Australian (ASX) Stock Market Forum

Resource sector

Joined
20 August 2005
Posts
263
Reactions
0
pardon me, silly and ignorant questions coming....

1. What do we do with Diamonds besides turning them into jewellery?
2. What do we do with copper and nickel? I know they are mixed together (or they don't?) but what end product is made from these metals that is valuable?
3. What do we do with Platinum besides turning them into tennis racket and gold clubs?
4. and finally, regarding energy sector, what materials contribute to energy sector? The only one I know is gas.

thanks in advance.
 
kerosam said:
pardon me, silly and ignorant questions coming....

1. What do we do with Diamonds besides turning them into jewellery?
2. What do we do with copper and nickel? I know they are mixed together (or they don't?) but what end product is made from these metals that is valuable?
3. What do we do with Platinum besides turning them into tennis racket and gold clubs?
4. and finally, regarding energy sector, what materials contribute to energy sector? The only one I know is gas.

thanks in advance.
diamonds- I guess cutting etc in small and heavy industry (big drills??, jewellers tools).
platinum- jewellery?

ASX should have more info on each sector and the materials- then find the biggest co for each sector (do ASX co info search) and read the co website info to learn about what they do with the materials/products.
 
Diamonds - in drill tips or saw blades, or ground into a powder for use in grinding and polishing. Used to contain high pressure expirements (google for Diamond Anvil), high performance bearings and special windows.

Currently researching use as a semiconductor and for use in heat sinks.

Nickel - Alloys (eg. Stainless Steel), magnets, armour and safes, used with copper to make Monel Metal (for use in used for ship propellers, kitchen supplies, and chemical industry plumbing), smart wire, rechargeable batteries, currency, electoplating

Copper - Wire (power lines etc), plumbing, electromagnets, motors, steam engines, electrical components like switches, vacuum tubes, cathode ray tubes, magnetrons, waveguides, alloys, ceramic glaze, glass colouring, biostatic surfaces, heatsinks

Platinum - catalysts (ie. catalytic convertors), pharmacutical, electronics
 
Nickel is used in stainless steels as well

copper in ammunition :eek:
 
kerosam said:
pardon me, silly and ignorant questions coming....

1. What do we do with Diamonds besides turning them into jewellery?
2. What do we do with copper and nickel? I know they are mixed together (or they don't?) but what end product is made from these metals that is valuable?
3. What do we do with Platinum besides turning them into tennis racket and gold clubs?
4. and finally, regarding energy sector, what materials contribute to energy sector? The only one I know is gas.

thanks in advance.
Nice simple question. So I thought I'd give a rather comprehensive answer... :D

If you don't want the details then:
1. Diamond tipped drills and saws (though I think these are manufactured diamonds?)
2. Copper - Electrical wiring, water pipes. Nickel - Alloy with other metals particularly for stainless steel.
3. Platinum catalysts in cars, oil refining and other industrial uses.
4. Oil, gas, coal, uranium are the main energy "materials" but not the only energy sources. Not all coal is alike so read the main post... :)

1. Industrial diamonds. Used in diamond saws and drills which are used to cut concrete, bitumen etc. I'm not certain about this but I think these diamonds are actually manufactured and not "real" diamonds as such. They're very small anyway but are used in reasonably large volume worldwide.

If you see a line cut in a concrete or bitumen surface to give a "clean" edge prior to to the road being dug up etc on one side of the cut then that was done with a diamond tipped saw blade. Think of a circular saw only much bigger (about the size of a washing machine) and driven by a petrol or diesel engine with about the same power as the motor in a Toyota Corolla. VERY noisy too. Induction loops used to detect vehicles (car parks, traffic lights etc) are also "cut" in this way but the cut is only about an inch deep and wires are placed in the cut to make a metal detector (you'll see a black "crack" in the road for this purpose at most traffic lights near the stop line).

2. Copper is used to make the electrical wiring in your house and most houses have copper pipes for fresh water too although plastic is now in common use for that purpose. Everything electrical contains some copper - the cord you plug your computer in with would normally have three copper conductors (wires) in it with each having a cross sectional area of 0.75mm2. Other wiring is generally larger than this (to carry more current).

Power transmission and distribution lines however are NOT made of copper these days. Other materials, such as aluminium, are cheaper and able to withstand higher temperatures despite being poorer electrical conductors. (Power line capacity is limited by two factors. First is the ability of the system to withstand the loss of a single line and not become unstable (otherwise the whole state would be blacked out because one line failed) and the second limit is the temperature of the line itself. Copper lines generally aren't suited to operation above 75'C (otherwise the copper anneals) which limits their capacity during hot weather when power demand is highest in most states. Hence the preference for other materials capable of higher temperature operation.) There ARE still plenty of copper distribution and transmission lines in use however since they last a relatively long time.

NICKEL is used in, amongst other things, nickel-cadmium batteries, electroplating of other metals and, most importantly, as an alloy with other metals. Most notable use is in stainless steel. Also it's used in power station turbine blades to enable increased temperature and efficiency (so less fuel used to produce the same amount of power). Also alloyed with other metals for making castings etc.

3. The most important use of platinum is as a catalyst. Palladium is also used for this purpose. Oil refineries use catalysts to increase the yield of valuable products such as petrol from crude oil beyond that which is "naturally" produced from simple distillation of the oil. Without this we would have vast amounts of fuel oil (thick black stuff - think of black vaseline - which is heated prior to burning to thin it) and not enough petrol. Prior to the widespread use of catalytic processes the oil industry did churn out huge volumes of fuel oil which were used in industry and power generation. After the 1970's oil crises it became highly desirable to reduce overall dependence on oil so the fuel oil is now largely craked into petrol and industry and power generation use other fuels instead. There is still some demand for fuel oil though (including ships) but it is no longer priced as a "waste" product.

The primary waste product of oil refining now is petroleum coke ("pet coke") which is essentialy pure carbon. It's used in aluminium smelting and as fuel (home heating mostly in the UK because it burns with absolutely no smoke) and in a few power stations. Has some chemical uses too.

All petrol engine cars sold in Australila in the past 20 years have a catalytic converter which oxidises carbon monoxide and hydrocarbons (unburnt fuel) from the engine to produce carbon dioxide and water vapour instead and thus reduce air pollution. Unburnt hydrocarbons react with sunlight to produce ozone ("smog") hence the desirability of preventing their emission from motor vehicles. Some hydrocarbon emissions are also quite harmful to human health.

The platinum / palladium used is a major component of the cost of a catalytic converter. (If your car is misfiring or you add certain additives to the petrol, most notably lead (still used in avgas) then it will destroy the catalytic converter. Intentionally destroying or removing it is illegal due to air pollution laws.)

4. Energy. The most important source of energy worldwide is crude oil and substitutable products (gas condensate, oil from coal, tar sands etc) although crude oil is the dominant source of hydrocarbon liquids.

The other major sources in developed countries are coal, natural gas (mostly from oil and gas fields but also from coal deposits) and primary electricity (mostly nuclear and hydro). Wood and other biomass (particularly animal dung) is an important energy source in the developing world.

Nuclear energy is derived from uranium. Wood, animal waste, hydro, wind etc are "renewable" energy sources. Coal, oil, gas and related fuels (bitumen, tar sands etc) are "fossil fuels".

Coal is found in various grades with only "black" coal, either "thermal" (mostly for power station use) and "coking" (for steel making) grades being internationally tradeable. The brown coal mined in Victoria has value primarily as power station fuel and is not tradeable unless processed into briquettes (no longer done in Australia) or pure carbon (relatively minor use) due to weight (it's two thirds water) and risk of spontaneous combustion. Likewise the sub-bituminous mined in SA is used only to generate electricity in that state. The sub-bituminous coal mined in Tasmania is used locally as boiler fuel in the cement works, paper mills, Cadbury and Cascade factories etc (Tas has no coal-fired power stations) and is not of tradeable value (though it has been exported on a small scale in the past during fuel shortages elsewhere).

Minor but significant energy sources are natural bitumen (produced only in Venezuela - it's an extra heavy form of oil and can either be upgraded for refinery processing to petrol etc or emulsfied with water and used directly in power stations). Others are ethanol (from various biomass crops and wastes), various vegetable and to a lesser extent animal oils (mostly for motor fuel as a diesel replacement), geothermal energy (mostly for electricity), wind (as electricity) and solar (mostly as direct sunlight to heat buildings via passive solar design and of course for light thus saving the use of other energy sources). An indirect use of geothermal energy occurs on a small scale for heating and cooling of buildings via ground source heat pumps. Methane gas from sewage and more importantly landfills produces as modest amount of electricity in many countries, including Australia.

The most confused energy material is LPG. This is extracted from natural gas for separate marketing (though sometimes it is NOT extracted but left in the "natural" gas) and produced at oil refineries from crude oil. For practical purposes it is regarded as an OIL product NOT NATURAL GAS. LPG prices are substantially linked to the price of oil for this reason. LPG is used for petrochemical production as well as for energy. Ethane, one of the LPG gases, is used only as petrochemical feedstock with the surplus left in the natural gas steam for reticulation (it does no harm). Propane is "BBQ gas" in cylinders and is the dominant component of Autogas. Butane is "lighter fuel" and a component of "aerosol" camping gas cylinders and Autogas in addition to industrial use (and domestic use in some countries but not Australia).
 
After the excellent information of Smurf I would like to cover up topic 1:

Diamonds:

Diamonds are being used as semiconductors to build microchips for computers.
There is also special medical equipment that have diamonds for atomic microscopes.
The space industry needs them too for high-pressure experiments in small windows.

Cheers ;)
 
michael_selway said:
nickel is also used in coins?

what about Zinc & Lead?
Nickel in coins - I believe that it's a major component of the "silver" coins used in Australia but am not certain.

Zinc - galvanizing of steel to prevent corrosion is a very major use. Also in diecast alloys, brass (70% copper, 30% zinc), torch batteries, paint, some sunscreen, becoming common in place of lead for roof flashing (much safer to handle). Commonly alloyed with aluminium and a small amount of silicon for corrosion protection of steel "Zincalume". As a component in TV screens and fluorescent tubes. Smaller amounts of zinc are used in tyres, some shampoos, antiseptic ointments, calamine lotion, floor coverings, plastics, ceramics.

Lead - Car batteries, minor component in some plastics, still added to petrol in some countries, roof flashing, weights, ammunition, solder (though lead solder is being phased out in the electronics industry), in picture tubes (to prevent excessive x-ray emissions), bearings, various alloys, used to be common in electrical cable sheathing.
 
Hematite (Fe2O3) and Magnetite (Fe3O4) are both oxides of Iron and are refined using different processes. The have some different properties, for example Magnetite is very magnetic and hematite is only moderately so.

Magnesium is magnesium and has nothing to do with magnetite, aside from being metals and sharing a few common letters in their names.

Magnesium compounds, primarily magnesium oxide, are used mainly as refractory material in furnace linings for producing iron and steel, nonferrous metals, glass, and cement. Magnesium oxide and other compounds also are used in agricultural, chemical, and construction industries. As a metal, this element's principal use is as an alloying additive to aluminium with these aluminium-magnesium alloys being used mainly for beverage cans.

Magnesium, in its purest form,is like aluminum, and is strong and light, so it is used in several high volume part manufacturing applications, including automotive and truck components. Specialty, high-grade car wheels of magnesium alloy are called "mag wheels." In 1957, a Corvette SS, designed for racing, was constructed, with completely magnesium body panels. VW has used magnesium in its engine components for many years. For a long time, Porsche used magnesium alloy for its engine blocks due to the weight advantage, but around the early 1980's switched back to aluminium for its superior ruggedness at very high power and lower cost. However, there is renewed interest in magnesium engine blocks, as featured in the 2006 BMW 325i and 330i models. The BMW award wining engine uses an aluminum alloy insert for the cylinder walls and cooling jackets surrounded by a high temperature magnesium alloy AJ62A. The application of magnesium AE44 alloy in the 2006 Corvette Z06 engine cradle has advanced the technology of designing robust automotive parts in magnesium. Both of these alloys are recent developments in high temperature low creep magnesium alloys. New alloy development and lower costs, which are becoming competitive to aluminum, will further the number of automotive applications.

Other uses include:

* Removal of sulfur from iron and steel.
* Photoengraved plates in the printing industry.
* Combined in alloys, this metal is essential for airplane and missile construction.
* When used as an alloying agent, this metal improves the mechanical, fabrication and welding characteristics of aluminium.
* Additive agent for conventional propellants and used in producing nodular graphite in cast iron.
* Reducing agent for the production of pure uranium and other metals from their salts.
* Its hydroxide is used in milk of magnesia, its chloride and sulfate in Epsom salts and its citrates in medicine.
* Dead-burned magnesite is used for refractory purposes such as brick and liners in furnaces and converters.
* Magnesium is also flammable, burning at a temperature of approximately 2500K (2200 °C, 4000 °F).
* The extremely high temperature at which magnesium burns makes it a handy tool for starting emergency fires during outdoor recreation.
* Magnesium carbonate (MgCO3) powder is also used by athletes, such as gymnasts and weightlifters, to improve the grip on objects – the apparatus or lifting bar.
* Magnesium stearate is a slightly flammable white powder with lubricative properties. In pharmaceutical technology it's used in the manufacturing of tablets, to prevent the tablets from sticking to the equipment during the tablet compression process (i.e., when the tablet's substance is pressed into tablet form).
* Other uses include flashlight photography, flares, and pyrotechnics, including incendiary bombs.

http://www.wikipedia.org
 
Thank you Doctorj

Do you know of any magnesium miners on the asx that are producing and look like they will produce?
 
Just for general info...

Some of the primary metal smelting operations add other (purchased) metals to their product at the casting stage and sell their own product in alloyed form. This enhances overall value and adds a small premium to the product's price.

For example, Comalco Bell Bay (Tas) adds magnesium and other metals to some of the aluminium they produce in order to produce higher value alloyed product.

Zinifex Hobart Smelter now sells a substantial portion of its zinc (somewhere around half the total production I think) in alloyed form "EZDA" or Electrolytic Zinc Diecast Alloy. Practically all the rest is now 99.995% pure zinc metal (SHG) as they have aimed to minimise production of the lower grade galvanizing product in order to maximise value. Zinifex likewise produces a range of lead alloys (at the Port Pirie (SA) plant) particularly for use in battery manufacture. Again the benefit to the company is that it adds value to the overall product.

Most primary metal mines will also have by-product metals production. For example at Rosebery Mine (Zinifex, Tas) they pour gold and silver ingots on site and also produce copper and lead concentrates in addition to the primary zinc product. Other minor metallic components are also under investigation with a view to recovery in the future.

Also commonly contained in metal ores is sulphur which is burned as part of the smelting process (with the heat usually used as an energy source on site) and the sulphur dioxide (SO2) gas given off is catalysed to SO3 gas and mixed with water (OK, it's slightly more complex than that) to produce sulphuric acid (car battery acid). Zinifex Hobart produces somewhere around 300,000 tonnes (approx) of sulphuric acid in addition to the 261,000 tonnes of zinc per year so it's a significant byproduct. :2twocents
 
Re: Resource sector (BHP vs Rio Tinto)

Between these two mining giants listed in ASX, which one has a more diversification of mining different resources then?
 
Re: Resource sector (BHP vs Rio Tinto)

kerosam said:
Between these two mining giants listed in ASX, which one has a more diversification of mining different resources then?

I have been biased towards BHP for a long time, but now i realise that RIO is better potential wise, although RIO doesnt have oil
 
Both are probably the most diversified miners. Hard to tell which is "more" diversified.

BHP revenues come from: Diamonds, Carbon Steel, Stainless Steel, Energy Coal, Base metals, Aluminium, Petroleum

RIO revenues come from: Diamonds, Gold, Iron ore, Aluminium, Industrial minerals, Coal, Copper.

The main difference is that BHP has petroleum and RIO has more iron ore.

Both are currently expanding iron ore operations though.

Almost half of RIO's earnings in fiscal 2006 are expected to come from iron ore, compared to about 35% for BHP
 
nizar said:
Both are probably the most diversified miners. Hard to tell which is "more" diversified.

BHP revenues come from: Diamonds, Carbon Steel, Stainless Steel, Energy Coal, Base metals, Aluminium, Petroleum

RIO revenues come from: Diamonds, Gold, Iron ore, Aluminium, Industrial minerals, Coal, Copper.

The main difference is that BHP has petroleum and RIO has more iron ore.

Both are currently expanding iron ore operations though.

Almost half of RIO's earnings in fiscal 2006 are expected to come from iron ore, compared to about 35% for BHP

Can you confirm whether they have uranium?
 
Prior to BHP's acquisition of WMC resources, of the two, only RIO had exposure to uranium.

Through its WMC acquisition, BHP is now in control of the largest uranium mine in the world (?), Olympic Dam in SA. So now they both have exposure to uranium, but BHP has more...
 
Tch tch dears. Where is your romance. Diamonds (and gold for that matter) are used in the marriage industry. Men stick them on women and after that they lose all their value and so more have to be purchased. :D
 
Top