afr and zircon, page-3

This is a full copy of the item relating to zircon.

Zircon socks it to 'em in the bathroom
PURE SPECULATION
Robin Bromby
May 05, 2007

FORTY years ago the dream was that if every person in China would just manage to buy one pair of socks, then the Australian wool industry would be back to its glory days. Hold that thought - but substitute bathrooms with zircon ceramic tiles. Then think of all those bathrooms in China and India that are likely to be built in high-rise apartment buildings over the next decade.
But it's no longer just ceramics. While there are a couple of million Chinese wanting new bathrooms, there are also millions of Westerners headed down the geriatric road, which is more good news for zircon. Its status as an inert metal allows zircon to be used as a bone substitute for human implants. It also gets used in computer and TV screens.

A resources conference in Adelaide heard this week that by 2012 the world will be short of 200,000 tonnes of zircon. That actually represents a shortfall of about 15 per cent on that year's expected 1.4 million tonne requirement (which, as usual, will turn out to be a conservative call).

The zircon price has tripled since the early part of this decade to about $US900/tonne. Best guess: it'll go much higher.

Actually, local investors are spoilt for choice with zircon vehicles. Iluka Resources has been buffeted a little, but it's the biggest holder of land in South Australia's Eucla Basin, which seems to be zircon rich. We've heard that South Australian government people are talking about as many as 10 mines in the basin and are starting to think about the infrastructure needed.

The second biggest holder in that basin is Diatreme Resources, which has hit high grades at its Willy Willy prospect with magnetics reported 15km either side of the 3km-long strand the company has been drilling.

Bemax Resources is already a producer and it will be joined in September by Australian Zircon, which aims to be the world's third largest supplier of the metal.

Back in the queue are several promising up and coming players, including West Australian project owners Image Resources and Gunson Resources (which has all government approvals for its Coburn project), and Red Metal and Adelaide Resources in the Eucla.