DOD uses USGS information on  materials, in part, to help address its National Defense Stockpile program  objectives. USGS data on worldwide tantalum production is the  primary production data source used by DOD to support its stockpile  analyses. Tantalum Data from Government and Industry Sources Vary Due to Differences in Forms of Tantalum Reported and Data Collection Methods

Government and industry tantalum information differ because the  government reports on tantalum ore from mining operations, whereas  industry data include not only mining but also data on additional forms of  processed tantalum, such as synthetic concentrates and scrap. Having reliable tantalum data is important because  DOD uses the information to assess the availability of tantalum supply by  country during specific planning scenarios, among other efforts. In contrast, TIC data are provided as a service to its member companies  rather than in support of the federal government, and are based on  tantalum supply data voluntarily reported by those members. To inform DOD’s stockpile analysis, USGS provides DLA-Strategic  Materials with the data it collects and validates, and DLA-Strategic  Materials takes steps to ensure that the data are reliable. DLA-Strategic Materials is  also taking additional steps to review and analyze industry data sources  to address tantalum data challenges and better inform its stockpile  analysis. Since 2013, it has recommended stockpiling  various amounts of tantalum. A component of this step is to estimate the global supply of  tantalum available for United States civilian and defense needs. For example, as discussed  above, the TIC’s data is not reported by country, which limits its use in  support of the National Defense Stockpile analyses. Neither DOD nor the Department of the Interior provided written  comments. Appendix I: Objectives, Scope and Methodology

The House Armed Services Committee Report on a bill for the National  Defense Authorization Act for Fiscal Year 2016 included a provision for  GAO to examine the global tantalum supply chain. This report addresses  (1) how data on tantalum supply reported by government sources differ  from data reported by industry and (2) the extent to which the Department  of Defense (DOD) has assessed the availability of tantalum during  national defense emergency planning scenarios. To compare available tantalum data reported by government sources to  industry sources, we met with United States Geological Survey (USGS)  officials, Defense Logistics Agency Strategic Materials (DLA-Strategic  Materials) and other DOD officials, and tantalum industry officials from the  Tantalum-Niobium International Study Center (TIC) to identify tantalum  data sources and collection methods, and to discuss the availability of  tantalum supply data. For the purpose of our review we focused on USGS  tantalum production estimates, which are DOD’s primary source for  estimated tantalum production in the 2015 Strategic and Critical Materials  Report on Stockpile Requirements (Stockpile Report). We assessed the reliability of USGS  data by (1) reviewing existing information about the data and the system  that produced them, and (2) interviewing agency officials knowledgeable  about the data. We concluded that the data had been collected and used in  accordance with principles developed by USGS and DLA-Strategic  Materials and were sufficiently reliable for the purpose of obtaining an  understanding of the process used to collect the data, the model for  determining potential shortfalls of material, and the reports produced by  DLA-Strategic Materials.
Why GAO Did This Study

The United States relies on foreign mine production of tantalum, a corrosion-resistant metal that is used in commercial and defense applications. Having reliable information on the global supply of tantalum is important for defense planning, particularly in determining if it is necessary to stockpile in case of future shortages. The House Armed Services Committee Report on a bill for the National Defense Authorization Act for Fiscal Year 2016 included a provision for GAO to examine the global tantalum supply chain, with a focus on why data reported by the government and by industry vary.
This report addresses (1) how tantalum supply data reported by government sources differ from industry data, and (2) the extent to which DOD has assessed the availability of tantalum during emergency planning scenarios. GAO reviewed data compiled by the USGS—DOD's primary source for tantalum production data—and by a tantalum industry organization that makes its information publicly available. GAO interviewed DOD and industry officials about the reporting and collection methods for the data; examined the data DOD uses to determine potential shortfalls of materials, including data for its biennial Strategic and Critical Materials Reports on Stockpile Requirements; and discussed with DOD officials steps they have taken to assess the reliability of the data used in the analyses.

What GAO Found

Data published by government and industry on the global supply of tantalum vary due to differences in forms of tantalum reported and data collection methods. For example, government data prepared by the United States Geological Survey (USGS) on tantalum production reports information on tantalum ore from mining. Industry data GAO obtained from the Tantalum-Niobium International Study Center includes additional forms of processed tantalum, such as synthetic concentrates and slags and recycled tantalum materials. In collecting data, the USGS employs specialists to estimate production data by country of origin for government agencies, including the Department of Defense (DOD), by conducting annual surveys of foreign governments on mine production and relying on country specialists. In contrast, industry data compiled by the Tantalum-Niobium International Study Center is based on aggregated data voluntarily reported by its member companies as a service to those members rather than in support of the federal government. The table below summarizes the differences in USGS and industry data.
Source: GAO analysis of United States Geological Survey and tantalum industry data and collection methods. I GAO-16-335
DOD assesses the availability of tantalum, among other materials, for selected planning scenarios for the National Defense Stockpile's biennial assessment process. Further, DOD takes steps to help ensure that tantalum supply data used in its stockpile analyses are reliable. For example, USGS provides the Defense Logistics Agency-Strategic Materials (DLA-Strategic Materials)—the stockpile program manager—with the data it collects and validates. Consistent with internal control standards, DLA-Strategic Materials officials said they then verify sources and check calculations to ensure that data are reliable before conducting their stockpile analyses. Since 2013, DLA-Strategic Materials has identified potential shortfalls for tantalum and recommended stockpiling. Given DLA-Strategic Materials' interest in using the most accurate information available, it is taking additional steps to review and analyze existing industry tantalum data sources to better inform its stockpile analyses.

What GAO Recommends

GAO is not making recommendations. Neither DOD nor the Department of the Interior provided written comments.