Marketing
Ilmenite and rutile are titanium-bearing minerals used as feedstocks to produce titanium dioxide (TiO2) pigment, which accounts for circa 94% of global titanium feedstock consumption. TiO2 pigment is in turn used in the manufacture of paints and other coatings, plastics, paper as well as a number of other applications, including cosmetics, food additives, ceramics and textiles. It is favoured in many such applications for its brilliant whiteness, UV protection, non-toxicity, inertness, and its ‘covering power’, which results from its superior ability to disperse light as a result of its high refractive index.
Titanium metal and welding electrodes applications largely account for the remaining 6% of global TiO2 feedstock consumption. Titanium metal’s unique properties including its high strength to weight ratio, high melting point and its resistance to corrosion make it the preferred metal for a number of demanding applications such as in the manufacture of airframes and jet engines for the aerospace industry. It is also widely used in chemical and power plants, as well as a number of growing applications for the electronics, medical and leisure industries. Titanium minerals are also used as a component of fluxes for coating welding electrodes consumed by the construction and ship building industries.
At full production, the Moma Mine will produce circa 800,000 tonnes of ilmenite per annum. This ilmenite is divided into three products comprising a high TiO2 ilmenite (circa 60% TiO2), suitable for the chloride pigment process and as a feedstock for synthetic rutile, and two medium TiO2 ilmenites (circa 52% and 55% TiO2), suitable for the sulphate pigment process. Both chloride and sulphate grade ilmenites are also suitable as feedstocks for titanium slag production.
In addition, 56,000 tonnes of zircon and 21,000 tonnes of premium grade rutile will be produced per annum as co-products. The value per tonne of these minerals is considerably more than ilmenite.
Zircon is a zirconium mineral produced traditionally as a co-product from titanium minerals mining. It is a key raw material consumed by the ceramics industry, primarily as an opacifier and frit compound for decorative tiles and sanitary ware. The ceramics sector now accounts for approximately 54% of global zircon consumption. An additional circa 27% of total zircon supply is consumed by the refractory and foundry industries, where its properties of resistance to high temperature and corrosion, and good thermal shock resistance, make it suitable for these end-use markets. Fused zirconia and zirconium chemicals have also become significant end-use markets and are growing strongly, particularly in China.
To date, Kenmare has signed a number of multi-year off-take contracts for a significant component of ilmenite, rutile and zircon production with industry market lenders.
