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More high-tech uses for gold being developed as electronic, industrial applications decline

26th August 2016

By: Ilan Solomons

Creamer Media Staff Writer

  

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Scientists in the US have developed a new super-hard alloy of gold and titanium. This new alloy is the hardest metallic substance that is compatible with living tissues and is four times tougher than titanium alone.

This new material could have wide-ranging applications in medicine and dentistry, overcoming the shorter life span of titanium implants – typically around ten years – that are currently used in human joint replacements.

Meanwhile, British multinational speciality chemicals and sustainable technologies company Johnson Matthey continues to advance
the manufacture of a new nonpolluting commercial catalyst that uses gold. The aim is to replace traditional mercury-containing catalysts in the polyvinyl chloride (PVC) production process, as well as make it more cost effective. The project was awarded a prize for International Impact at Cardiff University’s 2016 Innovation and Impact Awards.

Scientists from the School of Chemistry at Cardiff University, led by Professor Graham Hutchings, devised a gold catalyst that has the potential to replace harmful mercury catalysts used in the PVC production process. The chemists teamed up with Johnson Matthey to undertake this project.

A team led by Johnson Matthey scientific consultant Dr Peter Johnston designed and developed a novel highly stable, commercially viable catalyst that uses a very low amount of gold to manufacture vinyl chloride monomer (VCM), which is used in the production of PVC. This nonpolluting gold catalyst is currently being commercialised in China and “outperforms” mercury containing catalysts by producing higher yields more cost effectively.

Johnson Matthey notes that it is the first time in over 50 years that a complete overhaul in catalyst formulation has been implemented for the production of this commodity chemical. The company further highlights that it has built a “world-class” commercial catalyst manufacturing plant at its Shanghai site, in China, for the dedicated manufacture and supply of commercial gold carbon catalyst for the manufacture of VCM in China.

Meanwhile, the World Gold Council (WGC) points out that demand for gold in technological applications totalled 80.9 t in the second quarter of the year, which was fractionally higher than the previous quarter’s total of 80.3 t. However, demand was down 3% year- on-year from 83.3 t in the second quarter of 2015.

The WGC’s latest Gold Demand Trends report, which was released earlier this month, states that continued cost saving through substitution or thrifting continued to weigh on the gold technology sector.

Gold used in electronics declined by 3% year-on-year to 63.9 t in the second quarter of the year from 65.5 t in 2015, although it was unchanged from the first quarter of 2016. The council points out that electronics demand was at its lowest level since the fourth quarter of 2013.

The WGC says that the rise in the gold price in the first six months of the year will have fuelled further cost-saving drives by manufacturers. However, the council remarks that, despite the tough environment, growth in the wireless sector helped partially offset slackness in demand for gold bonding wire.

The wireless sector increased in second quarter, as stronger sales for Android devices made up for weaker iPhone sales. However, the WGC comments that gold’s use in this sector faces some hurdles, as the smart-device market matures, previous double-digit gains will be difficult to replicate.

“One bright spot might be the continued interest in Internet of Things applications, which may drive increased demand for certain devices.”

However, gold bonding wire demand continues to decline, as manufacturers substitute gold with cheaper alternatives. Palladium coated copper wire is increasingly used by middle-to-low-end smartphone manufacturers in China. Flip chip packaging, which continues to grow in importance and relevance given its advantages of lower cost, high electrical performance and reproducibility has also contributed to the global reduction in gold wire consumption.

Further, the WGC points out that other industrial demand for gold in the second quarter fell 3% year-on-year, from 12.8 t in 2015 to 12.4 t in 2016. Declines were seen across a number of key Asian markets as China was 6% lower, while Taiwan and Korea dropped 7.5% and 2.7% respectively.

“Despite this weakness, industrial demand for gold is, in some areas, beginning to show signs of recovery. Additionally, gold in dental applications continues to hover around the 4 t to 5 t mark, weakening by 4% to 4.6 t in the second quarter from 4.7 t in 2015, largely owing to cosmetic considerations,” the council concludes.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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