Tantalite prices in Europe reached a two-year high last week. Supply disruptions from escalating tensions in the Democratic Republic of Congo (DRC) are fueling this surge.
The DRC is the world’s top producer of the mineral crucial for the electronics and aerospace sectors.
Tantalite is currently trading between $100 and $105 per pound on the European spot market.
This marks its highest level since April 2023 and a 25% increase since unrest began in January.
Tantalite contains tantalum, a vital metal used in capacitors, medical devices, and nuclear reactor components.
A minor metals trader noted that the conflict in eastern DRC is hindering the availability of ethically sourced tantalite.
They highlighted the risk of rebel groups seizing control of even unaffected areas shortly after deals are made.
The DRC has witnessed increased violence following a major offensive by Rwandan-backed M23 rebels.
Sian Morris, a senior analyst at Argus, explained that many Western smelters are avoiding tantalum from the DRC and Rwanda due to the conflict.
Instead, they are sourcing from Burundi, Mozambique, and Ethiopia, where supplies are significantly smaller, leading to higher prices.
In 2024, the DRC and Rwanda collectively accounted for over 58% of global tantalum production.
Piyush Goel, a consultant at CRU Group, pointed out the lack of immediate alternative producers to boost tantalite supply, except for artisanal mining, which raises environmental, social, and governance concerns.
The DRC’s mineral wealth has previously drawn attention from the U.S.
A senior advisor for Africa recently stated that Congo and Rwanda have presented a draft peace proposal aimed at ending the conflict in eastern Congo and attracting Western investment.