Titan, Teck seek germanium from zinc tailings

Titan Mining (NYSE-A: TII) says it is evaluating potential germanium production from its U.S.-based zinc mining in partnership with Teck Resources (TSX: TECK.A, TECK.B; NYSE: TECK). 

Titan and Teck envision recovering 13,000 kg a year of germanium, which the market values at $5,800 to $8,600 per kg, from Titan’s Empire State zinc mine in New York state, according to a cooperation agreement signed Wednesday. 

“This is a clear example of our focus on extracting maximum value from our existing operations,” Titan CEO Rita Adiani said in a release. “By working with a credible processing partner that operates an established large-scale metallurgical facility, we have the potential to generate incremental cash flow without additional mining,”

Germanium is considered essential to defence, semi-conductors and chip manufacturing, but China controls more than 80% of global output. The U.S. has limited domestic production and processing capacity, highlighting the importance of securing new supply sources. Canada-based Teck is North America’s largest germanium producer, recovering the mineral as a byproduct of its zinc-mining operations in Alaska.

Shares in Titan jumped 15% to close on Wednesday in Toronto at C$4.18 apiece, valuing the company at C$411 million. They’ve traded in a 52-week window of C74¢ to C$7.75. 

Trail feedstock

Under the terms of their agreement, the parties will evaluate upgraded Empire process streams as a potential germanium-bearing feedstock for Teck’s Trail Operations in British Columbia. They will also assess commercial terms including potential volumes and payability, with a view towards entering into long-term offtake arrangements.

Titan began producing graphite concentrates this year at its Kilbourne demonstration facility, also in New York, becoming the first U.S. producer of the battery mineral in decades. The company, part of the Augusta Group in Canada, produces zinc concentrates at Empire. Since the germanium occurs within material not associated with the primary zinc sulphide mineralization, Titan currently resorts to processing waste streams.

The initiative is designed to evaluate “a capital-efficient pathway” to unlock a critical mineral from material that is already mined and processed, without requiring additional mining activity, the Vancouver-based Titan said. The company could “become a meaningful supply chain partner for domestically sourced germanium” in a timely manner, the CEO said. 

The agreement underscores Teck’s commitment to “strengthening North America’s supply of critical minerals essential to defence, semiconductor production and advanced chip manufacturing,” a Teck executive said in the release.