Bismuth is a brittle, silvery-green metal that has low toxicity and is used as a replacement for toxic metals. It has unique properties such as being the most diamagnetic metal and having a higher density in its liquid than solid form. Bismuth has many industrial uses including in metallurgy, alloys, chemicals, pharmaceuticals, and electronics. While bismuth demand has generally been inelastic with respect to price changes in the short term, longer term elastic behavior has also been observed, such as a recent decrease in demand following a price increase. China is currently the major global producer of bismuth, which is primarily obtained as a by-product of processing other metal ores.

1. POLITECNICO DI TORINO
BISMUTH
AUTHORS:
197125 - ANTHONY UWHERAKA (NIGERIA)
197925 - LUCA ROSSETTI (ITALY)
197747 - MANUELA LONGO (ITALY)
196917- MARIAN SEBASTIANELLI (VENEZUELA)
193176 - SVETLANA TRETYAKOVA (KAZAKHSTAN)
FEBRUARY, 2013

2. BISMUTH
2
The great challenge faced by economies today is to integrate environmental sustainability with economic growth
and welfare by decoupling environmental degradation from economic growth and doing more with less. The mining
and minerals industry has come under tremendous pressure to improve its social, developmental, and environmental
performance.
Despite the industry’s undoubted importance in meeting the need for minerals and its significant contributions
to economic and social development, concerns about aspects of its performance prevail. Mining, refining, and the
use and disposal of minerals have in some instances led to significant local environmental and social damage. For
this reason the development of ecologically “friendly” minerals is an important object of many countries.
Bismuth is a brittle, silvery-green metal that has a low melting temperature and high specific gravity. Being both
stable and non-toxic, bismuth is often used as a replacement for toxic metals such as antimony, cadmium, lead and
mercury.
Bismuth is the most naturally diamagnetic of all the metals and has the second lowest thermal conductivity after
mercury. It has a high electrical resistance, and has the highest Hall Effect of any metal (i.e. the greatest increase in
electrical resistance when placed in a magnetic field). When deposited in sufficiently thin layers on a substrate,
bismuth is a semiconductor. Elemental bismuth is one of very few substances for which its liquid phase is denser
than its solid phase (water being the best-known example). Because bismuth expands on freezing, it is an important
component of low-melting typesetting alloys, which need to expand to fill printing molds.
In addition, this property makes bismuth alloys particularly suited to the production of sharp castings of objects
subject to damage by high temperatures. Combined with other metals such as tin and cadmium, bismuth forms low-
melting alloys which are extensively used for safety devices in fire detection and extinguishing systems. Bismuth
is used to produce malleable irons and is also finding use as a catalyst for making acrylic fibers. The metal is also
used as a thermo-coupling material, and has found application as a carrier for 235 U or 233 U fuels in nuclear
reactors.
Bismuth has been used since antiquity, its extraction for use in pigments began as early as the 15th century from
silver mines in Schönberg, Germany. In the mid-18th century, research by Johan Heinrich Pott and Claude Geoffroy
led to a better understanding of bismuth and its unique properties. Medical practitioners were, at this time, also
becoming aware of bismuth's beneficial properties in treating gastric conditions. It was only isolated as a specific
element around 1753 and a major stimulus to the bismuth industry came in the mid-1990s with the Safe Drinking
Water Act Amendment (1995), which prohibited the presence of lead in drinking water fixtures in the US. For the
past 20 years, the lead-free movement has resulted in bismuth's adoption in a wide range of applications and it
produced an increase in the demand of this material.
Today bismuth in its elemental form has many uses, including recent developments as a nano wire. Bismuth
compounds are well known in pharmaceutical applications both as medicines and, more recently, as radio-opaque
agents, and also commonly used as pigments.
For the most part, bismuth is a by-product of processing either lead or tungsten ores. But it can also be extracted
from copper-, gold-, silver- and tin-bearing ores.
As with so many other metals, China is the world's major source of bismuth, where it is produced, for the most
part, as a by-product of processing tungsten ore, but also of tin and fluorspar. Bismuth production in China is spread
across some 13 different provinces and autonomous regions, with Hunan Guangdong and Jiangxi provinces
accounting for some 85% of domestic reserves. In terms of production, at least in 2007, Hunan accounted for some
57% of total output, followed by Jiangxi with 28% and the various other areas accounting for the remainder.

3. BISMUTH
3
Because of its low toxicity and its environmental "friendliness," bismuth is now often described as the "Green
Metal." As such, it is itself a useful substitute for more-toxic metals such as lead. Following the passage in 1996 of
the Safe Water Drinking Act Amendment in the U.S., all new and repaired fixtures and pipes for the country's
potable water supply have had, since August 1998, to be lead free. Bismuth has helped fill the gap left by lead.
Perhaps because of this steady demand base, and despite both the current economic situation and some
significant movements over the past couple of years, the price of bismuth has recently been relatively stable.
Bismuth’s unique intrinsic (physical and chemical) properties and its low toxicity, makes it quite suitable for a
wide range of applications. The main ones being:
Metallurgical additives: It is used as an additive in free-machining steels, and as an additive to improve
metallurgical quality in the foundry industry (casting). Also zinc alloys (zinc-bismuth) are increasingly becoming
important with respect to demand in producing thinner and more uniform coatings in galvanizing. Bismuth is used
as an alloying agent in production of malleable irons, the fact that bismuth and many of its alloys expand slightly
when they solidify make them ideal for this purpose.
Metallurgical alloys: Its fusible alloys, also known as low melting point alloys (which contain bismuth,
antimony, cadmium, gallium, lead, indium and tin) are used to produce holdings for optical lens grinding, fire
sprinkler mechanisms, safety pins and tube bending. Particularly lead-bismuth eutectic (LBE) alloys (containing
44.5% lead and 55.5% bismuth) are used as the coolant in some nuclear reactors. More so the alloy (such as bismuth
telluride) is also used for thermal electricity generation, as coolants for compact discs and semiconductors and in
high temperature superconductors. Many bismuth alloys have low melting points and are widely used for fire
detection and suppression system safety devices. Bismuth-tin alloy shot is one alternative that provides similar
ballistic performance to lead.
Chemical and pharmaceutical applications: The pharmaceutically bismuth is principally used as an over-the-
counter drugs for ingestion remedies (bismuth subsalicylate) and other bismuth medicinal compounds used to treat
burns, intestinal disorders, and stomach ulcers in humans and animals. Recent studies indicate that the metal can
binder for protection against the nephrotoxicity of anticancer drugs (as an inducer of metallothionein). Bismuth
nitrate is the initial material used for the production of most bismuth compounds. Other applications of bismuth
chemicals and compounds include uses in superconductors and pearlescent pigments for cosmetics (bismuth
oxychloride) and paints (bismuth-vanadate to produce yellow pigment).
Other uses: its use includes: in brass alloys, thermocouples, alloys for drop hammer and embossing dies, fuel
tanks safety plugs alloys, catalysts for making acrylic fibers, bismanol permanent magnets, lead-acid batteries,
ingredient in lubricating
greases, malleable iron and
machineable aluminum or
copper and in low melt alloys
(e.g. wood’s steel). It also
being increasing used in
replacing lead in LCDs and
plasma displays, replacement
for lead in shot and bullets in
game hunting (the UK, U.S.,
and many other countries now
prohibit the use of lead shot for
the hunting of wetland birds, as
many birds are prone to lead
poisoning due to mistaken
ingestion of lead (instead of
small stones and grit) to aid
digestion).
0
2
4
6
8
10
12
14
16
0
500
1000
1500
2000
2500
3000
3500
20012002200320042005200620072008200920102011
metrictones
USdollarsperpound
Demand
Price
Figure 1.1 - Variation of Demand and price in US (2001 - 2011)

4. BISMUTH
4
Price elasticity of its end uses.
One way to define elasticity is the percentage change in one variable divided by the percentage change in another
variable. In this case the change of the quantity demanded respect the change of the price.
The value of the elasticity is variable with the time, between years. It typically has a change in demand as a
function of the variation in prices, as a result of the law of demand (if the price increase, the demand decreases),
however it can also exhibit changes in the opposite direction. Analysing the same product, it is possible to note
differences in elasticity based on time duration (short or long term). In the short term, Bismuth usually has negative
elasticity values (the demand of the product is inelastic1
respect his price), whereas the same product can be elastic
in the long term. The trend of the Bismuth market in US between 2001 and 2011, reported in the graph below
[Figure 1.1], shows the response of demand to variation in price. The price of bismuth in the last ten years has
increased it was due to the growing demand in different sectors, as food-processing equipment, fishing sinkers,
free-machining brasses for plumbing applications, lubricating greases, and shot for waterfowl hunting. The pattern
of the demand is still high and it can suggest that the demand is not really affected by the price, and therefore it has
an inelastic behavior. However during the last year as a consequence of an increasing price the demand decreased
drastically, as an elastic good. The demand elasticity is influenced also by parameters as the substitutability, the
complementarity of the material, its life cycle and recyclability.
In reality, the presence of substitute2
products should make elastic the demand, this phenomena does not happen
in all the period. Probably the non-toxicity of bismuth influences the inelastic behavior, because most of the times
it is preferred with respect its toxic substitutes. More so, talking about the elasticity of the supply, as the other
minerals, also bismuth is, in the short–term, inelastic, because of intrinsic characteristic of a mineral (the willingness
to pay of a consumer does not influence the demand of a material, which is in lack, and or the non-willingness to
buy something with high disposability). Nonetheless, the bismuth is produced almost entirely in China and their
big presence in the market can suggest the easiness to set the price.
The bismuth price is currently (year 2012) steady, fine bismuth prices had a rapid decline in the first two weeks
of the year, bismuth market trading deserted bismuth exports have fallen sharply compared to last year, and bismuth
alloy weak demand led to price vulnerable in the short term. Bismuth alloy market demand due to the current
downturn, and from the customs export data, bismuth ingot in the first half of 2012, exports to teach last year, down
nearly 30%, the overall weakness in demand is also reflected in must be the price continued to fall. Bismuth ingot
price declines further decline in space, short-term outlook see flat.
Economic importance of the end uses and future perspectives
Over a 30 year period, the quantitative share of the end use of bismuth has always tilted towards
chemical/pharmaceuticals which constitutes a large portion of the demand; this is followed by metallurgical
additives and alloys consuming roughly three-quarter (3/4) of the remaining demand with the rest going to other
uses.
The trend over the past few years (2002-2007-2010) [Figure 1.2] indicates that bismuth as semi-metal is
increasingly being used by the chemical and pharmaceutical industry, occupying between 25%-66% of the yearly
production. Thus futuristically the chemical/pharmaceuticals will likely push up the demand for bismuth as an
industrial mineral. More so it is known that its use in solar cells tends to yield higher voltage.
The concerns over the toxicity of lead usage paved towards evolution of bismuth for various applications
replacing lead. The several new applications in free machining steels, lead free solders and galvanizing have the
size and potential growth for putting intense pressure on demand of bismuth. Also, low lead consumption if lead
1
Inelastic: a variation of the price does not produce a variation of the quantity demanded.
2
Substitutes: Bismuth can be replaced in pharmaceutical applications by alumina, antibiotics, and magnesia. Titanium dioxide-
coated mica flakes and fish scale extracts are substitutes in pigment uses. Indium can replace bismuth in low-temperature
solders. Resins can replace bismuth alloys for holding metal shapes during machining, and glycerine-filled glass bulbs can
replace bismuth alloys in triggering devices for fire sprinklers. Free-machining alloys can contain lead, selenium, or tellurium
as a replacement for bismuth.
Bismuth, on the other hand, is an environmentally friendly substitute for lead in plumbing and many other applications,
including fishing weights, hunting ammunition, lubricating greases, and soldering alloys. [usgs mcs 2012]

5. BISMUTH
5
storage batteries are replaced by alternate battery (Li-on battery) adaptable to gasoline powered vehicles can lead
to less bismuth generation from lead ores with recovery of bismuth from tungsten & tin ores and recycling.
However, the scattered uses of bismuth limit economic production of this metal through recycling. Also, if the
bismuth price goes up significantly, it can be challenged by tin and tungsten. Considering the above, the demand
for bismuth is anticipated to increase with stabilization of the prices in the coming future.
Figure 1.2 End users percentages of market
Environmental effects of bismuth
[a]Pharmaceutical administration of bismuth should be controlled because bismuth and its salt can cause kidney
damage, although the degree of damage is usually mild. Though injection of large doses of the metal in closed
cavities and extensive applications to burns may cause serious and sometimes fatal poisoning.
But generally, Bismuth is considered a non-toxic metal and poses minimum threat to the environment. Though
its compounds should be handled with care due to their low solubility.
Other than this, Bismuth metal is not considered toxic and poses minimum threat to the environment. Bismuth
compounds generally have very low solubility but they should be handled with care as there is only limited
information on their effects and fate in the environment.
Social Impacts of Bismuth
As at present Bismuth as a metal has no known societal ills as regards its use and disposal. It about the only
available green metal that is economically extractable with present technology.
42%
19%
2%
37%
2002
(2320 Metric tons consumed-
US)
7%
35%
3%
55%
2007
(2630 Metric tons consumed -
US)
7%
26%
0,1%
66,9
%
2010
(884 Metric tons consumed -
US)

6. BISMUTH
6
The table below shows the geographical distribution of Bismuth around the world between 1996 to 2012,
expressed as reserves for each country in metric tons.
Table 2.1 - Geographical distribution of Bismuth in reserves [b]
Bismuth reserve base are of 680.000 tons. China is the largest country rich Bismuth reserves, with the reserve
of 240.000 tons, accounting for 73% of the worldwide reserves. It has a reserve base of around 470.000 tons, taking
a share of 69% in the world.
The reserve base is the in-place demonstrated (measured plus indicated) resource from which reserves are
estimated, it includes those resources that are currently economic (reserves), marginally economic (marginal
reserves), and some of those that are currently sub-economic (sub-economic resources).
Figure 2.1 - Geographic distribution of Bismuth[c]
Producing Countries and/or mining companies, (with share production)
The principal bismuth producing countries are China, Peru, Mexico (crude and refined) and Belgium (refined)
with China’s production level accounting for approximately 80% of the total world production in 2010 (6500
mine/13,000 refined bismuth). With more than 70 bismuth mines operational in country, China also accounts for
roughly 75% of global bismuth reserves. Of China’s production capacity in 2010 (12800 metric tonnes), the
Chenzhou Bismuth Group (made of the five biggest producers of the product in China) was projected to be the
biggest producer of the metal worldwide with an 80% production capacity in country with the balance produced by

7. BISMUTH
7
the other minor mining companies in China. This alliance is more of a price/industry alliance rather than a joint
venture in order to give Chinese producers more bargaining clout with overseas customers and help support
domestic prices.
Table 2.1 – Main Bismuth producers [d]
Estimated Production of Commodity 2006 2007 2008 2009 2010
CHINA Bismuth
Mine output, Bi content 1.520 3.500 5.000 6.000 6.500
Metal 11.800 12.100 13.100 12.300 13.000
PERU Bismuth
Metal 1.081 1.114 1.061 423 --
MEXICO Bismuth
Mine output, Bi content(refined metal) 1.186 1.170 1.132 854 982
Metal, refined 1.186 1.170 1.132 854 952
KAZAKHSTAN Bismuth
Mine output, Bi content(refined metal) 160 145 150 -- --
Metal, refined -- -- -- 90 150
From table 2.2 it’s possible to observe the power of China in production, in fact the annual capacity of production
of the major companies all over the world and the location of the facilities are reported with values of annual
production.
Table 2.2 – Main operating companies [e]
Major operating companies Location of main facilities
Annual
capacitye [metric
tons]
CHINA Bismuth
Guangzhou Smelter Guangdong, Guangzhou 300
Hunan Bismuth Industry Co. Ltd. Hunan, Chouzhou 3.500
Shizhuyuan Nonferrous Metals Co. Ltd. Hunan, Shizhuyuan 1.200
Zhuzhou Smelter (Zhuye Torch Metals Co. Ltd.) Hunan, Zhuzhou 350
Yunnan Copper Group Co. Ltd. Nei Mongol, Chifeng 300
PERU Bismuth
Doe Run Resources Corp. (private, 100%)
Refinery at La Oroya, Junin
Department
1.000
MEXICO Bismuth
Met-Mex Peñoles, S.A. de C.V. (Industrias Peñoles,
S.A.B. de C.V., 100%)
Torreon, Coah. 1,2
KAZAKHSTAN Bismuth
Ust-Kamenogorsk metallurgical complex [Kazzinc
JSC(Glencore International AG, 50.7%)]
Ust-Kamenogorsk NA
Chimkent metallurgical plant (JSC Yuzhpolimetall) Shymkent NA
Geopolitical issues in major producing regions, with the potential to disrupt supply
[f]Recent reports by Strategic Metal Investments Ltd. (SMI Ltd.) have measured the principal and growing role
that China now holds as producer and supplier of the world’s minor metals. As a result of this position, Chinese

8. BISMUTH
8
economic, monetary and exchange rate policies invariably impact the international prices for most minor metals,
including rare earth elements (REEs).
Table 2.2 - Chinese Production & Consumption of Minor Metals
China Major Consumer China Minor Consumer
China Major Producer Antimony, REE Germanium &Bismuth
China Minor Producer Cadmium, Selenium Lithium & Titanium
Due to the geographic limitations affecting extractive industries, as well as the long development timelines and
high costs associated with developing new resources, minor and strategic metal end-users do not have the option of
searching out countries with lower costs of production. In the case of many minor metals, particularly REEs and
antimony, little to no option outside of China is currently available. Consequently, expected appreciation of the
yuan against the US dollar and other major currencies will have a very direct impact on most minor metal markets.
In order to effectively examine the impact of the yuan’s appreciation on international prices for minor and strategic
metals, we must first look at the level of ‘China dependency’ for each metal (Simply put, the greater the Chinese
involvement in the industry, the more immediate exchange rate appreciation will likely have on the international
prices of any minor metal). Table 2.2 above categorizes various minor metals depending on China’s relative global
production and consumption levels.
Taking into consideration the upper right quadrant where China is the principal supplier of the minor metal
bismuth, with its largest consumers being US, Europe and Japan. The impact of a RMB appreciation on international
prices for these metals will be significant for two reasons:
(1) As the primary producer of refined bismuth, Chinese producers are price-makers in these markets, meaning
that their end-users have few other options but to accept the increased costs.
(2) Because of the slow economic recovery, the primary markets for bismuth, with respect to prices for minor
metal have been persistently low for nearly two years. With low prices keeping profit margins very thin, Chinese
producers of these metals have little room, or desire, to offset price increases brought about by an appreciation of
the yuan. For these reasons, it is highly likely that the full extent of the Yuan’s appreciation will be passed on to
international consumers of bismuth.
Futuristically, as bismuth becomes increasingly important as a substitute lead and other applications, the politics
of the situation will be that to foster higher prices, China may withhold suppliers into the market. More so as the
metal makes the transition from minor to major metal, factors that affect the geopolitics of REEs may catch up with
it. But as at present bismuth is not a high-risk mineral.
Production chain (Mine to Market)
Primarily, bismuth is produced as a byproduct as a result of the mining and extraction of other metals such as
lead, copper, tin, molybdenum and tungsten (Figure2.2). Its primary ores are Bismuthinite (Bi2S3) and Bimite
(Bi2O3) although its native ore is known to occur in Australia, Bolivia, and China. It travels in crude lead bullion
(which can contain up to 10% bismuth) through several stages of refining, until it is removed by the Kroll-Betterton
process, which separates the impurities as slag, or the electrolytic Betts process.

9. BISMUTH
9
[g]The raw bismuth extracted from both processes is treated with chlorine gas to form chlorides of the residual
metals (ex Lead) contained in it while bismuth remains unchanged). These metal chlorides are in turn can also be
removed by various other methods (ex. fluxes and treatments); thereby yielding high-purity bismuth metal (over
99% Bi), which is being traded in
tones on the world market.
Recycling bismuth is difficult in
many of its end uses, primarily due to
scattering. Probably the easiest to
recycle would be bismuth containing
fusible alloys in the form of larger
objects, then larger soldered objects.
Half of the world's solder
consumption is in electronics (i.e.,
circuit boards). As the soldered
objects get smaller or contain little
solder or little bismuth, the recovery
gets progressively more difficult and
less economic, although solder with a
higher silver content will be more
worthwhile recovering.
Next in recycling feasibility
would be sizeable catalysts with fair
bismuth content, perhaps as bismuth phosphomolybdate, and then bismuth used in galvanizing and as a free-
machining metallurgical additive.
In cases where it’s use is dispersed most widely include stomach medicines (bismuth subsalicylate), paints
(bismuth vanadate) on a dry surface, pearlescent cosmetics (bismuth oxychloride), and bismuth-containing bullets
that have been fired, recovery is impossible with present technology.
Environmental and social impacts of bismuth mining and/processing
[h]Bismuth is a very rare element to find in pure form on the Earth's crust, in most cases it is found as a by-
product of the processing of lead or of tin. This is because extraction of the metal in its primary ore state is presently
uneconomical (only 5% of the total consumption of bismuth is extracted from mines that have only bismuth) and
the extraction process requires the removal of hazardous hydrogen sulphide impurities; which is particularly lethal
due to the ease of volatilization releasing toxic vapours.
In its associated ore state, the metal is extracted through the Kroll-Betterton or Betts process (typically used for
the extraction of bismuth from lead).
[i]The first method requires the use of reactors, reverberatory furnaces, ovens, distillation and induction
furnaces; all of which operate at high temperatures. Thus to control these temperatures, huge amounts of water are
employed for cooling, which in turn is problematic in areas of high water stress (i.e. low presence of water). Coupled
with the problem of cooling, is ensuring that the steam given off is kept within certain thresholds; otherwise it may
be harmful to the health of operational employees. Most importantly, this process produces radioactive wastes of
Polonium (Po 210), which is very harmful even in small quantities. The second process (Betts) creates a large
number of slag (e.g. leaching, electrolysis) generated wastes including waste caustic sodas, electrolytic slimes, and
waste acids.
Environmental and Social Mitigation strategies of mining and/ processing.
[j]Generally companies involved in the extraction and refinement bismuth are increasingly mapping out ways
to improve their sustainability by trying to create safer jobs and to minimize environmental impact of their actions.
For instance sound proofing of the plants so as not to disturb the residents close to the plant and also reduce the
Figure 2.2 – Production chain of Bismuth

10. BISMUTH
10
noise in the structural foundations which can lead to the deformation. In the past there have been various problems
due to the extraction of lead, bismuth, such as Tar Creek, mining area in Picher Ochlaoma where it was drained
into an aquifer of lead and cadmium which are highly toxic.
Major producers and their sustainability policies
In general, excluding China, all the major firms in each of the four countries that principally produce and
commercialize bismuth are sensible to social responsibility, prepare sustainability report, have energy and water
management programs, supported by their government with specific laws.
[k]China’s rapid capital-intensive, export-oriented growth had been successful during the past three decades;
however, the global markets it relied on were expected to be weaker in the future. The existing pattern of growth
was energy- and natural–resource intensive and environmentally unsustainable. The economic interdependence
among China and the rest of the world had become more pronounced during the last years. The Government issued
a series of technological and fiscal support policies in 2010 to promote the use of renewable energy. In the western
part of the country, which was rich in mineral resources, the Government planned to construct infrastructure
networks so that the inland region would become the mining and processing center. The Government planned to
change the fuels and minerals tax so that it is based on market prices. The tax rate proposed was between 3% and
5%. Another issue related to the resource tax was who would collect the tax revenue. It was also planned to
implement the resource tax based on the sale price throughout the country in the near future. Bismuth is one the
commodities that the Government planned to add in higher quantity in its stockpile system. In August 2010, the
National Development Reform Commission (NDRC) ordered the nonferrous metals and iron and steel producers
to shut down their operations to reduce power consumption to meet the energy consumption guidelines of the 11th
five-year plan, which called for reducing energy consumption by 20%. Domestic analysts predicted that the
country’s power consumption would double by 2020.
However actually, most Chinese companies do not mention energy management sustainability and social
responsibility strategy. Between the five major companies operating in China [table--], under the name of Chenzhou
metal, Hunan Bismuth Industry Co.,Ltd produces an output of bismuth products of 3500 tons yearly, the company
has market shares of 40% in China and 35% in the world, and their business philosophy is "Integrity-based,
customer benefits supremacy".
[l]Only Zhuye Torch Metals Co. Ltd. has acquired the certificates of ISO 9001:2000 and ISO 14000. Its products
of Lead, Zinc and Silver are registered in LME whose brand is “Torch”. The subsidiary High-purity Materials
Division was established in early 2003, specializing in develop, produce and distribution of high purity materials.
At present, the Division’s main products include 4 9’s～7 9’s antimony, arsenic, gallium, tin, zinc, indium, bismuth,
tellurium, selenium and cadmium, etc. According to the Company’s strategy, the High-purity Materials Division
will be developed into the largest manufacturer of high purity materials in China.
[m]Peru’s laws promotes foreign investment, thought domestic stability and guarantee contracts, allowing
investors unrestricted access to all economic sectors; it promotes private investment growth in public infrastructure
and utility works. Each venture and contract are monitored by the Convenio Constitutivo del Centro Internacional
de Arreglo de Diferencias Relativas a Inversiones. From January 2002 the 18% sales tax on capital goods and
services for mineral exploration was eliminated. A Decree law (January 2004) was established to use revenues from
mineral production to maximize the well-being of the local communities through economic growth, environmental
protection, and social development in a sustainable way. Municipalities and Regional governments in areas where
mineral resources (metals and industrial minerals) are exploited receive 50% of the taxes collected to be invested
in education and social programs. The DGAA evaluates and proposes the environmental regulations for the mining
and energy sectors, approves environmental impact assessments for new operations and environmental adjustment
and management programs for ongoing ones, and administers the national environmental information system. The
MEM is authorized to manage environmental affairs in the mineral sector, such as by establishing the environmental
protection policy.
[n]Sustainability principles are considered an important focus at the Peruvian Doe Run Company. In fact they
balance social, economic and environmental responsibilities, they have Sustainability Reports, reporting most of
the GRI indicators, they manage water and energy use and they research new methods to boost water recycling and
reduce consumption.

11. BISMUTH
11
[o]In Mexico, the law allows a 100% private equity ownership stake in the exploration, production, and
development of mineral resources. The mining sector is administered by the Secretaría de Economía, and the
Direccion General de Minas is the organization in charge of making revisions to the mining law and its regulations,
as well as granting concessions and titles. The mineral exploration and mining require a number of environmental
permits, requirements include a preliminary environmental impact statement for all major activities of the projects.
The Semarnat also requires all mines and plants to have an operating license, as well as permits for explosives,
hazardous materials handling, land use, water discharge, and well usage.
[p]The most important company commercializing bismuth in Mexico is Met-Mex Penoles. They have energy
and water sustainability programs and they are very careful to social responsibility. Natural resources, and
minerals in particular are considered part of the national patrimony of Mexico under its Constitution. Bismuth is
also produced at an electrolytic zinc refinery at San Luis Potosí operated by Industrial Minera Mexico S.A.
(Grupo Mexico).
[q]The same attention to safety and health issue is given by Glencore (Kazakhstan), where they also prepare
an annual Sustainability Report.
Most of the data reported in the next paragraph are related to world consumption and especially USA trends. In
fact USA is the main importers of the Bismuth not only from China, who effectively is the most important producer
and exporter. Is notable a lack of accuracy of Chinese market data, that led the discussion mostly on USA market.
[real and current prices]
The table below shows the primary production for the United States for the last 5 years, domestic production of
primary refined bismuth ceased in 1997. Some domestic firms continued to recover secondary bismuth from fusible
alloy scrap in 2008, but secondary production data were not available. Secondary production was estimated to be
less than 5% of domestic supply during the year.
It also shows the apparent consumption in comparison to the reported consumption. All types of bismuth-
containing new and old alloy scrap were recycled and contributed about 10% of U.S. bismuth consumption, or 80
tons.
Table 3.1. Production and consumption trends in US
Salient Statistics – United States 2007 2008 2009 2010 2011e
Production
(metric tons)
Refinery - - - - -
Secondary (old scrap) 100 100 60 80 80
Consumption
(metric tons)
Reported 2630 1090 820 884 1000
Apparent 2740 1560 1010 996 744
e
: estimated.
The United States ceased production of primary refined bismuth in 1997 and is thus highly import dependent
for its supply. A small amount of bismuth is recycled by some domestic firms. Bismuth is contained in some lead
ores mined domestically, but the bismuth-containing residues are not processed domestically and may be exported.
The value of reported consumption of bismuth was approximately $26 million.
Global reserves of bismuth contained ore are slightly above 318,000 tonnes with a reserve base estimated at
around 680,000 tonnes.

12. BISMUTH
12
The major stake in the
world market for bismuth
belongs to China. The
country owns the largest
deposits of the material
estimated at 240,000 tonnes,
while its reserve base exceeds
468,000 tonnes [1].
China’s last year output
reached 8,500 tonnes, down
by 400 tonnes year on year.
However, the country exports
most of its bismuth.
According to estimates, there
are about 50 producers of
bismuth in China, mostly located in
Hunan and Jiangxi provinces. Hunan
Bismuth Co., Ltd. is the largest producer
of bismuth metal ingot, with about 50% of total production in China in 2010.
The output of bismuth as a by-product is increasing, benefiting from the output increases of lead, copper and
iron. Bismuth raw materials mainly come from lead slimes, copper smelting flue dust, tin slimes, blast furnace flue
dust from smelting pig iron, and bottom Pb-Bi alloy.
China’s total export volume is increasing, but the export percentage in the total production is decreasing because
domestic consumption is growing faster.
Worldwide bismuth consumption appeared to be increasing by about 3% to 5% per year. The average annual
price had experienced a steady and substantial rise from 2003 to 2007. The price3
for bismuth metal has tended to
modestly fluctuate except for the mid 2007 huge uptick from the value assumed in 2006 of $5.04 per pound to
$14.25 per pound, (+180%). During 2007 price fluctuated between $9.25-$9.75 per pound (early March 2007),
$10.50-$11.00 (late March 2007), $13.00-$14.50 (mid-April), $16.50-$17.50 per pound (mid-May), $18.00-$19.00
per pound (mid-June 2007), $17.00-$18.00 per pound (mid-July), $15.50-$16.50 (late August-September), $14.50-
$15.50 (mid-October), and $13.50-$15.00 per pound in mid-November 2007. The price increase shown in the first
half of 2007, should have long-term implications since it continued and did not drop back into its former price
range.
Bismuth ingot 99.99% prices were on an uptrend
almost through the whole preceding year. The price
climbed from about USD 9.00 per lb FOB USA
Warehouse in January to around USD 13.00 per lb
FOB USA Warehouse in summer. The values
dropped to USD 10.00 per lb by late December. A
certain rise was registered in January 2012 [2].
Notes: Prices represent low side of wholesale for full
truckloads and high side of retail for less than truckloads.
3 Platts Metals Week New York Dealer Price.
Figure 3.1 - Major countries in bismuth mine production from 2009 to 2011
(in metric tons)
Figure 3.2 - Price trend for Bismuth Ingot 99,99%,
FOB USA Warehouse, 2006-2011 (USD/LB)

13. BISMUTH
13
Prices for bismuth 99,99% also demonstrated a boost in
January-September 2011 in the China domestic market.
They were estimated at roughly USD 12.9 per lb in
September, in comparison with USD 9.10 per lb in early
2011.
Notes: Prices include VAT
Bismuth prices continue to stabilize the recent trend up,
4N bismuth ingot offer rose to 162,000-165,000 yuan / ton, the mainstream transaction price of 161,000-163,000
yuan / ton range, maximum range can reach a part of the transaction price. A large local Chinese factory in Hunan
Bismuth said the recent stability of supply, shipments are still tons March 2012, but prices rose rapidly at the same
time, raw materials also showed the tension. Refining 1 ton of refined bismuth requires 1,500 tons of ore, and
bismuth are associated with ore deposits is not independent,10-Hydroxydecanoic Acid, so the supply of raw
materials are still needed attention.
Demand for bismuth in the steel sector, for the year 2007, appeared to be increasing. World consumption in the
chemical industry seemed to be rising, especially in Japan, as bismuth there was starting to replace lead in pigments.
Commercial and research organizations in Europe, Japan, and North America agreed to a framework to eliminate
lead from solder. This agreement is expected to increase the use of bismuth in solders. Several Japanese
manufacturers of electronic and electric equipment are now using lead-free solders in some or all of their soldering
applications, and studies on how best to develop lead-free solders were being performed independently by the
European Union, Japan, the Republic of Korea, and the United States. Although world lead consumption was
expected to be reduced by only 0.8% by these moves, world bismuth consumption may increase by about 25% with
a move to lead-free solders. However, a global shortage of bismuth was not anticipated. In China, where bismuth
is a byproduct of fluorspar, lead, tin, and tungsten processing, new technologies applied to these resources have
increased world bismuth reserves. Chinese supplies are expected to be able to keep the bismuth market stable.
Total 2008 U.S. consumption dropped 59% from 2007, from 2630 to 1090 metric tons, respectively in 2007 and
2008. The global economic slowdown that began in late 2008 and extended through the first half of 2009 led to a
substantial contraction in consumption. U.S. 2009 Bismuth Demand (consumption) is likely to be down 25% from
2008 (1090 metric tons in 2008 against 820 metric tons in 2009), based on fairly complete statistics, especially due
to a drop in the demand of Fusible alloys, solders, and cartridges (-19,6 %) , and also in Metallurgical additives (-
7,3 %). Demand (U.S. consumption) held up the best for the uses in chemicals (+28,7 %). World consumption of
bismuth in the steel sector decreased, although it was relatively minor compared with that in other use sectors. That
is the reason why there is a decrease on the price of bismuth for the years 2008 and 2009. In 2008, the bismuth
price4
generally drifted lower throughout the second part of the year. The price moved down to $11.50-$13.50 in
midFebruary 2008, recovered a little to $14.60-$16.00 per lb. in late April 2008, then down through $13.00-$14.00
in late June 2008 to $10.00-$11.00 per lb. in early August 2008, $8.75-$10.00 in mid-November 2008, as an of
$12.73 per pound, a decline of 10% from that in 2007. In 2009 the price5
did not change dramatically, the weekly
bismuth price started the year at $8.50 to $9.50 per pound and $7.50-$8.50 per pound in late January 2009,
beginning the current period of listless and almost random variation in prices always holding under $10 per pound;
it hit a low of $6.00 per lb. in late August 2009, a high of $9.25 per pound in October 2009 and finish the year at
$7.35 to $8.00 per pound. With an average decrease of 38% from that in 2008.
4 Platts Metals Week New York Dealer Price – Prices are indicated as real prices.
Figure 3.3 - Price trend for Bismuth 99,99%, China
Domestic Market, 2008-2011 (USD/LB)

14. BISMUTH
14
After the global economic slowdown, the price rose slightly for the year 1010.
In 2010, the annual average price5
for bismuth rose to $8.76 per pound, an increase of 12% from that in 2009.
The weekly bismuth price started the year at $7.35 to $8.00 per pound, it was $8.00 to $8.25 per pound in March
2010, and generally rose throughout the year to finish December at $9.10 to $9.60 per pound.
Very limited evidence suggests that bismuth demand in 2010 (884 metric tons) will be significantly higher than
in 2009 (820 metric tons). The Third Quarter 2010 U.S. bismuth consumption for each major end-use is practically
identical to the Second Quarter 2010 consumption. When the final 2010 consumption is released, it is likely to show
a major bounce-back from 2009 for chemical end-uses but less so for metallurgical additives.
In 2011, the average price5
for bismuth rose to $11.47 per pound, an increase of 31% from that in 2010. The
weekly average bismuth price range started 2011 at $9.10 to $9.60 per pound, increased to $11.50 to $11.70 per
pound by midyear, and was at $11.50 to $12.00 per pound at yearend. The price rise during the year was attributed
to a moderate increase in global consumption combined with a small decrease in global refinery output. The U.S.
consumption of bismuth for the first two quarters of 2011 were roughly 80% of the analogous quarters of 2010, and
no consumption by end-use was given.
Since bismuth is a fungible commodity with enough buyers and sellers to have a valid price, major price
movements can indicate something about the outlook. For example, if the price is strongly rising, it means that
demand is exceeding supply (neglecting stocks), and usually that sales are up.
According to Merchant Research & Consulting during the period of 2011 – 2016 global bismuth production is
anticipated to grow at an average rate of 3.8% per year. The volume will amplify from 8 thousand t to 9.5 thousand
t. Refinery production is projected to grow at an average rate of 3.5% per year during 2011-2016 and the volume
here will boost from 14 thousand t to 17 thousand t.
Recent researches have shown different meaningful and profitable new uses of bismuth, such as future solar
cells made of bismuth ferrite that could yield higher voltages; the replacement of water by bismuth as a coolant
material for the nuclear reactors, eliminates the large high pressure vessels and piping needed to contain the reactor
coolant, allowing a more compact reactor, furthermore, the reactor can produce energy continuously and with fewer
personnel; with a number of countries eyeing nuclear power generation afresh, particularly in relation to safety after
the latest nuclear emergency in Japan, Bismuth may come into its own in this sector, too. Additionally, the high
temperature superconductors made of bismuth-strontium-calcium-copper-oxide superconducting ceramic, carry
more electricity in a smaller space with practically no losses due to electrical resistance, this system is expected to
help avoid blackouts and brownouts caused by power shortages. These investigations, the substitution of lead (a
toxic metal) by bismuth, and the increase in demand and price in the last years, forecast a global bismuth growth in
production, demand and price.
The sustainability policies of the major producers may influence the supply, but this does not necessarily brings
an unfavorable outlook for the supply; for instance, in Peru, although their environmental protection policies, their
laws promote the growth of foreign and private investment. In Mexico, it is needed a number of environmental
permits in order to carry out mineral exploration and mining activities, but their laws foster the exploration,
production and development of mineral resources by allowing a 100% private equity ownership stake.
Otherwise, the secondary supply of bismuth from recycling becomes more difficult and less economic because
of the low proportion of bismuth in soldered objects, and the supply of raw material needs attention, since it is
required a huge amount of raw material to obtain a low proportion of bismuth (1 ton of bismuth / 1500 tons of ore).
The principal supplier of bismuth is China, there, new technologies applied to resources from which bismuth is
a by-product, have increased world bismuth reserves; in addition to the plans of the government to increase the
quantity of this commodity in its stockpile system, it is expected that Chinese supplies may keep the bismuth market
stable.

15. BISMUTH
15

16. 1. END USES
[a] www.lenntech.com/periodic/elements/bi.htm (last access November 9th, 2012)
[b] http://minerals.usgs.gov/minerals/pubs/commodity/bismuth/
[c] http://www.asianmetal.com/report/en/2007Bi_en.pdf
2. PRODUCTION
[d] USGS 2010 Year Book: China Advanced Release. THE MINERAL INDUSTRY OF CHINA. TABLE 1:
ESTIMATED PRODUCTION OF MINERAL COMMODITIES pg.18;
USGS 2010 Year Book: Perù Advanced Release. THE MINERAL INDUSTRY OF PERU’. TABLE 1:
ESTIMATED PRODUCTION OF MINERAL COMMODITIES pg.9;
USGS 2010 Year Book: Mexico Advanced Release. THE MINERAL INDUSTRY OF MEXICO. TABLE 1:
ESTIMATED PRODUCTION OF MINERAL COMMODITIES pg.7;
USGS 2010 Year Book: Kazakhstan Advanced Release. THE MINERAL INDUSTRY OF KAZAKHSTAN.
TABLE 1: ESTIMATED PRODUCTION OF MINERAL COMMODITIES pg.6
[e] USGS 2010 Year Book: China Advanced Release. THE MINERAL INDUSTRY OF CHINA. TABLE 2:
STRUCTURE OF THE MINERAL INDUSTRY IN 2010 pg.21;
USGS 2010 Year Book: Perù Advanced Release. THE MINERAL INDUSTRY OF PERU’. TABLE 2:
STRUCTURE OF THE MINERAL INDUSTRY IN 2010 pg.11;
USGS 2010 Year Book: Mexico Advanced Release. THE MINERAL INDUSTRY OF MEXICO. TABLE 2:
STRUCTURE OF THE MINERAL INDUSTRY IN 2010 pg.10;
USGS 2010 Year Book: Kazakhstan Advanced Release. THE MINERAL INDUSTRY OF KAZAKHSTAN.
TABLE 2: STRUCTURE OF THE MINERAL INDUSTRY IN 2010 pg.8
[f]www.strategic-
metal.com/index.php/news/content/appreciation_chinese_yuan_effect_minor_metal_prices
How Appreciation of the Chinese Yuan will Effect Minor Metal Prices: Part II. The Impact on Minor
& Strategic Metals. (last access December 24th, 2012)
[g]http://www.innovateus.net/earth-matters/what-bismuth (last access December 18th, 2012);
http://en.wikipedia.org/wiki/Bismuth#Occurrence_and_production
[h] http://en.wikipedia.org/wiki/Bismuth (last access January 14th, 2013)
[i] http://www.umweltdaten.de/publikationen/fpdf-l/2491.pdf (last access December 9th, 2012)
[j] http://en.wikipedia.org/wiki/Tar_Creek_Superfund_site (last access December 9th, 2012)
[k] USGS 2010 Year Book: China Advanced Release. THE MINERAL INDUSTRY OF CHINA.
Pg2
[l] http://www.hnbiye.com/English/default.asp
http://www.jin-wang.com.cn/english/
http://www.hnszy.com/szyweb/menuEn.go?method=styleEn1&&menuName=Aboutus
www.torchmetals.com.cn
[m] USGS 2010 Year Book: Perù Advanced Release. Pg.2

17. BISMUTH
17
[n] http://www.doerun.com (last access December 15th, 2012)
http://www.doerun.com/Portals/0/Publications/DRC_2010_SustainabilityRe
port.pdf
[o] USGS 2010 Year Book: Mexico Advanced Release. Pg.2
[p]http://sustentable.penoles.com.mx/PortalDS/faces/pages_home;jsessionid=NKP1QS
PPdTJKJWLQvflp5BS2zTs4TcFNdk8JJhVmLXGcsLYGF4hg!658713541?_afrLoop=58179799
39699140&_afrWindowMode=0&_afrWindowId=1xdfik2y_14#%40%3F_afrWindowId%3D1xdfi
k2y_14%26_afrLoop%3D5817979939699140%26_afrWindowMode%3D0%26_adf.ctrl-
state%3Dj70a7o6k8_4
[q] http://www.glencore.com/sustainability.php
3. MARKET
1. U.S. Geological Survey http://www.statista.com/statistics/38537/production-of-bismuth/
2. Market publishers, Ltd. http://marketpublishers.com/lists/13371/news.html
3.

18. BISMUTH
18