WORLD INDIUM PRODUCTION

The amount of indium consumed is closely related to the worldwide production of liquid
crystal displays (LCD). The indium is considered as one of the technological metals for its
important use (even without substitute material) in the advance of technology after the last
years. In 2011, world production of Indian reached 640 tons per year.

The present production and demand estimates that indium reserves would last for a much
longer 20 years, which means that obtaining the metal through recycling has become a future
option, although currently only 1% (Japan) is recycled by the great cost that means.

The Fraunhfer Scientific Institute in Germany estimates an annual demand of about 1,580
tons in 2030.

INDIUM PRODUCING COUNTRIES

China is the largest indium producer in the world with a total of 390 tons in 2012. More than
50% of production comes from China. The largest deposits of world reserves are also located in
China, 8,000 tons out of an estimated 11,000 tons.

Other major indium producers in the world are: South Korea, Japan, Canada and Belgium.
Table 1: World indium production (2011)

COUNTRIES % TONS
CHINA 53% 339.2
KOREA 16% 102.4
JAPAN 11% 70.4
CANADA 10% 64
BELGIUM 5% 32
OTHERS 5% 32
100% 640
Source: USGS

Table 2: World indium production (2011) "Graphic"

World indium production (2011)

5%
5%
CHINA
10%
COREA
JAPN
11%
CANAD 53%
BLGICA
OTROS 16%

Source: USGS
In Peru, some mining concentrates have content of indium, which is recovered in the refining
processes carried out by the Cajamarquilla Refinery (previously the Oroya Metallurgical
Complex too).

And just like around the world with the advancement of technology the demand of indium
internationally motivated the extraction of the indium in the country.

Table 3: Mineral metallurgical production of Peru

MINERAL METALLURGICAL PRODUCTION 2000-2009 (T. OF CONTENTS FINE RECOVERABLE)

PRODUCTS \ YEARS 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
BISMUTH 744 640 568 832 988 952 1.081 1.114 1.061 423
ARSENIC 2.495 1.958 1.613 4.64 3.037 3.15 4.399 4.321 4.822 300
CADMIUM 482 485 422 530 532 481 416 416 371 289
ANTIMONY 461 274 352 616 465 807 691 691 531 145
SELENIUM 63 61 70 72 76 70 75 60 60 61
TELLURIUM 22 19 22 26 25 33 37 35 28 7
INDIUM 5 4 5 6 6 7 6 5 6 2
Source: MINEM 2010

Table 4: Indium production Peru

PER: INDIUM PRODUCTION(1994-2010)

METRIC TONS
30
25
25
20
20

15

10
6 6 6 6
5 5 5 5 5
4 4 4 4 4
5
1
0
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Source: MINEM / USGS
Peru is the main Indian producer in Latin America and seventh in world order.
Table 5: Ranking 2008: Metal production of Peru

RANKING 2008: METAL PRODUCTION OF PERU

MINERAL WORLD LATIN AMERICA
Copper 3 2
Gold 5 1
Zinc 2 1
Silver 1 1
Lead 4 1
Tin 3 1
Iron 17 5
Molybdenum 4 2
Bismuth 3 1
Selenium 6 2
Tellurium 1 1
Indium 7 1
Source: U.S. Geological Survey-USGS

MAJOR INDIUM PRODUCTION COMPANIES

China's economy has been one of the fastest growing in recent years, just as Japan decades
ago, China has focused its growth on manufacturing and infrastructure. This situation leads to
a growing need for raw materials, but unlike Japan, China has one of the largest mining
reserves in the world.

Since the 1990s China has become the main producer of a large list of metals, including the
indium. Some of the major indium producing companies in the world are: Zijin Mining Group
Company Limited (China), Jiangxi Copper Co. Ltd. (China), State-owned Korea Resources KORES
(Korea), Teck Resources Limited (Canada), etc.

In Peru the Brazilian company Votorantim Metais in charge of the Cajamarquilla (Lima) refinery
obtains among its products the indium, from different mines in the center of the country, such
as Cerro Lindo (Milpo), Ayawilca (Tinka Resources), Yauli ), etc.

EVOLUTION OF INDIUM PRICE IN THE LAST 67 YEARS (SINCE 1950)

The qualities of the indium were not discovered until World War II, in which metal was used as
a coating for aircraft engines against corrosion. But it was not until after the end of the war
that was used for the electronics industry, in the late 80's, began to develop LCD televisions
(Liquid Crystal Display), as in the new telephony equipment (Touch screens) such as laptops.
Thanks to technology, indium demand increased considerably, which increased its price
remarkably, in addition to the few reserves of the metal in the world makes its price increase
even more for each passing year and there are no substitute materials in the research.

The average indium price in 2000 was $ 188 per kilogram. From this year, its importance in the
technological world began to grow. In 2005 with the appearance of LCDs the average price the
indium reached was $ 700 per kilogram. Currently, the indium price is $ 1 to $ 5 / gram,
depending on quantity and quality. In addition, with the knowledge of few known metal
reserves and increasing their uses in technology (even without known and verified substitute
material) the indium price is expected to rise much higher.

SOME IMPORTANT CHARACTERISTICS

The indium is a rare metal produced from zinc ore processing, as well as lead, iron and copper
minerals. Moreover, it is usually considered as a by-product because it is obtained after the
refining of the metals in which it is found. In its purest form, the indium is an extremely shiny
and malleable white metal.

Indium is obtained by the electrolysis of its salts. The indium allows us to form mirrors optically
good as silver, but more resistant to corrosion. Indium and tin oxide is used extensively for the
manufacture of transparent electrodes such as those on touch screens (LCD screens).