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Hurricane Helene disrupted global mining of pure quartz, vital for semiconductor chips

The September 26, 2024 thehurricane Helena hit the city hard Spruce Pinein the North Carolinain USAinterrupting the extractive activities of what is the most important reserve of ultra-pure quartz in the world. This is a crucial resource for the production of the crucibles used in the semiconductor chip production process, which are the basis for the functioning of the main electronic and microelectronic devices. The impact on the tech industry isn’t entirely clear yet, but it will largely depend on how long the disruption lasts.

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Spruce Pine after Hurricane Helene.

Hurricane Helene’s landfall in Spruce Pine

Spruce Pine it’s a small community, with little more than 2200 inhabitantslocated along the Appalachian mountain range in the northwestern portion of North Carolina, United States. Despite its size, this city occupies a strategic position in the modern world economy, as the site of the deposits of ultra-pure quartz most important in the world, a primary resource for the production of semiconductors used in the electronics and microchip industry.

Last September 26thSpruce Pine was hit hard byHurricane Helenewhich caused floodspower outages, damage to communication systems and extensive damage to homes and infrastructure, streets And railway lines. Damage to infrastructure, in particular, led to the isolation of quartz mines, forcing the suspension of mining activities. Added to this is the risk of landslides in the area caused by an increase in slope instability due to intense rainfall.

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Tracks collapsed due to Hurricane Helene.

Why is Spruce Pine Quartz so special?

Quartz, whose chemical formula is SiO2is one of the most abundant minerals in the earth’s crust, forming approximately 12% by volume. But if quartz is so common, why is quartz mined in Spruce Pine so important to the tech industry? The answer lies in his extraordinary puritywhich is among the highest in the world. Spruce Pine quartz is extracted from pegmatitic rocks with a granitic composition, i.e. rocks intrusive magmatic that are formed through the slow cooling of the magma within the earth’s crust, characterized by crystals larger than one centimeter. The origin of the Spruce Pine pegmatitic rocks dates back toAlleganian orogeny (or Appalachian), which gave rise to the mountain range of Appalachia over 250 million years ago. The quartz found in these rocks, in addition to coming from a deposit that is estimated to extend beyond 40 km long and about 16 km widepresents very low fluid impurities, making it an extremely rare resource worldwide.

Ultra-pure quartz possesses excellent physicochemical characteristics, includinghigh heat resistance and to thermal shockscorrosion resistance, a low coefficient of thermal expansionrobust anti-crystallization properties, as well as high insulation and excellent light transmission. These properties have favored its diffusion and use in high-tech sectors such aselectronics industryThe photovoltaicthe telecommunications optics and electric light sources. Ultra-pure quartz is a key material in the production of semiconductorsused in modern electronic devices and photovoltaic cells.

The impact on the world economy

The Spruce Pine deposits export ultra-pure quartz to leading technology manufacturers globally. Some estimates suggest that mines in this small community in the United States contribute to production of 80-90% of the high purity quartz in the world. In summary, mining at Spruce Pine supports a microchip industry worth more than 500 billion dollars.

Quartz mining at Spruce Pine is currently controlled by two companies: Sibelco North America and the Norwegian company The Quartz Corp (TQC). Sibelco has been active in the area since the early 1970s. Since September 26, both companies have temporarily suspended mining activities. On October 4, in a press release released on its official website, Sibelco stated that only minor damage was found to the extraction facilities and that the reserves were not affected. However, mining activities have not yet resumed and the company is working with the community to restore infrastructure as soon as possible, although a date has not yet been set.

The economic impact of this disruption will substantially depend on its duration. A long suspension could lead to stockouts and trigger a global raw material shortage, directly impacting chip production and a increase in production and sales costs of the final products due to the few resources available.

Bibliography

Tappen, C. M. and Smith, M. S., 2003. The Crabtree pegmatite, Spruce Pine District, North Carolina. Southeastern Geology, 41(4), pp.201-223. Wood, P.A., 1996. Petrogenesis of the Spruce Pine pegmatites, North Carolina (Doctoral dissertation, Virginia Tech). Hatcher, R.D., Tollo, R.P., Bartholomew, M.J., Hibbard, J.P. and Karabinos, P.M., 2010. The Appalachian orogen: A brief summary. From Rodinia to Pangea: The Lithotectonic Record of the Appalachian Region: Geological Society of America Memoir, 206, pp.1-19.