China's germanium export ban may benefit Rockfire Resources

Published 04/12/2024, 12:18

LONDON - Rockfire Resources plc (LON: ROCK), a company specializing in the exploration of base metals, precious metals, and critical minerals, has disclosed that China's recent decision to ban the export of germanium to the United States could have significant implications for its 100%-owned Molaoi zinc project in Greece. This project is known to contain germanium as a by-product.

On December 3, 2024, China, which previously supplied over 60% of the world's germanium, officially ceased all germanium exports to the U.S. This move is expected to create major supply chain pressures and could potentially increase the price of the metal, which is currently valued at approximately US$ 4,073 per kilogram.

Germanium is a critical mineral used in various military applications, including weapons sighting scopes, missile guidance systems, and night vision goggles. It is also used in the production of electronic components for computers and phones, where it contributes to smaller, more stable, and less noisy chips.

The Molaoi project, which aims to contribute to Europe's supply of critical raw materials, contains an estimated 1.09 million tonnes of zinc, 260,000 tonnes of lead, 19.1 million ounces of silver, and germanium as a by-product. Rockfire's internal assessment, which is not yet compliant with reporting codes, suggests approximately 4.8 million tonnes of germanium at an average grade of 21.9g/t Ge. Further metallurgical testing indicates that grades of 117g/t Ge could be reported to a zinc concentrate.

Rockfire's CEO, David Price, commented on the potential positive outcomes for the company, stating the export ban by China is likely to exert drastic pressure on global supply chains. He also noted the possible impact on germanium prices due to the ban.

The company's assessment of germanium content requires additional sampling to establish a critical mass of data points, as core drilled at Molaoi before 2021 was not analyzed for germanium and cannot be included in current resource estimates.

This announcement is based on a press release statement, and it highlights the Molaoi project's development as a strategic asset for Europe's critical mineral supply, particularly in light of the changing geopolitical landscape affecting raw material availability.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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