Titan, Teck team up to explore germanium recovery from zinc mine waste

Titan Mining (NYSE-A: TII) says it is evaluating the potential production of germanium from its existing US-based zinc mining operations in partnership with Teck Resources (TSX: TECK.A/TECK.B).

A critical mineral, germanium is considered essential to defense, semi-conductors and chip manufacturing. The US currently 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.

Titan, part of the Augusta Group in Canada, produces zinc concentrates at its Empire State Mine (ESM) operations in New York state. Adding germanium production represents a potentially new revenue opportunity for the company, while supporting the domestic supply of key materials, it said.

Earlier this year, the company began producing graphite concentrates at its Kilbourne demonstration facility, also in New York, becoming the first US producer of the battery mineral in decades.

Unlocking germanium potential

On Wednesday, Titan announced that it has signed a cooperation agreement with Teck to assess the potential recovery of approximately 13,000 kg/year of germanium within the existing ESM process streams.

This 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, Vancouver-based Titan stated.

“This is a clear example of our focus on extracting maximum value from our existing operations,” Titan CEO Rita Adiani said in a press release.

Since the germanium at ESM occurs within material not associated with the primary zinc sulfide mineralization, the company currently resorts to processing waste streams rather than being recovered.

“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,” Adiani said.

“This agreement with Titan underscores Teck’s commitment to strengthening North America’s supply of critical minerals essential to defense, semiconductor production and advanced chip manufacturing,” Ian Anderson, Teck’s EVP and chief commercial officer, added.

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

Adiani noted that with strong pricing in US warehouses ranging from $5,800-8,600/kg and limited domestic supply, this initiative would position Titan to “potentially become a meaningful supply chain partner for domestically sourced germanium” in a timely manner.

Shares of Titan Mining soared on the Teck partnership, rising as much as 11% to $3.00 in New York. The company has a market capitalization of nearly $299 million.