ROBUST demand is keeping the mineral sands industry on track in Western Australia despite production declines and the Australian dollar’s recent strength, which prompted a 10 per cent fall in export values last financial year.
Industry heavyweights Iluka and TiWest last week released production reports for the December quarter.
Production at Iluka’s Western Australian operations during the December quarter showed an improvement compared with the corresponding quarter last year.
For the 2004 calendar year, however, Iluka reported production decreases at its Western Australian operations for all products except synthetic rutile, which achieved a production record.
A spokesman for the company said sales revenue was down roughly $10 million on the previous year due to the impact of the Australian dollar on US contracts, although demand remained strong.
Production of synthetic rutile and pigment at the TiWest operation, based in Cooljarloo, was maintained at record levels.
TiCor managing director Peter Robinson said production was strong last year for its 50 per cent TiWest joint venture, which it owns and operates with US Company Kerr McGee Chemicals.
“TiWest has successfully implemented a continuous improvement program and this has been a major cause of the record production levels achieved there.” he said.
“Demand is high for all of TiCor’s products. TiCor is fully sold for all products in 2005.”
The Australian dollar remains an issue at TiCor.
“Ticor has a hedging policy to manage its foreign currency exposure and this policy is regularly reviewed,” Mr Robinson told WA Business News.
“Labour shortages have been a key issue for TiWest, and the industry generally, over the last year. TiWest’s continuous improvement program has mitigated some of the impacts of the labour shortages.”
According to the Department of Industry and Resources, the quantity of State mineral sands production increased over the last financial year, although the value of ilmenite produced fell nearly 30 per cent.
Total heavy mineral sands production fell in value by more than 10 per cent, reflecting the strong Australian dollar.
Despite the fall in total production, royalties collected by the department improved 3 per cent over the 2003 calendar year.
DoIR chairs the Mineral Sands Agreement Act Rehabilitation Co-Ordinating Committee, which oversees the rehabilitation of the TiWest and Iluka mineral sands mines at Cooljarloo and Eneabba north of Perth.
DoIR director of investment facilitation Ross Marshall said: “The department has also worked closely with Cable Sands and Iluka in the development of new mines north and south of Perth.”
DoIR and BHP Billiton have worked together over the closure and environmental rehabilitation of the Beenup mine to satisfy State Agreement Act requirements.
Titanium dioxide is also produced in WA from synthetic rutile feedstock.
TiWest converts ilmenite to synthetic rutile and then to titanium dioxide whereas Iluka provides its synthetic rutile to Millenium Chemicals for conversion to titanium dioxide.
Resources List – (All producing and non-producing Mineral Sands Tenements)
Bemax Resources
- September’04 quarter production in WA: Heavy mineral concentrate 66,079t; ilmenite 58,238t; zircon 9,552t, leucoxene 1,396t (includes rutile)
- Gwindinup 100% through Cable Sands (WA) Pty Ltd, WA, 10km south of Boyanup (not producing).
- Jangardup 100% through Cable Sands (WA) Pty Ltd, WA, 50km south of Nannup (not producing).
- Ludlow earning in through Cable Sands (WA) Pty Ltd, WA, 34km SSW of Bunbury (commenced, plant assembly in progress).
- Yarloop 100% through Cable Sands (WA) Pty Ltd, WA, 45km NNE of Bunbury (not producing).
- Bayfield 80% through RZM Pty Ltd, Qld, 100km NE of Rockhampton (not producing).
- Massidon 100% through Peregrine Mineral Sands NL, NSW, see #Nanya (not producing).
- Wemen 100%, Vic, 80km SE of Mildura (producing).
- Tutunup 100% through Cable Sands (WA) Pty Ltd, WA, 20km south of Capel (producing).
- Sandalwood 100% through Cable Sands (WA) Pty Ltd, WA, 30km NNE of Bunbury; 5km north of Brunswick Junction (not producing).
- Jangardup South 100% through Cable Sands (WA) Pty Ltd, WA, 54km south of Nannup (not producing).
- #Nanya 100% through Peregrine Mineral Sands NL, NSW, 120km SSW of Broken Hill (not producing).
- Ginkgo Regional 100%, NSW, 50-180km SE of Broken Hill, in the northern portion of the Murray Basin (not producing).
- Northern Murray Basin 100% through Peregrine Mineral Sands NL, NSW, 80km to 300km SE of Broken Hill (not producing).
- Yabbie-Shamrock 60% and earning 70%, NSW, 210km south of Broken Hill (not producing).
- Pooncarie 100%, west of Pooncarie, NSW, 120km north of Mildura (not producing).
- Shamrock 60% and earning 70%, (see Yabbie-Shamrock) (not producing).
- Gallipoli 100%, NSW, SE of Broken Hill in the northern portion of the Murray Basin and 8km SE of Ginkgo (not producing).
Doral Mineral Industries
- Dardanup 100%, WA, 50km east of Bunbury (producing).
Gunson Resources
- Coburn 100%, WA, south of Shark Bay (not producing).
Iluka Resources
- December ‘04 quarter production in WA: Rutile 18,784t; synthetic rutile 146,726t; ilmenite 293,736t; zircon 67,404t; hyti 91 3,724t
- North Capel 100%, WA, (see *South West) (not producing).
- +Mid West 100%, WA, at Eneabba and Geraldton, north of Perth (producing).
- Perth Basin 100%, WA, from Bunbury to Eneabba (not producing).
- Ludlow 100%, WA, 34km SSW of Bunbury (not producing).
- Capel 100%, WA (see *South West) (not producing).
- Murray Basin 100%, from Hay in NSW to eastern SA (not producing).
- Yoganup 100%, (see *South West) (producing).
- Yabbie-Shamrock 40%, NSW, 210km south of Broken Hill (not producing).
- Douglas 100%, 90% of Echo and earning 70% in Goroke (not producing).
- Busselton 100%, (see *South West) (not producing).
- Shamrock 40%, (see Yabbie-Shamrock) (not producing).
- Eneabba 100%, (see +Mid-West) (producing).
- *South West 100%, WA, around Capel 250km south of Perth (producing).
- Stratham 100%, (see *South West) (producing).
Olympia Resources
- North Dandalup 100%, WA south of Perth (not producing)
- Ambergate 90%, WA, southern Perth Basin (not producing).
- Waroona 100%, WA, south of Perth (not producing).
- Keysbrook 100%, WA south of Perth (commencing 2006)
Quantum Resources
- Eneabba East 100%, WA, North Perth Basin (not producing).
Ticor
- December ‘04 quarter production in WA: Heavy mineral concentrate 98,400t; ilmenite 59,020t; zircon 9,712t; rutile 4,276t; leucoxene 3,040t; synthetic rutile 29,769t; pigment 13,584t
- TiWest Joint Venture 50%, WA, north of Perth (producing).
- Dongara 100%, WA, near Dongara (not producing).
- Arro 100%, WA, SSE of Dongara (not producing).
- Jurien 100%, WA, near Jurien (not producing).
- Bidaminna 100%, WA, 80km north of Perth (not producing).
- Mindarra Springs 80%, WA, 80km north of Perth (not producing).
- Gingin 100%, WA, 80km north of Perth (not producing).