heavy mineral sands market review

Heavy Mineral Sands Market Review

The heavy mineral sands (HMS) market is dominated by zircon and the major titanium minerals of (in descending order of TiO2 grade) rutile, leucoxene and ilmenite. Monazite, a mineral with a high thorium content, is also recovered. Australia has high grade mineral sands in Queensland, WA and the newly delineated deposits in the Eucla and Murray Basins, at relative high zircon and titanium contents.

Zircon is the more valuable mineral with a price of around US$900/t, a rise of 28% over the past two years. Global consumption was up 2% in 2006 to 1,220kt, dominated by the demand from Europe and Asia. China’s consumption was up 5% in 2006 and now accounts for 30% of global consumption. Demand for zircon is dominated by ceramics for glazes and high temperature applications. Other uses are in TV screens, refractories and as zirconia in metals and chemicals.


Source: TZ Minerals International


Breakdown of Zircon Producers
Australia (37%) and South Africa (30%) dominate HMS production, supplying more than 67% of global demand. Increasing production from the Murray and Eucla Basins in Australia and from South Africa will offset a decline in US production due to falls in reserves. In 2006 Australian listed company, Iluka Resources Limited (ASX.ILU) produced 392kt zircon, and was the largest producer.

Rutile and ilmenite are the sources of titanium oxide (TiO2) for white pigment production. Consumption of TiO2 was up 3.8% to 4,800kt in 2006.

Rio Tinto’s Iron & Titanium group expect TiO2 pigment demand to sustain growth rate of 3% over the next 10 years.