Is the silicon shortage in solar ending? Tea leaves mixed
Chinese solar panel maker Trina Solar canceled plans to build a plant to make silicon, a move that will no doubt heat up debates over whether the silicon shortage might be coming to a close.
Like a lot of cell and panel makers, Trina laid out plans last year to ramp up production of silicon to help ease the rising prices and supply shortages that have plagued the industry since 2004. Solar panel sales are climbing and there isn't a ton of pure silicon around. The billion dollar plant, slated to begin production in 2012, was announced in December.
The company now says that it has the supplies it needs for now.
"We have made this strategic decision after careful assessment of our raw material requirements, in conjunction with recent and favorable long term polysilicon market and supply condition developments." said Jifan Gao, Trina Solar's CEO in a prepared statement. "Furthermore, we wish to reaffirm our strong working relationship with our partner GT Solar, which continues to provide us with advanced multicrystalline technology platforms to support our target of 350MW of annualized module capacity by the end of 2008."
Some analysts have predicted that supply for silicon solar panels will start to exceed demand in 2009, which in turn will ease the shortage. The reversal in part will come because more factories have come on line, but also because silicon panels will start to face more competition from thin film. Having a brand new factory in 2012 may be a financial burden.
On the other hand, Trina's move might be largely related to internal issues. It's not like the long range forecasts for solar have dramatically altered in four months. In the chip business, companies have done this for years.
Typically, no one worries much with the first cancellation in the chip world, but a second will raise eyebrows. So keep your eyes peeled for a second. That could be the key.
Chinese solar makers have also been engaged in a price war with each other.
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September 3, 2008 Trading Symbol CIMI-CNQ
SOLAR SILICON CLAIMS ACQUIRED
Canadian International Minerals Inc (CIMI) is pleased to announce to acquisition of a 100% interest in the Solar claim group located approximately 2 km north east of the town of Golden, British Columbia. The Solar claims are 888.426 hectares in area and cover 5-6 km of favourable Mt. Wilson Formation which consists of fine grained white quartzites up to 500 meters wide. The Mt Wilson quartzites host two operating silica mines including the Moberly Mine, owned by Heemskirk Consolidated an Australian listed mining house. The Solar claims directly adjoin Moberly mine property and are on strike geologically to the south east. The Moberly mine which has been in continuous production since 1980, and has recently completed an expansion and upgrading of production and processing. The privately owned Hunt silica mine is located approximately 12 km to the south of the Solar claims. Both mines have shipped metallurgical grade silica to a ferrosilicon refinery in Washington State during the 1980-90`s.
Silica exploration in the Golden area is relatively simple as the formations are continuous and in strata that are easily recognizable. The topography of the claim group is moderate for the region and is accessible by existing roads.
Very little traditional exploration has been conducted since the 1970`s in the Golden area, which was then spurred by an increase in price and demand for silicon metal by the fledgling personal computer industry.
The Geological Survey of Canada last mapped the Golden area with focus on the Moberly silica camp which included the Solar claims in 1980. (GSC Map 1497A).
The Mt. Wilson Formation is recognized for hosting world class quartzite deposits of greater than 99.5% silicon dioxide (SiO2). This material is known as High Purity Quartz (HPQ) is presently in short supply world wide, as most known sources face depletion or shut downs because of environmental issues. This shortage is occurring as new smelting technologies to replace old systems especially in Europe to meet carbon emission regulations are being planned. The majority of the worlds ?quartz to silicon? smelting capacity is dated, being very greenhouse gas intensive as well as producing an insufficiently pure material that needs expensive refining to meet quality demands by the solar and electronic industries.
CIMI is earning a 100% interest in the Solar claims by paying,
$45,000 and 375,000 common shares on signing
250,000 common share in six months
250,000 common shares in 12 months
The vendor retains no other royalties or interests.
The town of Golden is a regional transportation center that is on the Trans Canada Highway and the CP Rail mainline. Excellent infrastructure required for a bulk tonnage mining operation exists in the immediate area of the claims.
The Qualified Person responsible for this news release under the terms of National Instrument 43-101 is Thomas Hasek, P. Eng.
Canadian International Minerals Inc. is a junior resource company listed on the CNQ, Canada`s newest stock exchange under the symbol CIMI.
The CNQ has not approved or disapproved the contents of this news release.
Michael E. Schuss
CEO, Director
604-241-2254 or 604-813-2521
mschuss@telus.net
Investor Enquiries
604-641-4469