startling zircon shortage in china

Great story by Robin Bromby, and the key reason why I loaded up, but I can't believe he didn't mention our Matilda.

We're going waltzing without you Robin.

http://www.theaustralian.com.au/business/chinese-demand-powers-zircon/story-e6frg8zx-1225870297904

Chinese demand powers zircon PURE SPECULATION: Robin Bromby From: The Australian May 24, 2010 12:00AM

DAVID Harley is back from Shenzhen and the recent Global Zircon Conference with a bounce in his step.

He says even some of the analysts were startled by the shortage of this substance, used in ceramics such as bathroom and kitchen tiles and lavatory bowls. The Chinese, it seemed to those who attended the conference, cannot get their hands on nearly enough of it.

Harley says that the penny has well and truly dropped. About 85 per cent of the zircon used is imported into China.

Nor is he worried about any move by Beijing to rein in the real estate market. If the private sector got into trouble, he believes the government would step in to build low-cost housing to keep a lid on social unrest. Whatever the outcome, just think of all those kitchen and bathroom tiles that need to be glazed using zircon.


Harley argues his company, Gunson Resources (GUN), has one of only two significant greenfields zircon projects in the world that have a realistic chance of being in production by 2012. The final feasibility study for the Coburn deposit in Western Australia was finished early this year with the construction cost set at $169 million.

The other project is the Grand Cote mineral sands deposit in Senegal. Mineral Deposits (MDL) is expected to receive any day the definitive feasibility study on a development that will cost $US400m.

Grand Cote will have an expected yearly output of at least 75,000 tonnes of zircon, 550,000 tonnes of ilmenite, 6000 tonnes of rutile and 9000 tonnes of leucoxene.

Iluka Resources (ILU) produced a fascinating briefing paper after the Shenzhen talkfest that's now on the company's website.

It backs up Harley's case that China has got some acute supply problems, and that alternatives to Australia and South Africa (such as Madagascar, Pakistan and Mozambique) don't yet have the scale of production needed.

Interestingly, last month Goldman Sachs named the three commodities where China has to import more than 60 per cent of its needs -- the platinum group of metals, iron ore and zircon.

In another zircon development, Red Metal (RDM) says its Saudi Arabian-owned partner has started drilling in the South Australian section of the Eucla Basin. The partners are targeting another deposit like the large Jacinth and Ambrosia projects being brought into production by Iluka. RDM is a very busy company at present: it has its potash project in Colorado and earlier this month the junior brought in Canadian uranium giant Cameco to explore its Lakes uranium project in South Australia.

Finally, Image Resources (IMA) has been making strong progress at its Gingin and Atlas heavy minerals projects in the West.