Niobium’s rise in West Arunta sparks ASX juniors into global hunt

Niobium, a vital element used to create nanocrystalline materials, is almost rubber-stamped to spark a new wave of technological advances and the West Arunta critical minerals region in WA is emerging as a vital global source of the element.

That’s because Brazil produces ~92% of the world’s of niobium (Nb), predominantly from the China-backed CBMM mine (90%).

As the Middle Kingdom looks to shift the focus of production and manufacturing towards its domestic market, the rest of the globe is looking to create its own supply chains of critical minerals that China has long been heavily relied on for.

We’ve already seen China flex on this, when it enacted export controls of germanium, gallium and graphite last year, sparking a scramble by companies and governments to find new supplies.

Use in new nanocrystalline materials

Nanocrystalline materials are a new generation of advanced soft magnetic alloys that are used to control and convert electricity. By adding niobium to the alloys, the materials can have a crystal size of <10 nanometers. That means high permeability and a high heat tolerance – perfect for making miniature and lightweight materials that advanced technology is increasingly in need of.

They’re already used in high-performance solar, wind turbines and create more efficient industrial applications for a range of technologies. For EVs, niobium’s use in new lithium and titanium oxide batteries could be an absolute game changer by significantly cutting down charge times and increasing driving range.

UK-based Echelon Technologies has raised $37m for its fast-charging battery material so it can scale up production of its XNO niobium battery anode product, backed by miner CBMM and in partnership with major OEMs.

Another British company, Nyobolt, has developed its own 35kWh lithium-ion battery with niobium, which charges a vehicle from 10% to 80% in under five minutes, as showcased in a live demonstration.

Nyobolt’s fast-charging niobium-powered prototype. Source: Nyobolt.

The bulk of niobium is used to strengthen HSLA steel products, yet demand for higher-capacity EV motors can be seen as the primary kicker that’s helping to gain market share for niobium at the moment.

This small, yet significant tweak using it for batteries has enormous potential for mass market adoption.

Leading niobium-focused Encounter Resources (ASX:ENR), exec chair Will Robinson is backing the element to be an important cog in near-future commercialised tech innovations.

“There’s a sound argument to suggest that niobium use is going to expand, particularly with a new wave of battery applications and its growing use in steel alloys on the way,” Robinson says.

“It’s also encouraging to see companies out of Japan such as Toshiba already looking to incorporate niobium into its product base.”

Toshiba says it’s going to use niobium titanium oxide (NTO) as a next-gen anode material that increases battery capacity and has ~3X more volume density than lithium titanium oxide.

It’s also successfully increased the crystallinity of NTO particles without compromising the longer life and rapid-charging performance, making it possible to extend travel distance. The global power innovator is set to release its next generation of niobium-charged batteries next year.

Jury is out on how to find niobium

Primary or even substantial secondary niobium deposits are far and few between, or at least they have been since economic mineralisation outside China has largely been ignored over the decades. Current research aims to understand how niobium is transported on a geological scale and deposited in the Earth’s crust, which is key to figuring out where to look for it.

Looking at the CBMM mine in Brazil, a study last year found its niobium has magma-enriched origins, providing geologists with a starting point for exploration efforts. But just how the pyrochlore mineralisation – which constitutes the main Nb ore in carbonatite deposits in Brazil – is formed, remains a mystery.

As it stands, the 460Mt CBMM mine is by far the global go-to supply for ferroniobium, running between 2.5-3% Nb2O5, while the nearby Anglo American Niobio Brasil deposit contains 18Mt at 1.34% Nb2O5 and adds an extra 2% to global production.

Just 8% comes from outside South America at IAMGOLD Corp’s 2.6Mt at 0.41% Nb2O5 Niobec mine in Quebec, Canada.

All three projects turn the pyrochlore mineral to about ~55-60% niobium oxide concentrate that’s inturn processed into mainly ferroniobium and other metal products.

Luni resource spreads niobium fever in West Arunta

In just two years, WA1 Resources (ASX:WA1) has unearthed its Luni discovery into a 200Mt deposit – the most significant niobium resource to be found in more than 70 years.

It’s now a >$1bn market-capped stock, raising $60m to accelerate project development workstreams and expand exploration across the greater tenement package, including its P2 carbonatite prospect.

In that time, ASX explorers have descended around the deposit – another nearology experiment, which could potentially grow West Arunta into a district-scale niobium and rare earths hub.

The juniors that have caught the bug

With tenements straddling the boundaries of WA1’s Luni, Encounter and CGN Resources (ASX:CGR) are both eyeing REE and niobium finds, while mining major Rio Tinto (ASX:RIO) is also present to the south.

Encounter has been in the region since 2020. Originally looking at a copper-gold-REE mineralisation at its Aileron project, niobium was not on the explorer’s radar until its first diamond drill hole hit up to 773ppm Nb, around the same time WA1 was getting started at Luni.

When two more diamond holes intersected the Elephant Island Fault and found more niobium-REE carbonatites, the junior suddenly had an open, 3.5km-long strike extent on its hands.

Exploration since has shown consistent growth of Aileron and investors seem to think so too. Since the start of 2024 Encounter’s share price has risen 200%.

That’s on the back of some impressive results; especially recently at its Crean target area where assays showed thick and wide niobium mineralisation that included a huge 46m at 3.1% Nb2O5 intersection last week.

Robinson says the current AC drill program is testing mineralisation near multiple major structures at Aileron, so it can gear them into a future maiden resource.

“We’re looking at building our inventory. For us right now, it becomes a question of first finding a resource then figuring out how you can treat it,” Robinson says.

“Focusing on metallurgy early on is important with these kinds of elements and that’s what we’ll be looking to do. Testwork can also showcase potential by-products that may add significant value to Aileron.”

Encounter’s Aileron project and other discoveries in West Arunta. Source: ENR.

On the west and east sides of WA1’s tenements and within 20km of the Luni and P2 discoveries, MTM Critical Metals (ASX:MTM) is eyeing surveys across three exploration licenses to generate drill targets.

Nearby Norwest Minerals (ASX:NWM) is perusing two new target zones after analysing a recent gravity study at its own West Arunta project.

It reckons one of the targets, Malibu, has distinct similarities to Luni and is heading back into the field to further delineate targets.

Explorer Lycaon Resources (ASX:LYN) is waiting on heritage clearance to get to work on its Stanmore project, where it’s identified two high priority anomalies and three secondary drill targets.

On the back of a $5.6m cap raise, the drillbit is about to spin for Rincon Resources (ASX:RCR) at its Avalon prospect to test for mineralisation, with a mixed-bag of RC and diamond drilling across 3000m.

Joining the hunt elsewhere in WA

RareX (ASX:REE) and St George Mining (ASX:SGQ) are looking into the potential for niobium at their respective Khaleesi and Destiny projects.

After snapping up the eastern Yilgarn landholding back in May, RareX says it’s identified an opportunity for a district-scale niobium project.

Data from 65,000m of historical AC drilling that was looking for gold is being compiled and several gravity highs have already been marked across an alkaline intrusion about 20km in diameter.

“We’ve expanded our exploration footprint as drill targets emerge and we’re looking forward to re-assay some of the historical gold-focused drilling for niobium and rare earths mineralisation,” REE CEO James Durrant says.

In the nearby Mid West, Krakatoa Resources (ASX:KTA) has discovered new niobium-REE targets at its Mt Clere project using gravity survey data, defining a 5km-long complex in the Stone Tank prospect area.

Reach Resources (ASX:RR1) itself is on the hunt relatively down the road at Wabli Creek in WA’s Gascoyne, where a surface sampling program last year found up to a whopping 14.3% Nb2O5.

And around the world

Earlier this month, Summit Minerals (ASX:SUM) turned up rock chip samples of up to 21.22% Nb2O5 partial rare earth oxides (PREO) at its Ecuador project in Brazil.

Even though previous sampling struck returns of up to 53.07% Nb2O5, the new samples from up the northern end of the 3km-long strike indicate a much larger prospective system than previously thought.

Interestingly, Power Minerals (ASX:PNN) just bought the early doors Litio niobium-REE project next door.

In Africa, Global Metals & Mining (ASX:GBE) is progressing development of its Kanyika project which aims to produce 3,267tpa niobium pentoxide over a 27-year mine life; while Peak Rare Earths (ASX:PEK) has achieved grades of up to 1.26% Nb2O5 from an RC drilling campaign at the Northern Zone at the Ngualla in Tanzania.

At Stockhead we tell it like it is. While Norwest Minerals, Lycaon Resources, MTM Critical Minerals, Summit Minerals, CuFe, RareX and St George Mining are Stockhead advertisers, they did not sponsor this article.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.