2014
TZMI
TITANIUM FEEDSTOCK ANNUAL REVIEW
TITANIUM Feedstock Annual Review 2014
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Cover images courtesy of: White Mountain Titanium Corp and Kenmare Resources
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DISCLAIMER This publication has been licensed by TZ Minerals International Pty Ltd (TZMI) for intranet (internal) use only by VSMPO-AVISMA Corporation. It is not intended for distribution to other persons or organisations without TZMI’s prior consent. The information contained in this publication is obtained from sources believed to be reliable and every effort has been made to ensure that the information presented and the conclusions reached are realistic and not misleading. However, TZMI makes no warranty as to the accuracy of the information contained in this publication and will not accept responsibility or liability for any loss or consequential losses incurred by any person or organisation arising from the use of the information.
COPYRIGHT TZ MINERALS INTERNATIONAL PTY LTD 2013 ABN 99 003 492 519 Titanium Feedstock Annual Review is copyright, 2014. The contents of this document may not be reproduced without written permission of TZ Minerals International Pty Ltd. Limited extracts may be made for the purpose of comment or review provided the source is acknowledged as follows: “TZ Minerals International Pty Ltd: Titanium Feedstock Annual Review 2014”
KEY CONTRIBUTORS TO TITANIUM FEEDSTOCK ANNUAL REVIEW 2014
Sue Fitzgerald, Publications Manager Sue has been a journalist for 25 years, 10 of the most recent as an Editor, specialising in mining, business and finance journalism.
Galvin Lim, Senior Consultant Galvin’s consulting experience spans a wide range of projects including project management, business process re-engineering, system implementation, cost review, business case development, gap analysis and benchmarking.
Lorna Seatter, Writer Lorna has close to 10 years’ experience as a resource and finance journalist, reporting on all commodities and related sectors.
Rebecca Felix, Associate Consultant Rebecca worked as a business analyst for a management consultancy before she moved into the mineral sands industry. She has extensive experience in the global feedstock industry as an analyst and consultant.
With consultation from the executive team Bruce Griffin, Chief Executive Officer Bruce is an experienced CEO with a career spanning mining, oil and gas, chemicals and agribusiness.
Steve Gilman, Principal Consultant - Technical and Engineering Steve has had a long and diverse career in the minerals processing sector with a strong focus on the global mineral sands industry.
David McCoy, Principal Consultant - Markets and Strategy David has been involved in the mineral sands and TiO2 pigment industry since 1997 with experience in process engineering, technical and engineering services, business management, analysis of global supply chain functions. Philip Murphy, Principal Consultant Philip brings 25 years of expertise in the analysis of commodity markets, with particular emphasis on the global mineral sands industry.
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A diverse operating experience across nearly all titanium mineral and pigment operations around the world allows TZMI to efficiently identify areas for improvement in cost and quality and assist with flowsheet development, physical separation testwork, resource assessments, technical reviews and audits, benchmarking exercises and economic evaluation of projects.
FEASIBILITY STUDIES AND PROJECT DEVELOPMENT Our people have extensive experience in evaluating new projects including assessments of potential products, quality requirements, likely consumers, product pricing; plus market entry strategies. TZMI assists in developing potential projects with scoping studies, prefeasibility, feasibility and bankable feasibility studies. This includes management of
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process testwork and flowsheet development, leading to estimates of capital and operating costs and providing a realistic assessment of cost competitiveness compared to existing producers and potential new projects.
COMPETITIVE COST ANALYSIS (BENCHMARKING) TZMI has developed a proprietary methodology that allows for a realistic comparison of projects with widely differing product profiles to assess competitiveness and to provide benchmarking criteria.
TECHNICAL DUE DILIGENCE TZMI provides due diligence studies and independent expert reports for both titanium feedstock and zircon producers through to pigment plants. Much of this work is confidential and includes outcomes where the opportunity has proceeded or not, based on the result of the study or report.
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MARKET ASSESSMENTS
Clients requiring a focus in detail about productive costs and markets will request specific industry analysis. This ranges from feedstock production costs to pigment production costs and through to detail such as markets for specific pigment grades. TZMI has completed a number of assignments that focus in detail on aspects of the TiO2 pigment industry, including analyses of pigment production costs and the markets for specific pigment grades.
TZMI prepares long-term projections of supply and demand price forecasts prepared on a confidential single client basis. These independent forecasts for all mineral sands, pigment and titanium sponge products are widely used throughout the manufacturing and financial sectors and are provided in addition to the general industry data in TZMI’s publications.
MERGERS AND ACQUISITIONS TZMI is regularly involved in due diligence studies and independent expert reports for both industry participants and potential new entrants, as well as for other feedstock and pigment transactions. TZMI has provided high level strategic M&A decision support in many large transactions, however, the majority of this work is confidential. In addition, TZMI regularly provides commercial/ strategic advice to industry participants, including banks and financial institutions.
MARKET RESEARCH TZMI assists clients to understand various sectors by industry and geography and the impact on the global marketplace. Over the years a variety of assignments have been conducted for clients of all sizes and from around the world. The focus has ranged from TiO2 pigment in China to the global coatings market. Each assignment has received very positive client feedback and TZMI is confident that we have the resources and experience to always conduct accurate and in depth research.
TZMI publications provide a comprehensive range of authoritative data and informed commentary on all aspects of the titanium minerals, zircon and TiO2 industries. Full time research staff are engaged in the collection, analysis and distribution of data. A comprehensive database is maintained including regularly updated supply and demand models and operating cost data for all major producers.
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Table of Contents
CONT
table of contents
1.0 Introduction
1.4
Confidentiality and disclaimer
5
Titanium feedstocks markets
7
2.1
Titanium feedstock sector
7
2.2
World sources of titanium feedstock
7
2.3 TiO2 pigment production
10
2.4
Other end-uses
14
2.5
Co-products: pig iron
16
Historical information
19
3.1
History of mineral sands mining
19
3.2
Feedstock production in the early years (1900s to 1960s)
21
3.3
Notable trends in feedstock sector from 1970s to 2000s
23
Supply
27
4.1 Introduction
27
4.2
Feedstock supply in 2013
27
4.3
Supply developments in 2013 and early 2014
30
4.4
Supply outlook to 2015
34
Feedstock demand and pricing
37
5.1
Introduction
37
5.2
Feedstock demand in 2013
37
5.3
Feedstock demand by market segment
39
5.4
Feedstock pricing and trends in 2014
40
Feedstock trade and analysis
47
Feedstock trades in 2013
47
6.2
Summary of trade trends
47
New projects
53
7.1
New projects and overview of potential new supply
54
New projects under construction
56
New projects under investigation with estimated annual production
57
7.4
New projects under investigation without estimated production
65
71
8.1
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APP. 3
Strategic issues
APP. 2
7.2 7.3
APP. 1
6.1
Challenges in 2014 and outlook for the sector
8.0
TZMI
4
7.0
8.0
3
Titanium Feedstock Annual Review structure
6.0
7.0
An overview of titanium feedstock producers
1.3
5.0
6.0
1.2
4.0
5.0
1
3.0
4.0
The titanium industry
2.0
3.0
1
1.1
1.0
2.0
Exec Sum
Executive summary
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Titanium Feedstock Annual Review 2014
Appendix 1: Introduction to the TiO2 industry
75
Appendix 2: Producer profiles
83
Appendix 3: New projects profiles
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Table of Contents
CONT
Figures
3.0 4.0 5.0
Figure 8.1:
2.0
Figure 6.3: Figure 6.4: Figure 6.5:
Titanium feedstock flowsheet 2 Major titanium feedstock producers 4 World resources of titanium minerals in 2013 7 The sulfate process 12 The chloride process 13 Pig iron production from titanium slag producers: 2010–2013 17 Changes in feedstock production by product type: 2012–2013 27 Relative market share of sulfate vs chloride feedstocks 28 Titanium feedstock supply by product type in 2013 28 Production of titanium feedstock by region: 2011–2015 29 Global titanium feedstock production: 2011–2015 36 Incremental pigment supply changes: 2011–2015 38 Changes in feedstock demand between 2011 and 2015 39 Titanium feedstock consumption by end-use segment: 2011–2013 39 Sulfate ilmenite prices from cross-border trades in 2013 41 Chloride ilmenite prices from cross-border trades in 2013 41 Rutile prices from cross-border trades in 2013 42 Synthetic rutile prices from cross-border trades in 2013 43 Chloride slag and UGS prices from cross-border trades in 2013 44 Sulfate slag and chloride fines prices from cross-border trades in 2013 45 Monthly global titanium feedstock imports: 2011–2013 47 Annual imports of sulfate ilmenite into China, Europe and Rest of World: 2009–2013 48 Annual imports of chloride slag and UGS: 2009–2013 49 Sulfate slag and chloride fines imports by key importing regions: 2009–2013 49 Cumulative cross-border trades of synthetic rutile in key importing regions: 2012 vs 2013 50 Global feedstock supply/demand balance: 2011–2015 72
1.0
1.1: 1.2: 2.1: 2.2: 2.3: 2.4: 4.1: 4.2: 4.3: 4.4: 4.5: 5.1: 5.2: 5.3: 5.4: 5.5: 5.6: 5.7: 5.8: 5.9: 6.1: 6.2:
Exec Sum
Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure
6.0
Tables
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33 50 54
8.0
World production of titanium feedstocks: 2009–2013 World titanium feedstock import statistics by country/product: 2009–2013 Pipeline of new projects
7.0
Table 4.1: Table 6.1: Table 7.1:
APP. 1
APP. 2
APP. 3
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Titanium Feedstock Annual Review 2014
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Executive Summary
CONT
Exec Sum
1.0 2.0
Mineral sands products - rutile, zircon and ilmenite Image courtesy of Iluka Resources
3.0
Executive summary Introduction
4.0
Titanium feedstocks are minerals containing titanium dioxide (TiO2). Key titanium feedstock minerals include ilmenite, leucoxene and rutile. Beneficiated ilmenite in various forms produces further feedstocks such as sulfate and chloride slag, and synthetic rutile.
5.0
As well as chemical composition, physical characteristics and colour, feedstocks are defined by their TiO2 content: the higher the TiO2 content, the more valuable the product with the level of minor impurities critical to determining final value.
6.0
Titanium feedstocks are predominantly consumed in TiO2 pigment manufacture, which accounts for close to 90% of global feedstock consumption. The remainder is used in the production of titanium sponge and fluxes for welding rods, and as a metallurgical flux in iron and steel making. As such, demand for titanium feedstocks has largely been linked to that of TiO2 pigment production.
7.0
Globally, only a small number of large mining companies or groups are involved in the production of titanium feedstocks and these are dominated by close relationships between miners and consumers (predominately pigment producers).
8.0
The largest feedstock producers are based in Africa and Australia. Rio Tinto, through its ownership of Canadian-based Fer et Titane, its share in Richards Bay Minerals (RBM) in South Africa, and ownership of QMM Madagascar, is the world’s biggest titanium feedstock producer. In 2012, Rio Tinto increased its stake in RBM to 74% from 37% after acquiring BHP Billiton’s 37% holding following BHP's decision to exit the titanium industry. The remainder of RBM is owned by Blue Horizon Investments (24%) and RBM employees (2%). RBM will continue to be operated by Rio Tinto.
APP. 1
Tronox Ltd is the world’s second-largest feedstock producer as a result of its acquisition of Exxaro Resources’ mineral sands assets. Tronox now operates Namakwa Sands and KZN Sands in South Africa, and the operation formerly known as Tiwest in Western Australia. Tronox is also the world’s fifth-largest pigment producer and is the most vertically-integrated company in the mineral sands industry.
APP. 2
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APP. 3
The third leading feedstock producer is Australia-based Iluka Resources with operations in Western Australia, South Australia and Victoria as well as the US State of Virginia. Iluka’s Eucla Basin deposits in South Australia are zircon-rich, while other titanium feedstocks are produced in higher quantities at its other operations. In 2013, Iluka idled its Western Australian operation in Eneabba and Tutunup (Capel) including SR production.
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Titanium Feedstock Annual Review 2014
Demand and pricing in 2013 The global titanium feedstock industry was influenced by demand weakness throughout 2013, driven by ongoing pricing pressure in downstream pigment industry and elevated final pigment product inventory held by TiO2 producers. Profitability of TiO2 producers fell considerably in early 2013 with some even in negative EBITDA territory. Although the market has begun to recover with TiO2 pigment production levels and sales volumes showing some signs of improvement quarter-onquarter, global feedstock demand remains subdued and pricing continues to show a declining trend. TZMI has estimated global demand for titanium feedstock in 2013 at 6.19 million TiO2 units, down 4% year-on-year. Among the feedstock products, demand for sulfate-grade feedstock suffered a larger decline, down 7% year-on-year compared to chloride-grade feedstock which only fell 2% year-on-year. In absolute volume terms, demand for both sulfate-grade and chloride-grade feedstock was estimated at 3.13 million and 3.07 million TiO2 units respectively. From an end-use market perspective, the pigment end-use is the largest consumer of titanium feedstock averaging close to 90% of total demand in 2013. Demand for feedstock in titanium sponge manufacture accounts for 7% while the remaining 4% is predominantly consumed in welding and other specialty applications. Between 2013 and 2015, demand for feedstock in pigment use is projected to grow at 6.0% CAGR, in line with the projected growth in downstream pigment production. Much of the growth is expected to come from China’s sulfate pigment production, accounting for nearly 50% of the projected growth in pigment production during the forecast period. Demand in other end-use segments, on the other hand, fell significantly in 2013 as feedstock consumption for welding electrode manufacture in China tumbled. It is understood that profitability in downstream welding electrode industry has been negatively impacted by high feedstock prices and a slowdown in the domestic steel sector, resulting in lower feedstock offtake for use in this sector. Demand for feedstock in the other end-uses is expected to grow only marginally during the forecast period. TZMI’s forecast of global titanium feedstock demand by end-use segment is presented in the following:
Feedstock demand by market: 2011–2015 '000 TiO2 units
Change in demand Pigment Metal Other uses Total feedstock demand
2011
2012
2013
6,349 380 452 7,180
5,599 428 485 6,512
5,545 403 245 6,194
2014f 5,908 390 264 6,562
2015f 6,231 423 274 6,927
2011-2015f 686 20 28 734
f=forecast
There has been a general trend of declining feedstock prices during the course of 2013 and into early 2014, giving up almost all the gains achieved during the 2010/2011 upturn. The price declines were particularly severe for rutile and sulfate ilmenite, with the weighted average price for rutile in 2013 falling 39% compared to 2012 levels, while the weighted average price for sulfate ilmenite fell 30% year-on-year. TZMI expects prices to stabilise in 2H 2014 before increasing moderately during 2015 in line with an overall demand recovery in the downstream pigment sector. The timing of any recovery in demand remains difficult to predict at this stage. It appears that any noticeable improvement in feedstock pricing is highly unlikely before 2015.
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Executive Summary
CONT
Trade
Exec Sum
Identified international cross-border trade in titanium feedstock in 2013 amounted to 4.90 million TiO2 units, marginally higher than the trade level identified in 2012. Average monthly feedstock trade was between 300,000 and 500,000 TiO2 units except for the month of June where identified trade import volumes exceeded 540,000 TiO2 units.
1.0
While global demand for titanium feedstocks in 2013 fell 4% year-on-year, the impact on international feedstock trades was less profound. This can be attributed to volumes committed under long-term contracts. Under most feedstock offtake contracts, pigment producers are required to purchase a fixed quantity, or a range of quantities, during the contract period. The following chart shows monthly titanium feedstock imports between 2011 and 2013.
2.0
Monthly global titanium feedstock imports: 2011–2013 '000 TiO2 units
3.0
600
© TZMI: NOT FOR REPRODUCTION
500
4.0
400 300 200
5.0
100 0
Jan
Feb
Mar
Apr
Jun
Jul
2013 sulfate
Aug
Sep 2012
Oct
Nov
Dec
6.0
2013 chloride
May
2011
©TZMI
7.0
Feedstock supply
8.0
The sector in 2013 was characterised by an oversupply of feedstocks, largely attributed to continuing market weakness and inventory overhang from 2012. With the softening in global demand for titanium feedstock, output in 2013 was considerably lower as a number of major producers scaled back on production by idling mining operations and kilns, as well as shutting down furnaces for care and maintenance.
APP. 1
APP. 2
Rio Tinto announced in late 2012 that the non-magnetic circuit at RBM would be put on care and maintenance in light of the challenging market conditions. At the same time, the upgraded slag (UGS) production line at Sorel Tracey Complex in Canada was idled. Non-magnetic feedstock production was subsequently restarted in June 2013 while the UGS circuit was reactivated in Q4 2013.
APP. 3
Mining at Tronox’s KZN Sands Hillendale mine, on the other hand, ceased in 2013 following resource depletion. The company is currently developing the Fairbreeze asset, which will form part of the KZN Sands extension to provide ilmenite feed for the smelter. Iluka Resources responded by idling all of the company’s mining operations and SR kilns in Western Australia (WA) from Q2 2013. In addition, as part of the company’s production response to weak
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Titanium Feedstock Annual Review 2014
market, the Narngulu and Hamilton mineral separation plants were operated at reduced capacity with utilisation rates below 50% during the year, resulting in reduced ilmenite and rutile output. Restart of the mining operations and SR kilns in WA will be subject to the recovery of global feedstock demand. TZMI has estimated global feedstock output (net of ilmenite consumed for synthetic rutile and titanium slag manufacture) in 2013 at 6.64 million TiO2 units, approximately 6.7% lower than 2012 levels. The trend was not consistent across all feedstock types. Production of most chloride-grade feedstock, except for chloride ilmenite and leucoxene, was down significantly in 2013 while supply of sulfate ilmenite increased slightly year-on-year. Production of sulfate slag and chloride fines, on the other hand, was little changed on a year-on-year basis. Changes in output of individual feedstock product between 2012 and 2013 are shown in the following chart:
Changes in feedstock production by product type: 2012–2013 '000 TiO2 units 7,500 7,250 7,000 6,750 6,500 6,250
2013
UGS
Synthetic rutile
Chloride slag
Rutile
Sulfate slag
Chloride fines
Leucoxene
Chloride ilmenite
Sulfate ilmenite
© TZMI: NOT FOR REPRODUCTION 2012
6,000
©TZMI
In terms of relative market share, sulfate ilmenite supply remains the largest feedstock category with annual output of 2.67 million TiO2 units in 2013, accounting for 40% of total net feedstock supply. Chloride slag, the next largest feedstock category, accounts for 19% of global feedstock supply. Regionally, China has overtaken Australia as the largest feedstock producing country in 2013. Total feedstock production attributable to China in 2013 is estimated at 1.25 million TiO2 units, contributing approximately 19% to global feedstock TiO2 unit production. South Africa came second with a total output of 1.10 million TiO2 units, while Australia was in third place with total feedstock output estimated at 1.08 million TiO2 units.
Trends and outlook The feedstock market remained in overall surplus in 2013, estimated at close to 450,000 TiO2 units. A large part of the surplus is caused by the build-up of sulfate-grade feedstocks inventory. In contrast, chloride-grade feedstock inventories were drawn down considerably following the suppliers’ response to cut back on production. At the start of 2014, a widely held view within the sector was for the feedstock market to show a progressive improvement in market conditions from mid-year, based on more positive market
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Executive Summary
CONT
Exec Sum
fundamentals, specifically reduced feedstock inventory levels and higher offtake as pigment producers increased utilisation rates. As of mid Q2 2014, it is still not clear as to the exact timing for any such recovery. What seems certain, however, is that it will be some time before prices recover from current levels. Any noticeable improvement is not anticipated until the latter part of the year, if at all.
1.0
For 2014, the feedstock market is expected to remain oversupplied. While global demand for feedstock is expected to improve in 2014, greater increases in supply are expected with the onset of newly commissioned projects. Much of the surplus is expected to come from sulfate-grade feedstocks as the chloride feedstock market stays close to balanced. Onset of recently commissioned projects such as Kwale, Moma’s stage 2 expansion and Grande Côte, not to mention projects currently under construction, will add to global oversupply. Global chloride slag production is also expected to increase from 2014 with the commissioning of Cristal’s new smelter in Saudi Arabia. However, this will not have an impact on net TiO2 unit addition as the ilmenite units consumed for slag manufacture have been taken into consideration in the overall global net ilmenite supply.
2.0 3.0
Overall, TZMI anticipates oversupply in excess of 300,000 TiO2 units in 2014. The anticipated oversupply adds to the surplus position experienced in 2013. The following figure shows global feedstock supply/demand balance between 2011 and 2015, as estimated by TZMI.
Global feedstock supply/demand balance: 2011–2015
4.0
'000 TiO2 units 700
© TZMI: NOT FOR REPRODUCTION
5.0
600 500 400 300
6.0
200 100 0 -200
7.0
-100 2011
2012
2013
2015f
Sulfate
8.0
Chloride
2014f
©TZMI
APP. 1
APP. 2
The chloride feedstock market is expected to return to balance in the near term, as major feedstock suppliers are expected to exercise discipline and ensure the market is not oversupplied in a move to stabilise pricing. The sulfate feedstock market, on the other hand, is likely to extend its surplus position in the near term unless major supply destruction occurs. This is expected to have direct influence on pricing of sulfate-grade feedstocks.
APP. 3
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Titanium Feedstock Annual Review 2014
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1.0 Introduction
1.1
The titanium industry
Exec Sum
Introduction
CONT
1.0
Titanium is the ninth most abundant element in the earth’s crust and is even found on the moon. It occurs naturally in a number of minerals, commonly referred to as titanium feedstocks.
1.0 2.0
Titanium feedstocks are minerals containing titanium dioxide (TiO2). Key titanium feedstock minerals include ilmenite, leucoxene and rutile. Beneficiated ilmenite in various forms produces further feedstocks such as sulfate and chloride slag, and synthetic rutile.
3.0
As well as chemical composition, physical characteristics and colour, feedstocks are defined by their TiO2 content: the higher the TiO2 content, the more valuable the product with the level of minor impurities critical to determining final value.
4.0
Ilmenite is the most common titanium mineral and naturally-occurring ilmenite hosts between 35% and 65% TiO2. Image courtesy of SRL
5.0
Rutile is crystalline TiO2 and, in its pure state, can comprise close to 100% TiO2. Naturally occurring rutile has minor impurities containing up to 1% iron.
6.0
Leucoxene is a naturally altered ilmenite product. It has a TiO2 content ranging from 65% to more than 90%. In practice, the distinction between altered ilmenite and leucoxene is arbitrary and commercially-based. Some leucoxene may also be termed tertiary ilmenite.
7.0
To produce titanium slag and synthetic rutile, ilmenite undergoes further processing to remove iron and other impurities. Because impurity content has been reduced, beneficiated products contain more TiO2. Synthetic rutile can contain between 88% and 95% TiO2, while titanium slag can contain between 72% and 91%.
8.0
The titanium industry’s primary use of titanium feedstocks is in the production of TiO2 pigment which accounts for more than 90% of the world’s consumption of titanium minerals. The remainder is used in the production of titanium metal and fluxes for welding rods; and as a metallurgical flux in iron and steel making. Demand for titanium feedstocks has, therefore, been historically linked to demand for TiO2 pigment.
APP. 1
The TiO2 pigment industry is discussed in detail in the TiO2 Pigment Annual Review 2014; and the titanium metal industries in the Titanium Metal Annual Review 2014. Beneficiated feedstocks are sought for use in TiO2 pigment production via the chloride process, and in titanium metal manufacturing.
APP. 2
Figure 1.1 shows the steps involved from mining titanium feedstocks through to major end-uses.
APP. 3
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Titanium Feedstock Annual Review 2014
Figure 1.1:
Titanium feedstock flowsheet
MINING
SAND DEPOSITS (Dredge or Dry Mining)
HARD ROCK
WET CONCENTRATION
PROCESSING
DRY CONCENTRATION
KEY PRODUCTS EX MINE
ILMENITE
KEY UPGRADED TITANIUM PRODUCTS
TITANIUM SLAG
LEUCOXENE
ZIRCON
SYNTHETIC RUTILE
HIGH PURITY PIG IRON
MAJOR PIGMENT PRODUCTION PROCESSES
RUTILE
TITANIUM TETRACHLORIDE TiCl4
SULFATE TIO2 PROCESS
CHLORIDE TiO2 PROCESS
TITANIUM SPONGE
FINAL PRODUCTS
WHITE PIGMENT
TITANIUM METAL
END-USES Foundries
«
2
56% Paints
24% Plastics
8% Paper
Other 12% Inks Ceramics Fibres
Aerospace Chemical Defence Consumer
Welding electrode flux
Opacifiers/glazes Refractories/foundries Zirconia/zirconium chemicals Abrasives
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TZMI
1.0 Introduction
CONT
Mineral sands are concentrations of heavy minerals (HM) in an alluvial, old beach or river system environment.
Exec Sum
It is normal when considering the industry as a whole to include all producers of titanium raw materials. This encompasses operations based on the mining and processing of primary ‘hard rock’ ilmenite deposits. The processing of alluvial ore separates the titanium minerals while rejecting quartz and light HM which are discarded.
2.0
1.2
1.0
Co-products of processing include zircon which, typically, makes up a relatively low proportion of production from most mineral sands operations while delivering a relatively high value compared with other HM. Zircon is discussed in more depth in the Zircon Annual Review 2014. Another significant co-product is high purity pig iron, a by-product of ilmenite smelting to produce titanium slag.
An overview of titanium feedstock producers
3.0
Alluvial deposits have been commercially mined in Australia, southern, west and eastern Africa, India, Sri Lanka, Madagascar, the US, Southeast Asia and Ukraine. These deposits are the world’s main sources of titanium feedstocks. Major hard rock ilmenite producing areas include Canada, China, Russia and Norway. Large deposits, both hard rock and alluvial, are also known in South America, Pakistan, the Middle East and Indonesia, but are yet to feature strongly in global feedstock supply.
4.0
Globally, only a small number of large mining companies or groups are involved in the production of titanium feedstocks and these are dominated by close relationships between miners and consumers (predominately pigment producers).
5.0
The largest feedstock producers are based in Africa and Australia. Rio Tinto, through its ownership of Canadian-based Fer et Titane, its share in Richards Bay Minerals (RBM) in South Africa, and ownership of QMM Madagascar, is the world’s biggest titanium feedstock producer. In 2012, Rio Tinto increased its stake in RBM to 74% from 37% after acquiring BHP Billiton’s 37% holding following BHP's decision to exit the titanium industry. The remainder of RBM is owned by Blue Horizon Investments (24%) and RBM employees (2%). RBM will continue to be operated by Rio Tinto.
6.0 7.0
Tronox Ltd is the world’s second-largest feedstock producer as a result of its acquisition of Exxaro Resources’ mineral sands assets. Tronox now operates Namakwa Sands and KZN Sands in South Africa, and the operation formerly known as Tiwest in Western Australia. Tronox is also the world’s fifth-largest pigment producer and is the most vertically-integrated company in the mineral sands industry.
8.0
The third leading feedstock producer is Australia-based Iluka Resources with operations in Western Australia, South Australia and Victoria as well as the US State of Virginia. Iluka’s Eucla Basin deposits in South Australia are zircon-rich, while other titanium feedstocks are produced in higher quantities at its other operations. In 2013, Iluka idled its Western Australian operation in Eneabba and Tutunup (Capel) including SR production.
APP. 1
Kenmare Resources is emerging as a major feedstock producer with the commissioning in January 2014 of the second phase of its Moma mine in Mozambique.
APP. 2
The world’s biggest pigment producer – E I du Pont de Nemours and Company (DuPont) – is also a feedstock producer with a mineral sands mining operation in Florida, US. DuPont makes exclusive use of the ilmenite produced at its mine in its US pigment plants. The mine supplies approximately 10% of its feedstock requirements.
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APP. 3
Cristal is the second-largest TiO2 pigment producer worldwide and vertically integrated in the titanium value chain with its own feedstock deposits. The company has operations in Australia (under the company name Cristal Mining), a mine site in Paraiba, Brazil, and produces titanium metal in the US (known as Cristal Metals). Cristal plans to commission two ilmenite smelter furnaces for titanium slag production in Jazan, Saudi Arabia, in May and June 2014.
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Titanium Feedstock Annual Review 2014
Other companies in the feedstock sector with some level of integration are: • Kronos Worldwide Inc (Kronos) owns Titania AS which mines rock ilmenite at Tellnes in Norway to feed its three European sulfate-route pigment plants; • Pangang Titanium Industry Co., Ltd of Pangang Group (Pangang), formed in 1997, which is engaged in the production of titanium feedstocks (concentrates and slag) and also operates a pigment plant at Panzhihua, China; • VV Mineral in India, which acquired the pigment facilities of Kilburn Chemical in September 2011; • The small, government-owned Indian group, Kerala Mines and Metals Ltd (KMML). An overview of major titanium feedstock producers and their geographical locations is shown in Figure 1.2.
Figure 1.2:
Major titanium feedstock producers Irshansky
TiZir
Vilnohirsk
Titania
RTFT
IRE Kenmare
Pangang
RBM
SRL
Sibelco V V Mineral Tronox
Cristal Iluka ©TZMI
1.3
Titanium Feedstock Annual Review structure
The Titanium Feedstock Annual Review 2014 provides a comprehensive review of events and developments in the global titanium feedstock sector during 2013, with additional detail on the production of particular materials such as sulfate and chloride-grade feedstock, rutile and synthetic rutile, and sulfate and chloride slag. The Titanium Feedstock Annual Review covers the history of mineral sands mining, feedstock demand, trade and pricing, as well as global supply in 2013. Chapter 7 provides details on new projects and potential new titanium supply while Chapter 8 covers strategic issues, including the challenges and outlook for the feedstock industry. The Appendices contain a guide to the feedstock sector in addition to common terms, as well as comprehensive profiles of titanium feedstock producers and new project profiles.
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TZMI
1.0 Introduction
CONT
1.4
Confidentiality and disclaimer
This report has been prepared by TZ Minerals International Pty Ltd (TZMI) for the sole, confidential use of the recipient nominated.
Exec Sum
The information contained in this report has been compiled from TZMI’s files and proprietary database, supplemented by discussions with major producers and consumers of titanium feedstocks during the period to 30 April 2014.
1.0
Every effort has been made to ensure that the information presented and the conclusions reached are realistic and not misleading. However, neither TZMI nor its Directors make any warranty as to the accuracy of the information contained in this report and will not accept responsibility or liability for any loss incurred by any person or organisation relying on said information.
2.0 3.0 4.0 5.0 6.0 7.0 8.0
APP. 1
APP. 2
APP. 3
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2.1
Titanium feedstock sector
Exec Sum
Titanium feedstocks markets
CONT
2.0
1.0
Titanium feedstocks are characterised by two primary product chains: TiO2 pigment and the titanium metal sector with TiO2 pigment production accounting for almost 90% of global titanium feedstock consumption. Titanium metal manufacture is the second primary feedstock consumer, while the remaining supply is used to produce welding electrode fluxes, titanium-based chemicals, hard metals, vitreous enamels, catalysts, plus a variety of glass and electro-ceramic products. Because the TiO2 pigment industry consumes most TiO2 feedstocks, feedstock demand has been linked historically to the TiO2 pigment market.
World sources of titanium feedstock
3.0
2.2
2.0
This chapter provides a brief description of the geographical location of the major titanium feedstock resources and major markets, including an overview of TiO2 pigment production. A section about co-product pig iron, a by-product of titanium slag production, is also included in this chapter.
World resources of titanium minerals in 2013
5.0
Figure 2.1:
4.0
Historically, world reserves of titanium minerals have been based on published US Geological Survey (USGS) data. However, since 2004, this data has tended to underestimate developments in several important mineral sands provinces. The data in Figure 2.1 represents TZMI’s current assessment of global titanium minerals resources at the end of 2013, based on TZMI data supplemented by information from other sources.
6.0
350
8.0
300 250 200
© TZMI: NOT FOR REPRODUCTION
150
APP. 1
100
RoW
Brazil
Sierra Leone
Vietnam
US
Kenya
Canada
Ukraine
Sri Lanka
Norway
South Africa
Madagascar
India
APP. 2
China
0
Australia
50
Mozambique
Tonnes of contained TiO2 (millions)
7.0
400
APP. 3
© TZMI
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Australia Australia is the world’s fourth-largest producer of ilmenite and accounts for close to 9% of global gross ilmenite output. The bulk of these resources is associated with operations in the Murray Basin of southeastern Australia and on Stradbroke Island in Queensland. Brazil Ilmenite output and deposits in Brazil are relatively small. The major deposits are in Mataraca on the north coast and at Bujuru on the south coast. However, Brazil also hosts very large resources of anatase that are not included in the tabulation of identified ilmenite resources. Canada Canada is the world’s third-largest producer of ilmenite. Its major resource is the Lac Allard deposit in Quebec currently being mined by RTFT to feed its ilmenite smelter for production of high titania slag. Additional deposits of titaniferous magnetite in northern Manitoba and Newfoundland are the focus of ongoing exploration and investment. Fine-grained titanium minerals are also found in the Alberta tar sands and are being investigated. Chile Fine-grained rutile is present at Cerro Blanco in the north of the country. The current owner of the Cerro Blanco deposit claims nearly 112 million tonnes of Measured and Indicated resource at 1.9% TiO2. China China’s major source of ilmenite is the Panzhihua titaniferous magnetite deposit in Sichuan Province, for many years the primary source of ilmenite for TiO2 pigment production in China. Coastal-type sedimentary deposits are found on Hainan Island, along the southern coast of the Guangdong and Guangxi Provinces, and also in Yunnan Province. While China appears to be the largest producer of ilmenite globally, a considerable proportion of this material is sourced externally as concentrates (mainly from Vietnam) and separated into its main minerals by Chinese companies. India India is the world’s fifth-largest producer of ilmenite. There are significant resources of 60% TiO2 ilmenite on the western coast of India in Kerala State, although exploitation of these deposits is hindered by population density in the region. Large deposits of 50-53% TiO2 ilmenite have been identified in the western portion of Tamil Nadu State to the south of the country, where there are multiple producing mines. The eastern coast of India, encompassing the coastlines of the Andhra Pradesh and Orissa States, contains very large deposits of 47-50% TiO2 ilmenite. However, most of the ilmenite from this region requires beneficiation to make it suitable for use in the production of titanium sponge or TiO2 pigment. Kenya A number of deposits along the coast of Kenya have been located in what is relatively recent mineral sands exploration. Base Resources commissioned its Kwale operation in October 2013 with first shipments of ilmenite and zircon in 1H 2014.
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Madagascar
Exec Sum
Large deposits of 60% TiO2 ilmenite in the southeast of the country are currently being developed by Rio Tinto Fer et Titane (RTFT), which went into production in 2009. The operation is located near Fort Dauphin and is a joint venture between Rio Tinto (80%) and the Government of Madagascar, registered under the company name QIT Madagascar Minerals (QMM). There are additional ilmenite resources on both the eastern and southwestern coasts of Madagascar. World Titanium Resources is currently developing the Toliara Sands deposit located approximately 40 km north of Toliara on the west coast.
1.0
Mozambique
2.0
Exploration of Mozambique’s long coastline for heavy mineral sands has taken place during the past 25 years, and three large deposits have been located. The most significant is the Corridor Sands deposit in the south. Although few areas have been explored in any detail, there are known occurrences of heavy minerals along much of the coastline and it is likely that additional, large resources will be identified in the future. The Moma project, operated by Kenmare Resources in northern Mozambique, is the country’s largest current mineral sands operation.
3.0
Norway
4.0
Norway’s ilmenite resources are contained in primary rock deposits, the most significant the Tellnes orebody in the south which is currently being mined to produce sulfate-grade ilmenite. Paraguay
5.0
The Alto Parana deposit is a large titanium-iron deposit approximately 80 km north of Ciudad del Este. CIC Resources intends to produce 500,000 tpa of chloride-grade slag and 477,000 tpa of low-manganese pig iron from 2016. Sierra Leone
6.0 7.0
Mining of titanium resources in Sierra Leone was originally developed in the 1960s but shut down during civil unrest in 1995. Sierra Rutile Limited recommenced mining 10 years later and is now the world’s second-largest rutile producer. The large rutile deposit is located in the Imperi Hills area of Sierra Leone, approximately 135 km from Freetown, the nation’s capital. It is one of the world’s largest rutile deposits with JORC Measured, Indicated and Inferred mineral resources of more than 910 million tonnes. South Africa
8.0
APP. 1
South Africa is the world’s second-largest ilmenite producer with widespread resources. The most important occur on the east coast, north and south of Richards Bay in KwaZulu-Natal. Deposits have also been identified on the southeast coast. There are reported heavy mineral occurrences along large sections of the western coast with one such deposit mined by Namakwa Sands. Most of South African ilmenite is smelted to produce titanium slag. South Africa also contains large deposits of titaniferous magnetite in the Bushveld Complex, some of which are included in the estimate of ilmenite resources. A moderately-large deposit of cemented, highly-altered ilmenite at Bothaville has also been the subject of preliminary technical investigations.
APP. 2
Sri Lanka
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APP. 3
Sri Lanka’s ilmenite resources include high-grade beach deposits. A well-known deposit is located at Pulmoddai beach which is operated by Lanka Mineral Sands Limited. Another promising ilmenite deposit is located near Puttalam with estimated Measured, Indicated and Inferred mineral resources of 689 million tonnes containing 56 million tonnes of heavy mineral sands. In August 2013, Iluka Resources acquired exploration tenements for the Puttalam deposit covering 146 km2.
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Ukraine Large deposits of ilmenite in Ukraine have been mined for many years, primarily to provide titanium feedstock for pigment production in the nearby region and titanium sponge production in both Ukraine and Russia. The resources are in two areas: Irshansk, which predominantly contains 55-59% TiO2 ilmenite suitable for sulfate pigment production, and Vilnohirsk, which has ilmenite containing 64% TiO2. This is used as a feedstock to produce slag for titanium sponge production in Russia and the Commonwealth of Independent States. The US Identified ilmenite resources in the US are predominantly coastal-type sedimentary deposits on the Atlantic coastal plain, with mines operating in Virginia and Florida. Although rock ilmenite deposits have been mined in the past, none of these are currently included in identified ilmenite resources. Vietnam Vietnam produces ilmenite and a significant volume of heavy mineral concentrates. Notable deposits are found in Thai Nguyen Province, north of Hanoi, with 30-70% TiO2 reported, at the Quang Nam deposit in central Vietnam, with estimated reserves of approximately 200,000 tonnes, and at the Cat Khanh deposit, south of Nha Trang, which is estimated to contain 1.59 million tonnes of ilmenite. It is important to note the relationship between Vietnam and China, which is previously described in the China summary.
2.3
TiO2 pigment production
TiO2 pigment is predominantly added to high-quality surface finishes for opacity, brightness and whiteness. When incorporated into applications such as paint and coatings, TiO2 pigment extends product life by absorbing and reflecting ultraviolet radiation that would otherwise accelerate decomposition. Despite these attributes, TiO2 is largely sought because it improves a product’s aesthetic appearance. It is also non-toxic and inert to most chemical reagents. There are two alternative processing technologies for the production of TiO2 pigment: the sulfate process, involving the digestion of the feedstock in sulfuric acid, and the chloride process, which is based on chlorination in fluidised bed reactors. In addition to the totally different chemistry, the two processes use different raw materials and produce dissimilar quantities and types of waste products. Processed TiO2 pigment has two crystal forms: rutile and anatase. Anatase-grade pigment is made only by the sulfate route, while rutile-grade pigment can be manufactured using both processes. Production of TiO2 pigment by the sulfate process started in 1919 and, until 1958, all plants were based on the same fundamental technology. In the late 1950s, DuPont developed the first commercial application of chloride technology for pigment production and, until recent times, chloride processing capacity grew at a faster rate than sulfate process capacity. Many older sulfate process plants were closed and others converted to chloride process technology. By 1992, more than 50% of the world’s production capacity was based on the chloride process. This trend continued until 1998 when a rapid increase in Chinese production capacity based on the sulfate process resulted in an increased proportion of global pigment emerging from that route. Sulfate processing suffers the disadvantage of producing higher volumes of acidic wastes. In preference to direct disposal, these are increasingly being processed for acid recovery as well as conversion to saleable products. Chloride technology, on the other hand, is technically more difficult, process know-how is tightly held, and capital costs are higher. Although significant advances have been made in recycling acid wastes from sulfate plants, chloride technology is widely considered the preferred route by many. Virtually all new plants in western economies use this process. It is estimated that in 2013, 49% of global pigment production was chloride-based. However, the resurgence of sulfate plant construction in China has, for the time being, changed the global trend of chloride process growth dominance.
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2.3.1
The sulfate process
Exec Sum
Sulfate processing uses ilmenite or titanium slag as a raw material. RTFT plus TiZir, a joint venture between Mineral Deposits Limited and Eramet, are currently the largest producers of sulfate-grade titanium slag. The feedstock is dried and ground before being digested by sulfuric acid, generally at an acid strength of 85-92% and at temperatures of 150-180°C.
1.0
The reaction product of the digestion process is a solid, porous cake - typically containing ferrous, ferric and titanium sulfates - that is extracted using water or diluted acid to yield a solution of titanyl sulfate (TiOSO4). If ilmenite is used as feed, any ferric iron present is reduced to the ferrous form of the metal through the addition of scrap iron. The subsequent liquor is clarified using sedimentation techniques to remove insoluble residues such as silica, zircon and any remaining unreacted feedstock.
2.0 3.0
The liquor is then cooled to crystallise out much of the iron as iron sulfate, or ‘copperas’ (FeSO4.7H2O). The use of feedstock with low iron content, for example titanium slag, may obviate the need for this crystallisation stage. Copperas may be sold as a by-product and is removed by filtration. The solution is concentrated prior to hydrolysis.
4.0
The hydrolysis process produces a precipitate of hydrous TiO2. It is one of the most critical steps in the process: it is at this stage that the particle size and most of the pigment properties are determined. Precipitation is achieved by boiling the mixture for several hours and adding ‘seed’ particles upon which the hydrous TiO2 particles can precipitate. After washing, the hydrolysed pulp is then leached with sulfuric acid to remove any remaining impurities.
5.0
It is in the calcination step that the production of the rutile or anatase crystal form of TiO2 is controlled. Calcination takes place in a rotary kiln at 900-1,250°C. After milling, which breaks up particle aggregates, the calcined product goes to the finishing plant. Some semi-finished product is sold for finishing in other locations. Usually, however, the pigment producer undertakes these surface treatment operations, including final micronising and bagging. The sulfate process is summarised in Figure 2.2.
6.0 7.0
Sulfate pigment plants, particularly those using ilmenite, generate relatively high quantities of waste in the form of copperas and neutralised spent acids, such as gypsum. Historically, this waste was disposed of but this is generally no longer environmentally acceptable. As a result, most major sulfate plants have moved towards processes for the recovery of sulfuric acid from the waste, neutralisation of effluent, and retrieval of co-products. In addition to making the sulfate process far more acceptable environmentally, such practices have significantly improved the economics of sulfate pigment production. While the use of slag as a feedstock greatly reduces the volume of waste generated, it does make the process more difficult to control. With increasing environmental regulation a key driver, Chinese sulfate pigment producers are increasingly learning to employ slag.
8.0
APP. 1
APP. 2
APP. 3
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Figure 2.2:
The sulfate process
ILMENITE
DIGESTION
SLAG
SULFURIC ACID
DIGESTION
REDUCTION IRON ACID REGENERATION
REDUCTION NUCLEI CLARIFICATION FILTRATION SLUDGE
CRYSTALLISATION
HYDROLYSIS
CLARIFICATION FILTRATION
COPPERAS FeSO4.7H2O
SLUDGE
FILTRATION BLEACHING
ACID NEUTRALISATION
GYPSUM
CALCINATION
DRY MILLING
SL T UR iO RY 2
WATER
© TZMI
2.3.2
The chloride process
Most chloride processes use high TiO2 feedstocks - normally one of the two forms of beneficiated product, slag, upgraded slag or synthetic rutile, and sometimes small quantities of rutile. In practice, most producers use a blend of two or more materials. Only DuPont has the technical capability to chlorinate ilmenite. While DuPont’s version of the chloride process effectively allows it to use feedstock with a lower TiO2 content than other producers, it does generate a far higher volume of waste. Manufacturers’ production techniques differ in certain aspects, but general attributes common to all are described as follows. As shown in Figure 2.3, the titanium raw materials are mixed with high-purity coke and chlorinated at 850-1,200°C in a fluidised bed reactor. The reaction produces volatile titanium tetrachloride (TiCl4) and chlorides of iron and other impurities. As the mixture leaves the chlorinator it is cooled to condense the bulk of the low volatile chlorides, including iron, manganese and chromium. The TiCl4 is then condensed and further purified by organic chemical treatment and distillation.
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Figure 2.3:
The chloride process
Exec Sum
TiO2 FEEDSTOCK
1.0
Cl2 CALCINED COKE
CHLORINATION
ME TA LC S IDE OR HL
2.0
UNREACTED FEEDSTOCK
3.0
RECYCLED Cl2 NEUTRALISATION AGENT
CONDENSATION
WASTE GAS SCRUBBING
PURIFICATION TlCl4
ENERGY
SOLID WASTE BY-PRODUCTS
HCl(aq)
5.0
O2
4.0
WASTE TREATMENT
INCINERATION
OXIDATION
FUEL
CO2
STEAM
7.0
SL T UR iO RY 2
6.0
WATER
© TZMI
8.0
APP. 1
The purified TiCl4 is reacted at high temperature with oxygen to form solid TiO2 particles, and chlorine is liberated and recycled to the chlorinator. The TiO2 is collected in conventional bag filters and, if necessary, milled to break up any aggregates before it passes to the finishing plant.
Surface treatment
APP. 3
2.3.3
APP. 2
The waste material from chloride pigment processing is primarily iron chloride, the quantity inversely proportional to the TiO2 content of the feedstock used. Hydrochloric acid is also an important waste or by-product. For plants using high-grade titanium feedstock, the moderately small quantity of waste is generally deposited in specially-designated landfill sites. DuPont’s plants, which use high proportions of ilmenite, must correspondingly dispose of high volumes of ferric chloride wastes through the use of deep wells and the development of co-product markets.
Finishing (or surface treatment) operations are an essential part of pigment production processes that improve or modify physical and optical properties to suit specific applications. In this step, various combinations of aluminium, silicon, zirconium and titanium oxides are precipitated on
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to the surface of the pigment particles. The final product is then dried, micronised and bagged. Pigment manufacturers may produce many different grades of product, usually differentiated in this final stage of the process.
2.4
Other end-uses
Less than 10% of the total TiO2 contained in the various grades of titanium raw materials is consumed by: • titanium metal (slag, rutile and synthetic rutile); • fluxes for coating welding electrodes (rutile and ilmenite); • metallurgical fluxes in the iron and steel industry (ilmenite); • sandblasting and drilling muds (ilmenite). However, they can have a moderately important influence on the demand for specific grades of raw material. Each of those consuming industries is described in the next sections.
2.4.1
Titanium metal
Titanium metal is the fourth most common structural metal in use. It is made from titanium feedstock and is sought for its corrosion-resistant properties. It is resilient against mineral acids, aqueous alkali and halogen gases. Greater ultimate strength and higher melting point are two other favourable features of titanium metal compared with other major light metals (namely aluminium and magnesium). Titanium has the highest strength-to-weight ratio of any metal. Commercial titanium grades have an ultimate tensile strength of about 434 megapascal (MPa), making them as strong as common steel alloys but 45% lighter. The metal’s elevated melting point makes it the preferred material for a range of applications. However, titanium metal and its alloys are more difficult to manufacture economically compared with aluminium and magnesium. Also, developing titanium metal from feedstock is a large-scale batch process that is not without risk. Titanium metal’s key features make it ideal for aerospace applications which are its major market. Use of titanium metal is gradually being extended into other transport sectors as weight reduction and fuel economy become increasingly important. Titanium metal’s corrosion-resistant properties see it used in the specialised, corrosive environments of chemical process operations such as desalination plants. The first stage in the titanium metal chain is the production of titanium sponge, a tradeable commodity. Until the recent rapid rise of China, major producers were based in Japan, Russia and Kazakhstan, with smaller production in Ukraine and the US. There are now many smaller plants in China, which in 2007 became the world’s largest producer. Nine companies worldwide are responsible for most of the world’s titanium sponge production. Commercial production of titanium metal began in the 1950s. The most widely used manufacturing method is the Kroll process, which involves the reduction of TiCl4 with molten magnesium to form titanium sponge. Titanium sponge produced by metallic reduction processes contains significant quantities of impurities which are subsequently removed by leaching, vacuum arc re-melting and cold hearth techniques. Several stages of re-melting may be required to produce progressively purer titanium metal. The ultimate product from this purification process is known as titanium ingot. Titanium ingot is fabricated into mill products (bar, sheet, plate, tubes, etc) which are used for metal casting, the production of fabricated products, or as feedstock in the production of titanium alloys. The fabricating and machining stage of titanium metal generates significant quantities of scrap. As much as 20% of new metal output originates from recycled scrap, contributing significantly to the total economics of the titanium metal business.
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Exec Sum
Known as ‘tickle’ in the industry, TiCl4 is produced through the chlorination of titanium raw materials and is an intermediate product in the chloride-route process for pigment production. Titanium sponge producers either purchase TiCl4 from pigment producers, as in the US, or purchase titanium raw materials for chlorination. CIS sponge is produced from TiCl4 made in molten salt reactors from high TiO2 slag. Most Chinese TiCl4 is produced in fluidised bed chlorinators; however, these are operated differently to western pigment chlorinators and may tolerate higher levels of impurities.
1.0
The quality of titanium raw materials required for titanium sponge production is similar to that required for chloride-route process pigment production. One distinction is that raw materials for titanium metal production generally require low levels of tin. Titanium sponge producers use slag, rutile and synthetic rutile as raw materials.
2.0
Specific examples of applications for titanium metal Engines
3.0
The largest single use of titanium is in jet aircraft engines where titanium-based alloys make up 20-30% of the engine weight. Similarly, titanium alloys are used in a number of the components of gas turbine engines for industrial applications.
Airframes
4.0
Titanium alloys compete effectively with aluminium, nickel, ferrous alloys and carbon fibre composites in both commercial and military airframes.
Space
5.0
Titanium alloys are widely used in outer-space applications.
Heat transfer
6.0
The major industrial application for titanium is in heat transfer applications in which the cooling medium is seawater, brackish water or polluted water, using the corrosive resistant properties of the metal.
Chemical process plants
7.0
Titanium metal is used in corrosive environments in chemical processing plants, particularly in areas with high chlorine concentrations. Desalination plants are an increasing significant user of titanium metal.
Sporting equipment
8.0
An important use for titanium, developed in 1995, is in the manufacture of golf club heads. Titanium is also used in tennis racquets.
APP. 1
APP. 2
APP. 3
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2.4.2
Welding electrode flux
Titanium minerals are used as a component of fluxes for coating welding electrodes. The wide variety of flux compositions correlates to the nature of the welding process, materials to be welded, and the desired characteristics of the weld. TiO2 is most commonly added to welding electrode flux in the form of rutile. Leucoxene is also widely used, although some electrode producers regard it as undesirable because of its variable composition. Ilmenite has also been used as a low-cost substitute for rutile. The most important requirement in flux raw materials is consistency of particle size distribution and chemical composition. Phosphorous and sulfur are particularly deleterious impurities, as is moisture. Heavy metals can also affect the quality of the weld. In general, silica, alumina and alkaline earth oxides are necessary components of the flux; however, it is important that the content of these oxides is consistent. TZMI estimates overall consumption for welding electrode fluxes and other minor end-uses in 2013 at 245,000 TiO2 units, 38% lower than in 2012 mainly due to weaker Chinese demand, and accounting for 4% of global feedstock demand.
2.4.3
Metallurgical flux
Lower quality titanium raw materials are used as a metallurgical flux in smelting operations, particularly in iron and steel production. Low TiO2 ilmenite from Lac Allard in Canada and ilmenites from South East Asia and the east coast of Australia have been used for this purpose in Europe, Japan, South Korea and Brazil.
2.4.4
Sandblasting
Small quantities of ilmenite are used as a sandblasting medium. This application is generally restricted to areas close to the source of low-quality ilmenite products (for example, on the east coast of Australia) and when prices for such ilmenite are low.
2.4.5
Drilling muds
Due to its high density, ilmenite has been used as a component of drilling muds, particularly in North Sea oil drilling operations.
2.5
Co-products: pig iron
Pig iron or high purity pig iron (HPPI) is a co-product of titanium slag production when ilmenite is beneficiated. The pig iron is recovered from ilmenite smelters and used in foundries. Co-product pig iron from ilmenite smelting finds its principal application as feedstock for production of ductile iron castings, where low manganese, sulfur and phosphorus levels are essential. There are relatively few ilmenite smelting facilities which produce HPPI for global markets: one in Norway, three in South Africa, one in Canada, some producers in China, and one in Ukraine. Total production in 2013 was approximately 1.8 million tonnes. The production of titanium slag has a direct impact on HPPI production volumes. The four major high titanium slag producers in the world outside China are: • Rio Tinto Fer et Titane (RTFT) in Quebec, Canada; • TiZir Limited in Norway (former Eramet Iron & Titanium in a JV with Mineral Deposits Ltd); • Rio Tinto Richards Bay Minerals in South Africa, and • Tronox, which acquired Exxaro’s slag operations in South Africa.
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Cristal announced plans in 2011 to build a new slag smelter in Saudi Arabia with a capacity of 500,000 tpa of chloride slag and 235,000 tpa of HPPI. The smelting plant’s first furnace is scheduled to be commissioned in May 2014 and the second in June 2014.
Figure 2.4:
Exec Sum
As a co-product to TiO2 slag, pig iron provides a lucrative revenue stream for slag producers. Figure 2.4 shows the estimated HPPI production from the major titanium slag producers between 2010 and 2013.
Pig iron production from titanium slag producers: 2010–2013
1.0
'000 tonnes 1,000
2.0
© TZMI: NOT FOR REPRODUCTION
800 600
3.0
400 200
4.0
0
2010
2011
RTFT
RBM
2012 Tronox
2013 China
TiZir
5.0
©TZMI
Note: only the three major Chinese slag producers have been included
6.0 7.0
China has a number of small-scale ilmenite smelting operations which produce TiO2 slag for local consumption. Some of these companies have invested in larger ilmenite furnace facilities and technology for the production of slag to improve economies of scale and product quality. Given that slag production in China is expected to increase in the near term due to increased demand, pig iron volumes in China are also expected to rise. In addition, companies in India and Vietnam are increasing investment in larger ilmenite smelting facilities for slag and pig iron production.
8.0
During slag production, the ilmenite is smelted in electric arc furnaces (EAF) at temperatures in the 1,650–1,700°C range, using anthracite or other carbonaceous materials as reductant. In some facilities, the ilmenite is pre-roasted to remove deleterious elements and, in one case, the ilmenite is pre-reduced before smelting.
APP. 1
The ilmenite is partially reduced with anthracite to yield a low-manganese iron, a high titanium slag (which is the primary product) and a CO rich gas according to the reaction: FeTiO3 + C = TiO2 (l) + Fe (l) + CO (g)
APP. 2
After being tapped from the ilmenite smelting furnace, the molten iron undergoes various metal treatment processes (de-sulfurisation, for example), before being cast into ingots for sale to customers.
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APP. 3
Pig iron is a semi-finished metal material, containing at least 94% iron, and the intermediate product of smelting iron ore with a high-carbon fuel such as coke, usually with limestone as a flux. Pig iron has a high carbon content, typically 3.5–4.5%. Other components are silicon (>
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Base resources (continued) Operations Base Resources Limited’s Kwale deposit is approximately 48 km by road south of the port city of Mombasa, Kenya. The property, which is 12 km inland, contains Proven reserves of 38.9 million tonnes at 7.1% heavy minerals (HM) and Probable reserves of 78 million tonnes at 4.2% HM, based on two of the three known deposits (the Central and South Dune areas). Once production has commenced, a second phase of development is targeted for the North Dune deposit and several other coastal deposits.
Recent developments On 8 January 2013, ASX-listed Base was admitted to trading on the London AIM market. In February 2013, Base reported a significant increase in construction activity at Kwale during Q4 2012. In April 2013, Base announced that it had reached a key milestone at Kwale with the closing of its 8.5 gigalitre Mukurumudzi Dam, which is the project’s primary water source. Closing the dam before the impending wet season was a critical milestone to ensure sufficient water was available for commissioning the processing plant. In July 2013, Base announced the appointment of Malcolm Macpherson to its board. Mr Macpherson has extensive experience in the mining industry and spent 25 years at Iluka from 1978. He is currently chairman of Pluton Resources, and a director of Bathurst Resources and Titanium Corp. Base Resources released its full year statutory accounts in September 2013. In these accounts, Base stated development of Kwale was 95% complete. Major works completed included power lines, access roads and the camp. The mining fleet was commissioned and fully operational. Completion of the mineral separation plant has been delayed by almost four weeks due to slower than expected structural, mechanical and pipework installation. Additionally, Base entered three new, three-year, take or pay offtake agreements with China-based companies, which encompasses a large portion of the previously uncontracted sales volumes for Base’s ilmenite and zircon. In October 2013, Base began mining and processing ore at its Kwale project. After two weeks of water commissioning and control logic testing, the company excavated its first ore and fed it through the wet concentrator. The MSP was operational during November with the first bulk shipments expected in January 2014. In December 2013, Base announced the commencement of concentrate processing at its Kwale project and first production of ilmenite and rutile. In February 2014, Base shipped its first 25,000 tonnes of ilmenite. The maiden shipment occurred several days after Base was granted its export permit. The shipment was from Base’s Likoni marine facility and was sent to a China-based customer. The Likoni facility was completed in December and ilmenite and rutile have been stockpiled in the company’s 60,000 tonne capacity storage shed.
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Beh Minerals Sdn Bhd
Exec Sum
Ownership Privately owned company
Key personnel
1.0
Kok Choon Choe – Managing Director
2.0
Background Heavy minerals are recovered as by-products of the tin mining industry. Supplies remain limited as new tin mines are not being developed. The Malaysian Department of Minerals and Geoscience estimates reserves of 2.1 million tonnes of ilmenite.
3.0
Operations Beh Minerals processes tin mining tailings at its Lahat plant in Perak, Malaysia.
4.0
The tailings are sourced from several companies, providing a potential production of up to 40,000 tpa of ilmenite. The extent to which zircon, monazite, struverite (a Ta, Nb mineral) and xenotime are recovered is dependent on market conditions.
5.0
Recent developments Since 2001, Malaysia’s imports have surpassed production and exports levels, with most mineral processing plants continuing to draw on accumulated stocks. No developments have been reported to suggest a turnaround in this situation.
6.0 7.0 8.0
APP. 1
APP. 2
APP. 3
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Binh Dinh Minerals Joint Stock Co (Bimico) www.bimico.vn Ownership Publicly listed on the HCMC Stock Exchange. Government ownership is less than 30%.
Key personnel Ngo Van Tong - Chairman & Managing Director Ha Van Cuong - Deputy Director Tran Canh Thinh - Business Development
Background Binh Dinh Minerals Joint Stock Company (Bimico) was founded in 1985 in the Binh Dinh Province of Vietnam. Bimico mines, processes and trades titanium mineral ore. The company’s main products are ilmenite, zircon flour, rutile, monazite, titanium slag and pig iron. Products are exported to Japan, Korea, Malaysia and China. In October 2007, Bimico received Vietnamese Government approval to begin exploration south of the Degi mine in the Phu Cat district of Binh Dinh Province. In February 2008, the Ministry of Natural Resources and Environment granted approval for the mining and processing of titanium minerals to proceed.
Operations Bimico has a mining operation based in the Cat Thanh district of Binh Dinh Province with a production capacity of 50,000 tpa of ilmenite. The Cat Thanh district reportedly has a total ilmenite reserve of 500,000 tonnes. Bimico invested approximately VND97 billion (US$6 million) in the construction of Vietnam’s first TiO2 smelter in the Catnhon Industrial Zone, Phucat district, Binh Dinh Province. Work started in September 2007 with the plant operational from December 2008. Estimated capacity is 12,000 tpa of titanium slag and 7,000 tpa of pig-iron. From the beginning of 2009, Vietnam’s Industry and Trade Ministry added titanium ore to a list of raw materials retained for domestic downstream processing, with some exceptions. In July 2009, the Ministry of Finance changed the tariff arrangements with synthetic and natural rutile attracting a 0% import tax and 18% export tax. In Q2 2012, Bimico reported it had completed installation of its titanium slag furnace No 3 with designed capacity of 500 tpm. It was also close to completion of a fourth furnace, however, no further development has been reported since then.
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Cochin Minerals and Rutile Ltd www.crmrlindia.com
Exec Sum
Ownership A private sector organisation in India
1.0
Key personnel Shri RK Garg- Chairman Shri S N Sasidharan Kartha - Managing Director Shri Mathew M Cherian - Vice Chairman
2.0
Shri Saran S Kartha - Joint Managing Director Shri A J Pai - Director Shri G R Warrier - Director
3.0
Shri TPThomaskutty - Director Smt Jaya S Kartha - Director Shri Nabiel Mathew Cherian - Director
4.0
Background
5.0
Cochin Minerals and Rutile Limited (CMRL) is a publicly listed chemicals company based in Aluva, Kerala, India. The company was founded in 1989 by SN Sasidharan and Mathew M Cherian with assistance from the Kerala State Industrial Corporation (KSIDC).
6.0
CMRL operates a 45,000 tpa synthetic rutile plant at Edayar Industrial Development Area, approximately 15 km from Cochin Port in Kerala State, India. Commissioned in mid-1993, the plant uses 58% TiO2 ilmenite feedstock sourced from Indian Rare Earths Limited’s (IREL) operation at Chavara. The company started production with a capacity of 10,000 tpa of synthetic rutile and 12,500 tpa of Ferric Chloride. The company expanded production capacity of synthetic rutile to 45,000 tpa, Ferric Chloride to 24,000 tpa, Ferrous Chloride to 72,000 tpa and Cemox to 18,000 tpa.
7.0
Operations
8.0
Ferric chloride and ferrous chloride are recovered as co-products and sold for water, sewerage and effluent treatment. Another co-product, Cemox, is sold for tile and brick manufacturing as a natural substitute.
APP. 1
The Indian Government granted Cochin a licence to establish a mining and mineral separation plant for beach sand minerals at Alleppey District of Kerala as a separate joint sector company. The company, Kerala Rare Earths and Minerals Limited, is promoted by CMRL.
APP. 2
In January 2008, CMRL and the National Institute for Interdisciplinary Science and Technology, Thiruvananthapuram (formerly Regional Research Laboratory) finalised an agreement for the transfer of technology to produce synthetic rutile containing more than 97% TiO2. CMRL plans to double the capacity of its plant at Aluva by adopting the new technology at an estimated cost of Rs100 crore (US$25 million). Synthetic rutile product assaying 96% TiO2 is marketed to titanium sponge and pigment producers around the world.
APP. 3
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Cristal Mining Australia Limited www.cristalmining.com Ownership A wholly-owned subsidiary of The National Titanium Dioxide Company Limited. Formerly known as Bemax Resources
Key personnel Talal Al-Shair – Director and Chairman Dominic Manganaro – Director Chris Reynolds – Operations Manager Murray Basin Garry Fee – Manager, Operations West Bruce Read – Manager, Marketing Dean Grondal – Legal Counsel
Background In 2008, Cristal Mining Australia Pty Ltd acquired all shares in Bemax Resources via an offmarket takeover bid. The company was subsequently removed from the official list on the Australian Stock Exchange. Cristal Mining Australia (Cristal) controls mineral resources in two significant geological and geographical provinces, namely the Murray Basin in Victoria and New South Wales, and the South West of Western Australia. The Ginkgo mine, 220 km from Broken Hill, was Cristal’s first mine in the northern region of the Murray Basin. Following the commencement of production in December 2005, the Ginkgo mine became the first large-scale mining operation in the Murray Basin. Trucking of products to the Broken Hill Mineral Separation Plant (MSP) commenced in January 2006. Cristal’s second mine in the region is the Snapper mine, approximately 10 km from the Ginkgo mine. In December 2009, Cristal Australia obtained regulatory approval from the NSW government to commence dry mining a high-grade zone ahead of the dredge path at the Snapper mine and to truck the product to the Ginkgo mine for processing.
Operations Eastern Australia (Murray Basin) The Ginkgo mine has a suite of products including rutile, zircon, secondary ilmenite and leucoxene. Based on projected extraction levels, mine life is expected to reach 2018. The Snapper deposit has proven reserves of approximately 123 million tonnes, and an average ore grade of approximately 5.0% heavy minerals. The Snapper operation is expected to continue until 2025. Both mineral sands deposits are of similar dimensions and mineralogy, however, the Snapper deposit has almost twice the grade compared to the Ginkgo deposit. The Snapper mine shares a significant amount of infrastructure, such as roads and power lines that were constructed for the Ginkgo mine and the mines will have a single overall management structure. Accordingly, this project is viewed as an extension of the existing operations rather than a greenfields development. The Snapper open-pit mine was opened in January 2010 and ore was delivered to Ginkgo throughout that year. The Broken Hill MSP has a leucoxene circuit and a wet gravity circuit. Production at the MSP comprises a leucoxene product, a secondary ilmenite product for final sale through Port Adelaide
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and a zircon/rutile non-magnetic product for shipment to Bunbury for further processing into zircon, rutile and leucoxene products for sale through the Ports of Bunbury and Fremantle. Western Australia
Exec Sum
Cristal conducted mining and exploration in Western Australia through its wholly owned subsidiary, Cable Sands. The operations in Western Australia consist of the Gwindinup mine, 30 km from the Bunbury mineral separation plant. The Gwindinup project comprises the Gwindinup North, commissioned in March 2008, and South deposits and extends through to the Happy Valley North and South deposits. Mining at Gwindinup ceased in October 2012.
1.0
The Bunbury mineral separation plant has undergone several upgrades and expansions. As a result of its large throughput capacity, in addition to processing HMC and concentrate from the mines in both WA and the Murray Basin, the Bunbury mineral separation plant also has the capability to process HMC from other mineral sands producers in the region.
2.0
Recent developments
3.0
In its June 2013 quarterly report, Cristal reported it produced 41,726 tonnes of ilmenite from its Murray Basin operations for the June quarter, up 24,187 tonnes from the same 2012 period. It also produced 24,173 tonnes of rutile and 17,010 tonnes of zircon. Total sales revenue for all products for the June 2013 quarter was A$96.2 million, up 36% on the same 2012 quarter. During 2H 2013, Cristal produced 324,121 tonnes of heavy mineral concentrate, compared to 240,109 tonnes in 2H 2012.
4.0
In January 2014, it was reported that Outotec entered a four-year long-term supply chain management contract valued at approximately ₤20 million with Cristal’s subsidiary The National Titanium Dioxide Company (TNTDC). The new contract complements an existing contract from May 2012 where Outotec provides operation and maintenance services to TNTDC’s ilmenite smelter which is currently nearing construction completion in Jazan Economic City in the Kingdom of Saudi Arabia.
5.0 6.0 7.0 8.0
APP. 1
APP. 2
APP. 3
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DCW Limited www.dcwltd.com Ownership Public limited company
Key personnel Shashi Chand Jain – Chairman and Managing Director Pramod Jain – Managing Director Bakul Jain – Managing Director Mudit Jain – Executive Director RV Ruia – Director Sushilkumar Jalan – Director Sodhsal Signh Dev of Dhrangadhra – Director Sujata Rangnekar – Additional Director D Ganapathy – Additional Director
Background DCW Limited (DCW), known as Dharangadhara Chemical Works prior to 1986, is a diversified manufacturer of basic chemicals including upgraded ilmenite and synthetic rutile. In 1970, the company commissioned a plant to manufacture upgraded ilmenite, the first of its kind in Asia. The plant, located at Sahupuram in the southern State of Tamil Nadu, had an installed capacity of 30,000 tpa. The capacity was increased to 36,000 tpa following process modifications in 2000, and more recently, to 48,000 tpa with enhancements to equipment.
Operations Ilmenite ore is upgraded to produce synthetic rutile with more than 95% TiO2 content. The original production process was based on the hydrochloric acid leach process developed by Wah Chang. Process changes introduced by DCW have enabled the production of a high-quality synthetic rutile, with particularly low levels of radioactivity, which is marketed to pigment and titanium sponge producers in the Asia-Pacific region. Fine particles of synthetic rutile are recovered from the digesters and further upgraded to produce a product known as UTOX, which is sold as a low-grade pigment. DCW also caters to the requirements of welding electrode manufacturers with a ‘weld grade’ synthetic rutile product, which has been developed in-house and can be substituted for natural rutile. DCW has reportedly entered into a Technical License and Support Agreement with Rockwood Italia (Italy), a producer of synthetic iron oxides. There are plans to establish a synthetic iron oxide plant at its Sahupuram Complex in Tamil Nadu, where the waste leach liquor generated from DCW’s beneficiated ilmenite plant will be used as feedstock.
Recent developments In September 2013, DCW announced that Berjis Desai had resigned from DCW Ltd’s board of directors.
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Doral Mineral Sands www.doral.com.au
Exec Sum
Ownership 100% Doral Pty Ltd (an unlisted public company owned by Iwatani International Corp)
1.0
Key personnel Mike Ferraro - Managing Director Andrew Templeman - General Manager
2.0
Background
3.0
Iwatani International Corp, the parent company of Doral, is a major industrial company and trader of zircon for more than 30 years.
4.0
Doral Mineral Sands Pty Ltd (Doral) was established in 2001 to acquire, mine and process heavy mineral sands near Dardanup and at Picton, about 20 km and 10 km respectively east of Bunbury in Western Australia. The company produces five products that include chloride ilmenite, HiTi, leucoxene, zircon and foundry sand (low-grade zircon) which are exported predominantly to China, Taiwan, Japan and the US.
5.0
In June 2001, Doral committed over A$30 million to the establishment and construction of the Dardanup Mineral Sands project and by mid-2002, open-cut mining and processing at the Picton dry processing plant had commenced. In November 2005, Doral Pty Ltd raised its shareholding in Doral Fused Materials Pty Ltd (formerly Australian Fused Materials) to 100%. Doral Fused Materials, located at Rockingham, manufactures electro fused zirconia, white fused alumina and silica fume for ceramics and refractories markets. Three years later, in 2008, the company acquired from Iluka the adjoining Burekup Mineral Sands deposit.
6.0 7.0
Doral also purchased the assets of Millennium Specialty Chemicals, Rockingham operations in mid-2004. Doral Specialty Chemicals (DSC) produced a range of ultra-high purity zirconium powders and chemicals, as well as provide toll milling capacity to support DMS and DFM. The zirconium powders component of the operation ceased in mid-2008 with the business eventually being sold to Mintech Pty Ltd in February 2009.
Operations
8.0
Mining is conducted by a contract fleet of scrapers, excavators and trucks. The MSP was adapted from the former ISK plant, to cater for high slimes and oversize in the Dardanup ore. Use of modern equipment retrofits and flowsheets has been successful at a relatively low capital cost.
APP. 1
Doral controls a resource at Dardanup initially estimated at about 20 million tonnes of ore containing 5-8% heavy mineral, but this was extended with the acquisition of the Burekup ore body and its recent southern extension. The concentrate is trucked 9 km to the dry separation plant at Picton where it is processed to produce ilmenite, HiTi, leucoxene and zircon for export to clients overseas. HMC production is approximately 200,000 tpa.
APP. 2
In 2010, Doral acquired further tenements in the Busselton area of WA with the intention of commencing development in this area by 2015.
Recent developments
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APP. 3
The Burekup extension mine was exhausted in 2013 with a smooth transfer to the southern extension taking place simultaneously.
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EI du Pont de Nemours and Company www.titanium-dupont.com Ownership A publicly listed US company
Key personnel Ellen Kullman – Chief Executive Officer BC Chong – President, Titanium Technologies Scott Coleman – Vice President Marketing & Sales
Background EI du Pont de Nemours and Company (DuPont) entered the TiO2 business in 1931 when it purchased TiO2 patent-holding company, the Commercial Pigments Corporation, and offered a line of Ti-Pure® products. When demand surged after World War II, DuPont engineers invented an alternate, more economical ‘chloride process’. Introduced at the Edge Moor plant in 1951, it gradually replaced the sulfate process in all DuPont TiO2 plants. DuPont has also been a pioneer in the development of new coatings’ grades. It was the first company to develop silica encapsulation which significantly increased durability of TiO2 pigments. DuPont’s Performance Chemicals segment includes DuPont’s Chemicals & Fluoro-products and Titanium Technologies (DTT).
Operations DuPont’s facilities in Florida provide mineral products including ilmenite and up to five grades of zircon, which vary in the level of zircon and other minerals present. A number of products are produced, including a premium calcined product for ceramic and investment casting applications, standard quality grades of zircon for refractory and foundry use, and a mixed staurolite/zircon product that is marketed for foundry and abrasive applications. Only the Maxville operation is currently producing, with an effective capacity of approximately 150,000 tpa of titanium minerals and 50,000 tpa of zircon. However, zircon output from this operation has been declining and is expected to be phased out by 2017/18. The company also operates the two largest pigment plants in the world, at DeLisle, Mississippi and New Johnsonville, Tennessee. The company also owns plants in Edge Moor, Delaware, Kuan Yin, Taiwan, and Altamira, Mexico.
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GPM Asia www.gpm.asia
Exec Sum
Ownership Privately owned
1.0
Key personnel Evgeny Volosov- Chairman Natalya Tsoi – Chief Executive Officer Vardan Muradyan- Chief Financial Officer
2.0
Nguyen Anh Nam – Deputy CEO
3.0
Background GPM Asia started with acquisitions of Amigo Minerals in 2009 and Tan Phat Minerals in 2010 in Vietnam. GPM Asia specialises in mining and processing of minerals, including mineral sands.
4.0
Operations GPM Asia operates a mineral sands separation plant in Vietnam that processes ilmenite, zircon, rutile and monazite concentrates.
5.0
In October 2012, it was reported that GPM Asia was looking to carry out a titanium deepprocessing project in Vietnam’s central province of Binh Thuan in order to invest in titanium and pigment processing.
6.0
In December 2012, the company reported that it had formed a Strategic Alliance Agreement with Centurion Minerals Ltd to explore projects in Myanmar, Laos and Indonesia.
Recent developments GPM reported it had built a new processing plant with capacity to 200,000 tpa HMC.
7.0
In November 2013, Rang Dong Group and GPM signed a joint-venture agreement for mineral exploration, mining and downstream processing of produced minerals in Vietnam.
8.0
APP. 1
APP. 2
APP. 3
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Iluka Resources www.iluka.com Ownership Publicly listed on the Australian Securities Exchange
Key personnel David Robb – Managing Director and Chief Executive Officer Alan Tate – Chief Financial Officer, Head of Strategy and Planning Steve Wickham – Chief Operating Officer – mineral sands Chris Cobb – Head of Alliances, New Ventures and Royalties Doug Warden – Head of Resources Development, Mineral Sands Matthew Blackwell – Head of Marketing, Mineral Sands Cameron Wilson – Chief Legal Counsel and Head of Corporate Acquisitions
Background Iluka Resources Limited was formed by the merger of RGC Limited and Westralian Sands Limited in December 1998. The mineral sands operations of the two companies were integrated and corporate management centred in Perth, Western Australia. Iluka has a zircon-rich deposit, Jacinth-Ambrosia, in the Eucla Basin, South Australia. Applications for initial tenements were made in September 2001 and by July 2004, the company had achieved Native Title clearance. Iluka approved the development of the Jacinth-Ambrosia mineral sands project in May 2008 with an initial capital expenditure of A$420 million. Final capital expenditure was estimated at approximately A$390 million. Mining at the Murray Basin deposits commenced in 2004. Although it is a principal source of rutile production, the Murray Basin region also contributes significant zircon output annually. In Western Australia, Iluka had operations in the Mid West and the South West regions. Commenced in 1975, Iluka’s Eneabba mining operation in the Mid West used to be a significant zircon producing region in the 1980s and early 1990s. In 2010, zircon output from this region declined substantially as mining in the Mid West ceased. In the South West, Capel was the first mining and minerals site when the company began operations in the 1950s. Iluka completed mining activities in the region in 2009. Iluka’s Virginia operations in the US commenced in 1997 with the commissioning of the Old Hickory project. In December 2007, the Iluka Board approved the development of the Brink deposit. This project involved the establishment of a new mine and relocation of the Old Hickory concentrator. The approved capital expenditure for the Brink project was US$27.5 million and first production from Brink was achieved in April 2009. The Virginia operations produce chloride ilmenite as well as a high quality zircon product.
Operations Victoria/New South Wales, Australia - Murray Basin operations: Iluka conducts mining operations at the Woornack, Rownack and Pirro deposit and processing operations at Hamilton in the southern region of the Murray Basin. Iluka has progressively mined multiple deposits in the Murray Basin (Douglas, Echo, Kulwin) and plans to move to its next deposit in southern New South Wales, Balranald in mid 2016, subject to Board approval. Final product is trucked from Hamilton to the Port of Portland, 80 km to the south of Hamilton, for export.
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Three main deposits underpinned the initial stage of the company’s development of the Murray Basin; Bondi Main, Bondi West and Bondi East all located in Victoria. Iluka also undertook mining at a satellite deposit, Echo, which ended in 2011.
Exec Sum
In 2008, the Board of Iluka approved A$209 million in capital expenditure for the development of Murray Basin Stage 2, which involved the development and mining of the first of several deposits in the northern Murray Basin. First production of HMC from the northern Murray Basin deposits occurred in October 2009 at the Kulwin deposit.
1.0
Mining operations commenced at Woornack, Rownack and Pirro, approximately 25 km from Kulwin in mid-2012. Mining at these sites is expected to cease in 1H 2015. Iluka is currently undertaking a definitive feasibility study for the Balranald and Nepean deposits. South Australia, Eucla Basin operations:
2.0
The company holds a large tenement position in the Eucla Basin (approximately 50,000 km2). To date, multiple HM discoveries have been made with JORC Mineral Resources applied to the following: Jacinth, Ambrosia, Tripitaka, Atacama, Sonoran and Typhoon.
3.0
Iluka commenced operations at the Jacinth-Ambrosia deposits in late 2009 and achieved name plate capacity in mid-2010. Jacinth-Ambrosia produces a zircon rich HMC (greater than 50% zircon) which is transported by shuttle vessels for processing at the Narngulu processing plant in Western Australia or to Hamilton, Victoria. Jacinth-Ambrosia has a zircon production capacity of about 300,000 tpa.
4.0
The Jacinth-Ambrosia deposits contain a HM resource of 9.5 million tonnes. Average grade of the deposit is 6.5% with an average assemblage of 50% zircon, 5% rutile and 28% ilmenite. Western Australia, Perth Basin operations:
5.0
Iluka’s Perth Basin operation, north of Perth Western Australia, includes mining operations at Tutunup South, a dry separation plant at Capel, the Narngulu MSP near Geraldton and four SR kilns at Capel and Narngulu. Assets at Narngulu include a mineral separation plant, a zircon finishing plant, a mobile Kelsey Jig plant, port operations and storage facilities. These facilities were upgraded in 2009/10 to accept Jacinth-Ambrosia heavy mineral concentrate. HMC processing began at the Narngulu mineral processing facility in Western Australia in January 2010.
6.0
Based on prevailing market conditions in 2012 and entering 2013, Iluka’s activities at the Eneabba mine were idled, effective March 2013. At the end of the second quarter in 2013, the Tutunup South mine and SR kiln 2 were idled. Virginia, US:
7.0
Two mines with separate concentrators (Old Hickory, commissioned in 1997 and Concord, commissioned in 2002) produce heavy mineral concentrate (HMC) which was then trucked 20 km to the dry processing plant located at Stony Creek, 69 km south of Richmond. With the development of the Brink deposit, the Old Hickory concentrator was relocated and a new mine developed.
8.0
Recent developments Iluka’s full year results released in January 2013 showed a 31% decrease in production for zircon, rutile and SR.
APP. 1
During the Christmas New Year period of 2012/13, Iluka suspended a major part of its operational base to reduce production.
APP. 2
Iluka almost halved its production for zircon, rutile and synthetic rutile in 2013 relative to 2012 levels. It also announced major cost cutting measures which included: 250 jobs made redundant at its Australian operations; Eneabba operations idled from April 2013; continued idling of SR kiln 3 at Narngulu; idling of its SR kiln 2 in Capel from the end of Q2; idling of its Tutunup South mine from the end of Q2; zircon production cut by 60% at Narngulu; and its Hamilton MSP to be operated on a one month on, one month off basis. >>
APP. 3
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Iluka Resources (continued) In August 2013, Iluka reported it was progressing six projects, with three at or moving to definitive feasibility study (Cataby and Balranald in Australia and Hickory in Virginia, US), and with three in pre-feasibility or scoping study stage (Sonoran, Atacama and Typhoon deposits in the Eucla Basin, Aurelian Springs in North Carolina and recently acquired Sri Lankan deposits). In October 2013, Iluka announced that it had acquired all the issued capital in Sri Lankan-based PKD. The company was granted four exploration tenements and had conditionally agreed to buy all issued capital of PKD Resources Ltd (PKD), which holds another exploration tenement. All five tenements are in the northwest of Sri Lanka and cover an area of approximately 146 km2. The company stated that the tenements contained mineral sand resources of 689 million tonnes of material at an average heavy mineral (HM) grade of 8.2% of 56 million tonnes of HM, which included 37 million tonnes of ilmenite, 2 million tonnes of rutile and 1.9 million tonnes of zircon. Iluka also stated its intention to do feasibility studies with a view to developing these resources. Iluka will begin feasibility work at the tenements once it has secured all necessary approvals. In January 2014, Iluka Resources reported that for the quarter ended December 2013 (Q4 2013), total mineral sands production of 207,100 tonnes, down 26% on 281,700 tonnes in Q4 2012. Zircon production increased 21% to 68,500 tonnes, compared to 56,500 tonnes in Q4 2012. Rutile production fell 60% to 22,200 tonnes from 56,700 tonnes in Q4 2012. For the full year 2013, Iluka reported a 29% fall in mineral sands production to 1.056 million tonnes compared to 1.486 million tonnes in 2012, which the company stated was in line with its market guidance and reflected its preferred constrained production approach during low market demand periods. In February 2014, Iluka entered an agreement to purchase an 18.3% interest in Metalysis for A$22.5 million after Metalysis’ trials revealed it could produce titanium powder directly from Iluka’s rutile feedstock. As part of the agreement, in the advent that Metalysis, which is currently privately owned, initiates an initial public offering, Iluka has the right to increase its stake in Metalysis up to 24.9%. For 2014, Iluka announced its production costs would be higher than 2013, but it planned to produce more by-products. The company’s production guidance is higher for all minerals including 360,000 tpa for zircon and 190,000 tpa for rutile.
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Indian rare earths www.irel.gov.in
Exec Sum
Ownership Indian Government (Department of Atomic Energy)
1.0
Key personnel R N Patra - Chairman and Managing Director Deependra Singh - Director Marketing
2.0
Background
3.0
Indian Rare Earths Ltd was incorporated in August 1950 as a private limited company jointly owned by the Government of India and Government of Travancore, Cochin, with a view to recovering thorium from monazite on a commercial scale. IRE became a fully-fledged Central Government Undertaking in 1963 under the administrative control of Department of Atomic Energy. It subsequently took over a number of private companies engaged in beach sand mineral mining in southern India.
4.0
OPERATIONS
5.0
Indian Rare Earths operates three different mine sites in the states of Kerala, Tamil Nadu and Orissa. Located 85 km from the capital of Kerala, Trivandrum, the Chavara Mineral Division (Q grade products) plant, processes a resource containing up to 40% heavy minerals. Extensive deposits are mined dry as well as wet (dredging) leading to the extraction of high TiO2 (about 60%) ilmenite, together with accessory rutile and zircon.
6.0
Annual production capacity of Chavara is 154,000 tonnes of ilmenite, 9,500 tonnes of rutile, 14,000 tonnes of zircon and 10,000 tonnes of sillimanite. It also has a facility for the annual production of 6,000 tonnes of ground zircon called zirflor (-45 micron) and 500 tonnes of microzir (1-3 micron).
7.0
The Manavalakurichi Mineral Division (MK grade products) mining and processing operations are located near Cape Comorin, in the State of Tamil Nadu. Annual production is approximately 100,000 tonnes of ilmenite (55-56% TiO2 grade), 3,600 tonnes of rutile and 10,000 tonnes of zircon, 4,000 tonnes of monazite and 12,000 tonnes of garnet.
8.0
The third operation is the Orissa Sands Complex (OSCOM) (‘OR’ grade products) at Chatpur, on India’s east coast. The company plans to increase capacity to 500,000 tpa of 50% TiO2 ilmenite and co-products from dredging of this major mineral sands deposit.
APP. 1
The company also has a Rare Earths Division based on output from a rare earths plant on the banks of the Periyar River, at Aluva, Kerala. About 4,000 tonnes of monazite produced each year by MK is chemically treated to separate thorium as hydroxide and rare earths in a composite chloride form.
APP. 2
Recent developments In September 2012, it was reported that IREL started production of Rare Earths Chloride at Monazite Processing Plant (MoPP) that was expected to be commissioned at OSCOM, Odisha in 2013. No further development has been reported.
APP. 3
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IRC Limited www.ircgroup.com.hk Ownership Public company incorporated in Hong Kong listed on the main board of the Hong Kong Stock Exchange.
Key personnel Jay Hambro – Executive Chairman Yury Makarov – Chief Executive Officer Raymond Woo – Chief Financial Officer and Company Secretary Simon Murray, CBE – Non-executive Director Cai Sui Xin – Non-executive Director Liu Qingchun – Non-executive Director Senator Dr Pavel Maslovskiy – Emeritus Director Daniel Bradshaw – Independent Non-executive Director Jonathan Eric Martin Smith – Independent Non-executive Director Chuang-fei Li – Independent Non-executive Director
Background IRC operates several industrial commodity projects in northeastern China and in the far east of Russia including ilmenite and iron ore concentrate projects. Products are sold and distributed primarily to Russian and Chinese markets by land and through far eastern seaports of Russia.
Operations The Kuranakh deposit in Russia’s Far East Amur region produces titanomagnetite concentrate grading 62.8% Fe and ilmenite concentrate grading 47-48% TiO2. Mine life is estimated to be approximately 15 years, with the possibility of extension. The Bolshoi Seym deposit, 40 km southeast of the Kuranakh deposit, is rich in high-grade ilmenite. IRC is also developing ore deposits at Kimkanskoye and Sutarskoye and is exploring the Garinskoye area where it says it will build a mining and ore processing facility. IRC holds a 70% stake in Giproruda, a leading mining and research consultancy based in Russia which provides both technical and design support for Asia-based projects. It also operates a steel slag reprocessing plant in Shuangyashan, Heilongjiang.
Recent developments In April 2013, IRC raised HK$800.5 million (US$103.3 million) under the first stage of a subscription agreement involving the allotment of more than 817 million new IRC shares to General Nice and Minmetals. During 1H 2013, stage one of the subscription was completed, with a remaining US$134.7 million subscription under stage two. In Q3 2013, General Nice and Minmetals confirmed the second and final stage of their investment into IRC totalling US$238 million. In November 2013, IRC and General Nice agreed to defer General Nice’s subscription. It was subsequently deferred until the end of April 2014. During Q4 2013, a planned upgrade to the ilmenite circuit at Kuranakh was completed.
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Irshansk Mining and Concentration Complex
Exec Sum
www.groupdf.com/en/businesses/titanium Ownership Group DF
1.0
Key personnel Nikolay Golovach – Chief Manager
2.0
Matthaus Ebinal – Executive Director, Investor Relations
Background
3.0
Irshansk is a State owned enterprise that is leased by Group DF and is located 120 km from Kiev, Ukraine. It is involved in mining ilmenite and is the main producer in Europe. The deposits owned by Irshansk were first discovered in 1951, and open-pit mining of ilmenite started in 1956. Overburden thickness is in the order of 5 metres, covering 8 metres of ore.
4.0
Overburden is removed by large walking draglines and ore is transported by overland conveyor. Primary concentrate from several mine area plants is pumped to the mineral separation plant at Leminsky (Lemna MSP).
5.0
In 1997, Carpco Inc installed a system of advanced spirals, magnetic separators and electrostatic separators at the Lemna MSP.
6.0
In January 2002, Pennwood Technology, with Ukrainian Polymetals, established a joint venture company Valki-Ilmenite. In 2003, the joint venture commenced mining of the Valki-Gatskovoski ilmenite deposit and production for that year was estimated at 10,000 tonnes of ilmenite. Initially, ilmenite was processed by Irshansk, but ultimately the Valki-Ilmenite JV expects to develop its own dedicated mineral separation facility. This project is planned to produce up to 100,000 tpa. There are also plans to develop the Severny project, based on the hard rock Federovskoe deposit.
7.0
In August 2004, the assets of the Irshansk ore mining and enrichment plant were leased to the new joint venture between German company RSJ Erste Beteiligungs and Ukrainian State-owned Crimea (Krymsky) Titan for a period of five years.
8.0
In November 2010, it was announced that the Mezhdurechensk Mining and Concentration Complex, at Irshansk, in the Zhytomyrsky region had commenced production. The Mezhdurechensk Mining and Concentration Complex has a production capacity of 200,000 tonnes of ilmenite concentrate per annum and will contribute to the total production from the Valki and Irshansk mines.
Operations
APP. 1
A significant proportion of the ilmenite from Irshansk Mining and Concentration Complex (Irshansk) is used as feedstock in the Crimea TITAN TiO2 pigment plant at Armyansk.
APP. 2
The combined production capacities of Group DF mining and enrichment companies amount to 755,000 tonnes of ilmenite and 65,000 tonnes of rutile per annum. With an increasing titanium raw material demand, Group DF intends to expand its ilmenite and rutile production capacities during the next few years.
APP. 3
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Kenmare Resources www.kenmareresources.com Ownership Publicly listed company
Key personnel Michael Carvill – Managing Director Tony McCluskey – Financial Director Jacob Deysel – Operations Director Eamonn Keenan – Group General Manager, Sales and Marketing Gareth Clifton – Mozambique Manager Justin Loasby – Non-executive Chairman
Background Mining and exploration company Kenmare Resources was established in 1972. The Moma mine contains reserves of ilmenite and rutile. Feasibility studies on the mine were completed in February 2001. Construction started in August 2004 and production in late 2007.
Operations Kenmare Resources’ principal activity is the operation of the Moma mine on the northeast coast of Mozambique. The estimated reserve-resource under licence to Kenmare is more than 200 million tonnes of ilmenite, with associated co-products including 12 million tonnes of zircon and 4 million tonnes of rutile (as at December, 2010). Mining is carried out by three dredges floating in two artificial freshwater dredge ponds. The dredge mining operation is supplemented by a small dry mining operation. In Mining Pond A, mining is performed by two IHC Beever cutter-suction dredges feeding a 3,500 tonne per hour Wet Concentrator Plant, (WCP A). In Mining Pond B, a single SPI cutter-suction dredge feeds 2,000 tonne per hour Wet Concentrator Plant (WCP B). Heavy mineral concentrate from the WCPs is pumped to a mineral separation plant (MSP) where it is separated into final products for export. The warehouse is capable of storing 145,000 tonnes of final products under secure, dry cover and includes facilities for reloading on to a 2.4 km long overland conveyor. The conveyor leads to a 400 metre long jetty which supports the product export conveyor. The mine also has other supporting infrastructure.
Recent developments Commissioning of WCP B and expanded processing facilities (WHIMS, Auxilliary Ilmenite Plant and expanded Non-Mags circuit) was reported as being well advanced and Kenmare expected to start feed ore through WCP B by end of May 2013 with ramp-up to full production capacity expected by the end of 2013. At Kenmare’s annual general meeting in May 2013, it reported the US$350 million capital cost estimate for the Phase II expansion of the Moma project had increased by approximately 10% due to project delays. The company also reported on the start of ore processing through the new dredge and WCP to produce HMC.
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Once completed, the expansion was expected to bring total production of ilmenite, rutile and zircon up to 900,000 tonnes in 2013.
Exec Sum
In July, Kenmare reported the Moma Phase II expansion facilities were operational and the company was ramping up production. Kenmare also announced during October that repair works were under way in the trommels section of its WCP A after a fire. An initial assessment determined there was no structural damage to the two trommels in the plant; however, due to lead times in sourcing several replacement items, the plant was not operational until mid-to-late November.
1.0
Kenmare announced in December that its WCP A had returned to full production capability after successful completion of the repairs on one of the two trommels. Ore from both dredges was being fed through the repaired trommel. Repair works on the second trommel were well advanced. While the repairs were under way, the mineral separation plant continued to process HMC from WCP B and from a large stockpile of HMC produced prior to the incident. During this period, maintenance works on WCP A and the dredges in Mining Pond A, scheduled for 2014, were accelerated and completed.
2.0 3.0
In January 2014, in its full year trading update, Kenmare announced it had commissioned its Moma project mineral separation plant expansion. The expansion enabled Kenmare to increase ilmenite production 69% to 209,400 tonnes in Q4 2013 from 123,600 tonnes in Q4 2012. However, zircon production was almost 38% lower at 6,600 tonnes compared with 10,600 tonnes in Q4 2012 due to downtime associated with longer than expected integration of the expanded zircon and rutile circuits.
4.0
Consequently, balancing and ramp up of these circuits was delayed. Optimisation of the circuits continued with the company focusing on the zircon circuit. The ramp up was also hampered by periods of unstable power supply.
5.0
During 2013 ore mined increased 22% to almost 24 million tonnes compared to 19.6 million tonnes in 2012. HMC production rose 47% to 1.1 million tonnes from 772,300 tonnes in 2012. Zircon output in 2013 declined 33% to 31,400 tonnes compared with 46,900 tonnes in 2012.
6.0 7.0 8.0
APP. 1
APP. 2
APP. 3
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Kerala Minerals and Metals Ltd www.kmml.com Ownership The Kerala State Government, India
Key personnel V Somasundaran – Chairman Michael Veda Siromony – Managing Director KS Srinivas – Director Elias George – Director Rajesh Kumar Sinha – Director P Joy Oommen – Director K Zakir Hussain – Director P Abdul Hameed – Director Antony Maliackal – Director AM Aslam – Director
Background In 1932, FX Perira and Sons (Travancore) Pvt. Ltd, the forerunner to The Kerala Minerals and Metals Ltd (KMML), was established. During the course of time, KMML changed hands three times. In 1956, it was taken over by the State Government and was placed under the control of the industries department. The unit was subsequently converted as a limited company in 1972 by the name of ‘The Kerala Minerals and Metals Ltd.’ The construction of a titanium dioxide pigment plant at Sankaramangalam, Chavara, Kollam, using chloride technology started in 1979 and commissioned in 1984.
Operations KMML is an integrated producer of ilmenite, synthetic rutile, titanium tetrachloride and TiO2 pigment. The mine and processing plant are at Chavara, Kerala. Ilmenite production is used as feedstock for its 35,000 tpa capacity Benilite process synthetic rutile plant also at Chavara. The company operates a chloride pigment plant on the same site. The pigment plant was licensed from Kerr-McGee, Tronox’s predecessor. In August 2008, it was announced that KMML had finalised three projects worth Rs950 million (US$22 million) to streamline and reduce the cost of operation. This included a modular extension of the synthetic rutile plant from a capacity of 35,000 tpa to 50,000 tpa, a new mineral separation unit for the separation of zircon, rutile and ilmenite from tailings (waste sand) from the existing mineral separation unit, and replacing furnace oil with coke or coal. The new process technology would enhance the production capacity of zircon from 1,800 tpa to 6,480 tpa. Similarly, capacity of rutile production would be increased to 4,000 tpa from the current level of 3,000 tpa and ilmenite from 50,000 tpa to 63,000 tpa. The production of titanium dioxide pigment, during 2010/11, was an all-time high of 36,879 tonnes. While battling with various issues and ilmenite shortages, production during the financial year to January 2012 was 22,934 tonnes. At the beginning of 2011, KMML inaugurated India`s first titanium sponge plant. The 500 tpa plant is a joint venture between KMML, Vikram Sarabhai Space Centre (VSSC) and the Defence Metallurgical Research Laboratory. The VSSC has fully funded the US$33 million project. Eventually production will be expanded to 1,000 tpa. It plans to add a magnesium recovery plant, to improve the economics of the plant.
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Recent developments
Exec Sum
In September 2013, KMML announced that it was taking steps to increase its TiO2 production from 40,000 tpa to 60,000 tpa. In order to achieve this, KMML is working on expansion and de-bottlenecking plans for its existing plant.
1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0
APP. 1
APP. 2
APP. 3
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Millennium Inorganic Chemicals www.cristal.com Ownership A subsidiary of Cristal Global
Key personnel Circo Mattos Marino – Chief Executive Officer, Chief Operating Officer Ronaldo Marques Alcantara – Investor Relations Officer Geraldo Jose Morais Silva – General Manager, Operations Luiz Friedman – Brazil Sales Manager Graham Hewson – TiO2 Manufacturing
Background The Guaju mine commenced operations in 1984. The new dredge and concentrator were commissioned in December 2002.
Operations Millennium Inorganic Chemicals do Brasil SA (MIC), a subsidiary of Cristal Global), produces ilmenite, zircon and natural rutile at its Guaju mine at Mataraca, in the State of Paraiba, Brazil. The mine is located in northeastern Brazil, in the municipality of Mataraca, approximately 1,100 km from the Bahia plant, to which it ships the minerals to be transformed into TiO2 pigment. The mining operation occupies 1,050 ha and comprises a floating plant and dredge, which perform the extraction of the ilmenite, zircon, rutile and cyanite, as well as four fixed production plants.
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Mineral Commodities Ltd www.mncom.com.au
Exec Sum
Ownership Publicly listed on the Australian Securities Exchange
1.0
Key personnel
2.0
Mark Caruso – Executive Chairman Peter Torre – Non-executive Director James Leahy – Non-executive Director Guy Walker – Non-executive Director Joseph Caruso – Non-executive Director Andrew Lashbrooke – Chief Executive
3.0
OPERATIONS Australian-based Mineral Commodities Ltd completed a bankable feasibility study for its proposed Tormin zircon project on the west coast of South Africa in 2005.
4.0 5.0
The deposit consists of two tenements, one held by Mineral Commodities’ subsidiary, Mineral Sands Resources (Pty) Ltd and the other the wholly owned subsidiary of Mineral Sands Resources, Tormin (Pty) Ltd. Mineral Sands Resources and Tormin were granted mining rights for the Tormin project in April 2008. The beach deposit has a targeted resource of five million tonnes grading 41.3% heavy minerals, including ilmenite (18.3%), zircon (3.4%), and rutile (0.7%). The project has been designed to produce approximately 45,000–50,000 tpa of a zircon and rutile concentrate, containing approximately 80% zircon and 10% rutile.
Recent developments
6.0
In January 2013, the company completed a A$14.5 million capital raising for construction and development. This followed the gaining of final regulatory approvals.
7.0
In July 2013, Mineral Commodities announced it had concluded a pre-finance and offtake agreement with Wogen Pacific Limited for 100% of non-magnetic concentrate from the project. Terms would see Wogen fund shipping and processing of the concentrate until sale into the Chinese market in finished form. Sale proceeds, net of commission, shipping and processing costs would be paid to Mineral Commodities.
8.0
In its 1H financial report, Mineral Commodities announced a decision to build and commission a pilot plant to prove the project mining methodology and produce concentrate for offtake testing. The plant was commissioned in June 2013.
APP. 1
In October, the company reported the project was on track and under budget. Subsequent to the end of Q3, the primary beach concentrators were commissioned. The secondary concentrator plant went online in November with full production starting in December. Ore was tested in the company’s pilot plant and an initial 100 tonnes of non-magnetic concentrate was sold under the marketing agreement with Wogen Pacific and shipped to China for tertiary processing. The non-magnetic concentrate graded up to 80% zircon and 10% rutile. Mineral Commodities continued discussions with further offtake partners for potential ilmenite product.
APP. 2
In December 2013, the company commissioned the secondary concentrator plant (SCP). The company said seasonal ocean and tidal conditions between August and October meant the HM ore graded 86% directly from the beach resource. This allowed for bypassing of the primary beach concentrator (PBC) and feeding of the ore directly in to the SCP.
APP. 3
In January 2014, Mineral Commodities reported its first shipment of zircon/rutile concentrate to Wogen Pacific. The company anticipated the shipping of approximately 1,800 tonnes of concentrate, ramping up to 4,000 tonnes in February. Mineral Commodities stated that, at January price levels, annual production would generate up to US$50 million in revenue.
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Minerals and Trading Corp (MITRACO) www.mitraco.com.vn Ownership Owned by the Ha Tinh Provincial Government in Vietnam
Key personnel Truong Huu Trung - Chairman Duong Tat Thang - General Director
Background Minerals and Trading Corporation (MITRACO) is a State-owned enterprise directly under the control of the Ha Tinh Province. The operation was initially established in 1992 as a joint venture between Westralian Sands Limited, Meteco, and Mideco (owned by the Vietnamese Ministry of Heavy Industry). Westralian Sands withdrew from the joint venture in 1996 and the enterprise was disbanded. In 1999, following a period of unorganised mining by a large number of small companies, the Ha Tinh Province took over the operation through its wholly-owned company, Minerals and Trading Company. The name changed to Minerals and Trading Corporation in 2003.
Operations The company produces ilmenite, zircon and rutile from more than 10 mineral sands operations. There are four ilmenite wet concentrator plants with an average capacity of 120 tonnes per hour and five dry separation plants with a total capacity of between 200,000 and 250,000 tpa. The company began producing zircon opacifier and zircon flour in 2003. The operations predominantly produce a 54% TiO2 ilmenite suitable for sulfate pigment production primarily exported to Japan, Korea and China, as well as some zircon.
Recent developments The company established a joint-stock company, Vietnam Titanium Dioxide Joint Stock Company (VINATITAN), with other major domestic mineral sand producers with the aim to develop a TiO2 pigment project. Mitraco is operating a titanium slag plant in Ha Tinh Province, with an estimated capacity in 2013 of 15,000 tpa increasing to 30,000 tpa by 2014.
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Pangang Titanium www.pzhsteel.com
Exec Sum
Ownership A wholly owned subsidiary of Pangang Group Steel Vanadium & Titanium Co., Ltd (Pangang Group). The Pangang Group itself is owned by the Angang Group.
1.0
Key personnel Xie Xiang Yun - General Manager
2.0
Background
3.0
Established in 2007, Pangang Titanium is a wholly-owned subsidiary of the Pangang Group. Pangang Titanium produces titanium dioxide pigment, titanium sponge and titanium slag in Panzhihua. It also controls Panzhihua Orient Titanium Industry Co., Ltd.
4.0
Operations Pangang Titanium
5.0
Pangang Titanium launched a 15,000 tpa titanium sponge production line in 2011, utilising technology from Ukraine. Ukraine also supplied technology for the company to establish a semihermetic 25 MVA smelting furnace to realise capacity of 60,000 tpa titanium slag. The titanium slag capacity subsequently increased to 180,000 tpa. Pangang Group Jiangyou Changcheng Special Steel Co., Ltd
6.0
This subsidiary holds 3,000 tpa capacity of titanium milled products. The company was destroyed in the earthquake in 2008 and its reconstruction plan was approved by NDRC in 2010. After completing the reconstruction, Jiangyou Changcheng will expand titanium milled product capacity to 10,000 tpa.
7.0
Pigments The Pangang Group has an estimated capacity of 120,000 tonnes of TiO2 through its subsidiaries in Chongqing and Panzhihua. Chonqing Titanium Industry Co., Ltd
8.0
The Chongqing Titanium Industry Co. Ltd was founded in 1990 and specialises in the manufacture of high-grade rutile TiO2. It operates two sulfate process-based TiO2 manufacturing lines. Pangang is expanding the Chongqing plant having closed its facility in Panzhihua.
APP. 1
Panzhihua Orient Titanium The joint venture with Sichuan Anning Titanium & Iron Co., Ltd. has capacity of 40,000 tpa. In 2011, Pangang entered a share-purchase agreement with Sichuan Anning by adding 16% share on its existing 49% holding, acquiring ‘de facto’ control of Dongfang Titanium.
APP. 2
Pangang Group Research Institute Co., Ltd In January 2013, the Pangang Group Research Institute Co., Ltd. announced that it had successfully developed a new type of nano-TiO2 for mass production. The new product is said to replace imports from Japan, used in PET film for solar power.
APP. 3
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Pangang titanium (continued) Recent developments Pangang Group Vanadium Titanium and Resources Co Ltd (Pangang Group) announced that it intended to double its operation scale and economic benefits in 2015. The company has set a target to be the largest titanium raw material base in China and hopes to achieve an annual production capacity of 1 million tonnes of ilmenite, 360,000 tonnes of titanium slag, 510,000 tonnes of titanium dioxide pigment, 300,000 tonnes of titanium sponge and 100,000 tonnes of other titanium processed products. In January, 2013, the Pangang Group Research Institute Co., Ltd. announced it had developed a new type of nano-TiO2 with potential to replace imports from Japan used in PET film for solar power. Nano-TiO2 is widely used in environmental protection, energy, automotive and cosmetic market segments. In July 2013, forecast that a net profit of RMB330–390 million (US$53.8–63.5 million) in H1 2013 - a decrease of 46–55% compared to the same period in 2012 and attributable to falls in the price of iron ore and titanium products. Pangang said that it produced 555,800 tonnes of ilmenite in 2013, 5,800 tonnes above its 2012 output volume. Additionally, Pangang reported it produced 77,200 tonnes of TiO2 pigment although it is believed this included unfinished calciner discharge. During October 2013 the company reported on successful pilot testing of pre-reduced ilmenite pellets for smelting titanium slag. A commercial test in a 25 MV furnace produced 2,281 tonnes of pellets and 1,986 tonnes of titanium slag. Pangang also reduced the unit electricity consumption from 3,000 kWh to slightly below 2,000 kWh. Chonqing TiO2 capacity was predicted to achieve 100,000 tpa after closure of the original Chonqing plant and shift to a new RMB1.6 billion development. Commissioning of the new plant was expected mid-2014. Meanwhile capacity at Panzhihua Orient Titanium was also forecast to expand to 100,000 tpa. Pangang Titanium In May 2013, Pangang Titanium switched to local ilmenite instead of imported ilmenite for its slag production feedstock. It said said its titanium slag production costs would be reduced by RMB241 (US$39) a tonne. In September, the company held its third round of pilot production in 2013 for synthetic rutile. The pilot production target was more than 100 tonnes of synthetic rutile with 85% or above TiO2. Preparations were in hand for future industrial level production. During the month of November 2013, Pangang Titanium crushed 42.9 tonnes of titanium sponge, which indicates the company’s production has met designed capacity for crushing. To realise the full production capacity across the entire process, Pangang Titanium will need to produce 200 tonnes of crude TiCl4 per day, 160 tonnes of pure TiCl4, six furnaces of titanium sponge, 40 tonnes of crushed titanium sponge, and 43.2 tonnes of pure magnesium. On 14 November, Pangang Titanium said it had operated its number 2 chlorination furnace continuously for 36 days, producing 3,400 tonnes of crude TiCl4. At the same time, the furnace temperature of its 1 chlorination furnace reached 480°C. The company released end of year numbers in December showing output ahead of monthly targets and suggesting a stronger performance in the face of difficult market conditions. Pangang Mining In July 2013, the company announced it would build a tailings processing plant in Jiangnan. Pangang Mining has a 550,000 tpa ilmenite production capacity. Pangang Group Jiangyou Changcheng Special Steel Co., Ltd When reconstruction of the plant is completed, Jiangyou Changcheng will have a milled titanium capacity of 10,000 tpa.
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Richards Bay Minerals www.rbm.co.za
Exec Sum
Ownership
1.0
Richards Bay Minerals (RBM) managing company Rio Tinto owns 74% of RBM shares. Blue Horizon, a Broad-Based Black Economic Empowerment Consortium (BBBEE) holds 24%, and 2% is held in a trust for employees.
Key personnel
2.0
Mpho Mothoa - Managing Director Denis Booysen - General Manager, Engineering Fundi Dlamini - General Manager, Communities and Corporate Relations Bheki Gumbi - General Manager, Human Resources
3.0
Joey Kunji-Behari - General Manager, Smelting and Processing Johan Jacobs - General Manager, Technical
4.0
Background
5.0
The Industrial Development Corporation began a detailed investigation of the Richards Bay area in the early 1970s coincidental with a Canadian producer of titania slag (QIT) seeking major ilmenite deposits. These two organisations, together with Union Corporation (later Gencor now BHP Billiton), formed RBM in 1976 to mine and beneficiate mineral-rich sands in coastal dunes just north of Richards Bay. In 1985 the company acquired the mining rights to additional ore reserves north and south of the original deposit. During 2001, RBM started dry mining operations to supplement its dredge mining.
6.0
Legislation passed by the South African Government in 2004 required mining companies to sell 26% of their mines to black investors by 2014. The company announced in December 2008 that a definitive agreement had been signed with the BBBEE consortium, Blue Horizon. In the ZAR4.5 billion (US$55.4 million) deal completed in December 2009, Blue Horizon acquired a 24% equity interest in RBM with 2% of the equity held by permanent employees through an employee participation scheme. It is the largest BBBEE deal in the region to date.
7.0
Following completion of the deal, Richards Bay Minerals (RBM) consists of two separate operating companies: Richards Bay Mining (Pty) Ltd, which is responsible for mining operations, and Richards Bay Titanium (Pty) Ltd, which is responsible for the smelting and beneficiation process.
8.0
In July 2008, the company announced it had approved more than ZAR1 billion (US$147.2 million) in funding for a new MSP tailings treatment plant project expected to extend mine life by a further five years. RBM also announced plans to generate sufficient electricity in-house by 2011 to supply an approximate 6.5 MW portion of the power plants requirements.
APP. 1
RBM announced in March 2011 that it intended to mine its Zulti South lease area, south of Richards Bay, extending operations to around 2043. Mining of the area could start as early as 2016.
APP. 2
In April 2011, the company began production at its tailings treatment plant. RBM plans to treat 2.2 million tonnes of tailings per year. In February 2012, BHP Billiton Limited agreed to sell its 37% stake in RBM to Rio Tinto.
APP. 3
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Richards Bay Minerals (continued) Operations RBM mines dunal sand deposits north of Richards Bay in KwaZulu-Natal, South Africa. Four separate mining plants provide combined capacity of approximately 115 million tpa. The most recent mining plant consists of two dredges and one concentrator commissioned at the end of 1999. Auxiliary dry mining contributes an estimated 15% of the total ore mined. Much of the dry mined ore is sourced from areas inaccessible to the dredges. Ilmenite is extracted by magnetic separation at a central processing plant and non-magnetics are further processed for the recovery of zircon and rutile. The plant has capacity for up to 240,000 tpa of zircon and 90,000 tpa of rutile. Up to 160,000 tpa of zircon are acid leached to produce a 'premium’ grade zircon. It is understood that RBM has reserves sufficient for more than 20 years of operation at current mining rates in the lease to the north of Richards Bay and an additional lease to the south.
Recent developments In February 2013, Rio Tinto announced that it would place its zircon and rutile processing operations at RBM on care and maintenance, while maintaining production at the core ilmenite mining and smelting operations. The decision followed Rio Tinto’s annual results for 2012 which reported a US$3 billion loss for the year, citing a US$14.4 billion write down related to aluminium business and coal assets in Mozambique. Improved market conditions for zircon led to a limited restart of production at RBM during Q3 2013. In January 2014, Rio Tinto announced its share of titanium feedstock produced during the quarter ended December 2013 (Q4 2013) was 361,000 tonnes, a 20% decline on Q4 2012. It said this was due to a Q4 2013 shutdown at its RBM operations as well as the operational shutdown of QIT Madagascar Minerals ilmenite production to allow for a planned furnace rebuild at Rio Tinto Fer et Titane in Canada. Rio Tinto reported that the RTFT upgraded slag facility restarted in Q4, but at reduced capacity. For the full year, 2013 Rio Tinto's share of titanium feedstock production increased 2% to 1.622 million tonnes compared with 2012. Higher full year production was due to Rio Tinto doubling its interest in RBM in September 2012, partially offset by production cuts in response to weak market conditions.
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Rio Tinto Fer et Titane Inc www.rtft.com
Exec Sum
Ownership A subsidiary of Rio Tinto Iron & Titanium, which is a wholly-owned subsidiary of Rio Tinto Plc
1.0
Key personnel Dominique Bouchard – President, Rio Tinto Fer et Titane Inc Didier Arseguel – Vice President Technology, RTIT/RTFT
2.0
Claudio Lazzari – Executive Director TiO2 Jeff Olsen – Chief Commercial Officer, RTIT Jacko Preyser – General Manager TiO2 Products, RTIT
3.0
Background
4.0
Two years of drilling by Kenneco Explorations, the Canadian subsidiary of Kennecott Copper, led to the 1946 discovery of ilmenite deposits located in Lac Tio. It took almost three years to develop a new reduction process with electric furnaces. In August 1948, the founding of Quebec Iron and Titanium Corporation, which later became QIT-Fer et Titane, became official. In September 1950, the first ore carrier left Havre-Saint-Pierre with an ilmenite cargo headed for Sorel-Tracy. The year 1989 was marked by the acquisition of QIT-Fer et Titane by the Rio Tinto Group.
5.0
Operations
6.0
Rio Tinto Fer et Titane (RTFT) operates an open-pit mine at Lac Tio in Havre-Saint-Pierre as well as a metallurgical processing facility in Sorel-Tracy, Quebec. Both sites also operate port facilities. RTFT also has a mining operation in Madagascar. Lac Tio, Havre-Saint-Pierre, Canada
7.0
RTFT mines a rock ilmenite deposit, Lac Tio, located 43 km northeast of Havre-Saint-Pierre on the northern shore of the St Lawrence River, Quebec. Approximately 3.3 million tpa of ore is mined and transported by train to the port and unloaded at the company’s dock. It is then shipped to the Sorel-Tracy metallurgical complex, near Montreal. Ore is crushed and milled, then concentrated by wet gravity separation prior to roasting to remove sulfur. The ilmenite is then smelted to produce more than one million tonnes of sulfate slag known as ‘Sorel slag’ with a TiO2 content of approximately 80%.
8.0
The iron that is extracted from the ore is converted into a number of value-added iron and steel products and sold around the world.
APP. 1
Sorel-Tracy, Quebec, Canada
APP. 2
The Sorel-Tracy metallurgical complex involves several interconnected plants and is a unique world production complex. Nine furnaces feed the entire production line for the reduction plant, which is at the centre of the complex operations. Smelted ore is transformed into titanium slag feedstock and iron. Alternatively, it is transported for further processing at the steel plant and the metal powder plant. The resulting products form a raw material used by pigment producers, the automotive industry and foundries. >>
APP. 3
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Rio Tinto Fer et titane inc (continued) Since 1997, Rio Tinto Fer et Titane Inc has further processed a portion of its slag to render it suitable as feedstock for the chloride pigment process. Upgraded slag (UGS) is produced by heat treatment and subsequent hydrochloric acid leaching of milled and sized Sorel slag. During 2000, the company expanded its UGS capacity to 250,000 tpa. In 2005, a US$76 million 75,000 tpa expansion of the UGS plant was completed. A year later, a further expansion to 375,000 tpa at a capital cost of US$79 million was completed three months ahead of schedule. The plant was further expanded to a capacity of 400,000 tpa during 2008. Subsequent to this, four of the existing operating electric smelting furnaces were completely rebuilt and modernised, raising capacity to 1.1 million tpa of Sorel slag. QIT Madagascar Minerals, Madagascar In November 2001, the Government of Madagascar granted an environmental permit to QIT Madagascar Minerals (QMM) for its greenfields ilmenite mining project near Fort-Dauphin at the southeast tip of Madagascar. The project was developed by QMM, a Malagasy subsidiary of Rio Tinto (80%) and the Government of Madagascar (20%) with final feasibility studies completed in June 2005. QMM intends to extract ilmenite and zircon from heavy mineral sands in an area of approximately 6,000 hectares along the coast during the next 40 years. Although inflation and foreign exchange effects increased the cost estimate to US$1.0 billion, construction of the QMM mineral sands operation was successfully completed in 2008. A joint venture with the Government of Madagascar, this project began producing ilmenite in 2008, and has an estimated capacity of 750,000 tpa. The resulting ilmenite is then shipped to Rio Tinto Fer et Titane’s facilities in Canada for processing into titanium dioxide. Later explansion phases for the project have the potential to expand production to 2.2 million tpa. RTIT also manages the port operations, which, at the end of the life of the mine, will fall under the responsibility and control of the Government of Madagascar. The US$240 million custom-built port, officially opened in July 2009, has water depths of up to 15.75 metres and allows access for larger vessels. The port was financed by Rio Tinto (85%) and the Malagasy goverment (15%). Mozambique Greenfields exploration in southern Mozambique has led to the identification of significant heavy mineral occurrences in two separate project areas. The exploration targets have an estimated tonnage range of 7 to 12 billion tonnes of mineralised sand at a grade between 3 and 4.5%. Total Heavy Minerals exploration work suggests a combined potential ilmenite content of between 140 and 170 million tonnes.
Recent developments In December 2012, RTFT announced that it would initiate two major environmental improvement projects at its metallurgical complex in Sorel-Tracy in Quebec, Canada with an investment of C$107 million. In February 2013, Canadian press reported that RTFT had shelved plans for construction of a metallurgical facility at Bécancour in Quebec. The greenfields project was part of its TiO4 project. Existing operations at Sorel-Tracy are not affected by the decision. Also in February 2013, the company announced it would take its UGS production facility offline at its operations in Quebec. Rio said demand for titanium feedstocks and zircon weakened in 2H 2012 and inventories remained high. It was optimistic that demand would gradually return in 2013 with improving economic conditions in China and the US. In Q3 2013, a planned furnace rebuild at RTFT was brought forward due the challenging market conditions for high grade titanium feedstock. The UGS production facility remained offline during the quarter. During October 2013, it was also reported that Rio Tinto had ceased mineral sands mining at its QIT Madagascar Minerals project in Madagascar for two months. The operational shutdown will began in November.
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Rio Tinto's share of titanium feedstock for full year 2013 was reported at 1.622 million tonnes, a 2% increase compared to 1.594 million tonnes in 2012. The company also reported that the UGS facility restarted in Q4, but at reduced capacity.
Exec Sum
1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0
APP. 1
APP. 2
APP. 3
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Sibelco Australia Ltd – CRL www.sibelco.com.au/crl Ownership 100% Sibelco Australia and New Zealand
Key personnel Campbell Jones – Managing Director and CEO, Sibelco Australia Ltd Gerry Daly – Sales Manager (Mineral sands)
Background CRL of Sibelco Australia has been in operation since 1966. It conducts mineral sand operations through its two high volume dredging operations, the Yarraman Mine (commissioned in 1999) and the Enterprise Mine (commissioned in mid-2004) on North Stradbroke Island, Queensland.
Operations CRL (formerly Consolidated Rutile Limited) of Sibelco Australia is principally engaged in exploring, mining, processing and marketing of ilmenite, rutile and zircon. CRL conducts mineral sand operations on North Stradbroke Island, Queensland. Supplementary dry mining is used to access near mine path small high-grade deposits that are processed through the same floating concentrators. Both concentrators are now accompanied by floating thickeners to control the slimes level in the dredge pond water, enhance recoveries and improve tails placement. Wet high-intensity magnetic separation (WHIMS) is used to separate the ilmenite from other minerals. The rutile/zircon concentrate and the ilmenite concentrate are transported by barge across Moreton Bay to the mineral separation plant (MSP) at Pinkenba in Brisbane for further processing. Ilmenite concentrate is further upgraded by selective magnetic separation to remove grains of chromite and increase the TiO2 grade. Bulk products are shipped from Hamilton on the Brisbane River. Yarraman Mine In 2008, when production was last reported, the Yarraman feed grade was at 0.2% rutile plus zircon (or RZ being the method CRL uses to report grades) was 5.2% higher than in 2007, while total ore throughput was 24.2 million tonnes. The Yarraman mine is scheduled to close by 2015. Enterprise Mine Following a plant upgrade in 2004, the Enterprise dredge and concentrator progressed through a sub-economic zone to reach the economic ore body in October 2005, when commercial production recommenced. The dredge mine path was minimised to increase the rate of advance, and supplementary dry mining of higher-grade ore adjacent to the mine path was used to maintain production levels. Pinkenba dry mill processing plant The Pinkenba rutile processing circuit was upgraded in 2007. The ilmenite plant was also updated with state-of-the-art separation technology.
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Recent developments
Exec Sum
In March 2011, the Queensland Government introduced the North Stradbroke Island Protection and Sustainability Bill into State Parliament in order to fast track the completion of sand mining on the island. The mining phase-out involved the closure of the Yarraman mine in 2015, the shutdown of the largest sand mine (Enterprise) in 2019, and all mining ending by 2025.
1.0
In November 2013, Sibelco Australia (Sibelco) announced that the Queensland Parliament passed key amendments to legislation allowing mining to continue at its Enterprise mine on North Stradbroke Island until 2035. The changes will enable Sibelco to undergo a longer transition from sand mining to an alternative economy. Sibelco will move to one operation in the island’s south. Under the new plan, sand mining will be restricted to 4% of the island. With the changes giving Sibelco certainty of mining until 2035, the company will commit to reducing its landholding on the island and hand back undisturbed and rehabilitated land to the Queensland Government.
2.0 3.0 4.0 5.0 6.0 7.0 8.0
APP. 1
APP. 2
APP. 3
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Sierra Rutile Ltd www.sierra-rutile.com Ownership 100% Sierra Rutile Limited (formerly Titanium Resources Group Ltd)
Key personnel John Sisay – Chief Executive Officer Derek Folmer – Chief Marketing Officer Desmond Williams – Operations Manager Yves Ilunga – Chief Financial Officer
background The company commenced mining in 1967 – built and initially operated by Bethlehem Steel. During the early 1990s, Sierra Rutile Ltd (SRL) was the world’s largest producer of rutile, accounting for nearly 30% of world production. Operations were suspended in 1995 due to internal civil unrest. In early 2005, SRL commenced refurbishment of Dredge D1 and associated infrastructure of the mine. Following an 11-year interval, mining operations recommenced and commercial scale production began in the first half of 2006. In 2008, the company confirmed the successful completion of shifting the operations of Dredge D1 from Lanti North, to the higher grade Lanti South deposit. In July 2008, the company reported that Dredge D2, which had commenced production in January that year, capsized in the fresh water lagoon being mined. The company declared force majeure on all its rutile and ilmenite contracts, with all customers being placed on an equitable allocation during the second half of 2008 and January 2009. In February 2009, the company lifted the force majeure on all sales. In November 2009, SRL raised approximately US$25 million through a share placement to fund the development of dredge D3, and upgrade dredge D1’s wet plant processing equipment. In April 2010, the company announced that following mediation, it had reached a final settlement of insurance claims with all remaining insurers in its legal action relating to the capsizing of Dredge D2 in which it received US$7.5 million. Pala Investments acquired a strategic interest and in September 2009, Pala had initial discussions with the principal shareholder. In September 2010, Pala became aware of a potential sale of the company to a Chinese group and pre-empted the sale by acquiring a 30% block from the principal shareholder. In February 2011, Pala acquired an additional 8% from the same shareholder and in October 2011, through a tender offer, Pala acquired an additional 16.75% stake taking its total ownership to 55%. In October 2012, SRL announced the results of its feasibility study into a new large dredge. The highlights of the study included: 81,000 tpa of rutile produced, on average, in the first 10-years of the project’s life, with a further 43,000 tonnes of ilmenite and 7,000 tonnes of zircon concentrate for a 27-year project life. In December 2012, SRL announced the commissioning of its dry mining at Lanti.
OPERATIONS SRL holds mining leases across a land area of 580 km2 within which 19 separate rutile deposits have been identified. The SRL mine site is in southwest Sierra Leone near the Imperi Hills, approximately 135 km southeast of the capital Freetown. The SRL operation employs dredge mining and conventional mineral processing methods in the production of mineral sands.
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Recent developments
Exec Sum
In January 2013, SRL announced it had commenced detailed engineering work and an implementation plan on its Gangama dry mining project to fast track development, following a favourable PFS. SRL was also planning a scoping study on the dredging of its Sembehun deposit. More detail on these projects can be found in the New Projects Profiles Appendix.
1.0
In July 2013, SRL released an operational update for Q2 2013, reporting that production was in line with budget and the company remained on track to deliver on full year production guidance. SRL reported record rutile production in June 2013 of 12,390 tonnes. During the quarter, the Lanti dry mining project was commissioned and was running above nameplate capacity, plus the company signed an agreement to supply 70,000 tonnes of rutile to a leading pigment producer. Despite weaker demand for all titanium feedstocks, SRL reported that all of its production was fully committed.
2.0
During Q3 2013, SRL received formal credit approval for a US$30 million senior loan facility.
3.0
In December 2013, SRL announced that the company had entered into a memorandum of understanding to buy hydro power from Smol Pawa Sierra Leone. Under the MoU, SRL will be a cornerstone purchase of hydro power once the Moyamba hydro project is completed, which is anticipated within 48 months, subject to the outcome of a feasibility study and obtaining finance. For 2014, SRL anticipates production of 131,000 tonnes of rutile and 28,000 tonnes of ilmenite with an all in operating cash cost of approximately US$605 per tonne of rutile.
4.0
In April 2014, SRL announced that the company had ended discussions with parties that were interested in making a potential takeover bid for SRL.
5.0 6.0 7.0 8.0
APP. 1
APP. 2
APP. 3
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Thua Thien Hue Minerals Corp www.humexco.com.vn Ownership A State-owned company
Key personnel Vo Quang Hien – Chairman Nguyen Van Cu – Deputy Manager, Technology Ngo Xuan Hai – Head of Sales Tran Van Dien – Head of Manufacturing and Operations
Background Thua Thien Hue Minerals Corporation (HUMEXCO) was established in 1987. The company’s main products are ilmenite, rutile, monazite, zircon, zircon flour, titanium slag and TiO2 pigment. The company has four facilities in the Thien Hua Hue Province area and exports its products to countries including Japan, China, Malaysia and South-East Asia. According to a survey by the Northern Central Geology Federation, Thua Thien Hue Province has a deposit of approximately 7 million tonnes of titanium ore, accounting for approximately 25% of the country’s total reserves.
Operations The People’s Committee of Central Thua Thien Hue Province approved the construction of a 10,000 tpa titanium smelter in Phu Loc district for an investment of VND102 billion (US$6.38 million). After nearly two years of construction, the company’s 10,000 tpa titanium smelter was commissioned in January 2011. The plant is expected to produce 10,000 tpa of titanium slag and 5,500 tonnes of pig iron at full capacity. This is the second titanium slag factory to be built in the country with the first one in Central Binh Dinh Province.
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Titania AS www.kronostio2.com
Exec Sum
Ownership A wholly-owned subsidiary of Kronos Norge AS, which is a whollyowned subsidiary of Kronos Worldwide Inc.
1.0
Key personnel Ed ten Hacken – Sales Director
2.0
Background The Titania facility was founded in 1902 and has been producing ilmenite since 1916.
3.0
The Tellnes ore deposit was discovered in 1954 and production began in 1960. The mine is capable of processing more than 3 million tpa of ore to produce approximately 900,000 tpa of ilmenite.
Operations
4.0 5.0
Kronos owns and operates Norway’s only ilmenite mine pursuant to a governmental concession with an unlimited term. In the southwest corner of the country, 7 km from Hauge i Dalane, this is a rock ilmenite deposit that requires ore to be blasted before being hauled by truck to a series of crushers and milled to
