Tantalum: A Case Study on Sustainable Resource Management

"Tantalum, a heavy metal with characteristics such as superconductivity and high terminal resistance, nowadays is the most efficient material for production of capacitors, which are essential for production of small electronic applications like notebooks and cell-phones. It is one of the strategic resources for information societies. With supply extracted from Central Africa (Congo / DRC), China, Australia, and Canada, it can serve as an example for sustainability efforts in the management of non-renewable resources in Developing Countries, Newly Industrializing Countries and Industrialized Countries alike. The paper analyzes the life cycle of tantalum in its environmental, social, and economic dimensions. The first section highlights the importance of tantalum, showing a demand-driven market. The second section analyzes current and future supply. The third section tackles environmental and social impacts of tantalum mining in different legislations. The fourth section especially deals with the Case of the Democratic Republic of Congo since companies have been accused of participating in a civil ‘resource war’. Section five will draw conclusions for sustainable resource management. Written in an interdisciplinary manner, the article has a bearing on economics, especially on resource economics and new institutional economics, as well as on geography. It deals with questions such as security implications of physical scarcity in rapidly growing markets. In doing so it can, firstly, be shown that information exchange in combination with reputational risks lead to a shift in extraction activities from a Developing Country (DRC) to an Industrialized Country (Australia); i.e. a ‘race to the bottom’ does not take place. This, however, does not mean that market mechanisms work properly since information exchange (especially with China) is incomplete, moral hazard still prevails, and inadequate institutions hamper development processes in an exporting country like Congo. Any sustainable resource management for tantalum not only should foster gathering and exchanging better information on environmental and social impacts, but also incentives for upstream metal recycling in industry as well as support for governance processes in Developing Countries"