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Most mineral industry analysts agree that the supply of cobalt is more uncertain
than the supply of the other crust metals because most cobalt production comes from
politically unstable Zaire (57%) and Zambia (11%) and cobalt is produced as a byproduct
of copper mining. Consequently, the supply of cobalt is tied to the demand for
copper. This is also true for tellurium, which is produced as a by-product of both copper
and gold mining. This uncertainty in supply has caused industry to look for alternatives
to cobalt and tellurium, resulting in only a modest growth in their markets over the past
decade, and consequently relatively low prices. If substantial alternative sources of
cobalt and tellurium supply are developed, there should be a greater incentive to
reintroduce them back into products and expansion of the markets (e.g., 134).
A preliminary estimate of the economics of crust mining and processing
operations for the State of Hawaii 135 indicated that they were not economical, under the
circumstances at that time (Table 7). The minimum required return on the investment of
US $750 million in mining and processing is on the order of US $100 million per year.
Neither pyrometallurgical or hydrometallurgical processing options would be
commercially viable under the scenario of 700,000 dry t/y of crust production 137.
Table 7. Fe-Mn crust mining and processing, estimated annual revenues and costs
Commodity Output (t)
Prices
(1985 dollars)
Amount
($ x 106 )
Pyrometallurgical Process Revenues
Cobalt 5,710 11.70 133.6
Nickel 2,990 3.29 19.7
Copper 120 0.65 0.2
Fe-Mn 195,000 0.30 117.0
Total Revenues - - 207.5
Costs - - -291.0
Net Revenues - - -20.5
Hydrometallurgical Process Revenues
Cobalt 5,365 11.70 125.5
Nickel 2,900 3.29 19.1
Copper 420 0.65 0.5
Total Revenues - - 145.1
Costs - - -204.0
Net Revenues
From DOI-MMS
- - -58.9
136
74 International Seabed Authority