THE way Diatreme Resources boss Tony Fawdon tells it, there is a zircon shortage coming in 2012 and Australia is the place that is going to be best able to fill it. Zircon, used in such diverse applications as tiles, toilets and nuclear reactors, never quite hit the highs many thought it would in the past boom (some suggest because of poor marketing), however it has been heading higher while other markets crashed and is now at about $US900 a tonne, from around $US800 a few years back.
Iluka, the world’s biggest zircon producer, and Diatreme, have big portions of land on the previous ancient coast line that is the Eucla Basin, which straddles the WA-SA border.
The region, where Iluka is building its Jacinth-Ambrosia project, is set to become a major zircon supply centre.
Mr Fawdon says Diatreme is the junior best placed to fill a 250,000 tonnes a year supply void tipped for 2012.
Image Resources has neighbouring ground, and if all goes swimmingly and they can shore up a 150 to 200 million tonne reserve together, most of which will be Diatreme’s, a 200,000 tonne a year zircon mine could be on the horizon.
Things are heating up in the Eucla, and Mr Fawdon said Iluka’s activity there, and to a lesser extent Diatreme’s have made Ceduna Australia’s fastest-growing town.
IMA Price at posting:
63.5¢ Sentiment: LT Buy Disclosure: Held
