MDN Inc. is one of the very few North American companies targeting niobium production. Niobium is mainly used in steel alloys to create high strength low alloy steels (technically referred to as High Strength Low Alloy Steels), stainless steel and heat resistant steels. Niobium, formerly known as columbium, is not technically a rare metal, as its atomic number falls outside the boundaries of the lanthanides; however, it is rare and most of it (over 80 percent) is mined in Brazil. Canada also has significant niobium deposits and because of the close by Niobec mine, Iamgold, is the second largest producer in the world, accounting for 9 percent of global supply but MDN has an opportunity to become a leading company in the sector.
Last August, MDN started exploration at its 100 percent-owned Samaqua property, in the Saguenay-Lac-St-Jean area of Quebec. It is close to the Crevier niobium and tantalum project. MDN will proceed with drilling activities on the site, pending the necessary permits, while service providers are preparing to start work. The start of drilling, encompassing some 1,500 meters, is expected to start this month.
Niobium is a metal essential for Europe and the United States and has never been produced in these countries over the last 30 years. MDN is expected to undertake a feasibility study during the second quarter of 2015 to be followed by a fundraising to the tune of at least CAD$ 300 million, ultimately leading to the construction of a niobium and tantalum processing plant.