently the youngest of all regions, with the highest dependency ratio. This ratio will steadily decrease throughout the time horizon of this report and beyond, bringing a long lasting demographic dividend. The region will have the greatest infrastructure investment needs over the next two decades (relative to GDP). At the same time, there will likely be a shift in infrastructure investment financing toward greater participation by the private sector, and substantial increases in private capital inflows, particularly from other developing regions.

Source: WorldBank.org

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Developing countries to dominate global saving and investment, but the poor will not necessarily share the benefits, says report

Posted on 18 May 2013 by Africa Business

STORY HIGHLIGHTS
  • Developing world’s share of global investment to triple by 2030
  • China, India will be developing world’s largest investors
  • Boost to education needed so poor can improve their well-being

In less than a generation, global saving and investment will be dominated by the developing world, says the just-released Global Development Horizons (GDH) report.

By 2030, half the global stock of capital, totaling $158 trillion (in 2010 dollars), will reside in the developing world, compared to less than one-third today, with countries in East Asia and Latin America accounting for the largest shares of this stock, says the report, which explores patterns of investment, saving and capital flows as they are likely to evolve over the next two decades.

Titled ‘Capital for the Future: Saving and Investment in an Interdependent World’, GDH projects developing countries’ share in global investment to triple by 2030 to three-fifths, from one-fifth in 2000.

Productivity catch-up, increasing integration into global markets, sound macroeconomic policies, and improved education and health are helping speed growth and create massive investment opportunities, which, in turn, are spurring a shift in global economic weight to developing countries.

A further boost is being provided by the youth bulge. By 2020, less than 7 years from now, growth in world’s working-age population will be exclusively determined by developing countries. With developing countries on course to add more than 1.4 billion people to their combined population between now and 2030, the full benefit of the demographic dividend has yet to be reaped, particularly in the relatively younger regions of Sub-Saharan Africa and South Asia.

GDH paints two scenarios, based on the speed of convergence between the developed and developing worlds in per capita income levels, and the pace of structural transformations (such as financial development and improvements in institutional quality) in the two groups. Scenario one entails a gradual convergence between the developed and developing world while a much more rapid one is envisioned in the second.

In both scenarios, developing countries’ employment in services will account for more than 60 percent of their total employment by 2030 and they will account for more than 50 percent of global trade. This shift will occur alongside demographic changes that will increase demand for infrastructural services. Indeed, the report estimates the developing world’s infrastructure financing needs at $14.6 trillion between now and 2030.

The report also points to aging populations in East Asia, Eastern Europe and Central Asia, which will see the largest reductions in private saving rates. Demographic change will test the sustainability of public finances and complex policy challenges will arise from efforts to reduce the burden of health care and pensions without imposing severe hardships on the old. In contrast, Sub-Saharan Africa, with its relatively young and rapidly growing population as well as robust economic growth, will be the only region not experiencing a decline in its saving rate.

Open Quotes

Policy makers in developing countries have a central role to play in boosting private saving through policies that raise human capital, especially for the poor. Close Quotes

Maurizio Bussolo
Lead Author, Global Development Horizons 2013

In absolute terms, however, saving will continue to be dominated by Asia and the Middle East. In the gradual convergence scenario, in 2030, China will save far more than any other developing country — $9 trillion in 2010 dollars — with India a distant second with $1.7 trillion, surpassing the levels of Japan and the United States in the 2020s.

As a result, under the gradual convergence scenario, China will account for 30 percent of global investment in 2030, with Brazil, India and Russia together accounting for another 13 percent. In terms of volumes, investment in the developing world will reach $15 trillion (in 2010 dollars), versus $10 trillion in high-income economies. Again, China and India will be the largest investors among developing countries, with the two countries combined representing 38 percent of the global gross investment in 2030, and they will account for almost half of all global manufacturing investment.

“GDH clearly highlights the increasing role developing countries will play in the global economy. This is undoubtedly a significant achievement. However, even if wealth will be more evenly distributed across countries, this does not mean that, within countries, everyone will equally benefit,” said Maurizio Bussolo, Lead Economist and lead author of the report.

The report finds that the least educated groups in a country have low or no saving, suggesting an inability to improve their earning capacity and, for the poorest, to escape a poverty trap.

“Policy makers in developing countries have a central role to play in boosting private saving through policies that raise human capital, especially for the poor,” concluded Bussolo.

Regional Highlights:

East Asia and the Pacific will see its saving rate fall and its investment rate will drop by even more, though they will still be high by international standards. Despite these lower rates, the region’s shares of global investment and saving will rise through 2030 due to robust economic growth. The region is experiencing a big demographic dividend, with fewer than 4 non-working age people for every 10 working age people, the lowest dependency ratio in the world. This dividend will end after reaching its peak in 2015. Labor force growth will slow, and by 2040 the region may have one of the highest dependency ratios of all developing regions (with more than 5.5 non-working age people for every 10 working age people). China, a big regional driver, is expected to continue to run substantial current account surpluses, due to large declines in its investment rate as it transitions to a lower level of public involvement in investment.

Eastern Europe and Central Asia is the furthest along in its demographic transition, and will be the only developing region to reach zero population growth by 2030. Aging is expected to moderate economic growth in the region, and also has the potential to bring down the saving rate more than any developing region, apart from East Asia. The region’s saving rate may decline more than its investment rate, in which case countries in the region will have to finance investment by attracting more capital flows. The region will also face significant fiscal pressure from aging. Turkey, for example, would see its public pension spending increase by more than 50 percent by 2030 under the current pension scheme. Several other countries in the region will also face large increases in pension and health care expenditures.

Latin America and the Caribbean, a historically low-saving region, may become the lowest-saving region by 2030. Although demographics will play a positive role, as dependency ratios are projected to fall through 2025, financial market development (which reduces precautionary saving) and a moderation in economic growth will play a counterbalancing role. Similarly, the rising and then falling impact of demography on labor force growth means that the investment rate is expected to rise in the short run, and then gradually fall. However, the relationship between inequality and saving in the region suggests an alternative scenario. As in other regions, poorer households tend to save much less; thus, improvements in earning capacity, rising incomes, and reduced inequality have the potential not only to boost national saving but, more importantly, to break poverty traps perpetuated by low saving by poor households.

The Middle East and North Africa has significant scope for financial market development, which has the potential to sustain investment but also, along with aging, to reduce saving. Thus, current account surpluses may also decline moderately up to 2030, depending on the pace of financial market development. The region is in a relatively early phase of its demographic transition: characterized by a still fast growing population and labor force, but also a rising share of elderly. Changes in household structure may also impact saving patterns, with a transition from intergenerational households and family-based old age support to smaller households and greater reliance on asset income in old age. The region has the lowest use of formal financial institutions for saving by low-income households, and scope for financial markets to play a significantly greater role in household saving.

South Asia will remain one of the highest saving and highest investing regions until 2030. However, with the scope for rapid economic growth and financial development, results for saving, investment, and capital flows will vary significantly: in a scenario of more rapid economic growth and financial market development, high investment rates will be sustained while saving falls significantly, implying large current account deficits. South Asia is a young region, and by about 2035 is likely to have the highest ratio of working- to nonworking-age people of any region in the world. The general shift in investment away from agriculture towards manufacturing and service sectors is likely to be especially pronounced in South Asia, with the region’s share of total investment in manufacturing expected to nearly double, and investment in the service sector to increase by more than 8 percentage points, to over two-thirds of total investment.

Sub-Saharan Africa’s investment rate will be steady due to robust labor force growth. It will be the only region to not see a decrease in its saving rate in a scenario of moderate financial market development, since aging will not be a significant factor. In a scenario of faster growth, poorer African countries will experience deeper financial market development, and foreign investors will become increasingly willing to finance investment in the region. Sub-Saharan Africa is currently the youngest of all regions, with the highest dependency ratio. This ratio will steadily decrease throughout the time horizon of this report and beyond, bringing a long lasting demographic dividend. The region will have the greatest infrastructure investment needs over the next two decades (relative to GDP). At the same time, there will likely be a shift in infrastructure investment financing toward greater participation by the private sector, and substantial increases in private capital inflows, particularly from other developing regions.

 

Source: WorldBank.org

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Lithium Market Becoming More Reliant on Batteries for Continued Strong Demand Growth

Posted on 18 May 2013 by Africa Business

Rise in Consumption and Future Demand Driven by Lithium-ion Batteries

Roskill estimates that rechargeable batteries accounted for 27% of global lithium consumption in 2012, up from 15% in 2007 and 8% in 2002. This end-use was responsible for 44% of the net increase in lithium consumption over the last ten years, and 70% over the last five years. In the base-case growth scenario it is expected to contribute 75% of the growth in forecast demand to 2017, when total demand for lithium is expected to reach slightly over 238,000t lithium carbonate equivalent (LCE).

Other end-uses, including glass-ceramics, greases and polymers, have also shown high rates of growth, but are predicted to moderate over the next five years as emerging economy growth slows. The lithium industry is therefore becoming more reliant on rechargeable batteries to sustain high rates of future demand growth. In addition, in the period to 2017 Roskill forecasts that the main market driver for lithium-ion batteries will gradually switch from portable consumer electronics to electric vehicles, especially hybrid variants.

Reflecting the concentration of lithium-ion battery manufacturers and associated cathode material producers in China, Japan and South Korea, the East Asia region has become an increasingly important consumer of lithium products over the last decade. In 2012, East Asia accounted for 60% of total global consumption with Europe accounting for a further 24% and North America 9%.

Growing Supply-side Pressure is Predicted to Stall Further Lithium Price Rises

Roskill’s analysis suggests that the price of technical-grade lithium carbonate, the main product produced and consumed in the lithium market, recovered some of its global economic downturn losses as the market tightened in 2012, averaging US$5,300/t CIF, up 15% from 2010. This is below the 2007 peak of US$6,500/t, but well above the US$2,000-3,000/t levels seen in the early 2000s.

Lithium extraction, which totalled over 168,000t LCE in 2012, is undertaken predominately in Australia, Chile, Argentina and China, with roughly half of lithium output from hard rock sources and half from brine. Production is dominated by Talison Lithium in Australia, SQM and Rockwood Lithium in Chile, and FMC in Argentina. Just over two-thirds of lithium minerals extracted in Australia are processed into downstream chemical products in China, where producers such as Tianqi Lithium (who recently acquired Talison to secure a captive supply of mineral feedstock) operate mineral conversion plants.

Galaxy Resources commissioned a new 17,000tpy LCE mineral conversion plant in China in 2012. Canada Lithium is in the process of commissioning a 20,000tpy LCE plant in Quebec and several existing Chinese mineral conversion plants are also expanding capacity. FMC has increased brine-based processing capacity by a third in Argentina, while nearby Orocobre is also constructing a new brine-based operation due to be completed in 2014. In addition, Rockwood Lithium plans to complete a 20,000tpy LCE expansion in Chile in 2014. Combined, this additional capacity totals just under 100,000tpy LCE, enough to meet forecast demand to 2017.

As the opening of new and expanded capacity is concentrated over the next two years, Roskill forecasts that the lithium market could witness increased competition and supply-side pressure on pricing, with prices for technical-grade lithium carbonate potentially falling back to around US$5,000/t CIF in 2014.

Lithium: Market Outlook to 2017 (12th edition)is available at a price of £4900 / US$7900 / €6200 from Roskill Information Services Ltd, 54 Russell Road, London SW19 1QL ENGLAND.

Tel: +44-(0)20-8417-0087. Fax +44-(0)20-8417-1308.

Email: info@roskill.co.uk Web: http://www.roskill.com/lithium

Note to editors

The report contains 426 pages, 245 tables and 99 figures. It provides a detailed review of the industry, with subsections on the activities of the leading producing companies. It also analyses consumption, trade and prices.

Table of Contents

Page

1.         Summary    1

2.         Lithium Mineralogy, Occurrences and Reserves    10

2.1        Occurrence of lithium    10

2.1.1      Lithium minerals    10

2.1.2      Lithium clays    12

2.1.3      Lithium brines    12

2.2        Lithium reserves    14

3.         Lithium mining and processing    16

3.1        Extraction and processing of lithium brines    17

3.1.1      Other methods of brine extraction    20

3.2        Mining and processing of lithium minerals    21

3.3        Processing lithium mineral concentrates to lithium compounds    23

3.4        Processing lithium bearing clays into lithium compounds    26

3.5        Lithium compounds and chemicals    27

3.6        Production costs    30

4.         Production of lithium    34

4.1        Lithium production by source    35

4.1.1      Production of Lithium Minerals    37

4.1.2      Production from Lithium Brines    39

4.1.3      Production of lithium compounds from mineral conversion    41

4.1.4      Production of downstream lithium chemicals    43

4.2        Outlook for production capacity of lithium to 2017    44

4.2.1      Outlook for production capacity of lithium minerals    45

4.2.2      Outlook for lithium production capacity from brines    48

4.2.3      Outlook on lithium compound production from mineral conversion    51

4.3        Forecast production of lithium to 2017    52

5.         Review of lithium producing countries    55

5.1        Afghanistan 55

5.2        Argentina 56

5.2.1      FMC Litihum (MineradelAltiplano S.A.)    58

5.2.2      ADY Resources    59

5.2.3      Lithium Americas    61

5.2.4      Galaxy Resources (Lithium 1)    66

5.2.4.1    Sal de Vida Project    66

5.2.4.2    James Bay Hard-rock Lithium Project    68

5.2.5      Orocobre Ltd.    69

5.2.5.1    Salar de Olaroz    71

5.2.5.2    Salinas Grandes (Cangrejillo)    74

5.2.5.3    Guayatoyoc Project    74

5.2.5.4    Cauchari Project    75

5.2.6      Rodinia Lithium Inc.    76

5.2.6.1    Rodinia Lithium USA 78

5.2.7      Marifil Mines Ltd.    78

5.2.8      International Lithium Corporation    79

5.2.9      Other prospects for Lithium Production    79

5.3        Australia 80

5.3.1      Talison Lithium    82

5.3.1.1    Resources and Reserves    82

5.3.1.2    Production    85

5.3.1.3    Products    86

5.3.2      Galaxy Resources Ltd.    87

5.3.2.1    Reserves and Resources    88

5.3.2.2    Production    90

5.3.3      Reed Resources Ltd.    91

5.3.4      Altura Mining Ltd.    92

5.3.5      Artemis Resources    93

5.3.6      Amerilithium    93

5.3.7      Reward Minerals    93

5.4        Austria 93

5.5        Belgium 94

5.6        Bolivia 96

5.6.1      Salar de Uyuni 97

5.6.2      Salar de Coipasa    99

5.6.3      New World Resource Corp.    99

5.7        Brazil 100

5.7.1      CompanhiaBrasileira de Litio    102

5.7.2      Arqueana de Minérios e Metais Ltda.    103

5.7.3      Advance Metallurgical Group (AMG)    104

5.8        Canada 104

5.8.1      Lithium resources in Canada 105

5.8.2      Canadian trade in lithium    107

5.8.3      Past producers of lithium in Canada 108

5.8.3.1    Tantalum Mining Corp. of Canada Ltd. (TANCO)    108

5.8.4      Potential new producers of lithium in Canada 109

5.8.4.1    Canada Lithium Corp.    109

5.8.4.2    Nemaska Lithium    112

5.8.4.3    Avalon Rare Metals Inc.    115

5.8.4.4    Perilya Limited    116

5.8.4.5    Rock Tech Lithium Inc.    117

5.8.4.6    Critical Elements Corporation    120

5.8.4.7    Glen Eagle Resources Inc.    120

5.8.4.8    Aben Resources Ltd.    121

5.8.4.9    Toxco Inc. Canada 122

5.8.4.10   Other Canadian Lithium Projects    122

5.9        Chile 126

5.9.1      Chilean lithium reserves    127

5.9.2      Chilean lithium production    127

5.9.3      Special Lithium Operations Contracts (CEOLs)    128

5.9.4      SociedadQuímica y Minera    129

5.9.4.1    Reserves and Resources    130

5.9.4.2    Production    131

5.9.4.3    Products    132

5.9.4.4    Markets    134

5.9.4.5    Exports    135

5.9.5      Rockwood Litihum (Salar de Atacama and La Negra Plant)    136

5.9.6      Simbalik Group    138

5.9.7      Li3 Energy Inc.    139

5.9.7.1    Maricunga Property    139

5.9.7.2    Li3 Energy Peruvian Projects    141

5.9.8      First Potash Corp.    141

5.9.9      CODELCO    142

5.9.10 Mammoth Energy Group Inc.    142

5.9.11 Lomiko Metals Inc.    143

5.9.12 Errázuriz Lithium    143

5.9.13 Exports of litihum from Chile 143

5.10       China 146

5.10.1     Chinese reserves of lithium    147

5.10.1.1   Lithium Mineral Reserves    147

5.10.1.2   Lithium Brine Reserves    148

5.10.2     Production of lithium    149

5.10.2.1   Mineral Production    150

5.10.2.2   Brine Production    151

5.10.2.3   Lithium Chemicals and Metal Production    152

5.10.3     Chinese trade in lithium    155

5.10.4     Chinese lithium brine producers    157

5.10.4.1   Tibet Lithium New Technology Development Co. Ltd.    157

5.10.4.2   Qinghai CITIC Guoan Technology Development Co. Ltd.    159

5.10.4.3   Qinghai Salt Lake Industry Co. Ltd.    160

5.10.4.4   Qinghai Lanke Lithium Industry Co. Ltd.    161

5.10.4.5   Tibet Sunrise Mining Development Ltd.    162

5.10.4.6   China MinMetals Non-Ferrous Metals Co. Ltd    163

5.10.5     Chinese lithium mineral producers    163

5.10.5.1   Fujian Huamin Import & Export Co. Ltd.    163

5.10.5.2   YichunHuili Industrial Co. Ltd.    164

5.10.5.3   GanZiRongda Lithium Co., Ltd.    164

5.10.5.4   Sichuan HidiliDexin Mineral Industry    165

5.10.5.5   Xinjiang Non-Ferrous Metals (Group) Ltd.    166

5.10.6     Chinese lithium mineral producers with mineral conversion capacity    166

5.10.6.1   Jiangxi Western Resources Lithium Industry    166

5.10.6.2   Sichuan Aba Guangsheng Lithium Co. Ltd.    167

5.10.6.3   Minfeng Lithium Co. Ltd.    167

5.10.6.4   Sichuan Ni&CoGuorun New Materials Co. Ltd.    168

5.10.7     Chinese mineral conversion plants    169

5.10.7.1   Sichuan Tianqi Lithium Shareholding Co. Ltd.    169

5.10.7.2   Galaxy Resources (Jiangsu Lithium Carbonate Plant)    171

5.10.7.3   General Lithium (Haimen) Corp.    172

5.10.7.4   China Non-Ferrous Metal Import & Export Xinjiang Corp.    173

5.10.7.5   Sichuan State Lithium Materials Co. Ltd.    174

5.10.7.6   Jiangxi Ganfeng Lithium Co. Ltd.    174

5.10.7.7   Sichuan Chenghehua Lithium Technology Co. Ltd.    176

5.10.8     Chinese lithium chemical producers    176

5.10.9     Specialist lithium bromide producers    177

5.10.10 Specialist lithium metal producers    178

5.11       Czech Republic 179

5.12       Democratic Republic of Congo (DRC)    179

5.13       Finland 180

5.13.1     KeliberOy    180

5.13.2     Nortec Minerals Corp.    181

5.13.3     Leviäkangas Deposit    182

5.13.4     Syväjärvi Deposit    182

5.14       France 182

5.15       Germany 184

5.15.1     Rockwood Lithium (Langelsheim Plant)    185

5.15.2     Helm AG    185

5.15.3     Lithium exploration in Germany 185

5.16       Greece 186

5.17       India 186

5.17.1     FMC India Private Ltd.    188

5.17.2     Rockwood Lithium    188

5.18       Ireland 189

5.19       Israel 189

5.20       Japan 190

5.21       Kazakhstan 192

5.22       Mali 193

5.23       Mexico 193

5.23.1     LitioMex S.A. de C.V. (PieroSutti S.A. de C.V.)    193

5.23.2     First Potash Corp. (Mexico)    195

5.23.3     Bacanora Minerals Ltd.    195

5.24       Mongolia 196

5.25       Mozambique 196

5.26       Namibia 197

5.27       Netherlands 198

5.28       Portugal 199

5.28.1     SociedadMineira de Pegmatites    200

5.29       Russia 200

5.29.1     Russian Lithium Reserves and Resources    201

5.29.2     Russian Lithium Production    202

5.29.2.1   JSC Chemical and Metallurgical Plant    202

5.29.2.2   JSC Novosibirsk Chemical Concentration Plant    203

5.29.3     Russian Imports and Exports of Lithium    204

5.30       Serbia    205

5.31       South Africa 206

5.32       South Korea 206

5.33       Spain 207

5.33.1     Minera Del Duero 208

5.33.2     Solid Resources Ltd.    209

5.34       Taiwan 209

5.35       Tajikistan 210

5.36       Turkey 210

5.37       UK    211

5.38       Ukraine 212

5.39       USA 212

5.39.1     Trade in lithium to/from the USA 213

5.39.2     Rockwood Lithium (Chemetall Group)    214

5.39.2.1   Silver Peak, Kings Mountain and New Johnsonville operations (USA)    215

5.39.3     FMC Corporation    216

5.39.3.1   FMC Lithium    217

5.39.3.2   Other FMC Corporation facilities    218

5.39.4     Western Lithium Corporation    219

5.39.5     Simbol Materials Corp.    222

5.39.6     Albemarle Corporation    223

5.39.7     Toxco Inc.    223

5.39.8     AusAmerican Mining Corp. Ltd.    223

5.39.9     Other USA Companies    224

5.40       Uzbekistan 226

5.41       Zimbabwe 226

5.41.1     Bikita Minerals Ltd    227

5.41.2     Zimbabwe Mining Development Corporation    228

5.41.3     Premier African Minerals    228

5.41.4     Cape Range Ltd.    229

6.         International trade in lithium    230

6.1        Trade in lithium carbonate    230

6.2        Trade in lithium hydroxide and oxides    233

6.3        Trade in lithium chloride    236

6.4        Trade in mineral concentrates    237

6.5        Trade in lithium brines    238

7.         Consumption of lithium    239

7.1        Consumption of lithium by end-use    239

7.2        Consumption of lithium by country/region    243

7.3        Consumption of lithium by product    245

7.4        Outlook for consumption of lithium by end-use    247

7.5        Outlook for lithium consumption by product    251

8.         Use of lithium in rechargeable batteries    253

8.1        Types of rechargeable batteries    253

8.1.1      Lithium-ion batteries    254

8.1.2      Lithium metal polymer batteries    256

8.1.3      Lithium-sulphur batteries    256

8.1.4      Lithium-air batteries    258

8.1.5      NiMH and NiCd batteries    258

8.2        Production of rechargeable batteries    258

8.2.1      Producers of rechargeable lithium batteries    261

8.2.2      Producers of nickel metal hydride batteries    262

8.3        Production of rechargeable lithium battery materials    262

8.3.1      Producers of rechargeable lithium battery materials    264

8.3.1.1    Cathode materials    264

8.3.1.2    Electrolyte salts    267

8.3.1.3    Anode materials    268

8.4        Consumption of rechargeable lithium batteries    268

8.4.1      Computing, communication and consumer (3C) market    269

8.4.2      Power devices and motive power    270

8.4.3      Heavy duty applications    272

8.4.4      Transportation    272

8.5        Consumption of NiMH and NiCd batteries    274

8.6        Consumption of lithium in rechargeable batteries    274

8.7        Outlook for demand for rechargeable batteries    278

8.8        Outlook for consumption of lithium in rechargeable batteries    281

9.         Use of lithium in ceramics    284

9.1        Use of lithium in ceramics    284

9.2        Production and consumption of ceramics    286

9.2.1      Ceramic tiles    287

9.2.1.1    Producers of ceramic tiles    289

9.2.2      Sanitaryware    291

9.2.2.1    Producers of sanitaryware    291

9.2.3      Tableware    293

9.2.3.1    Producers of tableware    294

9.2.4      Cookware and bakeware    295

9.3        Production and consumption of glazes and enamels    295

9.3.1      Producers of glazes and enamels    297

9.4        Outlook for ceramics production and consumption    298

9.5        Consumption of lithium in ceramics    299

9.5.1      Outlook for lithium demand in ceramics    300

10.        Use of lithium in glass-ceramics    302

10.1       Use of lithium in glass-ceramics    302

10.2       Production and consumption of glass-ceramics    304

10.2.1     Producers of glass-ceramics    305

10.3       Consumption of lithium in glass-ceramics    306

11.        Use of lithium in lubricating grease    309

11.1       Types of lubricating grease    309

11.2       Production of grease    311

11.2.1     Producers of lithium grease    314

11.3       Consumption of lithium greases    317

11.4       Consumption of lithium in greases    320

11.4.1     Outlook for demand for lithium in greases    321

12.        Use of lithium in glass    323

12.1       Use of lithium in glass    323

12.2       Production and consumption of glass    325

12.2.1     Container glass    326

12.2.2     Fibreglass    329

12.2.3     Speciality glass    330

12.3       Consumption of lithium in glass    330

12.3.1     Outlook for demand for lithium in glass    331

13.        Use of lithium in metallurgical powders    333

13.1       Continuous casting    333

13.1.1     Producers of continuous casting mould powders    334

13.1.2     Continually cast steel production    334

13.1.3     Consumption of continuous casting mould powders    335

13.1.4     Consumption of lithium in continuous casting mould powders    335

13.2       Traditional metal casting    337

13.3       Outlook for demand for lithium in casting powders    337

14.        Use of lithium in polymers    338

14.1       Types of polymers    338

14.2       Production of polymers    340

14.2.1     Producers of polymers    342

14.3       Consumption of polymers    344

14.4       Consumption of lithium in polymers    348

14.4.1     Outlook for lithium demand in polymers    348

15.        Use of lithium in air treatment    350

15.1       Absorption chillers    350

15.1.1     Production of absorption chillers    351

15.1.2     Producers of adsorption chillers    352

15.1.3     Producers of lithium bromide for absorption chillers    354

15.1.4     Consumption of lithium in absorption chillers    356

15.2       Dehumidification    357

15.2.1     Production of desiccant dehumidification systems    358

15.2.2     Producers of desiccant dehumidification systems    358

15.2.3     Consumption of lithium in desiccant dehumidifiers    359

15.3       Air purification    359

15.5       Outlook for demand for lithium in air treatment    360

16.        Use of lithium in primary batteries    362

16.1       Types of primary batteries    362

16.2       Production of lithium primary batteries    365

16.2.1     Producers of lithium primary batteries    367

16.3       Trade in primary batteries    369

16.4       Production of primary lithium battery materials    370

16.4.1     Producers of lithium primary battery anodes    371

16.5       Consumption of lithium primary batteries    373

16.5.1     Outlook for primary lithium battery consumption    374

16.6       Consumption of lithium in primary batteries    374

16.6.1     Outlook for demand for lithium in primary batteries    377

17.        Use of lithium in aluminium smelting    378

17.1       Process of aluminium smelting    378

17.2       Consumers of lithium in aluminium smelting    380

17.3       Consumption of lithium in aluminium smelting    382

17.3.1     Outlook for lithium demand in aluminium smelting    383

18.        Minor end-uses for lithium    385

18.1       Sanitization    385

18.2       Organic synthesis    386

18.3       Construction    388

18.4       Alkyd resins    388

18.5       Alloys    391

18.5.1     Aluminium-lithium alloy    391

18.5.1.1   Producers of aluminium-lithium alloys    394

18.5.1.2   Applications for aluminium-lithium alloys    395

18.5.1.3   Consumption of lithium in aluminium-lithium alloys    398

18.5.1.4   Outlook for demand for lithium in aluminium-lithium alloys    398

18.5.2     Magnesium-lithium alloy    400

18.6       Electronics    400

18.7       Analytical agents    402

18.8       Dyestuffs    402

18.9       Metallurgy    402

18.10      Photographic industry    402

18.11      Welding fluxes    402

18.12      Electrochromic glass    403

18.13      Pharmaceuticals    403

18.13.1    Producers of lithium-based pharmaceuticals    404

18.13.2    Production and consumption of lithium-based pharmaceuticals    404

18.13.3    Consumption of lithium in pharmaceuticals    405

18.14      Speciality lithium inorganics    405

19.        Prices of lithium    408

19.1       Technical-grade lithium mineral prices    409

19.2       Chemical-grade spodumene prices    412

19.3       Technical-grade lithium carbonate prices    413

19.4       Battery-grade lithium carbonate    415

19.5       Technical-grade lithium hydroxide prices    416

19.6       Battery-grade lithium hydroxide prices    418

19.7       Lithium chloride prices    419

19.8       Lithium metal prices    420

19.9       Outlook for lithium prices    421

19.9.1     Technical-grade lithium carbonate prices    421

19.9.2     Battery-grade lithium carbonate prices    424

19.9.3     Technical-grade lithium mineral prices    425

19.9.4     Chemical-grade spodumene prices    425

19.9.5     Lithium hydroxide prices    426

List of Tables

Page

Table 1: World: Forecast nominal and real prices for technical-grade lithium carbonate, 2012 to 2017     8

Table 2: Properties of lithium    10

Table 3: Significant lithium minerals    11

Table 4: Major lithium bearing smectite group members    12

Table 5: Brine concentrations at selected deposits    13

Table 6: Lithium reserves by country     15

Table 7: Composition of standard lithium concentrates     22

Table 8: Specifications for lithium carbonate produced by SQM and Rockwood Lithium     28

Table 9: Specifications for lithium carbonate produced by other suppliers     28

Table 10: Battery grade lithium hydroxide product specifications of major producers      29

Table 11: Production of lithium by country and company, 2005 to 2012     35

Table 12: Capacity and production of lithium minerals by company, 2011 to 2012     39

Table 13: Capacity and production of lithium compounds from brine-based producers, 2011 to 2012     40

Table 14: Capacity and production of lithium mineral converters, 2011 to 2012     42

Table 15: Production of lithium compounds from minerals, 2005 to 2012     43

Table 16: Planned expansions as reported by existing lithium mineral producers to 2017     46

Table 17: Potential lithium mineral producers to 2017     47

Table 18: Planned expansions by existing lithium brine producers to 2017     49

Table 19: Potential new lithium brine projects to 2017     50

Table 20: Planned expansions to production capacity for existing and potential mineral conversion plants     51

Table 21: Afghanistan: Spodumene bearing pegmatites identified in Nuristan, Badakhshan, Nangarhar, Lagman and Uruzgan provinces    55

Table 22: Argentina: Exports of lithium carbonate, 2004 to 2012     57

Table 23: Argentina: Exports of lithium chloride, 2004 to 2012     58

Table 24:FMC: Brine reserves at the Salar del Hombre Muerto    58

Table 25: FMC: Production and value of lithium carbonate and chloride at the Salta plant, Argentina 2005 to 2012     59

Table 26: ADY Resources: Salar del Rincón reserve estimation, 2007    60

Table 27: Lithium Americas: Lithium and potash resource estimation for the Cauchari-Olaroz property, July 2012 61

Table 28: Lithium Americas: Lithium and potash reserve estimation for the Cauchari-Olaroz property, July 2012 61

Table 29: Lithium Americas: Estimated capital costs for Lithium carbonate production at the Cauchari-Olaroz project, July 2012 63

Table 30: Lithium Americas: Estimated operating costs for Cauchari-Olaroz project, July 2012 65

Table 31: Galaxy Resources: Resource estimation for the Sal de Vida project, January 2012 66

Table 32: Galaxy Resources: Reserve estimate for the Sal de Vida project, April 2013 67

Table 33: Galaxy Resources: Estimated capital costs for Sal de Vida project, October 2011 68

Table 34: Orocobre: Agreements between Borax Argentina and other lithium companies    70

Table 35: Orocobre: Resource estimation for the Salar de Olaroz project, May 2011 71

Table 36: Orocobre: Assay results of first battery grade lithium carbonate product from the Orocobre pilot plant    72

Table 37: Orocobre: Capital costs for 16,400tpy LCE operation at the Salar de Olaroz, May 2011 73

Table 38: Orocobre: Operating costs for battery grade lithium carbonate for the Salar de Olaroz, May 2011 73

Table 39: Orocobre: Resource estimation for the Salinas Grande project, April 2012 74

Table 40: Orocobre: Averaged assay results from pit sampling of brine at the Guayatoyoc project    75

Table 41: Orocobre: Maiden resource estimation for the Salar de Cauchari project, October 2012 75

Table 42: Rodinia Lithium: Salar de Diablillos resource estimation, March 2011 76

Table 43: Rodinia Lithium: Estimated capital costs for the Salar de Diablillos project    77

Table 44: Rodinia Lithium: Estimated operating costs for the Salar de Diablillos project    77

Table 45: Rodinia Lithium: Other Argentine lithium projects    78

Table 46: Australia: Exports of mineral substances NES (excl. natural micaceous iron oxides) 2005 to 2012     81

Table 47: Australia: Unit value of mineral substances NES (excl. natural micaeous iron oxides) 2005 to 2011     81

Table 48: Talison Lithium: Resource estimation for the Greenbushes deposit, December 2012 83

Table 49: Talison Lithium: Lithium mineral reserve estimation for the Greenbushes deposit,  December 2012    83

Table 50: Talison Lithium: Li, K and Na content of brines, Salares 7 project saline lakes 1998, (ppm)    84

Table 51: Talison Lithium: Li, K and Na content of brines, Salares 7 project saline lakes 2009, (ppm)    84

Table 52: Talison Lithium: Production and sales of lithium mineral concentrates and ores, 2005 to 2011     85

Table 53: Talison Lithium: Standard lithium mineral concentrate product specifications    87

Table 54: Galaxy Resources: Mount Cattlin mineral resource estimate, February 2011 89

Table 55: Galaxy Resources: Mount Cattlin mineral reserve estimate, December 2011 89

Table 56: Galaxy Resources: James Bay mineral resource estimate, November 2010 89

Table 57: Galaxy Resources: Mt. Cattlin mine and plant production, Q3 2010 – Q4 2011    90

Table 58: Reed Resources : Mt Marion resource estimation, July 2011 91

Table 59: Altura: Mineral resource estimation for the Pilgangoora lithium project, October 2012 92

Table 60: Belgium: Trade is lithium carbonate, 2005 to 2012     95

Table 61: Belgium: Trade in lithium hydroxide and oxide, 2005 to 2012     96

Table 62: Salars and Lagunas in Bolivia identified by Gerencia Nacional de Recursos Evaporíticos    97

Table 63: Results of sampling campaign by Université de Liegé and Universidad Tecnica de Oruro at the Salar de Coipasa, 2002    99

Table 64: Assay data for brines intercepted during drilling at the Pastos Grandes Salar, August 2011 100

Table 65: Brazil: Lithium resource estimation by mineral type, 2009    101

Table 66: Brazil: Trade in lithium chemicals and concentrates, 2004 to 2011     102

Table 67: CBL: Production of lithium concentrates and lithium salts, 2005 to 2011    102

Table 68: Arqueana: Production of lithium concentrates, 2008 to 2011    103

Table 69: Canada: Resources estimations for Canadian lithium projects    106

Table 70: Canada: Imports and exports of lithium compounds 2005 to 2012     108

Table 71: TANCO: Spodumene concentrate production 2005 to 2011     109

Table 72: Canada Lithium: Resource estimation for the Quebec Lithium project, December 2011 109

Table 73: Canada Lithium: Reserve estimation for the Quebec Lithium project, December 2011 110

Table 74: Canada Lithium: Estimated capital expenditure for Quebec Lithium project (inc.LiOH and Na2SO4 plant costs), October 2012 111

Table 75 :Canada Lithium: Estimated operating expenditure for Quebec Lithium project, October 2012 111

Table 76: Nemaska Lithium: Resource estimation for the Whabouchi project, June 2011 113

Table 77: Nemaska Lithium: Reserve estimation for the Whabouchi project, October 2012 113

Table 78: Avalon Rare Metals: Separation Rapids NI 43-101 resource and reserve estimation, 1999    116

Table 79: Perilya Ltd: Mineral resource estimation for Moblan deposit, May 2011 117

Table 80: Rock Tech Lithium: Structure of the Georgia Lake project, November 2011 118

Table 81: Rock Tech Lithium: Updated mineral resource estimation for Georgia Lake project, July 2012 119

Table 82: Glen Eagle: Resource estimation for Authier lithium property, January 2012 121

Table 83: Canada: Lithium exploration projects in Canada with uncompleted scoping studies or PFS in October 2012 122

Table 84: Chile: Lithium carbonate, chloride and hydroxide production, 2004 to 2011     128

Table 85: Chile: Special operating licence bidders for the September 2012 auction    129

Table 86: SQM: Majority shareholders of SQM as of December 31st 2011    130

Table 87: SQM: Reserves within brines at the Salar de Atacama project    131

Table 88: SQM: Production, revenue and value per tonne of lithium compounds, 2003 to 2012    132

Table 89: SQM: Specifications for lithium carbonate     133

Table 90: SQM: Specifications for lithium hydroxide     134

Table 91: RWL: Gross tonnage, value and unit value of lithium carbonate exports, 2006 to 2012    137

Table 92: RWL: Gross tonnage, value and unit value of lithium chloride exports, 2006 to 2012    138

Table 93: Li3 Energy: Resource estimation for the Maricunga property, April 2012 140

Table 94: Chile: Exports of lithium carbonate by destination, 2004 to 2011    144

Table 95: Chile: Lithium carbonate export volume, value and unit price by company, 2005 to 2011    144

Table 96: Chile: Lithium chloride exports by destination, 2004 to 2012    145

Table 97: Chile: Lithium hydroxide exports by destination, 2004 to 2012    146

Table 98: China : Estimated resources and reserves of both lithium mineral and brine operations and projects    148

Table 99: China: Production of lithium, 2003 to 2012    149

Table 100: China: Producers of lithium minerals, 2011 to 2012    151

Table 101: China: Production and capacity of Chinese lithium brine operations, 2011    152

Table 102: China: Mineral conversion plant production and production capacity, 2012    154

Table 103: China: Producers of battery grade lithium metal, 2012    154

Table 104: China: Imports and exports of lithium carbonate, 2005 to 2012     155

Table 105: China: Imports and exports of lithium chloride, 2005 to 2012     156

Table 106: China: Imports and exports of lithium hydroxide, 2005 to 2012     157

Table 107: China: Imports and exports of lithium oxide, 2005 to 2012     157

Table 108: Tibet Lithium New Technology Development: Lithium production, 2010 to 2012    158

Table 109: Qinghai CITIC: Lithium carbonate production, 2008 to 2012     160

Table 110:  Dangxiongcuo reserve estimation from 2006 qualifying report    163

Table 111: Jiangxi Western Resources: Lithium Production, 2010    167

Table 112: Sichuan Tianqi: Production and sales of lithium products, 2010 to 2011     169

Table 113: Galaxy Resources: Battery grade lithium carbonate chemical specifications    172

Table 114: KeliberOy: Claims, reservation and mining concessions for lithium projects held by Keliber in Finland, 2012    181

Table 115: France: Imports and exports of lithium carbonate, 2005 to 2012     183

Table 116: France: Imports and exports of lithium hydroxide and oxide, 2005 to 2012     184

Table 117: Germany: Imports and exports of lithium carbonate, 2005 to 2012     184

Table 118: India: Trade in lithium hydroxide and oxides, 2005 to 2012     187

Table 119: India: Trade in lithium carbonate, 2005 to 2012     187

Table 120: India: Producers of lithium chemicals    188

Table 121: Japan: Trade in lithium carbonate, 2005 to 2012     190

Table 122: Japan: Trade in lithium hydroxide and oxide, 2005 to 2012     191

Table 123: Mexico: LitioMex S.A. concessions and resource estimations    194

Table 124: Namibia: Production of lithium minerals, 1990 to 1998     197

Table 125: Netherlands: Trade in lithium carbonate, 2005 to 2012     198

Table 126: Netherlands: Trade in lithium hydroxide and oxide, 2005 to 2012     199

Table 127: SociedadMineira de Pegmatites: Production of Lithium, 2004 to 2012     200

Table 128: Russia: Deposits of lithium    201

Table 129: Russia: Imports of lithium carbonate, 2002 to 2012     204

Table 130: Russia: Exports of lithium hydroxide, 2002 to 2012     204

Table 131: Russia: Imports of lithium hydroxide, 2002 to 2012     205

Table 132: South Korea: Trade in lithium carbonate, 2005 to 2012     207

Table 133: South Korea: Trade in lithium hydroxide, 2005 to 2012     207

Table 134: Spain: Imports of lithium compounds, 2005 to 2012     208

Table 135: Minera Del Duero: Production of lepidolite in Spain, 2003 to 2011     208

Table 136: Inferred mineral resource estimation for the Doade-Presquerias project, October 2011 209

Table 137: Taiwan: Imports of lithium carbonate, 2005 to 2012     210

Table 138: UK: Imports of lithium carbonate and lithium hydroxides and oxides 2005 to 2012     211

Table 139: USA: Imports and exports of lithium carbonate 2005 to 2012     213

Table 140: USA: Imports and exports of lithium oxide and hydroxide 2005 to 2012     214

Table 141: FMC: Product range    218

Table 142: WLC: Resource estimation for the Kings Valley project, January 2012 219

Table 143: WLC: Reserve estimation for the Kings Valley project, December 2011 220

Table 144: WLC: Estimated operating and capital costs for ‘Case 1’ and ‘Case 2’ scenarios at the Kings Valley project.    221

Table 145: USA: Lithium exploration projects yet to reach scoping study or PFS stage in development    224

Table 146: Zimbabwe: South African imports of mineral substances from Zimbabwe, 2005 to 2012     227

Table 147: Bikita Minerals: Mine production and lithium content 2003 to 2011    228

Table 148: World: Total exports of lithium carbonate, 2005 to 2012     230

Table 149: World: Total imports of lithium carbonate, 2005 to 2012     232

Table 150: World: Total exports of lithium hydroxide and oxide, 2005 to 2012     234

Table 151: World: Total imports of lithium hydroxide and oxide, 2005 to 2012     236

Table 152: World: Major importers and exporters of lithium chloride, 2005 to 2012     237

Table 153: World: Exports of lithium minerals by major lithium mineral producing nations (excl. China), 2005 to 2012     238

Table 154: Chile: Exports of lithium chloride brine1 by SQM to China, 2005 to 2012     238

Table 155: World: Consumption of lithium by end-use, 2002, 2007 and 2012    240

Table 156: World: Estimated consumption of lithium by country/region, 2002, 2007 and 2012     244

Table 157: World: Consumption of lithium by end-use, by product, 2012    246

Table 158: World: Forecast consumption of lithium by end-use, 2012 to 2017     248

Table 159: Japan: Producers of lithium-ion battery cathode materials, 2012    265

Table 160: South Korea: Producers of lithium-ion battery cathode materials, 2012    265

Table 161: China: Producers of lithium-ion battery cathode materials, 2012    266

Table 162: World: Producers of lithium salts for electrolytes, 2012    267

Table 163: World: Lithium battery consumption in 3C products, 2012    269

Table 164: World: Lithium battery consumption in power devices and motive power, 2012    271

Table 165: World: Lithium battery consumption in heavy duty applications, 2012    272

Table 166: World: Lithium battery consumption in transport applications, 2012    274

Table 167: World: Lithium consumption in rechargeable lithium batteries end-use, 2012    275

Table 168: World: Lithium consumption in NiMH and NiCd batteries, 2012    275

Table 169: World: Consumption of lithium in rechargeable batteries by type, 2007 to 2012     277

Table 170: Japan: Consumption of lithium in rechargeable batteries, 2007 to 2012     277

Table 171: World: Consumption of lithium in rechargeable batteries by country, 2007 to 2012     278

Table 172: World: Rechargeable lithium battery demand by market, 2012 and 2017    278

Table 173: World: Comparison of EV production estimates in 2017 by industry consultant    280

Table 174: World: Forecast rechargeable battery consumption in EVs, 2017    281

Table 175: World: Lithium consumption in rechargeable lithium batteries by end-use, 2017    281

Table 176: World: Forecast demand for lithium in rechargeable lithium batteries, 2012 to 2017     282

Table 177: World: Forecast demand for lithium in rechargeable batteries by battery type, 2012 to 2017     282

Table 178: World: Forecast demand for lithium in rechargeable batteries by product type, 2007 to 2012     283

Table 179: Typical whiteware body compositions     285

Table 180: World: Production of ceramic tiles by leading country, 2007 to 2012     287

Table 181: World: Consumption of ceramic tiles by leading countries, 2007 to 2011     289

Table 182: World: Leading ceramic tile manufacturing companies, 2010    290

Table 183: World: Leading sanitaryware manufacturing companies, 2010    292

Table 184: World: Consumption of lithium in ceramics, 2012    300

Table 185: World: Consumption of lithium in ceramics, 2007 to 2012     300

Table 186: World: Forecast demand for lithium in ceramics, 2012 to 2017     301

Table 187: Glass-ceramic matrices    302

Table 188: Compositions of commercial glass-ceramics    303

Table 189: Japan: Consumption of lithium carbonate in glass-ceramics, 2007 to 2012     306

Table 190: World: Consumption of lithium in glass-ceramics by end-use and product type, 2012     307

Table 191: World: Consumption of lithium in glass-ceramics, 2007 to 2012     307

Table 192: World: Forecast demand for lithium in glass-ceramics, 2012 to 2017     308

Table 193: Properties of commercial greases    311

Table 194: World: Producers of lubricating grease    315

Table 195: World: Forecast demand for lithium in greases, 2012 to 2017    322

Table 196: Typical batch compositions for glass by type     323

Table 197: Main sources of lithium used in glass    324

Table 198: EU: Production of glass by type, 1998 to 2012     328

Table 199: USA: Production of container glass, 1999 to 2008    328

Table 200: Typical chemical composition of types of textile-grade fibreglass     329

Table 201: World: Estimated consumption of lithium in glass, 2012     331

Table 202: World: Consumption of lithium in glass, 2007 to 2012     331

Table 203: World: Forecast demand for lithium in glass, 2012 to 2017     332

Table 204: World: Consumption of lithium in continuous casting mould powders, 2007 to 2012     336

Table 205: Japan: Consumption of lithium in fluxes, 2007 to 2012     336

Table 206: World: Forecast demand for lithium in casting powders, 2012 to 2017     337

Table 207: Microstructure of different types of polybutadienes    339

Table 208: World: Producers of SSBR, BR and SBC, 2012    343

Table 209: World: Planned new/expanded SBR, BR and SBC plants    344

Table 210: World: Forecast demand for lithium in synthetic rubber and thermoplastics, 2011 to 2017    349

Table 211: World: Capacity for lithium bromide production, end-2012     355

Table 212: Japan: Consumption of lithium bromide, 2007 to 2012    356

Table 213: World: Forecast demand for lithium in air treatment, 2012 to 2017    361

Table 214: Characteristics of primary lithium batteries    363

Table 215: Japan: Production of primary batteries by type, 1998 to 2012     367

Table 216: World: Trade in lithium primary batteries, 2007 to 2011     369

Table 217: Primary lithium batteries and their material compositions    371

Table 218: Specifications for battery-grade lithium metal     371

Table 219: World: Producers of battery-grade lithium metal, end-2012    372

Table 220: Japan: Consumption of lithium in primary lithium batteries, 2007 to 2012    375

Table 221: Japan: Unit consumption of lithium in primary batteries, 2007 to 2012    375

Table 222: World: Imports of battery-grade lithium metal, 2007 to 2012    376

Table 223: World: Forecast demand for lithium in primary batteries, 2012 to 2017    377

Table 224: Effects of additives and temperatures on properties of molten cryolite    379

Table 225: World: Aluminium smelters using Söderberg technology, end-2012    381

Table 226: World: Forecast demand for lithium in aluminium smelting, 2012 to 2017     384

Table 227: World: Consumption of lithium in other end-uses, 2007, 2012 and 2017     385

Table 228: Examples of uses for lithium in organic synthesis    387

Table 229: Physical properties of Al-Li alloys    392

Table 230: Chemical composition of Al-Li alloys     393

Table 231: Use of Al-Li alloys in selected aircraft    397

Table 232: World: Forecast demand for lithium in aluminium-lithium alloys, 2012 to 2017    399

Table 233: Properties of lithium niobate and lithium tantalite    401

Table 234: Applications for SAW components    401

Table 235: Applications for speciality inorganic lithium compounds    406

Table 236: Prices of lithium minerals, 2000-2013     410

Table 237: Comparison of prices for lithium minerals and carbonate, 2004 to 2012    411

Table 238: Comparison of prices for chemical-grade spodumene concentrate and lithium carbonate, 2004 to 2012    412

Table 239: Comparison of technical- and battery- grade lithium carbonate prices, 2004 to 2012     416

Table 240: Average values of exports/imports of lithium oxides and hydroxides by leading exporting/importing country, 2004 to 2012     417

Table 241: Average values of exports of lithium chloride by leading producing country, 2004 to 2012    420

Table 242: Average values of exports of lithium metal by leading producing country, 2004 to 2012    421

Table 243: World: Forecast nominal and real prices for technical-grade lithium carbonate, 2012 to 2017     423

Table 244: World: Forecast nominal prices for technical-grade lithium carbonate and chemical-grade lithium minerals, 2012 to 2017     425

Table 245: World: Forecast nominal prices for technical-grade lithium carbonate and technical-grade lithium hydroxide, 2012 to 2017     426

List of Figures

Figure 1: Lithium product flow chart and main end-uses, 2012     1

Figure 2: Consumption of lithium by end-use, 2000 to 2012     2

Figure 3: Production of lithium by country, 2000 to 2012     4

Figure 4: Price history of lithium carbonate, 1990 to 2012    6

Figure 5: World: Forecast real prices for technical-grade lithium carbonate, 2012 to 2017     9

Figure 6: Overview of lithium production    16

Figure 7: Extraction and processing of brines from the Salar de Atacama, Chile and Silver Peak, Nevada by Rockwood Lithium    18

Figure 8: Flow sheet showing the processing of brines at Salar de Carmen by SQM    19

Figure 9: Simplified flow sheet of the Li SX™ method patented by Bateman Lithium Projects    21

Figure 10: Simplified mineral concentrate production flow sheet for a typical hard rock lithium operation    22

Figure 11: Simplified flow sheet for lithium carbonate production from spodumene mineral concentrate using the acid-roast method    24

Figure 12: Simplified flow sheet for lithium hydroxide and lithium hydroxide monohydrate production from spodumene mineral concentrate using the lime-roast method    25

Figure 13: Simplified flow sheet for lithium carbonate production from hectorite clay developed by Western Lithium    27

Figure 14: Mining and milling costs for hard rock lithium mineral operations/projects    31

Figure 15: Lithium carbonate cash operating costs, 2012    32

Figure 16:  Potential new producers production costs    33

Figure 17: World: Production of lithium by country, 2000 to 2012     34

Figure 18: Production of lithium from mineral and brine sources, 2005 to 2012     37

Figure 19: Production of lithium minerals by company, 2012     38

Figure 20: Production of lithium from brines by country, 2005 to 2012     40

Figure 21: Planned production capacity and consumption for lithium, 2012 to 2017     45

Figure 22: Forecast production and consumption of lithium, 2012 to 2017     54

Figure 23: Pilot plant flow sheet developed for Lithium Americas at SGS Mineral Services    62

Figure 24: Brazil: Production of Lithium products 2005 to 2010     101

Figure 25: SQM: Lithium sales by destination 2011, 2009, 2007 and 2005     135

Figure 26: SQM: Destination of lithium carbonate exports, 2006 to 2011     136

Figure 27: China: Location of mineral conversion and lithium chemical/metal plants in China, 2012    153

Figure 28: Japan: Imports of lithium carbonate, hydroxide & oxide and combined LCE, 2005 to 2012     191

Figure 29: World: Leading exporters of lithium carbonate, 2006, 2008, 2010 and 2012    231

Figure 30: World: Leading importers of lithium carbonate, 2006, 2008, 2010 and 2012    233

Figure 31: World: Leading exporters of lithium hydroxide and oxides, 2006, 2008, 2010 and 2012    235

Figure 32: World: Growth in consumption of lithium, 2000 to 2012    239

Figure 33: World: Consumption of lithium by end-use, 2012    240

Figure 34: World: Consumption of lithium by end-use, 2000 to 2012     241

Figure 35: World: Consumption of lithium by end-use, 2000 to 2012     241

Figure 36: World: Estimated consumption of lithium by country/region, 2002, 2007 and 2012     244

Figure 37: World: Consumption of lithium by product, 2012     245

Figure 38: World: Consumption of lithium by type, 2000 to 2012     247

Figure 39: World: Historical and forecast consumption of lithium by end-use, 2007 to 2017     248

Figure 40: World: Forecast consumption of lithium by form, 2007, 2012 and 2017     252

Figure 41: Specific energy and energy density of rechargeable batteries    253

Figure 42: Lithium-ion battery schematic    254

Figure 43: Lithium metal polymer battery schematic    256

Figure 44: Lithium-sulphur cell schematic    257

Figure 45: Lithium-air cell schematic    258

Figure 46: World: Production of rechargeable batteries1, 1995 to 2012     259

Figure 47: World: Production of rechargeable batteries1, 1995 to 2012     260

Figure 48: World: Rechargeable lithium battery production by country, 2000 to 2012     260

Figure 49: Lithium-ion battery materials value chain    263

Figure 50: World: Production of lithium cathode materials by type, 2000 to 2012    264

Figure 51: World: Market for rechargeable lithium batteries by end-use, 2002, 2007 and 2012     268

Figure 52: World: Market for rechargeable lithium batteries by end-use, 2012     269

Figure 53: World: Production of rechargeable batteries and consumption of lithium, 2000 to 2012    276

Figure 54: World: Market for rechargeable lithium batteries by end-use, 2002 to 2017     279

Figure 55: World: Ceramic tile production by region, 2007 and 2012     288

Figure 56: World: Sanitaryware production by region/country, 2010    291

Figure 57: World: Production of tableware by country/region, 2008    293

Figure 58: USA: Shipments of cookware, bakeware and kitchenware, 2001 to 2010    295

Figure 59: World: Shipments of white goods by region, 2000 to 2020    296

Figure 60: World: Year-on-year growth in construction spending and GDP, 2000 to 2017    298

Figure 61: World: Production of lubricating grease by additive type, 2011     312

Figure 62: World: Production of lubricating grease by type, 2000 to 2012    313

Figure 63: World: Production of lithium grease by region/country and by type,  2000 and 2011     314

Figure 64: World: Output of automobiles by region, 2000 to 2012    318

Figure 65: World: Deliveries of commercial aircraft, 2000 to 2012    318

Figure 66: World: Shipbuilding deliveries, 2000 to 2012    319

Figure 67: World: Relative industrial and transport output and lithium grease production, 2002 to 2011    320

Figure 68: World: Production of grease and consumption of lithium, 2000 to 2012    321

Figure 69: World: Estimated production of glass by type, 2012    326

Figure 70: World: Production of container glass by region/country, 2012    326

Figure 71: World: Consumption of glass packaging by region, 2011    327

Figure 72: World: Production of continuously cast steel by region, 1998 to 2012     335

Figure 73: World: Capacity for synthetic rubber production by country/region, 2012    340

Figure 74: World: Capacity for BR, ESBR and SSBR rubber by country/region, end-2011    341

Figure 75: World: SBC capacity by region/country, end-2010    341

Figure 76: World: Production of synthetic rubber by region, 1996 to 2011     342

Figure 77: World: Consumption of synthetic rubber by type, 2012    345

Figure 78: World: consumption of BR by end-use, 2010    346

Figure 79: World: Consumption of SBC by region/country, 2010    347

Figure 80: Consumption of SBC by end-use, 2007    347

Figure 81: World: Production of absorption chillers, 2003 to 2012    352

Figure 82: World: Consumption of lithium bromide in air treatment, 2001 to 2012    356

Figure 83: Specific energy and energy density of primary batteries    362

Figure 84: Primary and secondary battery gravimetric energy density    365

Figure 85: World: Production of primary lithium batteries by country, 1998 to 2012     366

Figure 86: Primary lithium battery schematics    370

Figure 87: World: Demand for lithium metal in primary batteries, 2000 to 2012    376

Figure 88: World: Aluminium output by type and lithium consumption, 2000 to 2012    383

Figure 89: World: Consumption of alkyd-based paints and coatings, 2010    390

Figure 90: Development of Al-Li alloys    392

Figure 91: World: Deliveries of commercial aircraft and lithium consumption, 2007 to 2019    399

Figure 92: Price history of lithium carbonate, 1990 to 2012    408

Figure 93: Compound annual prices of lithium minerals, 2000 to 2013     411

Figure 94: Prices for technical-grade lithium carbonate, 1999 to 2012     414

Figure 95: Prices for battery-grade lithium carbonate, 1999 to 2012     415

Figure 96: Comparison of lithium hydroxide and lithium carbonate prices, 2000 to 2012     418

Figure 97: Japan: Quarterly average import value of lithium hydroxide from the USA, 2008 to 2012     419

Figure 98: World: Forecast nominal prices for technical-grade lithium carbonate, 2012 to 2017     423

Figure 99: World: Forecast real prices for technical-grade lithium carbonate, 2012 to 2017     424

For further information on this report, please contact Robert Baylis (rbaylis@roskill.co.uk).

SOURCE Roskill Information Services

 

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Twelve African Energy, Mining and Industry Ministers confirm attendance at the Africa Energy Forum 2013 in Barcelona

Posted on 16 May 2013 by Africa Business

A recent report from the World Bank indicated that the GDP of a third of African countries grew by at least 6% last year, despite the estimate that power outages cost African economies on average around 2% pa of their GDP.

African Ministers, heads of utilities, regulators and international energy companies will address this and other pressing issues concerning Africa’s power sector at the Africa Energy Forum in Barcelona, 18-20 June. Over 800 delegates are expected to attend this international investment Forum for Africa’s power industry to compete for partnerships and deals.

Bruno Cockburn, AEF’s Programme Development Director, commented; “We are delighted the forum remains an important investment tool for proactive African stakeholders looking to address the power and infrastructure investment gap head on. The international community’s response has been extraordinary this year already.”

The latest government official to confirm his attendance at EnergyNet’s Africa Energy Forum 2013 is Hon. Salvador Namburete, Minister of Energy in Mozambique.

He will join Ministers from Botswana, Burkina Faso, Democratic Republic of Congo, Egypt, Ethiopia, Ghana, Libya, Mauritania, Namibia, Rwanda, South Africa, Sierra Leone and Tunisia in Barcelona.

To view the full list of speakers please visit

http://africa-energy-forum.com/#tab-countryParticipants

Event dates:

Pre-conference workshops: 18th June 2013

Conference & Exhibition: 18-20th June 2013

Website: www.africa-energy-forum.com

For more information:

Marketing Director: Liz Owens

Tel: +44 (0)20 7384 7807

Email: liz.owens@energynet.co.uk

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The Global Armored and Counter IED Vehicles Market 2013-2023 – Market Size and Drivers: Market Profile

Posted on 16 May 2013 by Africa Business

NEW YORK, May 16, 2013 /PRNewswire/ — Reportlinker.com announces that a new market research report is available in its catalogue:

The Global Armored and Counter IED Vehicles Market 2013-2023 – Market Size and Drivers: Market Profile

http://www.reportlinker.com/p01182628/The-Global-Armored-and-Counter-IED-Vehicles–Market-2013-2023—Market-Size-and-Drivers-Market-Profile.html#utm_source=prnewswire&utm_medium=pr&utm_campaign=Aerospace_and_Defense

Synopsis

This report provides readers with a comprehensive analysis of the Armored and Counter IED Vehicles market through 2013-2023, including highlights of the demand drivers and growth stimulators for Armored and Counter IED Vehicles. It also provides an insight on the spending pattern and modernization pattern in different regions around the world.

Summary

The global armored and counter IED vehicles market valued US$23.4 billion in 2013, and will increase at a CAGR of 2% during the forecast period, to reach US$28.7 billion by 2023. The market consists of six categories: APCs, LMVs, IFVs, MRAPs, MBTs and Tactical Trucks. The IFV segment is expected to account for 34% of the global armored and counter IED vehicles market, followed by the MBT segment with a share of 26.2%.

Reasons To Buy

“The Global Armored and Counter IED Vehicles Market 2013-2023 – Market Size and Drivers: Market Profile” allows you to:

– Gain insight into the Armored and Counter IED Vehicles market with current and forecast market values.- Understand the key drivers and attractiveness parameters of the global Armored and Counter IED Vehicles market.- Understand the various factors impacting the growth of the Armored and Counter IED Vehicles market.

Table of Contents 1 Introduction

1.1 What is this Report About?

1.2 Definitions

1.3 Summary Methodology

1.4 About Strategic Defence Intelligence

2 Global Armored and Counter IED Vehicles Market Size and Drivers

2.1 Armored and Counter IED Vehicles Market Size and Forecast 2013-2023

2.1.1 Global armored and Counter IED vehicles market expected to increase during the forecast period

2.2 Global Armored and Counter IED Vehicles Market – Regional Analysis

2.2.1 North America is expected to lead the global Armored and Counter IED vehicles market

2.2.2 New programs in armored vehicles in the US to support the global armored and counter IED vehicles market

2.2.3 Armored and counter IED vehicles market to be robust in Europe

2.2.4 Asia to be a lucrative market for armored and counter IED vehicles

2.2.5 Saudi Arabia and Israel expected to lead the armored and counter IED vehicles market in the Middle East

2.2.6 Demand for armored and counter IED vehicles in Africa is expected to reach US$910 million by 2023

2.2.7 Brazil to lead the armored and counter IED vehicles sector in the Latin American region

2.3 Armored and Counter IED vehicles Sub-Sector Market Size Composition

2.3.1 Infantry Fighting Vehicles and Main Battle Tanks to witness strong demand

2.3.2 IFVs to account for the highest expenditure in the global armored and counter IED vehicles market

2.3.3 Market size of Main Battle Tanks expected to grow at a CAGR of 4.1% during forecast period

2.3.4 Armored Personnel Carriers market to experience a marginal decline

2.3.5 Scheduled withdrawal of peacekeeping forces and integration of anti-mine armors on all vehicles to lower MRAP vehicle market

2.3.6 Light Multirole Vehicles market size is expected to decline during the forecast period

2.3.7 Tactical trucks market size expected to witness steady decrease in demand

2.4 Demand Drivers and Growth Stimulators

2.4.1 International peacekeeping missions expected to propel demand for armored and counter IED vehicles

2.4.2 Modernization initiatives will drive the demand for armored and counter IED vehicles

2.4.3 Internal and external security threats fuel the global demand for armored and counter IED vehicles

2.4.4 Increasing costs and capability of armored and counter IED vehicles result in demand for multirole vehicles

2.5 Defense Budget Spending Review

2.5.1 European capital expenditure expected to increase during the forecast period

2.5.2 Asian defense budgets expected to increase at a robust pace

2.5.3 North American defense expenditure projected to decline marginally during the forecast period

2.5.4 Modernization programs likely to drive defense expenditure in South American countries

2.5.5 Military budgets of African countries expected to increase during the forecast period

2.5.6 Defense budgets of Middle Eastern countries likely to increase during the forecast period

2.6 Defense Modernization Review

2.6.1 Debt crisis in Europe leading to postponement of modernization plans

2.6.2 Arms race in Asia reflected in modernization plans

2.6.3 North American modernization plans marginally affected by economic recession

2.6.4 Modernization programs in South America driven by replacement of obsolete armaments

2.6.5 African countries mainly spending on infantry weapons and surveillance and monitoring equipment to slow growing crime rate

2.6.6 Middle Eastern countries pursuing modernization of air force and air defense systems

3 Appendix

3.1 Methodology

3.2 About SDI

3.3 Disclaimer

List of Tables Table 1: Global Armored and Counter IED Vehicles Market Overview

Table 2: Global Armored and Counter IED Vehicles Market Overview

List of Figures Figure 1: Global Armored and Counter IED Vehicles Market (US$ Billion), 2013-2023

Figure 2: Armored and Counter IED Vehicles Market Breakdown by Region (%), 2013-2023

Figure 3: North American Armored and Counter IED Vehicles Market (US$ Billion), 2013-2023

Figure 4: European Armored and Counter IED Vehicles Market (US$ Million), 2013-2023

Figure 5: Asia-Pacific Armored and Counter IED Vehicles Market (US$ Million), 2013-2023

Figure 6: Middle East Armored and Counter IED Vehicles Market (US$ Million), 2013-2023

Figure 7: African Armored and Counter IED Vehicles Market (US$ Million), 2013-2023

Figure 8: Latin American Armored and Counter IED Vehicles Market (US$ Million), 2013-2023

Figure 9: Armored and Counter IED Vehicles Market Breakdown by Segment (%), 2013-2023

Figure 10: Global IFV Market Size (US$ Billion), 2013-2023

Figure 11: Global MBT Market Size (US$ Billion), 2013-2023

Figure 12: Global APC Market Size (US$ Billion), 2013-2023

Figure 13: Global MRAP Market Size (US$ Billion), 2013-2023

Figure 14: Global LMV Market Size (US$ Billion), 2013-2023

Figure 15: Global Tactical Truck Market Size (US$ Billion), 2013-2023

Figure 16: Defense Capital Expenditure of Top Three European Defense Spenders (US$ Billion), 2013-2023

Figure 17: Defense Capital Expenditure of Top Three Asian Defense Spenders (US$ Billion), 2013-2023

Figure 18: Defense Capital Expenditure of Top North American Defense Spenders (US$ Billion), 2013-2023

Figure 19: Defense Capital Expenditure of Top Three South American Defense Spenders (US$ Billion), 2013-2023

Figure 20: Defense Capital Expenditure of Top Three African Countries (US$ Billion), 2013-2023

Figure 21: Defense Capital Expenditure of Top Three Middle Eastern Defense Spenders (US$ Billion), 2013-2023

To order this report:Aerospace_and_Defense Industry: The Global Armored and Counter IED Vehicles Market 2013-2023 – Market Size and Drivers: Market Profile

Contact Clare: clare@reportlinker.com

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Binghamton researcher studies oldest fossil hominin ear bones ever recovered

Posted on 15 May 2013 by Africa Business

Recently published paper indicates discovery could yield important clues on origins of humankind

 

BINGHAMTON, N.Y. /PRNewswire-USNewswire/ — A new study, led by a Binghamton University anthropologist and published this week by the National Academy of Sciences, could shed new light on the earliest existence of humans. The study analyzed the tiny ear bones, the malleus, incus and stapes, from two species of early human ancestor in South Africa. The ear ossicles are the smallest bones in the human body and are among the rarest of human fossils recovered. Unlike other bones of the skeleton, the ossicles are already fully formed and adult-sized at birth. This indicates that their size and shape is under very strong genetic control and, despite their small size, they hold a wealth of evolutionary information.

The skull of Paranthropus robustus (SKW 18 SK 52) from the site of Swartkrans (South Africa). The specimen dates to approximately two million years ago and has yielded the oldest complete ossicular chain (malleus, incus and stapes) of a fossil hominin discovered to date. (PRNewsFoto/Binghamton University)

The study, led by Binghamton University anthropologist Rolf Quam , was carried out by an international team of researchers from institutions in the US, Italy and Spain. They analyzed several auditory ossicles representing the early hominin species Paranthropus robustus and Australopithecus africanus. The new study includes the oldest complete ossicular chain (i.e. all three ear bones) of a fossil hominin ever recovered. The bones date to around two million years ago and come from the well-known South African cave sites of Swartkrans and Sterkfontein, which have yielded abundant fossils of these early human ancestors.

The researchers report several significant findings from the study. The malleus is clearly human-like, and its size and shape can be easily distinguished from our closest living relatives, chimpanzees, gorillas and orangutans. Many aspects of the skull, teeth and skeleton in these early human ancestors remain quite primitive and ape-like, but the malleus is one of the very few features of these early hominins that is similar to our own species, Homo sapiens. Since both the early hominin species share this human-like malleus, the anatomical changes in this bone must have occurred very early in our evolutionary history. Says Quam, “Bipedalism (walking on two feet) and a reduction in the size of the canine teeth have long been held up as the ‘hallmark of humanity’ since they seem to be present in the earliest human fossils recovered to date. Our study suggests that the list may need to be updated to include changes in the malleus as well.” More fossils from even earlier time periods are needed to corroborate this assertion, says Quam. In contrast to the malleus, the two other ear ossicles, the incus and stapes, appear more similar to chimpanzees, gorillas and orangutans. The ossicles, then, show an interesting mixture of ape-like and human-like features.

The anatomical differences from humans found in the ossicles, along with other differences in the outer, middle and inner ear, are consistent with different hearing capacities in these early hominin taxa compared to modern humans. Although the current study does not demonstrate this conclusively, the team plans on studying the functional aspects of the ear in these early hominins relying on 3D virtual reconstructions based on high resolution CT scans. The team has already applied this approach previously to the 500,000 year-old human fossils from the Sierra de Atapuerca in northern Spain. The fossils from this site represent the ancestors of the Neandertals, but the results suggested their hearing pattern already resembled Homo sapiens. Extending this type of analysis to Australopithecus and Paranthropus should provide new insight into when our modern human pattern of hearing may have evolved. The study has just been published in the Proceedings of the National Academy of Sciences.

SOURCE Binghamton University

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Satellite ultra-broadband in Europe & Africa

Posted on 15 May 2013 by Africa Business

NEW YORK, May 15, 2013 /PRNewswire/ — Reportlinker.com announces that a new market research report is available in its catalogue:

Satellite ultra-broadband in Europe & Africa

http://www.reportlinker.com/p01029508/Satellite-ultra-broadband-in-Europe–Africa.html#utm_source=prnewswire&utm_medium=pr&utm_campaign=Broadband

In this report, IDATE identifies the latest developments and major trends in the broadband and ultra-fast broadband markets. After a detailed analysis of the various terrestrial networks and their coverage, it examines satellite technology and the opportunities for positioning it as a complementary service to terrestrial networks to reduce the digital divides that currently exist in Europe and Africa.

Region: Europe: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, United Kingdom, Eastern Europe, Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, Slovenia, TurkeyAfrica: Algeria, Angola, Benin, Botswana, Burkina Faso, Burundi, Cameroon, Central African Rep., Chad, Congo, Dem. Rep., Congo, Rep., Côte d’Ivoire, Djibouti, Egypt, Equatorial Guinea, Eriteria, Ethiopia, Gabon, Gambia, Ghana, Guinea, Guinea Bissau, Kenya, Lesotho, Liberia, Libya, Madagascar, Malawi, Mali, Mauritania, Mauritius, Morocco, Mozambique, Namibia, Niger, Nigeria, Senegal, Sierra Leone, Somalia, South Africa, Sudan, Tanzania, Togo, Tunisia, Uganda, Zambia, Zimbabwe.

Contents • Part 1

Recalling the objectives of the Digital Agenda

• Part 2

Status of broadband market in Europe

• Part 3

Status of ultra-broadband market in Europe

• Part 4

Status of satellite broadband market in Europe

• Part 5

Satellite operator strategies

• Part 6

IDATE’s assessment and market forecasts up to 2017

• Part 7

Introduction to Africa

• Part 8

Status of broadband market in Africa

• Part 9

Satellite operator strategies

• Part 10

IDATE’s assessment and market forecasts up to 2017

• In this report, IDATE identifies the latest developments and major trends in the broadband and ultra-fast broadband markets.

• After a detailed analysis of the various terrestrial networks and their coverage, it examines satellite technology and the opportunities for positioning it as a complementary service to terrestrial networks to reduce the digital divides that currently exist in Europe and Africa.

Recalling the objectives of the Digital Agenda 9• Digital Agenda objectives are being met for basic broadband 10• Objectives of national plans diverging from Digital Agenda for ultra-broadband 112. Status of broadband market in Europe 12• DSL network coverage is improving 13• Rural coverage still needs to progress 14• As a consequence of the DAE, bitrates are improving fast 15• Competition from mobile networks gathers pace 163. Status of ultra-broadband market in Europe 17• Migration to ultra-fast broadband continues on the fixed market… 18• Adoption among households remains low 19• LTE is now launched in most European countries 20• Mobile operators are now tackling the residential fixed market 21• Towards the era of the Gbps 224. Status of satellite broadband market in Europe 23• Some

Figures

on satellite broadband consumers 24• Satellite access solutions are highly competitive 25• Satellite access solutions are tailored to tackle under-served terrestrial markets 26• Full satellite triple-play packages can be proposed 27• 5. Satellite operator strategies in Europe 28• Eutelsat 29• SES 31• Avanti 33• 6. IDATE’s assessment and market forecasts for Europe 34• 7. Introduction to Africa 36• A market with several barriers to entry 37• The fast deployment of submarine cables is a game changer 38• On land, fibre backbone networks are also being deployed 39• Impact of fibre deployment on satellite bandwidth princing 40• 8. Status of broadband market in Africa 41• Africa has less than 5% of world users 42• Fixed broadband prices are unsustainable 43• Mobile telephony is becoming the entry point for Internet access 44• Mobile broadband is progressing rapidly 45• Mobile broadband pricing is decreasing 46• 9. Satellite operator strategies in Africa 47• YahSat 48• SES and Eutelsat 49• 10. IDATE’s assessement and market forecasts for Africa 50• IDATE’s assessement and market forecats up to 2017 51• Who are we? 52

Figures

• Figure 1: Fixed broadband penetration in Europe 10• Figure 2: Digital agenda objectives 11• Figure 3: Total DSL network coverage in Europe, end-2011 (% of population) 13• Figure 4: Rural DSL network coverage in Europe, end-2011 (% of population) 14• Figure 5: Fixed broadband lines by speed, 2008-2012 15• Figure 6: Fixed broadband lines by speed, January 2012 15• Figure 7: Total HSPA coverage in Europe, end of 2011 16• Figure 8: Rural HSPA coverage in Europe, end of 2011 16• Figure 9: FTTx network coverage, end-2011 18• Figure 10: FTTH/B adoption, YE 2012 19• Figure 11: Other FTTx technologies adoption, YE 2012 19• Figure 12: Timetable for LTE spectrum in Western Europe 20• Figure 13: Evolution of LTE coverage in Portugal following use of the 800 MHz band 20• Figure 14: HomeFusion service offered by Verizon Wireless 21• Figure 15: LTE service for homes offered by TeliaSonera 21• Figure 16: Evolution of fixed broadband technologies up to 2030 22• Figure 17: LTE-Advanced performance 22• Figure 18: Bandwidth consumption, per subscriber 24• Figure 19: Bandwidth consumption, by application 24• Figure 20: Evolution of satellite broadband offering for basic package 25• Figure 21 : Price change of a broadband satellite reception terminal 25• Figure 22: Positioning of some satellite broadband offerings in France(as of February 2013) 26• Figure 23: In the USA, ViaSat and Hughes tackle 26• Figure 24: Dishnet satellite triple-play packages being offered by Dish (based on HughesNet Gen4 service) in the USA 27• Figure 25: Satellite broadband terminal proposed by Eutelsat with TV reception capability 27• Figure 26: Ka-Sat coverage 29• Figure 27: Selected packages based on Ka-Sat 29• Figure 28: Evolution of Tooway subscriber base 30• Figure 29: Evolution of Tooway download speeds 30• Figure 30: Hybrid vision of SES 31• Figure 31: Broadband for communities (launched in 2011) 31• Figure 32: Evolution of ASTRA2Connect subscribers 32• Figure 33: Evolution of ASTRA2Connect download speeds 32• Figure 34: Avanti coverage in Europe (Hylas-1 satellite) 33• Figure 35: Satellite broadband packages distributed by irish distributor, Qsat (downlink speeds from 4 to 10 Mbps) 33• Figure 36: Forecast of residential subscriptions to a two-way ultrabroadband satellite solution in Europe, 2013-2017 35• Figure 37: Literacy rates in Africa 37• Figure 38: PC penetration in Africa 37• Figure 39: Evolution of submarine cable deployments in Africa 38• Figure 40: Map of terrestrial fibre backbones in Africa, YE 2012 39• Figure 41: E1 pricing for a selection of African countries, 2012 39• Figure 42: Excerpt from Seacom commercial brochure 40• Figure 43: Average evolution of bandwidth prices over 2009-2012 40• Figure 44: Fixed broadband access penetration in Africa, end 2012 42• Figure 45: Fixed broadband penetration compared with literacy rate 42• Figure 46: Price of fixed broadband subscriptions based on per capita GDP 43• Figure 47: African mobile penetration, as of YE 2012 44• Figure 48: Top 5 African mobile markets, at YE 2012 44• Figure 49: Status of 3G, as of February 2013 45• Figure 50: Top 5 African 3G markets, at YE 2012 45• Figure 51: Monthly broadband basket, YE 2011 46• Figure 52: YahClick coverage 48• Figure 53: Eutelsat IP Easy coverage 49• Figure 54: Satellite broadband packages being offered as of year-end 2012 by Get2Net (SES ASTRA2Connect) 49• Figure 55: Forecast of residential subscriptions to a two-way ultrabroadband satellite solution in Africa, 2013-2017 51• Table 1: Basic coverage national objectives, in selected countries 10• Table 2: Objectives of national broadband plans, in selected countries 11• Table 3: Electrification rates in Africa 37• Table 4: Selection of mobile broadband basket (prepaid handsetbased), YE 2011 46• Table 5: Array of speeds offered by Vox Telecom in South Africa and Coolink in Nigeria (as of February 2013) 488

To order this report:Broadband Industry: Satellite ultra-broadband in Europe & Africa

Contact Clare: clare@reportlinker.com
US:(339) 368 6001
Intl:+1 339 368 6001

 

SOURCE Reportlinker

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Sarama Resources Continues to Consolidate its Position at the South Houndé Project in Burkina Faso

Posted on 15 May 2013 by Africa Business

TSX-V Ticker: SWA
SWA.WT

VANCOUVER, May 15, 2013 /PRNewswire/ – Sarama Resources Limited (“Sarama” or the “Company“) is pleased to report that it has been granted three new exploration permits in Burkina Faso, including one adjacent to the Company’s flagship South Houndé Project, which brings the Company’s exploration landholding in this prospective region to 1,014km².

Highlights

  • Three new exploration permits totalling 240km² granted, expanding Sarama’s total exploration land package in Burkina Faso to 3,339km².
  • The grant of a 127km² exploration permit adjacent to Sarama’s Tankoro exploration property, provides Sarama a commanding presence in the geologically prospective Houndé Belt, with a total landholding of 1,014km².
  • The grant of the Youngou Est and Nianie exploration permits complements Sarama’s existing Youngou exploration property, which borders the Youga mine of Endeavour Mining Corp in the central south of Burkina Faso, bringing the Company’s total landholding in the project area to 363km².
  • Reconnaissance exploration programs to commence in second half of 2013.

Grant of Bini Exploration Permit

Sarama has been granted new exploration permits for the Bini, Youngou Est and Nianie properties by the Ministry of Mines and Energy, bringing the Company’s total exploration property interests in Burkina Faso to 3,339km² (refer Figure 1).

The 127km² Bini exploration property (“Bini“) further consolidates Sarama’s position in the highly prospective Houndé Belt, which hosts the 7.8Moz, 170koz per annum Mana gold mine of Semafo Inc and the 2.2Moz Houndé gold project of Endeavour Mining Corp.  Bini is located centrally within the belt and is adjacent to Sarama’s Tankoro exploration property where the Company has intersected significant gold mineralisation over a 1.9km strike length at the MM Prospect (refer Figure 2).

The property is underlain by a sequence of meta-sedimentary and volcanic rocks and is interpreted to contain north-north-east trending structures, which are thought to be one of the controls on the mineralisation encountered at the Company’s MM Prospect.  Sarama anticipates commencing first-pass reconnaissance exploration activities on the property in the second half of 2013.

The exploration permit gives Sarama the exclusive right to explore for gold and associated minerals during an initial term of 3 years.  Subject to certain statutory obligations being met, the permit is renewable for a further two 3-year terms, after which time, the permit will be eligible for conversion to an exploitation permit.

Figure 1:    Sarama’s Exploration Properties in Burkina Faso

Figure 2:    Sarama’s Exploration Properties in South-West Burkina Faso

Grant of Youngou Est and Nianie Exploration Permits

The Youngou Est and Nianie exploration properties, covering areas of 95km² and 18km² respectively, lie in the extreme south of central Burkina Faso (Figure 3).  Being proximal to Sarama’s existing Youngou exploration property, the permit grants bring Sarama’s landholding in the project area to 363km².

The properties are underlain by volcano-sedimentary and gneissic rocks with the prospective sequence arranged along a north-east striking trend bounded by granite.  The 90,000oz per annum Youga gold mine of  Endeavour Mining Corp is located immediately adjacent to Sarama’s property group and within the same lithological sequence, illustrating the prospectivity of the region.

Sarama anticipates commencing reconnaissance exploration activities on the recently granted properties in the second half of 2013.

The exploration permits give Sarama the exclusive right to explore for gold and associated minerals during an initial term of 3 years.  Subject to certain statutory obligations being met, the permit is renewable for a further two 3-year terms, after which time, the permit will be eligible for conversion to an exploitation permit.

Figure 3:    Sarama’s Exploration Properties in Central South Burkina Faso

Sarama’s President and CEO, Andrew Dinning commented:

“We are pleased to have been granted these new permits in two of our existing project areas.  Our position at the South Houndé Project continues to strengthen with the addition of the Bini property and we look forward to commencing our reconnaissance exploration programs in the upcoming exploration season.

Sarama is well funded with a cash balance of approximately US$11M at the end of March 2013 and is currently finalising regional exploration programs in the south of the MM Prospect which are expected to contribute to the maiden resource estimate planned for Q3 2013.”

For further information on the Company’s activities, please contact:

Andrew Dinning or Paul Schmiede
email:  info@saramaresources.com
telephone: +61 8 9363 7600

About Sarama Resources Ltd
Sarama Resources Ltd is a Canadian company with a focus on the exploration and development of gold deposits in West Africa.  The board of directors and management team, a majority of whom are founders of the Company, are seasoned resource industry professionals with extensive experience in the exploration and development of world-class gold projects in Africa.

The South Houndé Project in south-west Burkina Faso is the Company’s flagship property and is currently the focus of an aggressive exploration program to increase the size of its maiden discovery and to test gold-in-soil anomalies located in a 30km-long structural corridor.  Recent drilling programs at the South Houndé Project have intersected significant mineralisation in several prospect areas which the Company is actively following up.  The Company has built substantial early-stage exploration landholdings in prospective and underexplored areas of Burkina Faso (>3,300 km²), Liberia (>880 km²) and Mali (>560 km²) and is aggressively exploring across the property portfolio.

Caution Regarding Forward Looking Statements
Information in this news release that is not a statement of historical fact constitutes forward-looking information.  Such forward-looking information includes statements regarding the Company’s planned exploration programs.  Actual results, performance or achievements of the Company may vary from the results suggested by such forward-looking statements due to known and unknown risks, uncertainties and other factors. Such factors include, among others, that the business of exploration for gold and other precious minerals involves a high degree of risk and is highly speculative in nature; few properties that are explored are ultimately developed into producing mines; geological factors; the actual results of current and future exploration; changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company’s publicly filed documents.

There can be no assurance that any mineralisation that is discovered will be proven to be economic, or that future required regulatory licensing or approvals will be obtained. However, the Company believes that the assumptions and expectations reflected in the forward-looking information are reasonable. Assumptions have been made regarding, among other things, the Company’s ability to carry on its exploration activities, the sufficiency of funding, the timely receipt of required approvals, the price of gold and other precious metals, that the Company will not be affected by adverse political events, the ability of the Company to operate in a safe, efficient and effective manner and the ability of the Company to obtain further financing as and when required and on reasonable terms. Readers should not place undue reliance on forward-looking information.

Sarama does not undertake to update any forward-looking information, except as required by applicable laws.

Qualified Person’s Statement

Scientific or technical information in this news release that relates to the Company’s exploration activities in Burkina Faso is based on information compiled or approved by Michel Mercier Michel Mercier is an employee of Sarama Resources Ltd and is a member in good standing of the Ordre des Géologues du Québec and has sufficient experience which is relevant to the commodity, style of mineralisation under consideration and activity which he is undertaking to qualify as a Qualified Person under National Instrument 43-101.  Michel Mercier consents to the inclusion in this report of the information, in the form and context in which it appears.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Sarama Resources Limited

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