Overview, structure, & trends

The industrial minerals market is not always an easy one to understand. Minerals and rocks exploited for their non-metallurgical value represent a vital but frequently poorly understood sector of the global minerals industry – often (and rather unfairly) labelled as “unglamorous” and even “the Third World of the mining industry”!

But without industrial minerals and their derivatives most manufacturing industries would cease to operate and most of the products we use and rely on everyday could not be made.

The industry is driven purely by market demand, but this may be of a fragmented nature and hard to easily grasp, with most minerals serving five or more very different markets, some serving many more – each requiring tailor-made mineral specifications to impart desired properties of the end use.

Above all, long term consistency of grade quality and supply availability is imperative to master and deliver for any producer and developer. Keeping abreast of the latest processing innovations and developments is key to grade quality, but its degree of sophistication greatly varies between minerals.

And, generally speaking, being dominated by high volume, low value raw materials, logistics is very much the jugular vein to a successful industrial minerals project/operation – just ask any frac sand developer located >20km from a railhead in Wisconsin. Logistics can account for up to 70% of the delivered cost of an industrial mineral.

Despite this, strangely, it is often the case that logistics can get pushed back as a priority in the due diligence process – a dangerous underestimation of its value.

And so to industrial mineral prices – is there such a thing as a price for an industrial mineral? This is a good debate. In fact, with so many influencing factors impacting the mineral price, not least the relationship between buyer and seller, industrial mineral pricing is characteristically opaque – there is little visibility, no exchange, no list prices (bar a few large volume commodity grades in say, fertiliser minerals).

So,

• How can we assess the structure of the industrial minerals market? 
• What makes it tick?
• How can we best evaluate a mineral project/asset?
• What do we need to know in order to optimise its logistics?
• What is the industry’s outlook? Where is the new market demand coming from?

Answers to these questions and more will be discussed and examined at the upcoming conference IMFORMED Rendezvous, Les Jardins du Marais, Paris, 8-10 April 2019.

An outstanding programme and invaluable networking opportunities will provide all you need to get a handle on the future and fundamentals of the industrial minerals business, whether an established player or newcomer checking out the market space.

IMFORMED Rendezvous Basics Briefings include:

Industrial mineral market basics: an executive primer
Mike O’Driscoll, Director, IMFORMED, UK
Industrial mineral resource exploration and evaluation
Anton Geldenhuys, Principal Resource Consultant, CSA Global Pty Ltd, South Africa
Reporting industrial mineral exploration results and resources according to according to the JORC Code
Dr Andrew Scogings, Executive Consultant, Snowden, Australia
All you ever need to know about industrial mineral logistics
Clive Kessell, Director, Coastalwise, UK
Common Incoterms mistakes and the risks to a mineral purchase
John Newcaster, Director Southwest Region, The Cumberland Group, USA

Full programme details here

Register online here,

or, contact Ismene ismene@imformed.com | T: +44 (0)7905 771 494

Trending in the market today

Right now there is much excitement in the industry with challenges and opportunities favouring both established players and newcomers looking to enter the industrial minerals space.

• Critical and strategic minerals are evolving for meeting demand from the next generation market applications

• The ongoing Chinese mineral supply squeeze is encouraging development activities in different minerals worldwide (for more see: China’s refractory mineral supply – a New World: review & outlook; Refractory mineral supply: Alternative solutions driven by China supply squeeze).

• Processing and logistics innovations and developments continue apace to ensure quality grades are available for customers

• Recycling of industrial minerals is steadily emerging as a sector in its own right and starting to join the mainstream activities in the supply chain

IMFORMED Rendezvous Keynotes include:

Mineral innovations for extreme environments
Chris Parr, S&T Director-Aluminates, High Temperature Materials Technology Cluster Director, Imerys, France
The consumer’s viewpoint: taking innovation to 1,200°C and beyond
Gustavo Franco, Chief Sales Officer, RHI Magnesita, Austria
Trends, challenges, and issues for the industry
Catherine Delfaux, President, IMA-Europe & Provençale SA, France
The investment and financing climate in industrial minerals: challenges & opportunities – a private equity perspective
Ryan Bennett, Partner, Senior Advisor, Resource Capital Funds, USA
Critical, strategic and industrial – the minerals leading the next production revolution
Dr Richard Flook, Managing Director, Mosman Resources Ltd, Australia
Industrial mineral processing evolution and trends
Dietmar Alber, Business Development Director, Minerals & Metals Division, Hosokawa Alpine AG, Germany
The evolving role of the industrial minerals trader for tomorrow’s markets
Alex Aizpurua, Raw Materials Business Unit Director, Midegasa, Spain
Mineral logistics developments & innovations
Dave Chanet, Commercial Manager, Control Union, Belgium

Full programme details here

Corporate changes & challenges

Amid all this, the corporate landscape appears to be undergoing another seismic shift with several large and significant players undergoing transformation, challenges, and merger and acquisition activity:

• Having just integrated calcium aluminate cement leader Kerneos, world industrial minerals leader Imerys, led by 2018-appointed CEO Conrad Keijzer, is undergoing an internal restructure to transform its operations under just two “segments”, Performance Minerals and High Temperature Materials & Solutions, grouping five business areas.

• Imerys has also decided to withdraw from the US ceramic proppants business and refocus its graphite business, while facing a double whammy in the USA from asbestos issues affecting its talc and wollastonite businesses.

• Rio Tinto has remaining industrial mineral assets of borates, Ti-minerals, zircon, speciality alumina, and salt, but the Anglo-Australian group also recently underwent reorganisation of its offices and management. Although still headquartered in London, it has shifted its commercial operations to be centred in three regional hubs: Frankfurt, Singapore, and Chicago. Lithium and potash exploration/evaluation is ongoing.

• French glass, abrasives and refractories giant Saint-Gobain, also under revised executive management, is developing a new organisational structure of five reporting units to align the business more closely to its markets, comprising four regional businesses and a global High Performance Solutions unit.

• Saint-Gobain’s “Transform and Grow” programme includes several divestments including its well-established global silicon carbide business (2017 sales of €120m, operations in Norway, Belgium, Brazil, Bhutan, and Venezuela; Norton brand) which looks set to be picked up by private equity firm OpenGate Capital.

• More change in the fused minerals sector with the emergence of NICHE Chemical LLC as a new force in speciality fused minerals markets. NICHE recently acquired Imerys Fused Minerals Hull Ltd, UK (electrical grade fused magnesia), and earlier acquired ARC Fused Alumina, La Bâthie, France, the white fused alumina plant formerly of Alteo. NICHE is a division of New Day Aluminum Holdings LLC, itself principally owned by the partners of Florida-based DADA Holdings (which also owns non-met. bauxite and alumina producer Noranda Bauxite & Alumina).

• It seems the RHI Magnesita merger is finally starting to gel, consolidating its Indian operations where strong growth is anticipated, and already it is clear that the group’s sights are set on leading Turkish magnesia and refractories producer Kumas, heralding more consolidation in the magnesia market (join the world magnesia community at MagForum 2019, 13-15 May 2019, Bilbao).

• Swedish iron ore major, LKAB, has made recent commitments to industrial minerals and recycling. At the end of 2018, LKAB Minerals acquired Francis Flower, UK, a leader in blast furnace slag processing, and also calcium carbonate and gypsum. In February 2019, LKAB announced a SEK45m. (US$4.8m.) investment in pilot plants as part of a pre-feasibility study in recycling mine waste to yield critical raw materials – including apatite from tailings sand, from which REE can be produced. LKAB Minerals is already well established in refractory recycling in the UK.

• The interest of private equity groups to the industrial minerals space can be quite fickle, although there has been more activity of late, with OpenGate targeting Saint-Gobain’s SiC business, and Golden Gate Capital acquiring Active Minerals International (kaolin, attapulgite). The San Francisco PE group’s industrial minerals portfolio is expanding, and already hosts US Silica, EP Minerals, and Canada Fluorspar. Meanwhile First Bauxite Corp., funded by Resource Capital Funds, continues to develop its Guyana bauxite deposit for refractories and ceramic proppants (Ryan Bennett, Partner, Senior Advisor, Resource Capital Funds will be speaking on “The investment and financing climate in industrial minerals: challenges & opportunities – a private equity perspective” at the IMFORMED Rendezvous, 8-10 April 2019, Paris).

IMFORMED Rendezvous Mineral Market speakers include:

Fine grinding & classifying: a new concept in mobility & modularity
Jean-Francois Maréchal, Managing Director, Poittemill, France
Survival of the fittest: alumino-silicate minerals & their role in refractories
Phil Edwards, Refractory Market Director, Refractories, Abrasives & Construction, Imerys, France
Glass mineral demand evolution and outlook
Tim Smith, Lead Technologist – Refractories, Raw Materials and Compositions, NSG Pilkington, UK
Battery evolution & supply chain – what does it mean for industrial minerals?
Simon Moores, Managing Director, Benchmark Mineral Intelligence, UK
Calcium carbonate fillers and the outlook for plastics and coatings markets
Samantha Wietlisbach, Principal Analyst Chemicals, IHS Markit, Switzerland
Mineral demand outlook for global paper & packaging markets
Dr Ian Wilson, Consultant, UK

Full programme details here

Coming soon: Industrial minerals – what’s it all about Part 2: Drivers, factors, keys to success

Register online here,

or, contact Ismene ismene@imformed.com | T: +44 (0)7905 771 494

Drivers, factors, keys to success

Following on from our earlier analysis of the underlying principles of the industrial minerals business (see Part 1: Overview, structure & key takeaways), here we discover what makes it tick, by highlighting the industry’s drivers, influencing factors, and keys to success.

All these aspects of the market and more will discussed and examined at the upcoming IMFORMED Rendezvous, Les Jardins du Marais, Paris, 8-10 April 2019.

An outstanding programme and invaluable networking opportunities will provide all you need to get a handle on the future and fundamentals of the industrial minerals business, whether an established player or newcomer checking out the market space. Register now online here or contact Ismene ismene@imformed.com | T: +44 (0)7905 771 494

Industrial minerals are used in a wide variety of applications, and each mineral serves multiple markets with tailor-made grades.

Is it therefore possible to identify key market drivers, influences, and requirements to lead an industrial minerals project to success?

IMFORMED Rendezvous Keynotes include:

Mineral innovations for extreme environments
Chris Parr, S&T Director, Refractories, Abrasives & Construction, Imerys, France
The consumer’s viewpoint: taking innovation to 1,200°C and beyond
Gustavo Franco, Chief Sales Officer, RHI Magnesita, Austria
Trends, challenges, and issues for the industry
Catherine Delfaux, President, IMA-Europe & Provençale SA, France
The investment and financing climate in industrial minerals: challenges & opportunities – a private equity perspective
Ryan Bennett, Partner, Senior Advisor, Resource Capital Funds, USA
Critical, strategic and industrial – the minerals leading the next production revolution
Dr Richard Flook, Managing Director, Mosman Resources Ltd, Australia
Industrial mineral processing evolution and trends
Dietmar Alber, Business Development Director, Minerals & Metals Division, Hosokawa Alpine AG, Germany
The evolving role of the industrial minerals trader for tomorrow’s markets
Alex Aizpurua, Raw Materials Business Unit Director, Midegasa, Spain
Mineral logistics developments & innovations
Dave Chanet, Commercial Manager, Control Union, Belgium

Full programme details here

Key drivers & influences

To have any value, and any potential for development, an industrial mineral source must be able to economically deliver an acceptable product to a market in demand.

As indicated in the above chart, industrial minerals are absolutely essential in the manufacturing of all kinds of products. Thus, the performance of the mineral consuming market drives industrial mineral demand.

In a nutshell: no market = no mineral demand = no mineral development.

Broadly speaking, industrial mineral market trends are shaped by:

A. Primary demand drivers which impact the overall market performance in the world, country or region, including:
• Economy
• Population
• Development
• Urbanisation
• Geopolitics/International relations

B. Key influencing factors, but specific to the trade of certain minerals, markets, and regions, including:
• Resource to market proximity – Logistics
• Specific market demand trends – new & existing
• Limited world resource distribution/”Criticality” of minerals
• Overreliance on imports
• China
• Pricing
• World events

Each of these points can merit an article or conference on their own. However, here we just want to show a few examples.

Most industrial mineral markets follow GDP performance which is usually a reliable indicator of market outlook.

Infrastructure development and urbanisation are primary drivers for industrial mineral markets, hence the growth in demand in China and India (check out Indian Minerals & Markets Forum 2019, 18-20 November 2019, Mumbai), and other Asian countries.

A classic example of market performance mirroring mineral demand can be seen in the use of minerals in the oilfield sector, such as frac sand as a proppant in hydraulic fracturing and barite as a weighting agent in drilling muds (its major application, latest trends and outlook to be discussed at Oilfield Minerals & Markets Forum Houston 2019, 10-12 June).

International trade relations can also have a major impact on industrial minerals trade, as evidenced by the ongoing US-China trade talks and recent import tariff legislation.

For example, after industry lobbying, crucially for the US oilfield industry, barite was excluded; and for the US refractories industry, the following refractory minerals were excluded from imposed new tariffs: bauxite, brown fused alumina, graphite, magnesite (fused, caustic and dead burned), silicon carbide, tabular alumina.

However, most other minerals remained on the list, including andalusite, chamotte, dolomite, fused silica, kaolin, mullite, quartzite, sillimanite, zircon.

Import reliance & China

A look at the imports of industrial minerals by the USA and Europe usefully serves to illustrate the influencing factors of not just international trade relations, but the reliance (and increasingly an issue, the overreliance, which enhances the mineral’s “criticality”) of these regions on limited sources of mineral supply, notably China.

The exercise also underlines the importance of logistics to ensure mineral supply reaches its intended markets.

Already well into 2019, China’s mineral supply squeeze continues to challenge world refractory (and other) producers, and from most indications 2019 Chinese Year of the Pig is likely to live up to its name.

A range of factors arising in 2017 and spilling into 2018 significantly compounded the shortage of key refractory (and other) mineral exports from China vital to the world’s refractory manufacturing sector (for a review please see China’s refractory mineral supply – a New World: review & outlook; and In the Media).

The situation created real problems for refractory manufacturers requiring the likes of dead burned magnesia (DBM), fused magnesia (FM), calcined bauxite, graphite, and fused alumina.

China is well known as the world’s primary source of many industrial minerals. What is fundamental to understand is that despite past supply bottlenecks occurring over the last two decades, these were short-lived. This time it’s serious, it is not a cyclical phase. The fall-out is unlikely to be temporary for many Chinese mineral and end manufacturing operations.

Unfortunately for the global refractories industry, where certain regions, especially India, have relied almost entirely on raw material supply from China, the crisis continues apace into 2019 and the world market must react and adapt to the new world of Chinese refractory mineral supply.

Certainly, some of the larger western refractory producers will seek to do what they can to secure and “stabilise” as much as possible mineral supply from their favoured sources in China – and Refratechnik is demonstrating one way of achieving this with its joint venture to develop a 100,000 tpa DBM flotation plant at Pailou, Haicheng, partnering with Haicheng Guotian Mining and Yingkou Jinlong Refractories.

However, the situation in China has boosted prospects for alternative raw material sources outside China, sparking both expansions at existing operations as well as development of new projects.

New industrial mineral developments

There are a number of exciting new industrial mineral projects underway:

First Bauxite Corp., funded by Resource Capital Funds, continues to develop its Bonasika, Guyana bauxite deposit for refractories and ceramic proppants. Mine and wash plant construction is underway, and expected on-stream end-2019. The company is already shipping raw ore to ARCIRESA, Oviedo, Spain for calcination and sales.

Bautek Minerais Industriais is also developing a refractory bauxite deposit, in Goiânia, Brazil. The company is looking to produce 1m tonnes of raw bauxite, feeding a milling plant in Barro Alto, GO; and 3,000 tpm calcination plant in Jundiaí, SP. Another 6,000 tpm calcination plant is planned in 2020 at Barro.

Australian Bauxite Ltd is evaluating a refractory bauxite deposit at Penrose, NSW, Australia, and has already commenced mining at its Bald Hill bauxite mine in Tasmania, selling fertiliser grade bauxite, with cement grade shipments planned during Q2 2019.

Regarding magnesia developments these include expansions and upgrades at: Turkmag, Turkey (Cihan Group), Askale, eastern Anatolia – a second rotary kiln 2019-20; Demireller Mining AŞ, Turkey – purchased 90,000 tpa rotary kiln and plans DBM production; JORMAG (Manaseer Group), Al-Safi, Jordan – recent start-up of CCM and planning DBM production.

Greenfield magnesia projects include AusMag (Korab Resources), Winchester, NT, Australia; Thessally Resources, Huandot, NT, Australia; Leigh Creek Magnesite Pty Ltd, South Australia; EcoMag, Western Australia; MGX Minerals Inc., Driftwood Creek Magnesium Project, Brisco, BC, Canada; Karnalyte Resources, Wynyard Potash Project, SK, Canada; Magnésie du Rif, Boudkek, Morocco (these and other magnesia market developments will be covered at MagForum 2019, 13-15 May 2019, Bilbao).

SepFluor’s mine concentrator nearing completion in January 2019; the Nokeng Fluorspar Mine is looking to come on-stream this year producing 180,000 tpa acidspar, 30,000 tpa metspar. Courtesy SepFluor

SepFluor has almost completed construction of its Nokeng Fluorspar Mine in South Africa and official handover of the mine from the EPC contractor is expected to take place early April 2019. Total acidspar production for 2019 is estimated at 106,000 tonnes and 62,000 tonnes of the 40% forward sales at fixed pricing has been committed in FY 2019 (SepFluor is Welcome Reception sponsor to Fluorine Forum 2019, 21-23 October, Prague).

Canada Fluorspar is apparently looking to 2019 for a ramp-up in production. The company appointed new CEO Bill Dobbs in August 2018. Early August 2018 saw its first commercial shipment of 4,700 tonnes leave Marystown port, Newfoundland, for Houston, USA, while recent tests have been conducted by consumers in Europe.

ALCORE Ltd, a wholly owned subsidiary of Australian Bauxite Ltd, is developing a plant to produce aluminium fluoride for Australasian aluminium smelters. Most recently the ALCORE laboratory was completed to lock-up stage ahead of schedule and well within budget, at Berkeley Vale, NSW. Funding is in place to complete Stage 1, followed by up to five months of production.

On 4 February 2019, Hudson Resources Inc. announced that commissioning had been completed and production ramp-up commenced at its White Mountain Anorthosite mine in Greenland. The calcium feldspar mine is permitted for 50 years and Hudson is expecting to start shipments to US glass, filler, and coatings customers via Charleston, South Carolina. Anorthosite has potential as a replacement source of alumina, and has already been developed as feedstock raw material for mineral wool production by Paroc in Finland (acquired by Owens Corning early 2018).

Hudson Resources has just started ramp-up to production at its 27m tonne anorthosite resource in Greenland; Hudson has a 10 year supply agreement with one of the world leaders in E-Glass fibre glass production. Courtesy Hudson Resources

Keys to success

Each of the above projects will have been, and perhaps still are undergoing required due diligence to bring them to fruition. Imperative to an industrial mineral project’s success are the following factors:

• Reserves: High quality, sufficient volume
• Marketable grade: Mineral must meet market specifications
• Consistency: In grade spec. and volume availability
• Market demand: Essential to have market & knowledge of it
• Financing: Funding for all aspects of project
• Processing: Ensure correct and complete process route
• Logistics: Secure optimum logistics system & routes
• Flexibility: Awareness to diversify products & markets

New markets investment

Seeking new markets and looking to diversify are the essential mantras of the industrial minerals producer.

The approach to this maybe by mineral, market, or by geography – each influenced by factors described earlier.

A great example of new/growth markets by application is the evolution of lithium-ion batteries and smart devices. Here industrial minerals are in demand in several vital components and new generation battery manufacturers are already placing high demands on raw material supply.

“Those who control these critical raw materials and those who possess the manufacturing and processing know how, will hold the balance of industrial power in the 21st century auto and energy storage industries.” Simon Moores, Managing Director, Benchmark Mineral Intelligence at a recent US Senate Hearing. Courtesy US Senate

At an outlook hearing for the US Senate Committee on Energy and Natural Resources on 5 February 2019, Simon Moores, Managing Director, Benchmark Mineral Intelligence stated: “We are in the midst of a Global Battery Arms Race in which the US is presently a bystander.”

The advent of electric vehicles (EVs) and the emergence of battery energy storage has sparked a wave of LIB megafactories being built (of 70, only 1 is in the US, and more than half in China).

“The supply of lithium, cobalt, nickel and manganese to produce the cathode for these cells, alongside graphite to produce battery anodes, needs to rapidly evolve for the 21st century. However, the scaling up of these chemically engineered materials, which are not commodities, is a major challenge for the industry.” said Moores (listen to Simon Moores talk about “Battery evolution & supply chain – what does it mean for industrial minerals?” at the IMFORMED Rendezvous, 8-10 April 2019, Paris).

And regarding industrial mineral input to LIB it’s not just lithium in the cathode and graphite in the anode:

• High purity alumina (HPA; sourced from bauxite, aluminas, aluminous clays) is used in surface coatings for LIB separators and electrodes (speciality alumina producer Alteo has recently joint ventured with Ginet Group for China’s battery market to form Alteo-Ginet (Suzhou) Lithium Battery Material Technology; five companies are developing kaolin sources in Australia to produce HPA).
• Fluorinated electrolytes (sourced from fluorspar via HF) are used to achieve higher voltage and energy density
• Flame retardant coatings (using aluminatrihydrate (ATH) sourced from bauxite; magnesium hydroxide (MDH) sourced from magnesia) are required fro LIB battery cell packs in EVs and other domestic appliances

Register online here,

or, contact Ismene ismene@imformed.com | T: +44 (0)7905 771 494

Mineral Recycling Forum 2019 Krakow – Review

This year’s Mineral Recycling Forum 2019 took place in the lovely city of Kraków, south Poland, where international delegates from across the supply chain of industrial mineral recycling gathered to network and listen to an expert panel of speakers.

The Welcome Reception at the Malecon Restaurant provided excellent views across the Vistula and of nearby Wawel Castle.

Well thought and linked programme, relevant topics covered, smooth and well organised.
Naman Patel, Partner, Global Recycling, India

Excellent programme; time to connect between sessions is really valuable, the longer breaks are good!
Susanne Hiden, Recycling Specialist, RHI Magnesita, Austria

Well organised event and good content, interesting overall forum for our area. Well done! The app is a great start.
Duane Runciman, Partner, Wastes EcoTech, Romania

For more pictures please go to Gallery

The Big Picture on mineral recycling

In his opening introduction, Mike O’Driscoll, Director, IMFORMED placed recycling into the context of the industrial mineral supply chain of the 21st Century, and reminded that prevailing issues such as overreliance on imports from certain sources and the continuing squeeze on Chinese mineral supply was helping to boost mineral recycling awareness and activity.

The big picture on the raw material recycling sector from the European Commission’s viewpoint was ably presented in “Competitive manufacturing industries in Europe: circular economy and access to raw materials” by Maria Nyberg, Policy Officer, European Commission, Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs , C.2 Resource Efficiency and Raw Materials, Belgium.

Nyberg took us through the state of play on EU policy highlighting the Raw Materials Initiative (RMI), European Innovation Partnership Raw Materials (EIP Raw Materials), and H2020/Horizon Europe.

Nyberg reported on the main findings on the EC’s recent “Report on Critical Raw Materials & the Circular Economy” concluding that “circularity” depends on recycling infrastructure, market prices of materials, the possibility to disassemble products, and the amount of material becoming available from products reaching their end-of-life.

“Only a small fraction of CRMs remains inside Europe’s socio-economic system through functional recycling.” said Nyberg.

In Davos in January 2019, the EC was recognised by the World Economic Forum as a champion of the Circular Economy, and bestowed upon it the 2019 Circular Economy Prize. But Nyberg concluded that more effort was required in closer alignment of industrial strategy, coverage of more sectors, empowerment of consumers, support of innovations, and to bring circular economy and carbon-neutrality policies together.

“Recycling as a way of developing new business models for the minerals sector: regulatory bottlenecks and opportunities” by Francesca Girardi, Industrial Affairs Advisor, IMA-Europe, Belgium, underlined the significant demand for industrial minerals vital for a range of manufacturing industries in Europe.

Girardi explained circular economy package implications for the industrial minerals sector and that innovative projects from the industry have been developed to reach more sustainable business models.

In many cases closing the loop at each stage of the chain is technically, economically and environmentally not possible, eg. talc in autoplastics, kaolin in ceramics, borates in special glasses.

However, although the minerals may not be recyclable per se, many of them live second, third, fourth or even an infinite number of lives thanks to the recycling of the applications they are used in.

““Despite the extensive recycling of multiple markets and its continuous improvements over time, there is still a need for more than 50% of primary industrial minerals to be produced to meet the growing market’s demand.” warned Girardi.

Several circular business models were described for the industrial minerals sector although Girardi also pointed out bottlenecks including a lack of harmonisation in the interpretation of EU legislation, and a lack of incentives to promote the transition to circular business models.

“Exchange between industry and policy makers is paramount” said Girardi.

Where is the industrial minerals industry heading and why?

Its future and fundamentals explained and discussed at the

IMFORMED Rendezvous, 8-10 April, Les Jardins due Marais, Paris

Details here

  

Dr Aurela Shtiza, Policy Director, IMA-Europe, France will be hosting a Roundtable on industrial mineral recycling at the IMFORMED Rendezvous, 9 April 2019, Paris

Strategy & development

“Strategy for companies aiming to participate in mineral recycling and the Circular Economy” by Bart Mantels, Program Manager Sustainable Materials Management, VITO NV, Belgium, compared classical and circular economy recycling processes using steel slag as a case study example.

Mantels stressed that we need to find ways to: evaluate the economic and environmental sustainability of recycling primary raw materials; develop new metal recycling technologies with high efficiency and specificity; and new technologies to valorise the remaining matrix materials.

“In a circular economy it can pay off to aim for higher quality recycled materials. Higher purity of metals can offset higher recycling costs, and high quality matrix materials allow for higher value reuse.” said Mantels.

In “Decoupling geology from geography: connecting market and minerals with hydrometallurgical processing of waste”, Mark Tilley, Vice President Business Development, Lixivia Inc., USA, proposed a new technology that enables local and regional stakeholders to utilise waste or low-grade minerals to produce high quality commodities.

The method is by using Lixivia’s proprietary water-based Selex™ process which separates metals from minerals.

Tilley demonstrated how steel slag could be “rapidly stabilised” for downstream applications and yield a range of calcium products for local markets, ie. lime, calcium chloride, calcium carbonate, and calcium peroxide.

Lixivia has a pilot plant for the process, and has had its calcium carbonate tested positively with a large US paint manufacturer. “We have full control over purity, crystal types, habits and dispersity.” said Tilley.

Another interesting example was the “tuning” of dolime, from an off-specification dolomite, via calcination and the SELEX™ process to tune the Mg composition up to the customer’s grade dolime specification, at the same time yielding a magnesia product.

Tilley commented: “Some of the problems facing supply chains can be mitigated if new extraction technology can be commercialised. These solutions are quite R&D intensive, in that the feed-stocks tend to require some customisation in their process.”

“Close cooperation between technology providers and mining/processing enterprises is probably the best and possibly the only path for technology deployment on a large scale” said Tilley.

Refractory recycling | Briquetting

In the first of two talks on refractory recycling, Paul Glaubitz, General Manager Recycling, RHI Magnesita, the Netherlands presented “The driving force of recycling in the refractory industry”, covering refractory recycling today and tomorrow, examples from other industries, and examining what we need “to get there”.

Glaubitz emphasised there needed to be a cultural change, a new mind set, and that recycling has to be considered from all stakeholders.

In particular, online analysing methods, sorting, separation needed to be improved. Glaubitz underlined how RHI Magnesita’s Roadmap 2019-2015 would encompass this new approach to recycling of “take all, use all” and overall enhance the recyclability of refractory products.

Team RHI Magnesita, with speaker Paul Glaubitz, General Manager Recycling (centre) at Mineral Recycling Forum 2019.

In “From best practices to excellence in refractory waste management”, David Maza, R&D – Process Manager, Sidenor, Spain, gave a very detailed and well illustrated examination of Sidenor’s integrated and systematic management of all the refractory waste at its Basauri plant, on which the company has been working for the last six years.

Maza discussed the plant’s main refractory waste generation zones and showed examples of “pursuing the excellence” by obtaining higher value added products from isostatic tubes and tundish mixes in the tilting area.

On 12 January 2019 Sidenor had funding approved for its E-CO-Ladle Brick European Research Project, which follows last year’s approval for funding its 5RRefrACT (LIFE proposal) project. In the latter project, Spanish magnesia producer Magnesitas Navarras is to develop new added value magnesia basic products from recycled refractories.

“Roller press briquetting and granulation to turn fines into valuable materials” by Patrick Lecherf, Export Manager, Euragglo, France, looked at the principles of briquetting and granulation using roller press technology.

Lecherf illustrated the talk with examples of applications to reuse fines as secondary raw materials such as those sourced from by-products from the steel industry, refractory bricks, refractory clay, coal, and lime production. He also showed the range of vertical and horizontal feed presses developed by Euragglo.

Bauxite residue – red mud

“Opportunities and challenges in the use of bauxite residue (red mud)” presented by George Banvolgyi, Technical Director, Bán-Völgy Ltd Partnership, Hungary (and co-authored with Ken Evans, Independent Consultant, UK) was a superb review of the state of play with regard to making use of the substantial volumes of red mud created through bauxite processing.

Over 165m tpa of bauxite residue is being produced, adding to the 3.5bn tonnes already stockpiled to date: “An enormous deposit to mine as a future resource.” announced Banvolgyi.

Banvolgyi in turn examined red mud generation, scale of the issue, current disposal methods, composition, uses, and challenges to increased use.

“Although a rich source of elements, bauxite residues are extremely variable in composition so one must be careful not to assume all bauxite residues can be used for a particular application.” cautioned Banvolgyi.

Despite extensive and continuing research into red mud usage, only 4% is recycled and used at present, perhaps around 5m tpa used in cement, steelmaking, roads and construction, ceramics, and mineral wool.

“So far no process has been a commercial success, because of specific problems associated with the bauxite residue such as low iron content, high alkali content, fineness of particles, and moisture.” said Banvolgyi.

Increased use is expected in steel, cement, acid mine drainage, heat storage media, and flame retardants, and especially in China.

Industrial & mining waste | Slag

“Recycling of wastes from the mining, power and metallurgy industries” by Prof. Krzysztof Galos, Director, Mineral and Energy Economy Research Institute, Polish Academy of Sciences, Poland, was a comprehensive review of the main wastes of Poland and their level of recycling.

The country’s total industrial waste generation was estimated at 113.8m tonnes in 2017, mainly from the hard coal, metal ore, industrial mineral and rock, chemical, metallurgical, power, and water and sewage sectors.

Potential waste mineral raw materials are being sought from minerals mining and processing, inorganic chemical industry, power plants and central heating plants, steelworks, nonferrous metals smelters, ferroalloy smelters, foundries, glassworks, and ceramic plants.

There is a range of waste mineral raw materials being used in Poland, such as full substitution of primary raw materials, eg. FGD gypsum, aggregates from metallurgical slag, aggregates from waste dolomite of Zn-Pb ore processing.

There is also lower quality substitution of primary raw materials, eg. aggregates from hard coal mining wastes, kaolin from glass sand washing, fine-grained granite wastes.

Juha Pinomaa, Chairman, Betolar Ltd, Finland presented “Opportunities in turning waste into geopolymer based construction materials” describing how research started in 2013 to find new sustainable materials for the construction industry with the focus on geopolymer research.

The initial aim was to help Finnish pulp and paper companies reach a zero waste goal, and so far there has been excellent results with slag, and promising results with certain tailings.

Betolar is licensing its technology in key markets, with recipe management and application specific production technology.

Application examples include in mining using crushed geopolymer in the stabilisation of tailing dams and heap leach pads, and in construction base layers for roads and lightweight concrete blocks.

“Recovery of magnesia and chromia from chemical waste” by Duane Runciman, Partner, Wastes Ecotech Srl (WET), Romania, reviewed in detail a fascinating multi-phase reclamation project to recover commodities from a former state owned fine chemical production site which operated from 1916-2006 (most recently producing dichromate) at Tarnaveni, Mures county, Romania.

The target waste material amounts to 1.95m cubic metres, or 3.5m tonnes, of sodium dichromate waste tailings, containing magnesia, chromia, calcium chloride, and ammonia.

In Phase 1 (Years 1-9) “mining” of the tailings resource (all above ground) is to be a simple form of exploitation using long reach excavators, wheeled loaders and low ground pressure dump trucks.

A proposed WET process technology to reprocess the tailings eliminates current environmental concerns (regarding present Cr6+) while extracting the minerals as chrome oxide green, fused magnesia, calcium chloride and liquid ammonia (as a by-product).

Phase 2 (Years 10-20) envisages to continue processing locally sourced micronised dolomite into the existing plant, post reprocessing to produce fused magnesia or magnesia.

WET followed the JORC Reporting path to obtain a Certified JORC 2012 Report on the tailings based on Estimated Resource, Probable Reserve. An Inferred JORC was obtained in 2014 and current work is aimed at upgrading to Estimated for a Bankable Feasibility Study.

There is strong local and federal government support for the project which is anticipated to provide direct and indirect employment for around 1,000 when in full operation.

In “Trends & outlook for the ferrous and nonferrous slag markets”, Daniel Rogers, Head of Market Reports and Consultancy, Smithers Apex, UK, presented the supply and demand picture for ferrous and non-ferrous slags to 2029.

Key trends in ferrous slag included more emphasis being placed on the sustainability of resource use. Increasing carbon prices are pushing up the value of granulated blast furnace slag.

While marketwise the US and Middle East (UAE, Qatar, Oman, Egypt) show strong construction growth, with infrastructure projects growing in China and India.

Rogers explained that the slag markets for non-ferrous products are derived sectors that have substantially different applications from steel slags, due to their varied properties.

A number of non-ferrous slags have developed a high rate of resource reuse. Many initiatives are evident where smelter capacity is opening up across the globe.

Overall, there are healthy construction markets driving ferrous and non-ferrous slag demand as environmental and related regulatory pressures are boosting use of ferrous (and a range of non-ferrous) slags.

Thank you!

As ever we are indebted to the support and participation of all of our sponsors, exhibitors, speakers, and delegates for making Mineral Recycling Forum 2019 such a success.

We very much appreciate all the completed feedback forms and please continue to provide us with your thoughts and suggestions.

We shall keep you abreast with developments for next year’s event and look forward to meeting you again soon.

Meantime, we are preparing for our upcoming conferences:

IMFORMED Rendezvous 2019, Paris, 8-10 April 2019

MagForum 2019, Bilbao, 13-15 May 2019

Oilfield Minerals & Markets Forum 2019, Houston, 10-12 June 2019

Fluorine Forum 2019, Prague, 21-23 October 2019

Indian Minerals & Markets Forum 2019, Mumbai, 18-20 November 2019

Registration, Sponsor & Exhibit enquiries: Ismene Clarke T: +44 (0)7905 771 494 ismene@imformed.com

Presentation & programme enquiries: Mike O’Driscoll T: +44 (0)7985 986255 mike@imformed.com

For programme, feedback, attendees, and picture gallery, please go to:

Mineral Recycling Forum 2019

Missed attending the conference?

A set of presentations (as PDF) maybe purchased, please contact:
Ismene Clarke, T: +44 (0)208 224 0425; M: +44 (0)7905 771 494; E: ismene@imformed.com

Where is the industrial minerals industry heading and why?

Its future and fundamentals explained and discussed at the

IMFORMED Rendezvous, 8-10 April, Les Jardins due Marais, Paris

Details here

Just a quick note to say a big thank you to all our sponsors, speakers, and delegates for supporting and participating in such positive fashion at our inaugural IMFORMED Rendezvous this week (8-10 April, at Les Jardins du Marais).

It was a real pleasure to facilitate such a vibrant forum on its first outing for a wonderful international community of like-minded players in the industrial minerals business, all wishing to network and seek new opportunities.

The reception hosted by Imerys at the beautiful Éléphant Paname, with its exquisite cuisine, was most memorable.

As usual, we shall be publishing a full review of Seen & Heard in Paris in the coming weeks.

See you again soon and watch this space for news of our next Rendezvous!

Thanks to Imerys for pictures above

Coming up in 2019

MagForum 2019, 13-15 May, Bilbao

Oilfield Minerals & Markets Forum 2019, 10-12 June, Houston

Fluorine Forum 2019, 21-23 October, Prague

Indian Minerals & Markets Forum 2019, 18-20 November, Mumbai

Click on the above for details, or contact

Ismene ismene@imformed.com | +44 (0) 7905 771 494

Silo loading a Halliburton truck with drilling grade barite at Cimbar’s recently opened plant at Marietta, Ohio Courtesy CIMBAR

CIMBAR Performance Minerals Inc. has recently opened a new barite operation in Marietta, Ohio, serving the north-east regional oilfield market.

The new plant’s main product is API Drilling Grade Barite with a production capacity of around 125-150,000 tpa and represented an investment of approximately US$5.5m.

According to CIMBAR, the northeastern US oil and gas market has maintained stable activity and is expected to continue at a similar rate over the next few years.

CIMBAR has already increased capacity at its Wellsville, Ohio facility over the last few years, including investments in handling and loadout of US$3.0m. in late 2018 and Q1 2019.

The company has focused on providing efficient supply and safety inventory for all customers in the north-east drilling region of the USA. Growth in that area has continued to move marginally west and south-west of the Wellsville plant.

Albert Wilson, President, CIMBAR said: “To improve our regional position in that market, our decision was to expand with a new location in Marietta, Ohio, to help improve logistics costs and service to our customer base as the activity shifts.”

Trends and developments in the global barite market will be examined and discussed at

Oilfield Minerals & Markets Forum 2019 Houston, 10-12 June

CLICK HERE FOR DETAILS | EARLY BIRD ENDS MONDAY 29 APRIL

Presentations include:

Global barite market overview
John Newcaster, Principal, IMPACT Minerals LLC, representing The Barytes Association, USA
Barite processing developments in South America
Santiago Carassale, Baroid Grinding Plant Manager, Halliburton, Argentina
Barite supply from Pakistan and Afghanistan
Arhum Qureshi, Managing Director, Anzer Enterprises Pvt Ltd, Pakistan
Mexican barite and oil & gas markets overview
Paloma Ruiz Maté, Director General, CIMBAR Mexico & Latin America, Mexico
Barite as by-product from the polymetallic Palmer Mine Project, Alaska – a potential new, price competitive US source
Darwin Green, Vice President Exploration, Constantine Metal Resources Ltd, USA

Full list of confirmed speakers here

Cimbar buys Custom Grinders to pursue flame retardants

Cimbar has also acquired Custom Grinders Inc., based in Chatsworth, Georgia, a global supplier of alumina trihydrate (ATH) and surface modified ATH products.

Custom Grinders has developed unique knowledge of mineral grinding, separation process technology, and micro particle science to provide the highest quality ATH.

Production capacity (not disclosed) is to be increased over the next twelve months with target markets being standard fire retardants and smoke suppressants, and a focus on some new evolving markets.

Established in 1976, Custom Grinders has developed unique knowledge of mineral grinding, separation process technology, and micro particle science to provide the highest quality ATH.

Cimbar has competed in the magnesium hydroxide market (also used as a flame retardant) for nearly 20 years. Changes in the flame retardants markets over the last few years, including the move away from halogenated flame retardants (ie. bromine based), led Cimbar to consider entering the market as a newcomer or take the option of an acquisition.

“Custom Grinders has been a stable supplier into the flame retardant market and is a great fit into the Cimbar mineral portfolio. The physical location of Custom Grinders also is a benefit in the regards to administration and sales support through our network. Cimbar is poised to grow that business and introduce an array of new products into the flame retardant market. This was a natural choice in our future growth planning.” said Wilson.

Barite capacity expansion in Mexico

CIMBAR has also been very active in Mexico, since announcing its Cimbar Loma Negra joint venture with Minera Loma Negra during IMFORMED’s Oilfield Minerals & Markets Forum 2018 in Houston last year (for report see Haiwaii comes to Houston).

Wilson reported: “Cimbar Loma Negra and Cimbar Mexico have and are progressing successfully. We have already doubled the production capacity of the milling operation at Musquiz with plans to triple that capacity by mid-2020.”

The current capacity at Musquiz is 250,000 tpa barite with a target capacity of 400,000 tpa. The mining operation has increased production as newer and larger mine equipment has been put into production over the last year.

Paloma Ruiz Maté (right), Director General, CIMBAR Mexico & Latin America, and Ana Carvajal at the Loma Negra location in Mexico City, Mexico. Courtesy CIMBAR

Cimbar is expanding with additional trucks and trailers in its fleet to meet market demand as well as establishing various stocking points within the Permian basin.

The chemical processing facility is expected to be on line to begin engineering runs by June this year.

“We have very high expectations for the process as a supply of higher grade barite for all markets and regions of the Americas.” said Wilson

Paloma Ruiz Maté, Director General, CIMBAR Mexico & Latin America, Mexico, will be presenting 

“Mexican barite and oil & gas markets overview” at

Oilfield Minerals & Markets Forum 2019, Houston, 10-12 June

Barite outlook

With some 70-80% of the world’s barite production consumed as a weighting agent in the oilfield drilling industry, the performance of the oil and gas exploration market is often used a barometer for barite demand outlook.

While not always an ideal guide, tracking the active rig count gives some indication of barite’s main market, as is illustrated in the accompanying chart.

In the USA, some 95% of barite production is used in the oilfield market, whereas in Europe, around 70% of production is consumed in speciality sectors, mainly in filler and chemicals markets.

CIMBAR expects the drilling grade barite market to remain fairly stable compared to 2018. Supply of crude ore seems reliable with no expectation of any supply challenges from the various global suppliers.

The industrial barite market is expected to remain flat if not withdraw slightly. “The automotive slowdown and home construction slump will affect the market. Supply of industrial grades does not appear to be an obstacle during 2019 and 2020.” commented Wilson.

CIMBAR is well positioned to serve the southwestern US market from its mine in Mexico (see below) and plants in Houston, USA, and Musquiz, Mexico.

“We are capable of supplying crude from Mexico to the US as needed, and could supply all necessary crude ore internally should we have to consider that option.” said Wilson.

As can be seen in the chart above, the majority of world barite supply (77%) is sourced from just four countries: mainly China (42%), followed by India, Morocco, and Mexico.

Barite consumers are always on the look-out for alternative and new sources of supply, and some of these in Argentina, Canada, and Pakistan, will be examined and discussed at this year’s Oilfield Minerals & Markets Forum 2019, Houston, 10-12 June.

As has been reported previously by IMFORMED (see China’s refractory minerals supply), China’s ongoing industrial pollution control measures are taking its toll right across the country’s mining industry and barite is no exception.

 
One of China’s leading and most modern barite producers, and successfully meeting its environmental regulations, is Guizhou Saboman Import & Export Co. Ltd, based at Guiding, Guizhou, with production capacity of some 1m. tpa lump and 200,000 tpa powder for drilling and pigment markets. IMFORMED was gratefully invited to visit the facility in 2018.

The Chinese barite industry overall remains impacted owing to the environmental regulation tightening. Many of the washing plants and smaller mines are closed.

Fortunately for global buyers of barite, the rising activity in alternative supply from outside China, and not just from the established sources, but also the likes of Laos and Pakistan, the China factor has been less of an impact that might have been anticipated.

“Although the overall production [in China] has been restricted, I have seen no real limitation in supply. This is mostly due to the increase in supply from other countries such as India, Morocco, Mexico and others. Had it not been for the increases from these countries, the restrictions in China would have been felt around the globe.” commented Wilson.

Don’t miss out, acquire the latest knowledge on the oilfield minerals business and network with the leading players

CLICK HERE FOR DETAILS

Register online here, or

Contact: Ismene ismene@imformed.com | T: +44 (0)7905 771 494

Review of IMFORMED Rendezvous, 8-9 April 2019, Paris

You can’t beat Paris in the Springtime, and you would be hard pushed to beat a more enthusiastic and knowledgeable crowd discussing the future and fundamentals of the industrial minerals business in Paris last month.

The inaugural IMFORMED Rendezvous held at Les Jardins du Marais, 8-10 April, brought together attendees from across the global supply chain of industrial minerals, buzzing with anticipation to gain informed insights as to the future of the industry.

They were not disappointed. A superb two-day programme had leading experts present, postulate, and project on a wide range of key aspects of the industry integral to understanding the market, what drives it, and what the future may hold.

The quirky, oasis-like character of the Les Jardins du Marais, hidden in one of Paris’s well-known Bohemian quarters crammed with restaurants and bars, added to the event’s uniqueness and hosted the convivial evening Welcome Reception.

The following evening reception was hosted by lead sponsor Imerys at the beautiful Éléphant Paname, Paris’s Centre of Art and Dance, and with its exquisite cuisine and fine wine, was most memorable and gave delegates a chance to see a little more of city.

Theme was excellent and well constructed. Very informative and engaging. Presentations were excellent, extremely topical and thought provoking.
Mick, Commercial Director, LKAB Minerals, UK

There is high demand for a forum such as this for both established participants and for newcomers to the industry covering both new and established minerals and markets.
Richard Flook, Mosman Resources, Australia

Excellent programme for a new person in the procurement process of a consuming company. The Briefings on Basics flowed very well, excellent overviews of each step in the process.
Glenn McIntyre, Managed Fire Shape Technology, HarbisonWalker International, USA

This conference was highly informative as well as important for networking with adjacent industry peers. We got some commercial leads, but more importantly we got some important market intelligence beyond our local markets.
Aditya Newalkar, Executive Director, Maharashtra Minerals Corp. Ltd, India

For more pictures, programme, attendees, and feedback click here

“Plus ça change, plus c’est la même chose”

Introducing the first IMFORMED Rendezvous with “Industrial minerals: what’s it all about?”, Mike O’Driscoll, Director, IMFORMED, referenced one of the great literary Parisians, Jean-Baptiste Alphonse Karr (1808-1890) and his famous epigram Plus ça change, plus c’est la même chose – “The more things change, the more they stay the same”.

A most fitting statement, and very much the central theme of the Rendezvous – the future and fundamentals of the industrial minerals business.

O’Driscoll touched on strengthening trends in strategic minerals, Chinese mineral supply overreliance, recycling, processing, and logistics innovations, as well as the changing corporate landscape, new resources, and anticipating the next growth trend through market knowledge.

Innovations in the extreme

Leading off the Keynote opening session was Chris Parr, S&T Director Refractories, Abrasives & Construction, Imerys, France, with “Innovations in materials for extreme environments”.

“The world of specialties is transforming processed minerals to materials that contribute essential properties and performance to a wide variety of applications” said Parr.

Parr outlined the key aspects of the supply chain from mine to mineral to material, before highlighting innovations in materials and applicative science and giving examples of how to generate value in extreme environments, such as thermal resistance in space shuttle launch pads, corrosion resistance in municipal sewers, abrasive resistance in wheel grinding, and 3D printing of ceramics.

He concluded that innovations in materials and applicative science requires a closer cooperation throughout the value chain than has been seen in the past.

“Different levers can be actioned throughout the chain of mine to material to deliver properties for new applications or improved performance in existing applications. Innovation doesn’t imply a large technology leap to be successful.” concluded Parr.

Smart solutions and no going back

From a major world supplier of minerals, to one of the leading consumers, Gustavo Franco, Chief Sales Officer, RHI Magnesita, Austria presented “Taking innovation to 1,200°C and beyond” .

He briefly reviewed the “success or failure” of the RHI Magnesita story, indicating that the group was “almost there”, and with vertical integration of raw material supply expanding and now covering around 70% and 50% of the group’s basic and overall raw material needs, respectively.

Franco continued the theme of applications for extreme environments by illustrating the part refractories play in manufacturing the range of metals and plastics used in automobiles.

He commented on the emergence of smart technology for homes and cars, and postulated how such smart technology would, and should, contribute to innovations along the value chain from “smart mining” through to “smart cars” and “smart traffic”.

Examples illustrated included: in the supply chain, artificial intelligence (AI)-supported algorithms continuously improving a demand and production plan; in the steel plant, more automated process optimisation such as tracking steel ladle wear in real time, AI analysing data and triggering automated orders; and in mining raw material, with real data and estimated data feeding an algorithm after each blast, generating a digital twin mine (3D mapping) and a self-optimised mining plan.

Franco reminded delegates that RHI Magnesita was committed to drive such innovation and forecast that the company would be manufacturing refractory bricks containing sensors within the next one to two years.

Franco also touched on pollution in China and climate control, and ways in which we can help reduce the carbon footprint.

He concluded with a call for the industry to face a new reality of no going back for three key factors: “The world is continuously changing due to modern technology and focus on resources and environment. This will not revert! Raw Materials are perceived more precious than they used to be a few years ago. This will not revert! The real added value of raw materials to the refractory industry are: quality, stability & availability! This will not revert!” said Franco.

Gustavo Franco, Chief Sales Officer, RHI Magnesita will be presenting “The Future of the Magnesia World” and part of our Keynote Discussion Panel at MagForum 2019, 13-15 May 2019, Bilbao – details here

Trends, challenges, & competitiveness

In “Trends, Challenges & Competitiveness for the Minerals Sector”, Catherine Delfaux, President, IMA-Europe & CEO, Provençale SA, France set out to reveal the leading societal trends, regulatory developments & challenges , and competitiveness facing the industry.

Delfaux highlighted key societal trends stemming from the Paris agreement, population and city growth patterns, performant and connected buildings, and sustainable development goals.

Regulatory concerns for the industry arose from the complexity of multiple regulations, complexity along the value chain, circularity for industrial minerals, and criticality for industrial minerals.

And the key issues in industry competitiveness were a CO2 carbon neutral industry, energy, availability/accessibility of minerals, innovation and new market developments, and digitalisation.

Delfaux concluded that there are multiple mineral sector challenges with consequences along the value chain and that cooperation along the value chain is a must and that innovating is key to sustain the minerals business.

On transition to a carbon neutral economy , Delfaux made clear that minerals are needed for the energy transition and infrastructure grid, minerals are innovating process mineral efficiency and contribute to the circular economy and CO2 emission improvements .

“While the minerals sector is pro-active and responding to societal challenges, more actions and communication is required to targeted audiences.” said Delfaux.

Financing industrial minerals

“The investment and financing climate in industrial minerals: challenges & opportunities – a private equity perspective” by Ryan Bennett, Partner, Senior Advisor, Resource Capital Funds, USA, presented a clear and refreshing look at industrial mineral risks, financing, and exit strategies, with some great examples, concluding with Bennett’s the good, the bad, and the ugly.

Bennett went through a typical financier’s due diligent checklist, from geology, exploration, and mineral resources to country and political factors, and reminded of the lack of transparency of industrial mineral pricing and the importance of markets and logistics.

It may take 15-18 months for financing a project and the industrial minerals space is not an easy market to enter. “But does it need to continue this way?” contested Bennett. Certainly, the industry could do a better job to educate investors.

Ryan outlined several factors on why PE is good for industrial minerals, including most fund lives are 10+ years, they afford long hold periods and stability with committed funds, creative investment structures, sophisticated investors, experience in industry – input into strategy, and leads to development of assets.

“Industrial minerals represent 10-12% of the total volume of loans to the mining industry. There is opportunity for private equity on a selective basis. However, recent industrial minerals M&A activity has been largely confined to lithium and phosphate.” said Bennett.

Minerals leading the next production revolution

Dr Richard Flook, Managing Director, Mosman Resources Ltd, Australia, presented a very comprehensive take on minerals for the future in “Critical, strategic and industrial – the minerals leading the next production revolution”.

Flook insisted there were just two main take-away messages: “The only constant is change” and “We will continue to be living in a material world”, before examining mega trends, materials engineering, energy, China, other trends, and the industrial minerals industry.

Impacting the future of mineral markets is a new era of emerging technologies including driverless vehicles, artificial intelligence (AI), photonics, 3D printing and contour crafting.

Flook highlighted graphene and other new materials, the emergence of new energy from solar and batteries, and opportunities afforded by changes in China.

The profitability of industrial minerals, market development and innovation, understanding global supply chains, and specifications and performance were also discussed.

“The centre of economic gravity is shifting east and south. We should be preparing for the Indian and then African century.” said Flook

India’s key industrial minerals, markets, their drivers and outlook will be discussed at Indian Minerals & Markets Forum 2019, 18-20 November 2019, Mumbai – details here

 

Back to basics

The afternoon of the first day offered delegates the option of participating in concurrent roundtable discussions themed on China, Finance, and Recycling (see above) and/or a session of presentations devoted to outlining the fundamentals of the industrial minerals business.

The latter provided an excellent forum for both those needing a refresher and newcomers to the industry alike; the highly informative talks revealed some often overlooked aspects and home truths of the industrial minerals world.

“Industrial mineral market basics: an executive primer” by Mike O’Driscoll, Director, IMFORMED, UK, provided a concise and informed assessment of the key elements of the industry’s structure, drivers, influencing factors, and opportunity targets.

“Industrial mineral exploration and mineral resources” by Anton Geldenhuys, Principal Resource Consultant, CSA Global Pty Ltd, South Africa, was a fine review of exploration techniques, collecting data, modelling and estimation, and things to consider in due diligence of industrial mineral projects.

“The JORC Code: Reporting exploration results & mineral resources” by Dr Andrew Scogings, Executive Consultant, Snowden, Australia, superbly explained about public reports and the JORC Code, what should be included in exploration results, and factors specific to reporting industrial mineral resources.

“All you ever need to know about industrial mineral logistics” by Clive Kessell, Director, Coastalwise, UK, gave an entertaining whistle-stop tour of all the main components and factors, with examples, impacting the logistics of getting minerals from mine to market.

Complementing Kessell’s talk, “Common Incoterms mistakes and the risks to a mineral purchase” by John Newcaster, Principal, IMPACT Minerals LLC, USA, raised degrees of both awareness and anxiety in the audience with an excellent briefing on INCOTERMS’ basics and benefits, followed by common mistakes in misapplication and understandings, supported by some alarming examples.

Processing trends & development

“Industrial mineral processing evolution and trends” by Dietmar Alber, Business Development Director, Minerals & Metals Division, Hosokawa Alpine AG, Germany, looked at processing finer grades and utilising lower energy, and special particle size distributions.

Alber reviewed various milling systems for industrial minerals according to their fineness and energy consumption, including the latest key steps in ground calcium carbonate processing to cope with high quality markets.

Processing solutions and trends for talc, graphite, quartz and silica, and flame retardants were examined.

“There is a continuous strong trend towards finer grades and into submicron range by dry and low energy processing. There is also a trend to much bigger sized production capacities/plants, and to master tailored particle size distributions and ‘shaping” of particles’ said Alber.

“Fine grinding & classifying: a new concept in mobility & modularity” by Jean-Francois Maréchal, Managing Director, Poittemill, France, introduced his company’s new Truckmill concept – a mobile modular drying and fine grinding system.

Based on Poitemill’s Pendulum Roller Mill PM8, each part of the installation is supplied in containers which are pre-wired, pre-cabled, and pre-connected to be adapted with other containers. Some 10-12 containers in total may comprise the finished mobile plant.

Benefits include no need for building or structures, no packaging, reduced assembly time of 5-10 days, in essence, a turn-key plant. Essentially an easy to set up, short investment, “plug in and play” installation for mineral processing needs.

Innovation in trading & logistics

“The evolving role of the industrial minerals trader for tomorrow’s markets” by Alex Aizpurua, Raw Materials Business Unit Director, Midegasa, Spain, was a comprehensive and well-illustrated review of how industrial minerals trading has evolved, and must evolve for the future.

Current trends impacting the market were examined and shown to contribute to an unstable environment. “The traditional way of working [ie. trading] doesn’t work , it is time to reinvent. The trader needs to find its place once again” said Aizpurua.

Aizpurua went on to outline the new profile of today and tomorrow’s buyer and how the new trader must now be flexible and creative. “Be different, think out of the box and be proactive and up to date, don’t forget the personal relationships.” concluded Aizpurua.

In “Innovation and logistics”, Dave Chanet, Commercial Manager, Control Union, Belgium, focused on mineral stockpile volume determination, using drones and field inspection, and inspection and reporting.

Chanet showed how Control Union and Wageningen University researched semi-automated volume calculation for bulk cargo using LIDAR technology (light detection and ranging).

A project using drones to successfully inspect mineral stocks at the dry bulk terminal OVET Terneuzen was also reviewed as was the Peterson Vessel Performance Centre, which offers solutions for vessel compliance.

Refractories | Glass

“Survival of the fittest: alumino-silicate minerals and their place in refractories” by Phil Edwards, Refractory Market Director, Refractories, Abrasives & Construction, Imerys, France, highlighted the context, market drivers, and applications of alumino-silicate minerals in refractories.

He also outlined the influence of mineral reserves, applications and usage, and external factors on the evolutionary forces now shaping the aluminosilicate market before rounding off with comments on market volatility and “controlling the whip”, sustainability of refractory minerals, and “innovation – working inside the box”.

“Refractory solutions have changed with the understanding of processes, but finished products remain extremely exposed to disruptions in [raw material] trade flows.” reflected Edwards.

Edwards warned that the ability to understand, adapt and respond to cycles in the refractory market will only become more critical and the supply/order whiplash effect will continue to be one of the key disturbances to supply.

“One day the world of refractories will change unrecognisably due to a new process. At that time, we will adapt. Until then, we cannot forget our job to make continual small steps forward in the chase for efficiency.” said Edwards.

Switching to another primary consuming market for industrial minerals, Tim Smith, Lead Technologist – Refractories, Raw Materials and Compositions, NSG Pilkington, UK, presented “Trends in float glass raw materials”.

Smith introduced glass batch raw materials and then discussed material specifications, trends in glass materials, and in particular, lower iron glass, the carbon footprint, and quality systems. He also described the consequences of poorly specified raw materials.

“Poorly specified, dusty materials can blow into the heat regenerators and cause blockage or swelling and spalling of the ceramic checkerwork pack.” said Smith.

NSG is pushing for its suppliers to adopt recognised quality and environmental systems. Such systems can help reduce losses.

“Trends in raw materials include downward pressure on iron content in architectural glass. The driver for this change is increased regulatory requirements for improved efficiency in glazing to reduce carbon emissions.” said Smith.

Batteries | Fillers | Paper

In “Dawn of the battery megafactories and the impact on industrial minerals” by Simon Moores, Managing Director, Benchmark Mineral Intelligence, UK, attendees were delivered a most entertaining and informed outlook for the battery market for minerals.

“We are in the midst of a global battery arms race.” said Moores, as he outlined the latest assessment of the startling growth of battery megafactories turning into a race for automotive battery dominance between China and Europe.

Moores highlighted the leading autobattery capacities, locations, and companies before explaining how battery chemistry was influencing raw material requirements and increasing demand for graphite, lithium, cobalt, and nickel – nicely illustrated in his “Four Horsemen of the ICE Apocalypse”.

Moores also drew attention to the contrasting project durations to establish a mine versus anode/cathode and battery plants, ie. 8-10 years versus 1-2 years, respectively. “The battery supply chain lives in different time zones.” said Moores.

“Calcium carbonate fillers and the outlook for plastics and coatings markets” by Samantha Wietlisbach, Principal Analyst Chemicals, IHS Markit, Switzerland, provided a detailed overview and outlook for demand for calcium carbonate in plastics and coatings.

Wietlisbach reviewed the range of calcium carbonate products before focusing on fine ground calcium carbonate (FGCC) and precipitated calcium carbonate (PCC) consumption.

Overall a slow growth of 1-2% is forecast globally for calcium carbonates over the next five years, with a decline in printing and writing paper production at 1.6% per year. But the plastics and coatings markets are important growth sectors.

“Calcium carbonate consumption in coatings is expected to grow at 3.3% up to 2023 with good growth prospects in developing regions.” said Wietlisbach.

“Mineral demand outlook for global paper & packaging markets” by Dr Ian Wilson, Consultant, UK, continued the theme of key filler minerals and markets,.

Wilson took the audience through paper minerals used and their shape and size, detailing kaolin and PCC, the view from paper machine manufacturer Valmet, mineral use by leading paper manufacturer Stora Enso, ending with summaries of the market situation in Japan and China.

There has been a significant decrease in kaolin imports into Japan from USA and Brazil. Less kaolin is used in coating formulations in Japan, formerly 50% blends with GCC were used, this is now down to 20-30% kaolin.

Despite the sharp decline in papermaking in China, new PCC grades assisting environmental issues are finding a market. “The prospects for these new [PCC] technologies in China are bright and MTI is pursuing more than 20 opportunities in the region for PCC filler and new satellites.” said Wilson.

Thank you, and see you next time!

As ever we are indebted to the support and participation of all of our sponsors, exhibitors, speakers, and delegates for making our inaugural IMFORMED Rendezvous such a success.

We very much appreciate all the completed feedback forms and please continue to provide us with your thoughts and suggestions.

We shall keep you abreast with developments for the next IMFORMED Rendezvous.

Meantime, we look forward to meeting you again soon, perhaps at one of our upcoming conferences:

MagForum 2019, Bilbao, 13-15 May 2019

Oilfield Minerals & Markets Forum 2019, Houston, 10-12 June 2019

Fluorine Forum 2019, Prague, 21-23 October 2019

Indian Minerals & Markets Forum 2019, Mumbai, 18-20 November 2019

Registration, Sponsor & Exhibit enquiries: Ismene Clarke T: +44 (0)7905 771 494 ismene@imformed.com

Presentation & programme enquiries: Mike O’Driscoll T: +44 (0)7985 986255 mike@imformed.com

The content and scope of the presentations were excellent and I was able to make some good contacts.
Rory Allen, Managing Director, Anglo Pacific Minerals, UK

Excellent programme and organisation, perfectly balanced for a newcomer like myself learning about the business and meeting players.
Andre Tahon, Exploration Manager, Dal Mining Investment Co. Ltd, Sudan

A great event especially as it covered the industrial minerals world all the way from exploration and reporting mineral resources through production, logistics and markets, with a timely emphasis on mineral recycling and last but not least, innovation.
Andrew Scogings, Executive Consultant, Snowden, Australia

MagForum 2019 Review – a market in transition?

A sunny Bilbao beckoned the leading lights of the world magnesia market to gather and discuss the industry’s latest trends and developments at IMFORMED’s MagForum 2019, at the Occidental Bilbao during 13-15 May 2019.

Over 200 attendees from across the magnesia minerals supply chain enjoyed the sumptuous Welcome Reception kindly sponsored by MAGNA-Timab Magnesium, partaking in the fine food and drink of this delightful part of Spain.

A fantastic event. We had a great opportunity to find partnerships, players, and distributors worldwide. Presentations were fantastic and contemporaneous about new processes, world magnesia production and markets.
Salvelino Nunes, Technical Manager, Buschle & Lepper, Brazil

Congratulations on an excellent MagForum once again enjoyed by all. The presentations covered a wide range of subjects with, for me, a unique experience of taking part in a vote from our mobiles on likely magnesia prices in a year’s time being shown on the screen. Organisation was good and a plenty of time to have discussions during the coffee and lunch breaks. Look forward to the next MagForum.
Dr Ian Wilson, Consultant, UK

Excellent organisation and programme. I learned a lot and was able to make many great connections.
Jenny Warburton, General Manager, HarbisonWalker International, China

For more pictures please go to Picture Gallery

From mine to steel mill

Mike O’Driscoll, Director, IMFORMED, UK, opened with a brief introduction on the diversity of magnesia by source, grade, and markets before highlighting recent developments in China, the industry response to supply challenges, steel market outlook, and corporate movements.

“While recovering to some extent, it is still a mixed bag, some uncertainty remains over future Chinese supply and there is continuing interest in developing alternative sources outside China. Trends in the refractories industry to evaluate use of new and alternative materials and product formulations will continue as will increased refractory recycling and use of recycled material.” concluded O’Driscoll.

O’Driscoll also suggested that sluggish steel market growth in the West may increase magnesia diversification into speciality markets, pushing alternative processing and calcining technologies, while better steel prospects in Asia will lure refractory player investment and supply opportunities.

All the latest trends & developments in India’s refractories industry covered at

Indian Minerals & Markets Forum 2019, 18-20 November, Mumbai

Speakers include:

Refractory raw materials supply & demand in India
Hakimuddin Ali, Chairman Imerys India & Director Business Development & Strategy, Africa and Middle East, India
Overview of supply and demand of India’s refractories
Sameer Nagpal, CEO-Refractories, Dalmia OCL Ltd, India
Influencing factors impacting India’s refractories market
Anirbandip Dasgupta, Senior Executive Officer, Indian Refractory Makers Association, India
Refractory recycling market and products in India
Vatsal Dhandharia, Proprietor, Global Recycling, India

Other speakers & full details here

The worldwide push to green the economy and industry should drive innovation in magnesia and refractory processing technology to conserve energy and perhaps change its energy source mix in using more electric power.

Guillaume Bonnet, Commercial Director, Magnesitas Navarras (Magna), Spain, presented “Magna: From the mine to the steel mill” reviewing Magna’s history and development of magnesite deposits to date, now wholly-owned by Groupe Roullier, and planning to celebrate its 75th Anniversary in 2020.

Bonnet explained how research and innovation are at the heart of Magna´s strategy as it focuses on sustainability the efficient use of energy and natural resources.

In 2018, Magna sold a total of 280,000 tonnes of all products, of which refractories were almost 80%. Magna’s Spanish operations, including feed from its new Borobia mine, produced 200,000 tonnes of dead burned magnesia (DBM) in 2018, and 240,000 tonnes of mixes.

In Brazil, Magnesium do Brasil (50% owned by Groupe Roullier), produced 50,000 tonnes of caustic calcined magnesia (CCM) in 2018. However, with a new 30,000 tpa capacity Polysius vertical shaft kiln and new 36,000 tpa capacity mixing plant, refractory sales in 2019 are estimated at 36,000 tonnes.

Answering questions about supply, Bonnet said: “Customers for the non-refractory magnesia market would like more EU suppliers.”

Uptick in magnesite ore trade – a new supply scenario emerging?

In her excellent “Global supply of magnesia in 2019: A new landscape for the next decade?” Alison Saxby, Director, Roskill Holdings, UK, reviewed the types of magnesia and sources, shifting trade patterns, and supply trends for CCM, DBM, high grade DBM, fused magnesia (FM), China, with thoughts on the future supply situation.

Of interest were Saxby’s comments on the increasing trade in magnesite ore: “Still small scale in overall magnesite supply, but some in reaction to shortages in Chinese magnesia supply.”

In particular, attention was drawn to Pakistan exports which have increased from 6,000t in 2014 to 80,000t in 2018, mainly to India but also to Greece and China in 2018, and are forecast in total to reach 95,000t in 2019.

With regard to China, Saxby thought that Chinese supply may “normalise” by 2020, and said: “CCM and DBM sources are coming back on line in China, inspections will still take place and supply disruptions will occur, and maybe more are planned in the future.”

In conclusion, Saxby said: “China will remain the most significant magnesia supplier, and its domestic market will continue to grow, albeit at lower rates. There will be opportunities for ROW producers, especially HGDBM producers and potential growth of magnesite direct ore shipment.”

Magnesia consumption in steel & lime production

“Can we survive without magnesite?” by Jose Cruz Zirion, Procurement & Logistics Director, Sidenor, Spain, was a superb analysis of the Spanish steelmaker’s application of magnesia refractories in its processes.

Sidenor, which produces specialist steels and is the market leader in Europe, has a total meltshop capacity of just over 1m tpa steel from two Spanish plants, the main one at Basauri (EAF, continuous casting), and the other at Reinosa (EAF, ingot casting).

The company consumed just over 11,000t of refractories in 2018, of which 84% were magnesia-based.

“Ladle refractories consists of MgO-C bricks at the hot face (wear lining) and high alumina or burned magnesia bricks behind (permanent lining).” said Zirion.

Zirion acknowledged the industry’s use of alternatives to magnesia: some steelmakers use alumina based materials or dolomite in the wear lining of the ladle. But said: “For high quality applications, alternative products imply changes in parameters of the steel production process and, possibly, will affect the performance of the material. So, for special steel manufacturing, the current magnesia-based refractories are really a good choice in terms of general performance.”

“Refractories in lime production” by Wes Gabler, Global Category Manager, Procurement, Lhoist, USA, reminded the audience with a useful video clip of Lhoist’s activities in mining and calcining huge volumes of carbonate rocks in the Europe and the USA, before outlining the group’s refractories used in some 150 kilns.

Gabler examined the range of main kiln types used by Lhoist with a special focus on refractory use by the preheater rotary kiln (PRK) and parallel flow regenerative kiln (PFRK).

Both kilns require refractories of DBM purity of min. 95% MgO, the PRK requiring 100-150t in the burning zone and the PFRK requiring 350-400t in the preheater and burning zones.

Gabler highlighted the impact of issues such as high raw material prices owing to the Chinese situation, limited availability outside China, high delivery times, increased global demand across all industry, supplier consolidation, reduced competition in refractory producers, and environment concerns.

“Lhoist supports China’s attempts to make their supply chain sustainable.” said Gabler.

Gabler saw industry opportunities in quantifying magnesia properties against substitute materials; improving sorting and disposal of spent refractories for recycling; increasing supply sustainability and value through existing and new supplier development; and ensuring prolonged lifetime of refractories.

“The refractories industry needs to reposition itself” said Gustavo Franco, Chief Sales Officer, RHI Magnesita, Austria during the MagForum 2019 Keynote Panel Session, which also included Dr Michael Frei, Managing Director, Refratechnik Holding GmbH, Germany, Alison Saxby, Director Operations, Roskill Information Services Ltd, UK, Michael Tsoukatos, Development Director, Grecian Magnesite SA, Greece, moderated by Mike O’Driscoll, Director, IMFORMED, UK

How do we see the magnesia “society”?

“The future of the magnesia world” by Gustavo Franco, Chief Sales Officer, RHI Magnesita, Austria, reviewed the latest developments at RHI Magnesita, including the “ongoing” negotiations on the proposed acquisition of Kumas, before taking a somewhat philosophical but entertaining view on the future of the magnesia industry.

Franco looked at the world as an interaction of society and available resources, with demography, economy and technology as influencing factors. He then focused on the magnesia “society” from three different angles: market, financials, and technology.

Franco then smartly turned the spotlight on the audience and their take on the magnesia society by asking a series of topical questions to which delegates could respond via their mobile phones on an audience interaction app.

The results were both informative and entertaining – see charts.

“Recycling”, “sustainability”, and “environmental footprint” dominated the audience-generated word-cloud, while magnesia producers outside China were the clear beneficiaries of escalating prices in China.

Security of supply and meeting specifications just edged over pricing as the main concerns for purchasers, as future DBM prices were largely estimated to be US$<700-800/t and for FM US800-1,000/t.

The market outlook, Franco urged, should perhaps be about the future interaction between the magnesia society and the available magnesia resources.

Franco identified several factors shaping the future:
• Application of 4.0 tools to resource mapping and product specifications
• Special application prices will rise
• Stability of supply and long predictability will succeed
• Quality requirements will increase
• Environment-friendly becoming a must
• Major investments to ensure availability to high purity magnesia

Sumptuous Sundowner: The Day 1 Evening reception was held at the Bilbao Sailing Club, and sponsored by RHI Magnesita.

Keys to success

“Fundamentals of the magnesite business: key factors for success” by Nicolás Gangutia, Managing Director, Ganmag, Spain, was a very comprehensive dissection of the three pillars of the industry summarised as “knowing the market, listening to the stones, and feeling the process”.

Armed with these fundamentals one can then understand the costs in the magnesite business and navigate through regulations and compliance.

Gangutia underlined: “And the big mistake? Due to a high prices trend – 6 years in the last 30 years – is to go to compete against Chinese qualities and prices without market knowledge and no R&D.”

Another key element was his call to “Listen to the stones”: “The differing behaviour of magnesite host rock and impurities is more important than the quality of the magnesite.” said Gangutia.

Raw material and energy costs were analysed in-depth: “A good energy cost for DBM one step is >€40/t MgO; a bad energy cost for DBM one step is >€55/t MgO.” said Gangutia.

Every country or region has its own environmental legislation regarding pollutant and CO2 restriction. Gangutia reminded that the key question is how to adapt the production to overcome these difficulties at the lowest cost.

New synthetic sources: Australia | Jordan

“The EcoMag synthetic magnesia products” by Dr Tam Tran, Chief Technology Officer, EcoMag Ltd, Australia, outlined the status and objectives of EcoMag’s 80,000 tpa Hydrated Magnesium Carbonate project at Karratha, Western Australia.

The project has access to Australia’s largest solar salt bitterns stream (from Dampier Salt) and proprietary technology and is looking to produce a unique range of speciality magnesium products: high purity ~99.5% (MgO at 99%); hydrated magnesium carbonate (HMC); caustic calcined and hard burned magnesia (CCM/HBM); magnesium hydroxide (MDH); hydrotalcite (HDT); and magnesium citrate, lactate, and other organic esters.

Primary regulatory approval has been received and a bankable feasibility study is complete, with commercialisation as the next stage. 2019 will see detailed engineering and financing feasibility studies, geotechnical study, construction design finalisation, final regulatory approvals, and debt and equity raising. Plant operation is expected in 2020.

Tran said: “In time, EcoMag expects to be involved in developing materials for pollution control, air filtration, waste water processing, carbon capture, hydrogen storage, next generation batteries, lightweight building materials, and active coatings.”

From Australian salt bitterns to the Dead Sea in Jordan. “Development and outlook for Manaseer magnesia – ManMag” by Ahmad M. Samara, Sales Manager, Manaseer Magnesia, Jordan, revealed the rejuvenation of Jordan’s magnesia source.

Using Dead Sea brines and local limestone, ManMag has a production capacity of 60,000 tpa magnesia products. The plant will be switching to natural gas by the end of 2019.

CCM is in production now, and commissioning of high grade, 98% MgO DBM production is expected in June 2019, with commercial production end-2019/early 2020.

Established natural sources: Spain – potential | China – continued uncertainty

“Spain’s magnesite resources, production and markets” by Manuel Regueiro, Chief of External Affairs & Communication, Geological Survey of Spain, provided a reminder of the country’s importance in Europe’s magnesia supply market.

Regueiro looked at the geology and mining, production and consumption, uses, reserves and resources, and future trends for Spanish magnesite.

Spain has immense magnesite resources of almost 600m. tonnes. “Environmental concerns in China will continue to affect production and prices. This might be an opportunity to enlarge the European magnesite market, in which Spain could be a leader.” postulated Regueiro.

“Chinese magnesia supply and price trends” by Vincent Wong, Business Manager, Refractories Window, China, was much anticipated by the audience and Wong did not disappoint. A well structured overview of Chinese magnesia supply and price trends provided an excellent picture of the current situation.

Wong considered that there is still production overcapacity in China; a “temporary capacity recovery” lifted the overall supply volume in Q1 2019 while the dynamite ban has not been as bad as 2018.

Producers are retaining enough stocks currently, leading to a lowering of prices; while high quality magnesite supply still faces shortages and high purity magnesia price remain high.

Wong reiterated China’s new pledge for two central government environmental inspection periods (April-May, Oct-Nov) every year for four years, and along with local government inspections, this is likely to disrupt future supply with increasing costs and supply shortages.

“Inspections will last into the long term, the key point is how the regulations are implemented.” said Wong.

Indeed, and combined with the now regular annual winter industry shutdown Nov-Mar, China’s magnesia industry looks set to face three regular hits each year.

The Liaoning industry’s consolidation with integration to the single entity Liaoning Magnesite Co. Ltd (Liaoning Lingmei) is continuing, and Wong said: “If companies do not join [Lingmei] they will be forbidden to sell magnesia.”

On production developments, more than 3m. tpa of new flotation capacity has been commissioned with a further 7m. tonnes in construction. Other new capacities include PRCO’s new mine in Tibet (1m tpa magnesite); Jiachen’s capacity expansion in Liaoning (1m. tpa high purity DBM); and West Magnesium (salt lake magnesia for high purity FM/DBM).

Wong forecast that the supply situation might meet “huge uncertainties in certain periods”, with prices declining or weak in the coming two months against oversupply market status, but with the possibility to increase again later in 2019.

Chemicals market

“Overview of magnesium chemicals market” by Samantha Wietlisbach, Principal Analyst Chemicals, IHS Markit, Switzerland, reviewed the chemical markets for magnesia, magnesium chloride, magnesium sulphate, and magnesium hydroxide.

The CCM market, for non-refractory applications was estimated at >4.3m tonnes in 2018, with construction the largest sector (39%), followed by agriculture (26%), chemicals (14%), environmental (11%), and others (10%).

Total consumption of magnesium chloride was estimated at 1.7m. tonnes in 2018, of which 36% was in construction, mostly Sorel cement.

The majority of magnesium sulphate (74%) is used in agriculture, global production capacity is about 0.9m tonnes MgO equivalent.

Japan is the world’s largest producer of magnesium hydroxide, accounting for 36% world capacity. Global demand is estimated at about 1m. tpa with environmental applications consuming 66%, and flame retardants 10%.

Processing: New flash calcination | Sorting

“The Calix Process: update on applications for very high surface area MgO & direct separation of process CO2 emissions” was an enlightening duet by Dr Phil Hodgson, Managing Director & CEO, & Dr Mark Sceats, Executive Director & Chief Scientist, Calix Ltd, Australia.

Calix’s vertically integrated magnesia business was explained, with its South Australia magnesite mine of 466,000 tonnes proven and probable reserves, and 25 tpa CFC calcination and CO2 separation plant at Bacchus Marsh, Victoria.

The produced material is then shipped to customers’ satellite hydration plants: Calix has three so far, in Victoria, Queensland, and the Philippines.

The company has patented the Calix “Direct Separation” Flash Calciner: a reinvention of the kiln to create nano-active materials at scale, more safely and affordably than incumbent nanotech processes.

The CFC technology heats finely ground minerals (1 to 100 microns) and can control a fast calcination process to create a highly porous product, with nano-scale “honeycomb” structures.

The use of “indirect” radiant heating through the red-hot walls of the reactor tube stops furnace gases contaminating the products, and allows for the efficient, direct capture of CO2 from the processing of carbonate minerals such as limestone or magnesite.

High value applications include as an anti-bacterial agent, in biogas control, water conditioning in aquaculture, and in crop protection. Apart from CO2 capture, Sceats believes there are opportunities for innovation in refractories and ceramics.

“Given grain size, stress and low young’s modulus, we believe there could be a route for flash sintering without coarsening for very high strength products – using low temperature processing, and sintering in minutes. It may bypass the DBM route for magnesia. The magnesia industry needs a way to remove CO2 from the process.” said Sceats.

In “High capacity sorting of magnesite”, Jens-Michael Bergmann, Area Sales Manager Europe, MENA, India, TOMRA Sorting GmbH, Germany, introduced the sensor approach in mineral/ore processing and the different types of sensor methods.

Benefits for sensor sorting magnesite included: profit from preconcentration and early elimination of waste; de-coupling of pre-concentrating and main treatment plant which allows the main plant to be fed at its optimum feed rate and a consistent grade which is increasing performance; increased production rates; reduction of transport costs; turn the grade of sub-economic deposit into an economic one, and increase mine life.

Bergman concluded: “DMS [Dense Media Separation] is not suitable for the removal of dolomite or calcite. Sensor sorting can help to remove various contaminants and the sorter flexibility allows focus on either high product purity or on high recovery.”

Thank you, and see you at MagForum 2020!

As ever we are indebted to the support and participation of all of our sponsors, exhibitors, speakers, and delegates for making MagForum 2019 such a success.

We very much appreciate all the completed feedback forms and please continue to provide us with your thoughts and suggestions.

We shall keep you abreast with developments for MagForum 2020.

Meantime, we look forward to meeting you again soon, perhaps at one of our upcoming conferences:

Oilfield Minerals & Markets Forum 2019, Houston, 10-12 June 2019
Fluorine Forum 2019, Prague, 21-23 October 2019
Indian Minerals & Markets Forum 2019, Mumbai, 18-20 November 2019

Registration, Sponsor & Exhibit enquiries: Ismene Clarke T: +44 (0)7905 771 494 ismene@imformed.com

Presentation & programme enquiries: Mike O’Driscoll T: +44 (0)7985 986255 mike@imformed.com

Oilfield Minerals & Markets Forum Houston 2019, 10-12 June

Just a brief note to say a big thank you to all our sponsors, speakers, and delegates for supporting and participating in such a successful and enjoyable Oilfield Minerals & Markets Forum Houston 2019 last week (10-12 June, at the Hilton Post Oak).

The meeting had a real buzz about it with a great turn out, excellent presentations, as well as a very well attended and enthused Roundtable Networking Session.

Our first use of a live audience poll on some general market questions also went down well and we publish those results below – perhaps illustrating a blend of optimism and pragmatism within the industry, certainly, much food for thought.

As usual, we shall be shortly publishing a full review and analysis of “Seen & Heard in Houston”.

See you again soon and watch this space for news of Oilfield Minerals & Markets Forum Houston 2020!

Coming up in 2019

Confirmed Speakers | Early Bird Rates | Exhibit & Sponsor Opportunities

Fluorine Forum 2019, 21-23 October, Prague

Indian Minerals & Markets Forum 2019
18-20 November, Mumbai

Click on the above for details, or contact
Ismene ismene@imformed.com | +44 (0) 7905 771 494

Oilfield Minerals & Markets Forum 2019 Review

A high profile panel of expert speakers covering drilling fluids, barite, proppants, logistics, and processing and some 130 leading decision makers from the global oilfield mineral supply chain gathered in Houston last month to participate, learn, and enjoy at IMFORMED’s Oilfield Minerals & Markets Forum 2019, 10-12 June at the Hilton Post Oak.

As Jagger and Richards sang, “It’s only Rock ‘n’ Roll (But I like it)”, so also could this lyric be applied to this now well established Forum with its evident bonhomie, easy networking, and not least the excellent ‘50s Rock ‘n’ Roll themed Welcome Reception sponsored by Excalibar Minerals LLC.

This was my first year attending the conference and I can’t begin to tell how much information and gifted knowledge I was able to bring back with me.
Jennifer Benefield, Sr. Category Specialist, Halliburton, USA

Well thought out and valuable programme, and well organised. I’m a believer in consistent improvement, but can’t think of anything to improve, everything was great!
Serra Sarp, General Manager, Barit Maden Turk AS, Turkey

Great programme content with knowledgeable presenters, comfortable venue with ability to hold meetings, app a very good idea.
Jason Lilly, USA Supply Chain Manager, Qmax, USA

Compliments to your organisation for an exceptional conference in Houston. All are doing a fantastic job. Your focus on logistics is important to the industry, well done.
Martin Faubion, Logistics Manager, Pacific Services Inc., USA

For more pictures please go to Gallery

For Summary Slide Deck of programme, attendees, feedback go here

Outlook for oil and gas, and drilling mineral demand

Mike O’Driscoll, Director, IMFORMED, UK, opened proceedings with a reminder overview of the role and importance of industrial minerals used in the oil and gas market, from the workhorse minerals of barite, bentonite, and silica sand, to the fine tuning minerals such as mica, graphite, and lignite.

O’Driscoll highlighted some of the general trends including: renewed optimism in world exploration activities anticipated for 2019/20, the challenges and expectations of the improving outlook for Argentina’s Vaca Muerta shale play, and revived prospects of shale development potential in Australia.

While most forecasts acknowledged the increasing share of primary energy demand being met by renewables, up to 15-20% by 2040, oil and gas would nevertheless remain accounting for some 50% of energy demand, with gas increasing its share to >25%.

“Oil and gas market outlook” by Uday Turaga, CEO, ADI Analytics Inc., USA, provided an excellent big picture take on the market concluding:

• Supply-demand fundamentals point to an oil price in the $70s
• US natural gas will continue to be cheap and is helping commoditise LNG markets
• Oil and gas capital spending will rise but the industry is getting more cost efficient
• Private equity seems to be continuing unabated
• the M&A market has slowed down creating opportunities for oil majors
• There is considerable opportunity to export U.S. oil and gas but renewables are a real threat

Paul D. Scott, Drilling & Completions Fluids Specialist, ConocoPhillips, USA, presented “A drilling fluid specialist’s perspective on essential drilling minerals” and considered that current drilling activity could be best described as bipolar or a “a tale of two extremes” with unconventional and conventional projects.

Service and supplier company trends were highlighted, including less vertical integration than historical norms, smaller companies seem to be taking market share from majors – especially in the unconventional areas, and some operators are buying drilling fluids wholesale or direct from suppliers in unconventional areas.

Scott underlined the significance of the trend to more water-based and oil-based drilling fluids: “I anticipate that the relative WBM to OBM ratio will change somewhat over time to more WBM than is used today which will increase relative consumption of minerals – WBMs have higher dilution rates”.

Other mineral demand factors included concerns over adequate mineral supply and quality (particularly bromides), a lack of alternative materials and market-ready sources, and that volume consumption of speciality products, such as fine grain weighting material, is likely to continue to increase.

Scott also questioned the potential emergence of green fluids technology – “It’s time is near” – which favours increasing use of clay minerals, and “Will recycling weighting material ever be a reality?”

Scott announced that a new edition of API Spec. 13A was soon to be published which will have clearer requirements for test calibration materials, better information on the reference material programme, and delete specs for OCMA grade bentonite.

Elsewhere, API Task Group 8 covering drilling fluid materials is looking to set definitions, specifications and testing procedures for alternative weight material grinds, and a 4.0 SG specification for weighting agents in not being considered.

Logistics: ocean freight, rail and truck

“Shipowners’ unexpected slow start of 2019, will it recover? And what impact will IMO2020 have on freight rates?” by Erik Myklebust, Chartering Manager and Jesper Hoppe, Managing Director, Viking Shipping Co. AS, Norway, reviewed the outlook for ocean freight – a significant factor for the US drilling industry with its 84% net import reliance on barite (2.6m. tonnes imported in 2018); 63% from China, 14% from India, and 10% from Morocco.

Although there continue to be uncertainties prompted by Brexit and the Iran boycott, the most pressing issue appears to be the International Maritime Organisation’s (IMO) 2020 global sulphur cap deadline of 1 January 2020 – “Sulphur 2020”.

The IMO will enforce a new 0.5% global sulphur cap on fuel content from 1 January 2020, lowering from the present 3.5% limit. The global fuel sulphur cap is part of the IMO’s response to heightening environmental concerns, contributed in part by harmful emissions from ships.

However, as emphasised by Hoppe, only a fraction, some 3-4% of ships, have installed the required SO2 marine gas scrubbers (incidentally, generating a potential new market outlet for magnesium hydroxide suppliers; Timab and Nedmag have already formed a development partnership) with less than six months until the deadline. So there is considerable concern over the likely impact of reduced shipping capacity in early 2020.

“Impact on barite and bentonite shippers from changes in North American truck and rail” was authored by Richard Dodd, President, RDC Logistics, USA, and most ably presented by John Newcaster, Principal, IMPACT Minerals LLC, USA.

Dodd’s presentation focused on the strategic and cost impact for oilfield shippers using North America rail and truck networks. It covered rail precision scheduled railroading (PSR), an update on West Texas, Mexico, and Canada rail; railcars update; rail rates trend and negotiation; truck spot market rates, drivers (there is still a shortage in the USA), regulations; and concluded with a useful freight invoice post audit.

Dodd underlined that freight complexities impact shippers and generate cost problems – even if pre-audit invoice before payment, there are still errors. He provided a neat detailed breakdown of such charges and the approximate share of the cost value they account for.

Ceramic proppants: trends in North America & India

“North American proppant market outlook” by Samir Nangia, Managing Director Capital Markets , and Brandon Savisky, Senior Research Analyst, IHS Markit, USA, provided a fine review of the North American proppant market trends and factors.

Key trends for H1 2019 have included “an immediate shift to survival of the financial and operational fittest in a lingering state of [fact sand] oversupply and an unfavourable pricing environment for suppliers”.

Nangia deemed supply and demand dynamics as not as favourable in the regional/in-basin markets as they are for the Northern White Sand (NWS) market since companies have made appropriate supply reductions for NWS facilities rather than in-basin plants.

Also trending are some signs of stagnating drivers of frac sand demand, such as lateral length and proppant density flattening.

“Despite the short term temperance of overall activity that continues to be principally driven through the Permian Basin, IHS Markit anticipates a resilient 7% CAGR from 2018 demand to 2022 for the North American Market” said Nangia.

“Ceramic proppant development, production & market in India” was authored by Ajay Kumar Dasgupta, Managing Director, Hallmark Minerals (I) Pvt Ltd, India, and presented by Abhishek Dasgupta, Consultant, Australia.

Dasgupta described the main types of proppants before focusing on the range of grades produced by Hallmark in Pune, India, which are high strength, intermediate strength, lightweight, and resin coated grades, based on Indian abrasive grade bauxite as feedstock raw material.

Hallmark’s ceramic proppant manufacturing process was outlined including raw material formulation, micronising, pelletising, drying, pre-screening, sintering, cooling, final screening, storing, packing, and dispatch.

India imports 82% of its oil needs and aims to bring that down to 67% by 2022 by replacing it with local exploration, as well as renewable energy, and indigenous ethanol fuel. The oil and gas industry is expected to attract US$25bn in investments in exploration and production by 2022. ONGC has already drilled a total of 21 wells in 18 blocks for shale gas and oil.

“The Asia Pacific proppants market is expected to see a healthy rise due to the presence of immense shale gas reserves and hydraulic fracturing projects.” said Dasgupta.

Hallmark’s 10,000 tpa plant has already sold product to Indian ceramic proppant users such as ONGC and Focus Energy. The next step is to seek partners to establish a joint venture to upgrade the current plant from 10,000 to 20,000 tpa, and possibly set up a new plant producing 100,000 tpa in a different location.

Barite market outlook: World | Mexico | South America | Canada

John Newcaster, Principal, IMPACT Minerals LLC, representing The Barytes Association, USA, presented an excellent “Global barite market overview”, comprising the importance of barite, production trends, trade lane trends, pricing trends, supply-demand drivers, and the future.

Newcaster kicked off with a reminder that barite is listed as one of the 35 US critical minerals, and informed the audience of the 4 June 2019 publication of a Federal Report detailing strategy and plans that involve all agencies in increasing discovery, production, and domestic refining of critical minerals.

In 2018, almost 77% of barite was consumed in oilfield drilling (the rest in chemical and filler applications).; China, India and Morocco remain the top three supply sources, accounting for 65% or total world production.

The US net import reliance remains at near all-time high levels (84%) with primary barite sources India surging, China declining, Morocco and Mexico in strong supporting roles, and Laos becoming a factor.

Regarding India, Newcaster reported on the latest tender (first since 2017) which concluded in March 2019, and continued flexibility in transfer pricing for participating exporters with a goal of 2,200,000 tonnes in 12 months. Indian exports have increased since the new tendering process started.

Learn about the latest trends and developments in India’s mineral markets at

Indian Minerals & Markets Forum 2019
18-20 November 2019, Mumbai

Field Trip to Gujarat mineral operations of Ashapura
Confirmed speakers | Early Bird Rates

Also noted was the dramatic rise in significance and prominence of Mexican barite supply to the USA since 2014, fuelled by proximity to the US Permian Basin activity, as well as low cost of production and freight.

Another significant trend in the USA has been the considerable shift to consuming 4.1 SG at the expense of 4.2 SG barite; in 2011 the latter accounted for just over 60%, by 2018 this had fallen to just 10%.

Newcaster concluded: “Barite is the only economically viable weighting agent in drilling fluids. However, improved technology and unconventional drilling requires less barite per well drilled. Nevertheless, there remains strong demand as far as we can see.”

The lively discussion that followed included comments on the latest US tariffs threatened against Chinese imports, with barite now reinstated on the list, which could hamper future US oilfield drilling activities (heavily reliant on Chinese barite imports).

Indeed, following the Forum, on 25 June, the American Petroleum Institute argued at US Trade Representative hearings that the US oil and gas industry “cannot quickly find new sources of key drilling supplies targeted on the latest tariff list such as barite”.

“Mexican barite and oil & gas markets overview” by Paloma Ruiz Maté, Director General, CIMBAR Mexico & Latin America, Mexico, was a most comprehensive report on Mexico’s oil and gas outlook and barite industry.

Since the Energy Reforms’ adoption in 2013, the Mexican government has auctioned and awarded numerous oil and gas blocks to foreign companies in so-called bid rounds. However, following his 1 December 2018 inauguration, new president Andres Manuel Lopez Obrador has announced aggressive measures to reassess the 2013 Energy Reforms, thereby prompting a mixed outlook for the industry.

Since 2017, Mexico has been the world’s sixth largest barite producer (almost 400,000 tonnes in 2018), and exports 90% of production. For local consumption, barite is mainly delivered to companies located in the north-east and south-east part of the country.

Barite mining in Mexico maybe divided into four zones, and it is the north-east zone around Coahuila and Nuevo Leon, which traditionally has hosted the most productive mines – underground, mantle and vein deposits, between SG 3.7 and 4.05. It has the closest proximity to the US market.

The top three exporting producers are Baramin, Cimbar Loma Negra, and Minerales y Arcillas, and the main export market, mostly by truck, is the USA (>90%; smaller volumes go to Cuba, Columbia, Spain).

First announced at last year’s Oilfield Minerals & Markets Forum, Cimbar Performance Minerals’ new joint venture with Loma Negra (Cimbar Loma Negra, based at Muzquiz, Coahuila), has a capacity of 250,000 tpa.

“We have already doubled the production capacity of the milling operation at Muzquiz, Coahuila, with plans to triple that capacity by mid-2020. The mining operation has increased production as newer and larger mine equipment has been put into production over the last year.” said Ruiz.

“Barite developments in South America” by Santiago Carassale, Category Manager-Mined Products, Halliburton, USA, looked at the international drilling outlook, the South America barite market, the Vaca Muerta unconventional play, and the Baroid footprint in Vaca Muerta.

Barite mining in South America over the past 30 years has been mainly focused in Peru, Bolivia, Argentina, and Brazil, and primarily for domestic demand.

However, over the last 15 years reserves have been depleted with some small developments in Chile. Brazil, Argentina and Colombia started importing powder or ore to support their operations in country but challenges include inadequate logistics infrastructure, outdated or inadequate grinding capabilities in country, and cross-border risks.

In Brazil, demand has shifted to Rio De Janeiro for offshore operations, while in Argentina demand has grown substantially since shale exploration began, and prior to 2017 there were very few processing plants for imported material.

The centre of attention are the shale gas plays in the Vaca Muerta in the provinces of Neuquen and Mendoza, which have been compared to the Eagle Ford in the USA.

In 2013, Halliburton started importing barite into the region, then in 2017, in a joint venture with logistics company Sea White SA, started to develop a barite processing plant.

The plant, located at the port of Bahia Blanca, Buenos Aires province, has a production capacity of 144,000 tpa of barite and bentonite, 40,000 tonne storage area, and utilises two 56” roller mills, an automated crusher with stacker belt for proper blending and segregation, four semi-automated baggers for super sacks, and one fully automated small bags unit. The operation can supply up to 12,000 tpm by truck, and a 2,000 tonne stock point is to be commissioned Q4 2019.

“Barite as by-product from the polymetallic Palmer Mine Project, Alaska – a potential new, price competitive US source” by Darwin Green, Vice President Exploration, Constantine Metal Resources Ltd, USA, introduced the audience to the Palmer Project in Alaska.

Located near Skagway, the Palmer Project is a JV with Dowa, Japan’s largest Zinc company (49%), and primarily development of a high grade copper-zinc resource. There are two high grade deposits of copper-zinc-silver-gold hosting high concentrations of barite ranging 24-35%.

Green noted that barite recovery from sulphide ores is “uncommon but not unchartered” and cited examples including the recovery from sulphide ore tailings at Buchans Mine, in Newfoundland (by Barite Mud Services Inc., see Barytes developments continue amid Baker Hughes-Halliburton merger).

The process, which could produce 2.89m tonnes of barite over life of mine (270,000 tpa), requires flotation from copper and zinc tailings, which produces a higher purity end product, but is more complicated and expensive than conventional separation.

Metallurgical work has indicated barite recovery of 91.1% to a clean, high-grade barite concentrate with a high SG of 4.44. The barite concentrate meets all specifications for oilfield drilling.

With a good logistical location and connections, target oilfield markets could be Western Canada , Williston Basin, US/Canada, North Slope, Alaska.

Underground exploration plans are in permitting, and the company plans to start a major underground programme in 2020.

Green extolled on the project being “…closer to Western and Central North American markets than competitors, it will produce a drill-rig ready barite powder, a premium high SG product, and become a strategic domestic source with potential for decades long mine life.”

Processing: dry separation & fine grinding

“Water-free electrostatic processing of oilfield minerals” by Kyle Flynn, Director, Business Development, ST Equipment & Technology LLC, USA, took the audience through STET’s Tribo-electrostatic Dry Separation Process, results for upgrading barite to drilling grade, Dry STET Process Flow Sheet vs. Wet Flotation Process, and a CAPEX-OPEX comparison.

The STET Separation is effective at upgrading low-grade barite to drilling-grade by removal of low density silicates. A full-scale separator is now operating at Ramadas Minerals, Kodur India.

The key features include: dry process, low emissions, no chemicals added, low energy consumption (1-2 kWh/ton feed), high rate (up to 40 tph for STET model M42), and simple operation.

Any new applications maybe evaluated at the STET Needham lab and pilot plant, and the company has also developed a modular containerised system now available for testing at the plant site.

“New grinding technology for ultrafine oilfield minerals & mobile system” by AJ DeCenso, President, Preferred Process Solutions LLC, USA, introduced screening equipment by Sweco, sorting solutions by TOMRA, in-process particle analysers by Xoptix, and grinding technology by Ecutec Netzsch.

Among the Ecutec Netzsch products was a new mill called the PAMIR Agitated Media Mill. Features include: a horizontal agitated media mill, with high energy density (small footprint), small grinding media (ultrafine PSD), easy and fast maintenance, steep PSD (low fines production), single pass or in closed loop with classifier, and installed power from 22kW-630kW (30 HP-850 HP).

Fine ground barite maybe produced at d98 <6µ, with a mill size of 1000l, at 400HP, a production rate of 4.5 tph, and a CAPEX of €480,000. This compares favourably to using a ball mill for similar and having a CAPEX of €550,000.

Here’s how our delegates viewed the market outlook!

Our first use of a live audience poll on some general market questions also went down well and we publish those results below – perhaps illustrating a blend of optimism and pragmatism within the industry, certainly, much food for thought.

Thank you, and see you at Oilfield Minerals & Markets Forum 2020!

As ever we are indebted to the support and participation of all of our sponsors, exhibitors, speakers, and delegates for making Oilfield Minerals & Markets Forum 2019 such a success.

We very much appreciate all the completed feedback forms and please continue to provide us with your thoughts and suggestions.

We shall keep you abreast with developments for Oilfield Minerals & Markets Forum 2020.

Meantime, we look forward to meeting you again soon, perhaps at one of our upcoming conferences:

Fluorine Forum 2019, Prague, 21-23 October 2019

Indian Minerals & Markets Forum 2019, Mumbai, 18-20 November 2019

Registration, Sponsor & Exhibit enquiries: Ismene Clarke T: +44 (0)7905 771 494 ismene@imformed.com

Presentation & programme enquiries: Mike O’Driscoll T: +44 (0)7985 986255 mike@imformed.com

Sepfluor’s Nokeng Fluorspar Mine Project, South Africa, pictured here under construction in January 2019; now complete and ramping up to full production. Sepfluor will be hosting the Welcome Reception at Fluorine Forum 2019, Prague, 21-23 October. Courtesy Sepfluor

Fluorspar supply for 2018 was reasonably tight, mainly owing to mine closures from environmental controls in China, and limited production from new and emerging producers in Canada and Asia.

This looks set to continue through 2019 and even 2020 unless new capacity in South Africa and Canada starts to materialise later this year, as the respective companies claim (see later).

All the key trends and developments in the entire fluorine raw material supply chain will be examined and discussed at IMFORMED’s upcoming Fluorine Forum 2019, Prague, 21-23 October - see link for details, which builds on the success of last year’s Fluorine Forum 2018 (see link for full report) held in Madrid, bringing together all the leading players.

“Excellent, good content and time allowed for presentations”
James Feorino Jr, Strategic Sourcing Manager, Arkema Inc., USA

“Roundtables a very good addition, excellent programme, venue, organisation, and mobile app.”
Malcolm Crawford, Managing Director, Delta Minerals Ltd, UK

China remains the world’s top fluorspar producer, accounting for around 60% of total world output of 5.8m tonnes in 2018, followed by Mexico, 19% (see accompanying charts).

Fluorspar Forum 2019 hosts a superb programme, here are just some of the speakers:

Key trends and outlook for the fluorspar market
Oliver Rhode, CEO, Xenops Chemicals GmbH & Co. KG, Germany
Trade & tariffs: Where we’ve been and where we might go
Ray Will, Director of Specialty & Inorganic Chemicals Consulting, IHS Markit, USA
The evolution of refrigerant gas and the role of Chemours in the market
John Zielinski, Executive Buyer Fluoroproducts, Chemours, USA
India: An emerging market for acid grade fluorspar
Bimlesh Jain, Executive President (Corporate), Gujarat Fluorochemicals Ltd, India
Global steel industry outlook
Diana Kinch, Editor-in-Chief, Steel Markets Daily, S&P Global Platts, UK
Cost factor trends in fluorspar processing
Ashok Shinh, Ashok Shinh Consultancy Ltd, UK
A new approach to mining fluorspar
Peter Robinson, Chairmain, British Fluorspar UK Ltd, UK
A comparison of High Bulk Density and Low Bulk Density aluminium fluoride
Evgeniy Torochkov, Head of Dept., PhosAgro Group, Russia

Click here for full list

Early Bird Rates available for a limited period

Register online here or contact Ismene ismene@imformed.com

However, China’s hold on global export markets for fluorspar has declined significantly in recent years from the peaks of 2010-11. Indeed, for the first time, in 2017 and continued in 2018, China became a net importer of fluorspar: over 500,000 tonnes imported against just over 400,000 exported in 2018 – perhaps a reflection of the squeeze on domestic supply by environmental controls (see charts) as well as increased domestic demand from a growing fluorochemicals market. The trend is expected to continue in 2019.

China’s sharp increase in metspar imports was sourced mainly from Mongolia, but also Myanmar; acidspar was imported from Mexico and South Africa.

China’s metspar export markets are mostly in Asia, and while China still exports acidspar to Europe, its share of exports to the US market has decreased markedly (see later).

The tightness in global supply in 2018 resulted in sharp price increases for acidspar which peaked at over $500/t, this has carried over into 2019, with reports that metspar prices were also rising and even overtaking acidspar levels at up to $550/t.

Average Chinese export prices for both acidspar and metspar rose sharply in 2018, to US$400/t and US$300/t, respectively (see chart). These levels were surpassed in late 2018, and in 2019 the trend has continued and prices have risen to as much as US$550/t FOB.

US net import reliance on Chinese fluorspar has declined from a dominant 52% in 2009 to a mere 6% in 2018, being eclipsed by increasing imports from Mexico (at 69%), and most recently, although on a smaller scale, from Vietnam.

Although the US raised tariffs from 10% to 25% on US$200bn of Chinese products on “List 3” in May 2019 which includes many minerals, fluorspar (acidspar and metspar) was excluded, while aluminium fluoride and hydrofluoric acid remain on the list.

In contrast, there was certainly more of a risk from US President Trump’s recent threats to impose 5% punitive tariffs on all goods imported from Mexico beginning 10 June 2019.

As it turned out, Trump backed off his plan, announcing on 7 June that the USA had reached an agreement with Mexico, and there will be a renegotiated United States-Mexico-Canada Agreement (USMCA). So US fluorspar consumers will feel somewhat relieved…..for now.

The leading world acidspar exporters are Mexico, Vietnam, South Africa and China; for metspar it is Mongolia, Mexico, and China.

Primary importers for acidspar are USA, Italy, India, and Germany; for metspar it is China, Russia, and Turkey.

Coming soon? New sources from South Africa & Canada

Depleting high quality fluorspar reserves, high cost of acidspar production, and likely continued pressure and perhaps further capacity reductions in China, combined with continuing demand for fluorspar in chemical, steel and aluminium markets (see article next week) mean that there is a case for alternative and new fluorspar sources to come on line.

The two players way ahead of the pack are Sepfluor Ltd and Canada Fluorspar Inc. However, each has experienced some difficulty in bringing their respective operations on stream as per their envisaged schedules, which should have been by early 2019.

These are quite involved projects and it is perhaps not surprising that there are delays in ramping up to commercial production. However, prospects for progress are good for 2019.

In South Africa, construction of SepFluor’s ZAR1.7 bn(US$122m) Nokeng Fluorspar Mine open pit mine and concentrator is now complete.

Phased commissioning, the final phase in project execution and the first phase of production at the Nokeng Mine plant is currently underway. The plant has been completed on budget, and will ramp up to full-scale commercial production (design capacity of 180,000 tpa acidspar, 30,000 tpa metspar) towards the end of July 2019.

IMFORMED is delighted to announce that the Welcome Reception for Fluorine Forum 2019, held on 21 October 2019, at the Alcron Hotel, Prague is sponsored by Sepfluor Ltd

The company has also completed a BFS and Market Study for its downstream anhydrous hydrogen fluoride (60,000 tpa capacity) and aluminium fluoride (60,000 tpa), with “positive outcomes” (for more details see Fluorspar renaissance rallies in South Africa).

Sepfluor’s recently completed Nokeng Fluorspar Mine plant is in phased commissioning and expected to ramp up to production end July 2019.

Over on the east coast of Canada, Canada Fluorspar Inc. (CFI) completed a 4,700 tonne acidspar shipment to Houston in August 2018, and earlier this year sent bulk samples to Europe for testing.

CFI is ramping up production at its St Lawrence facility with a nominal target of full production capacity of 200,000 tpa and a mine life of 30 years. Recent reports indicated the operation was nearing 50% capacity utilisation. The Newfoundland fluorspar source has had a challenging history (see Fluorspar revival in Newfoundland).

CFI is planning a new location for the development of a shipping port on the western side of its mining property in St. Lawrence, on the Burin Peninsula. The original plan was to develop the marine facility at Blue Beach, but it now favours a location near Mine Cove in Little Lawn Harbour.

Showing the new location of CFI’s proposed Marine Port Terminal, very close to the St. Lawrence AGS Fluorspar Mine, on the Burin Peninsula, Newfoundland. The facility will be essential to realise the full potential of both fluorspar and aggregate development by CFI. Courtesy CFI

The port will export fluorspar concentrate and construction aggregate, CFI claims that there is potential for the company to export 2m. tpa aggregate.

The project, which would give a vital and dedicated deep water shipping facility close to the St. Lawrence AGS Fluorspar Mine, includes a waste rock crushing plant and aggregate stockpiles, a concentrate storage building, access and haul roads, a wharf accepting vessels up to 72,000 DWT (Panamax), a conveyor, a ship-loading system, and a rock-filled breakwater.

At present, fluorspar shipments leave from Marystown, which is a temporary arrangement involving 45km truck transportation from the mine site. The proposed new marine terminal site is just 0.5km from the mine.

The company has registered its proposed marine shipping terminal for environmental assessment with the provincial government, a decision is expected on 25 July.

Elsewhere…in Australia, South Africa, Sweden, USA

Australian Bauxite Ltd’s wholly-owned subsidiary, ALCORE Ltd, has commenced chemical refining of its bauxite into aluminium fluoride, starting with removal of silicon and iron oxides to create a clear solution containing the aluminium fluoride that will be produced by a crystalliser-still stage.

This milestone was achieved successfully late June at the ALCORE Research Centre in Berkeley Vale, New South Wales. The next step is designing the optimum blend of bauxite and reagents
for the recently completed ALCORE mini-production plant.

ALCORE’s patent (pending) application technology is designed to refine raw bauxite to produce aluminium fluoride and valuable co-products, a 50,000 tpa plant is envisaged in its plans.

There has been no further advancement of the Doornhoek Fluorspar Project being developed by SA Fluorite (Pty) Ltd and ERG.

Located just south of Zeerust, North West province, close to the now closed Witkop fluorspar mine, the Doornhoek deposit has been drilled since 1977 but a complexity of rights, largely resolved by 2005, had historically delayed development.

Detailed environmental management programme and environmental impact assessments for Doornhoek have been accepted and approved by the Department of Mineral Resources but there has been little further progress.

In May, Tertiary Minerals PLC prepared and submitted a detailed appeal to the Swedish government against the decision by the Swedish Mining Inspectorate to reject Tertiary’s Exploitation (Mine) Permit in its current form for its Storuman Fluorspar Project, Sweden.

Scoping Study level bench scale metallurgical testwork is progressing at SGS Lakefield in Canada with the aim of producing commercial grade acidspar and mica from Tertiary Minerals’ MB Fluorspar Project, Nevada, USA. The Scoping Study is aiming for completion this year.

Incidentally, Tertiary Minerals was winner of the Bureau of Land Management’s (BLM) 2017 Hardrock Small Operator Award, for its outstanding and innovative reclamation and sustainable mineral development work on the MB Project.

Having reviewed supply, a report on fluorspar markets outlook will follow soon.

Meanwhile, don’t miss…

CLICK HERE FOR FULL DETAILS

Fluorine is a vital element to some of our primary manufacturing industries – chemicals, steel, aluminium – and more recently, the soaring Li-ion battery market.

However, the main raw material feedstock, the mineral fluorspar, is only produced in a few countries, with one of the main sources facing cutbacks, and consumers keenly awaiting new sources to fully come on stream (see Fluorspar Supply: Trade Trends & New Sources).

But what of the consuming sectors? We now focus on the key markets for fluorine raw materials following our earlier report on the fluorspar supply sector.

All the key trends and developments in the entire fluorine raw material supply chain from source to market will be examined and discussed at IMFORMED’s upcoming Fluorine Forum 2019, Prague, 21-23 October - see link for details, which builds on the success of last year’s Fluorine Forum 2018 (see link for full report) held in Madrid, bringing together all the leading players.

“Excellent, good content and time allowed for presentations”
James Feorino Jr, Strategic Sourcing Manager, Arkema Inc., USA

“Roundtables a very good addition, excellent programme, venue, organisation, and mobile app.”
Malcolm Crawford, Managing Director, Delta Minerals Ltd, UK

Attending companies to date

Programme

The two primary commercial grades of fluorspar produced and traded are acid grade or acidspar (+97% CaF2), and metallurgical grade, or metspar (60-96% CaF2; so-called “ceramic grade” can range 94-96% CaF2)

Acidspar, accounts for approximately 60-65% of total fluorspar production with the two main applications being: the manufacture of hydrofluoric acid (HF) – the primary source of all fluorochemicals; and in aluminium production – used to produce aluminium fluoride (ALF3) which acts as a flux to lower the bath temperature in the manufacture of aluminium.

Fluorochemical markets range widely and include: fluorocarbons, eg. refrigerant gases, propellants; electrical and electronic appliances; metallurgical industry (extraction, manufacture and processing); Li-ion batteries; pharmaceuticals; polymers; and agrochemicals.

Metspar accounts for approximately 40-37% of the total fluorspar production with the main application in steel production – used as a flux to lower the melting temperature and increase the chemical reactivity to help the absorption and removal of sulphur, phosphorus, carbon and other impurities in the slag.

Another important metspar application is in cement, used as a flux to speed up the calcination process and enabling the kiln to operate at lower temperatures, thus saving energy.

Other fluorspar applications include welding, ceramics, and glass.

According to Peter Huxtable, consultant, UK, total fluorspar demand in 2018 was 6.36m tonnes, of which acidspar accounted for 3.99m tonnes (63%), and metspar 2.35m tonnes (37%) (see chart).

The main regional markets for acidspar are the USA, Italy, India, and Germany, reflecting the main centres of fluorochemical manufacturing; next ranked is the UAE with its significant and relatively recent aluminium production (see charts).

The main regional markets for metspar are China, Russia, Turkey, USA, Japan, and South Korea, reflecting the world’s leading steelmakers.

Fluorine raw material demand is dominated by the chemical industry with its requirement for hydrofluoric acid (HF) as a precursor to a wide range of chemical products. But steel and aluminium performance is also an important factor in fluorspar demand.

Fluorine Forum 2019 programme includes:

Key trends and outlook for the fluorspar market
Oliver Rhode, CEO, Xenops Chemicals GmbH & Co. KG, Germany
Trade & tariffs: Where we’ve been and where we might go
Ray Will, Director of Specialty & Inorganic Chemicals Consulting, IHS Markit, USA

Fluorochemicals – cold light of day for HFCs

The largest chemical sector application for HF is in the production of fluorocarbons. Overall, production of fluorocarbons is estimated to have consumed approximately 1m tonnes of HF in 2017, requiring >2m tonnes of acidspar.

HF overall worldwide demand remained steady at 1.2m tonnes in 2018, with China still supplying 45% of world output, North America, 25%, and Europe, 13%.

However, plant shutdowns in China owing to environmental pressures have reduced output and exports in recent years. In response, Japan has increased production.

The fluorocarbon market (HFCs hydrofluorocarbons; HCFCs hydrochlorofluorocarbons) is constantly in the environment control spotlight, with many countries, and especially the European Union and the USA, introducing restrictions on the use of certain HFCs and HCFCs due to their global warming potential (GWP) (see map).

Various alternatives are emerging for HFC substitution which comprise hydrofluoroolefins (HFO), but also could lead to some not-in-kind replacements, somewhat of a threat to future fluorine raw material demand.

Europe initiated the F-Gas Regulation in 2014 which aims to reduce F-gas emissions from high-GWP HFCs and other chemicals by two-thirds by 2030.

Restrictions on the use of HFCs were agreed by nearly 200 countries at the Montreal Protocol meeting in Kigali, Rwanda in October 2016, and the USA and the EU are aiming to reduce emissions by 10% of 2011-2013 levels by 2019, and 85% by 2036.

The use of the low-GWP hydrofluoroolefins refrigerant HFO-1234yf is the preferred replacement for HFC-134a used in car air conditioning by both the US Environmental Protection Agency (EPA) and the EU. Honeywell has developed the refrigerant brand Solstice® using HFO-1234yf.

US air conditioning and refrigeration equipment manufacturer Carrier has confirmed that HFO refrigerants will be the basis for most of its future European product applications.

For screw chillers and heat pumps, Carrier has chosen the HFO R1234ze to replace R134a, and has chosen the HFO R1233zd(E) as the preferred long-term refrigerant for centrifugal chillers.

The HFC phase out and gradual replacement with new variants has unfortunately prompted a trade in illegal refrigerants, and patent infringements on new grades. Refrigerant manufacturers claim that their own research has found that illegal gases are now making up more than 20% of the quota and exceeding the EU’s HFC cap.

In June, Cooling Post reported on leading fluorspar and HF producer Mexichem launching its own campaign to warn the industry of the consequences of using or selling illegal refrigerants. Sarah Hughes, European Commercial Director, Mexichem Fluor UK said: “There has been ongoing reports that show the importation of illegal refrigerants is still rife across Europe, with many governments and official bodies turning a blind eye, rather than working together to stop this extremely damaging trade.”

In July, leading French contractor, Axima Refrigeration France, announced a partnership with refrigerant manufacturer Chemours to evaluate the use and future adoption of Chemours low GWP Opteon XL refrigerants (which use HFO-1234yf).

Fluorine Forum 2019 programme includes:

The evolution of refrigerant gas and the role of Chemours in the market
John Zielinski, Executive Buyer Fluoroproducts, Chemours, USA
Changes in refrigerant use and its impact on the air conditioning and refrigeration markets
Andrea Voigt, Director General, European Partnership for Energy & the Environment, Belgium
India: An emerging market for acid grade fluorspar
Bimlesh Jain, Executive President (Corporate), Gujarat Fluorochemicals Ltd, India
Downstream markets for fluorochemicals, through to fluoropolymers and fluoroelastomers
Samantha Wietlisbach, Principal Analyst, Chemical, IHS Markit, Switzerland
HF and fluorine developments in Saxony and eastern Europe
Johannes Scheruhn, Managing Director, Scheruhn Industries, Germany

The air conditioning market appears in good health. Global sales of air conditioners rose to 141m. units in 2018, at a value of US$103bn., according to the Building Services Research and Information Association.

Economic and population growth, urbanisation and rising temperatures in countries such as Bangladesh, Brazil, Ghana, India, Indonesia, Kenya and Vietnam are the main drivers for increasing demand for cooling.

The European market is growing and accounts 7% by volume and almost 12% by value globally. The Asia Pacific region is the largest market with 56% of global value. China, Japan and South Korea remain the market leaders on the variable refrigerant flow (VRF) market.

As the Chinese government is increasing its targets against air pollution, building owners have started to pay attention to indoor air quality, with a consequent boost to China’s AC research and development efforts.

Elsewhere in Asia, in July, Japan placed restrictions on the export to South Korea of three high-tech materials used in making chips and displays which has the potential to disrupt the South Korea’s electronics industry.

One of the restricted materials is HF, used as an etching gas when making electronic chips and displays. South Korea imported about 44% of its HF from Japan in the first five months of the year. South Korean consumers have responded by stockpiling and seeking alternative HF suppliers.

Steel – Asian growth over western doldrums

While steelmaking will always be an important market for metspar, the steel market outlook is moderate at best, and right now in Europe is somewhat flat.

World crude steel production was 925.1m. tonnes in the first six months of 2019, up by 4.9% compared to the same period in 2018, mainly driven by China and India.

Asia produced 660.2m. tonnes of crude steel, an increase of 7.4% over the first half of 2018. China’s crude steel production for June 2019 was 87.5m. tonnes, an increase of 10.0% compared to June 2018. India produced 9.3m. tonnes of crude steel in June 2019, an increase of 4.0% compared to June 2018.

The EU produced 84.7m. tonnes of crude steel in the first half of 2019, down by 2.5% compared to the same period of 2018.

North America’s crude steel production in the first six months of 2019 was 60.m. tonnes, an increase of 1.4% compared to the first half of 2018.

The World Steel Association’s latest forecast shows global steel demand will reach 1,735m. tonnes in 2019, an increase of 1.3% over 2018. In 2020, demand is projected to grow by 1.0% to reach 1,752m. tonnes.

Fluorine Forum 2019 programme includes:

Global steel industry outlook
Diana Kinch, Editor-in-Chief, Steel Markets Daily, S&P Global Platts, UK

Aluminium – supply struggles to meet demand

Worldwide demand for aluminium fluoride (AlF3) remained essentially steady in 2018 at 1.1m. tonnes. China accounted for 65% of world AlF3 output.

Demand for AlF3 in aluminium smelting is likely to be maintained for the foreseeable future as aluminium production continues to undersupply demand.

From most reports, a tight market for aluminium is projected for the next few years as supply struggles to meet rising demand driven mainly by the automotive, aerospace, and construction markets.

As reported by World Bureau of Metal Statistics, the calculated market balance for global primary aluminium for January to May 2019 showed a deficit of 344,000 tonnes which follows a deficit of 993,000 tonnes for 2018.

Demand for primary aluminium for January to May 2019 was 25.82m. tonnes, 476,000 tonnes more than in the same five months of 2018. Global production rose in January to May 2019 by 2.2% to 25.48m. tonnes, compared with the first five months of 2018. Chinese output was estimated at 14.5m. tonnes and this currently accounts for about 57% of the world production total.

Although China’s aluminium production growth is expected to slow down over the coming years, as the government’s push for consolidation and stricter environmental regulations begin to bite, China will remain the driving force behind global aluminium production, accounting for over half of total output.

Fluorine Forum 2019 programme includes:

Trends in aluminium fluoride supply and demand
Adam Coggins, Analyst, Roskill, UK
A comparison of High Bulk Density and Low Bulk Density aluminium fluoride
Evgeniy Torochkov, Head of Dept., Research Institute for Fertilisers and Insectofugicides (NIUIF), PhosAgro Group, Russia

AMAG Austria Metall reported that it expects 2% growth in 2019 for global demand for primary aluminium. According to Fitch Solutions, aluminium consumption is forecast to increase from 62.9m tonnes in 2019, to 79.7m tonnes by 2028, averaging 2.8% annual growth.

Li-ion batteries – a new growth market for fluorochemicals

Fluorine-based compounds are now being used in the emerging and fast growing Li-ion battery market: fluoropolymers in high performance binders and separator coatings, and fluorinated salts in the electrolyte.

Polyvinylidene fluoride (PVDF) is a highly non-reactive thermoplastic fluoropolymer produced by the polymerisation of vinylidene difluoride. PVDF is a speciality plastic used in applications requiring the highest purity, as well as resistance to solvents, acids and hydrocarbons.

PVDF is used in the binders of the Li-ion cell at low concentrations helping to achieve higher energy density and a longer battery life cycle.

In order to extend cycle life with a better interface between electrodes and separator as well as to achieve enhanced wettability and easy assembly, Li-ion cell separators can be coated with an additional layer of PVDF.

The use of fluorine in various compounds has become a key element in the electrolytes of Li-Ion batteries.

These include monofluoroethylene carbonate (F1EC) and difluoroethylene carbonate (F2EC) used as coating additives on the anode.

Owing to their excellent chemical/thermal stability and conductivity, lithium imide salts containing fluorine (ie. lithium bis(fluorosulfonyl)imide – LiFSI, lithium bis(trifluoromethanesulfonyl)imide -LiTFSI) are being developed and used as an additive or main lithium salt to improve performance and safety of Li-ion batteries’ liquid electrolyte. They are used as a safer alternative to lithium hexafluorophosphate (LiPF6).

Don’t miss…

CLICK HERE FOR FULL DETAILS

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• Haicheng mining halted | PRCO new supply

• Ternamag starts DBM

• The view from the West

White gold in Liaoning: an aerial view looking NNE across the magnesite mining area of Haicheng, Liaoning province, China; the blue rooftops are the plants, warehouses. LMMC has ceased mining until end-October 2019. Courtesy Google Earth

Towards the end of 2018 we reviewed the outlook for China refractory minerals and considered what the impending Year of the Pig had to offer (see China’s refractory mineral supply – a New World: review & outlook).

Despite a freeing up of some supply and lowering of prices during the early part of 2019, especially for magnesia, come the mid-year point and all is very different and, typically, uncertain. Indeed, the Year of the Pig seems very much set to live up to its name for the rest of 2019.

The pressure mounted in mid-July as China started a new round of central environmental inspections in six provincial-level regions and two centrally-administered state-owned enterprises (SOEs).

Eight teams were dispatched to the six provincial-level areas of Shanghai, Fujian, Hainan, Chongqing, Gansu and Qinghai, as well as the two SOEs – China Minmetals Corp. and China National Chemical Corp.

As of 15 July, the inspection teams had received a total of 809 reports and planned to oversee and “push the inspected units’ accountability”.

In June, the Ministry of Ecology & Environment publicly accused many companies of exceeding pollution limits, including subsidiaries of some the biggest state enterprises like China Baowu Steel Group and the Aluminium Corp. of China.

Moreover, with the upcoming all-important celebrations on 1 October 2019 for the 70th Anniversary of the founding of the People’s Republic of China, the government is adamant to impose whatever industrial restrictions are necessary in order to maintain a clean air environment for the beginning of October.

This has resulted in not only more environment inspections and resulting plant closures, but another new ban on explosives use by miners – particularly impacting the magnesia industry in Liaoning province.

And if, as is widely anticipated, the government also later insists on what is becoming an annual routine of an industry shutdown or reduction in capacity use over the winter months, then this would effectively curb industrial output all the way through to end-March 2020.

Bauxite – Shanxi outlook mixed and uncertain

The refractory bauxite producing province of Shanxi is experiencing yet more uncertainty and challenges.

Of significance is the impending closure, owing to reserve exhaustion, of the Xiangwang Mine, Xiaoyi district, the only bauxite mine operating in the province and supplying vital raw bauxite ore.

Shanxi bauxite ore supply is already on the wane if not ceased completely, with some local calcination plants reportedly still awaiting deposit-paid deliveries for up to two months.

Some calcined bauxite plants are attempting to buy bauxite ore from other regions such as Fangshan county, Lin county, and Yangquan county.

The main talking point however, is whether a new bauxite mine will soon start up in Shanxi province, much discussed since 2018 (whatever happened to the proposed “refractory industrial park, with bauxite supply exclusively for refractories”? – see China minerals supply outlook: Shanghai showdown). This would greatly relieve supply issues and perhaps ease upward pressure on bauxite pricing.

Current refractory grade bauxite (85-86% Al2O3) prices range US$400-440/t FOB China; in Yangquan, prices increased recently by RMB20(US$3)/t, as news of the Xiangwang Mine closure spread.

Apparently, the bidding process for the new mine in Xiaoyi was issued in April, and the “winner” is to start production soon, though no date has been set. There is much confusion it seems.

Vincent Wong, Business Manager, Refractories Window, told IMFORMED: “We learnt that the new mine has been authorised, and is only waiting to start, but the question is when will it start in Xiaoyi? Some local participants said the new mine has started and ore output is very small scale, but others deny this. Many people said the original mine [Xiangwang] will stop soon, but some people don’t think so.”

Rotary kiln of Shanxi Fangxing Minerals in Shanxi province. Courtesy SFX

So that’s all clear then. What is clear is that there are continuing environmental inspections in the province, with some bauxite plants upgrading their equipment, a few reported in operation, while many are likely to remain closed. “I think there might be more that will be shut down in the second half of this year.” said Wong.

In Henan province, although under less pressure from environmental protection regulations compared to Xiaoyi, Shanxi, the calcined bauxite and brown fused alumina (BFA) sector is not faring any better.

Suppliers have been hit by rising production costs owing to increased investment in environmental protection and a decreasing supply of high quality bauxite ore.

This has been compounded by increased logistics and purchasing costs, say from Shanxi or even overseas, as the usual sourcing routes break down.

Recent BFA plant closures have included plants in Dengfeng, Henan, Henan Province Yima Xinrui Fire-Proof Material Co. Ltd, Guizhou Kaiyang Sanhuan Abrasive Materials Co. Ltd, Shanxi Taiyue Abrasive Co. Ltd, and most white fused alumina plants in Xingyang, Henan.

China increasing bauxite imports

Above all, the biggest problem is the shortage of raw bauxite ore. Chinese BFA producers have been reported as importing raw material from overseas, such as Guinea.

This has also affected the aluminium industry of course. In June, alumina prices in northern China hovered around six-month highs as sudden environmental shutdowns in Shanxi province raised concerns about supply.

Xinfa Group, one of China’s largest aluminium smelters, is closing all production lines at its 2.8m. tpa alumina refinery in Jiaokou, Shanxi amid an environmental dispute over red mud dumping.

In addition to simply not enough domestic supply, often the Chinese bauxite (mostly of diaspore variety) is not ideally suited to make smelter grade alumina, which is another reason why China is greatly increasing its bauxite imports.

In May 2019, China recorded a 135% increase in imports of alumina at 55,066 tonnes, and 27% increase in bauxite at 9m. tonnes, corresponding exports of the materials were 7,536 tonnes (down 91%) and 4,473 tonnes (up 9%), respectively.

Increasingly, China is relying on imports for its aluminium industry, and mainly from Australia and Guinea (see chart).

In July, Metro Mining Ltd, already supplying metallurgical bauxite to China from its Bauxite Hills Project near Weipa, Queensland, Australia, announced a contract with state-owned China Aluminium Corp. (Chalco) to deliver 420,000 wet metric tonnes of bauxite in the second half of this year, and has plans to double production to 6m.tpa.

Regarding non-metallurgical bauxite, Bosai Group, based in Chongqing, China, earlier this year announced a US$23m expansion plan for its Linden bauxite operations in Guyana operated by Bosai Minerals Group Guyana Inc. (BMGG).

This includes a new no.15 rotary kiln for 170,000 tpa RASC refractory grade bauxite (to eventually replace the old no.13 kiln) and a new no.16 drier and auxiliary facilities to produce 150,000 tpa chemical grade bauxite.

At present, BMGG produces 1.5m. tpa metallurgical grade bauxite, 300,000 tpa RASC calcined bauxite, 200,000 tpa chemical grade bauxite, and 200,000 tpa cement grade bauxite.

Bosai’s bauxite mine at East Montgomery, Linden, Guyana; a US$23m expansion plan has been announced for a new kiln for refractory grade bauxite.

Magnesia in China – Haicheng mining halted | PRCO new supply

The main magnesite mine in Haicheng, Liaoning province appears to be facing a three month closure from 1 August to 31 October. Although, earlier reports indicated mining had already stopped in mid-June.

In any case, news of the mining halt has apparently slowed the downward trend in magnesia prices as consumers scurried around to order what they could before primary ore feed ceases to the magnesia plants.

According to Refractories Window, by June ex-works lump prices had dropped to US$220/t 90DBM, US$460/t 95DBM, US$550/t 95.6DBM, and US$640/t 97DBM (see chart).

The Haicheng area is known for its high quality reserves, although lower quality material is still being mined in Dashiqiao, Liaoyang, Dandong, and Xiuyan.

The mine operator, Liaoning Magnesite Mining Co. (LMMC), is the entity representing the ongoing integration of the Liaoning magnesite supply sector which apparently now has up to 28 shareholders including a 51% holding by SASAC Haicheng (local provincial government).

The mining halt has come about in an effort for the local government to control its overproduction. However, observers might view the move as simply a way to firm up prices, and also with a dynamite ban apparently coming into play on the run up to 1 October it would seem some stoppage in mining was inevitable.

Elsewhere in China, Puyang Refractories Group Co. Ltd (PRCO) subsidiary Qinghai Punai Magnesite Material Co. has commenced pilot plant production of macrocrystalline fused magnesia and high purity magnesia.

Although yet to be confirmed, and unclear at present, the raw material feedstock for the Qinghai plant might be from either brine deposits in Qinghai, or the new PRCO operation in Tibet.

Another PRCO subsidiary, PRCO High Purity Magnesia Refractories Co. Ltd, is opening a new 1m. tpa mine in Tibet. The Kamaudo deposit in Rioche county, Changdu is some 50m tonnes reserves of high purity magnesite grading 47.6% MgO with low iron and silica. The site was first developed by Huayin Group in 2007 before it became part of PRCO.

PRCO also owns magnesite and magnesia producer Haicheng Linli Mining Co. Ltd, one of the shareholders in LMMC.

Magnesia in Greece – Ternamag starts DBM

Outside China, although only recently announced on its website, Greek magnesite producer Ternamag started its DBM plant in March 2019.

The new rotary kiln has a capacity of 60,000 tpa DBM (and CCM) products and can supply refractories and other industrial applications such as welding fluxes, leather tanning, friction materials, and heating elements.

The kiln is in full operation and Ternamag’s new DBM brand is called “NOVAPYR” with grades of 88%, 90%, 92%, 94%, 95% and 96% MgO.

Feedstock for the new plant comes from Ternamag’s underground magnesite mine on the island of Euboea, Greece.

Emanuel Tsontakis, Managing Director, Ternamag told IMFORMED: “In general, our DBM strategy is the same as with CCM, and is not based on what the Chinese do, and focuses equally, if not more, on the non-refractory applications market, which is by far more stable and allows for better margins.”

Ternamag brought on stream DBM production in March 2019 at its 60,000 tpa rotary kiln in Greece. Courtesy Ternamag

The view from the West

It’s a strange, if frustrating time for refractory mineral buyers. The outlook for Asia, especially India, and MENA is promising, while the developed markets the West (excepting Turkey and Eastern Europe) appear very slow with little or any growth (see chart).

Find out the latest trends in India’s refractories market at

Indian Minerals & Markets Forum 2019

18-20 November 2019, Mumbai

Full programme, including:

Refractory raw materials supply & demand in India
Hakimuddin Ali, Director Business Development, India
Overview of supply and demand of India’s refractories
Sameer Nagpal, CEO-Refractories, Dalmia OCL Ltd, India
Influencing factors impacting India’s refractories market
Anirbandip Dasgupta, Senior Executive Officer, Indian Refractory Makers Association, India
Refractory recycling market and products in India
Vatsal Dhandharia, Proprietor, Global Recycling, India
Graphite developments, markets & India’s mineral challenge
Shishir Poddar, Managing Director, Tirupati Graphite PLC, UK

Full details

EARLY BIRD RATES FOR A LIMITED TIME

With refractory demand in Europe varying from flat to declining, refractory manufacturers are unsurprisingly putting the brakes on production until demand recovers.

Conrad Keijzer, CEO, Imerys explains poor EU steel performance Courtesy Imerys

Take Imerys for example, supplier of aluminosilicate materials and owner of refractory producer Calderys. At its recent H12019 investor presentation, Olivier Pirotte, CFO acknowledged that: “Iron and steel production has turned negative in Europe with production volumes worsening to minus 4.3% in Q2 from a decrease of 0.5% in Q1.”

Conrad Keijzer, CEO, summed up with: “What happened in the iron and steel industry is that in the first quarter, the furnaces were all still running and actually there was an inventory build, basically across all of the major iron and steel manufacturers in Europe. In the second quarter, you saw several announcements of capacity being taken out of the market and that is explaining the lower production rates in the second quarter affecting our high-temperature materials business.”

Imerys’ High Temperature Materials and Solutions business segment’s revenue totalled €1,037.0m. in the first half of 2019, a -1.2% year-on-year decrease on current basis.

World no. 2 refractory producer Vesuvius was somewhat more forthright with its take on the first half: “We have experienced challenging end markets in H1 2019 and we do not expect a recovery in H2 2019.”  Vesuvius’ Steel Division reported revenues of £614.9m in H1 2019, an increase of 0.6% compared to H1 2018.

With refractory producers having plenty of inventory of raw materials and end products (as much as 6-9 months worth), it is little wonder that they are refraining from purchasing any more raw materials.

The frustration for the procurement managers of Europe’s refractory companies (and Chinese refractory mineral suppliers for that matter), is that they are not being permitted to take advantage of Chinese refractory raw material prices having come down to a relatively lower level (especially for magnesia) over the last 12 months.

They are extremely keen to snap up stocks at this time, however, this is cutting little ice further up the management chain as steel remains in the doldrums. The situation in North America, with a slightly better steel performance, is less severe.

As the summer wears on, and autumn and winter loom large, attitudes may start to change as the ramifications of the latest dynamite ban, ongoing environmental controls, Liaoning magnesite mining control (whether to influence prices or for pollution control), and the threat of another October to March industrial shutdown, start to coalesce and impact the market.

We may well see an end of year rush, or perhaps more conservatively, a canter, to secure raw material for 2020. And, if there is a near term recovery in refractory markets, although unlikely, the canter will turn into a gallop.

Mike O’Driscoll is presenting on

“China’s magnesia demand and world magnesia production” 

at the 8th China Liaoning International Magnesia Materials Exposition, 11-13 September 2019, Haicheng, Liaoning 

Mike O’Driscoll and IMFORMED will also be attending and exhibiting at
62nd International Colloquium on Refractories, 25-26 September 2019, Aachen

UNITECR 2019, 13-16 October 2019, Yokohama

If you are also attending these events, please drop by for a chat, would be great to catch up.

August 2019 is a milestone month for speciality industrial minerals supplier Lehmann&Voss&Co. which celebrated its 125th Anniversary at the Hamburg Fischauktionshalle on 16 August.

The Management Board of Lehmann&Voss&Co. in front of the 3D racing sailboat with the First Mayor of the City of Hamburg, from left to right: Aage Barfuss, Soenke Thomsen, the First Mayor of the City of Hamburg Dr. Peter Tschentscher, Knut Breede, Dr. Thomas Oehmichen. Courtesy Lehmann&Voss&Co.

The First Mayor of the City of Hamburg, Dr. Peter Tschentscher, opened the festive evening in front of 600 guests. An eye-catcher at the event was the model of a 3D-printed racing sailboat made of carbon fibre reinforced high-performance polyamide by Lehmann&Voss&Co.

The Management Board of Lehmann&Voss&Co. in front of the 3D racing sailboat with the First Mayor of the City of Hamburg, from left to right: Aage Barfuss Soenke Thomsen, the First Mayor of the City of Hamburg Dr. Peter Tschentscher, Knut Breede, Dr. Thomas Oehmichen

The LEHVOSS Group, under the leadership of Lehmann&Voss&Co., is a group of companies which develops, produces and markets chemical and mineral specialities for a wide range of markets, including: chemicals, plastics, paint and coatings, pharmaceuticals, food and feed, beverages, rubber, lubricants, cellulose, refractory materials, and cosmetics.

To supply the above markets LEHVOSS handles industrial minerals including: basalt, bentonite, calcium carbonate, cenospheres, diatomite, fluorides, kaolin, magnesite, mica, perlite, rare earths, talc, wollastonite, and zircon

Under the trademark LUVOMAG® the group has developed a uniquely broad range of magnesia compounds and industrial minerals for many different applications and markets.

IMFORMED was honoured to have Lehmann&Voss&Co. as lead sponsor for MagForum 2018, held 17-20 June 2018, at the Grande Elysée Hotel, Hamburg, with 230 international attendees networking and discussing the key issues influencing the magnesia supply chain (for a review see Magnesia market summit: a Hamburg Humdinger; for a review of MagForum 2019 see Magnesia market meets in Bilbao).

LuV-ing it since 1894 for a range of minerals for niche markets

Lehmann&Voss&Co., Hamburg, was founded as a trading company in 1894. In its 125-year success story the owner-managed company has developed into a high-performing global organisation, relying on long-standing relationships with renowned, mainly foreign suppliers and with its own production sites in Europe, the USA and Asia.

The focus for many decades was initially on the German market. Starting in 1990, the company started to internationalise by offering products and services across Europe. Today LEHVOSS operates subsidiaries in Europe, USA, South Korea, and China.

Led by the executive management of Soenke Thomsen, Managing Partner and Spokesman, Knut Breede, Managing Partner, Dr. Thomas Oehmichen, Managing Partner, and Aage Barfuss, Managing Director, LEHVOSS (not counting equity holdings) employed 637 workers in 2018, earning €384m. in revenue. 

Earlier this year, the group strengthened its profile with a new brand message, “We LuV it.”, and commissioned its new €4.5m. laboratory and pilot plant building now relocated at the Hamburg-Wandsbek site (right).

The facility is used for quality testing of raw materials and sales products, for the development of LEHVOS products and for formulation development based on our products in support for our customers.

Wollastonite supply from Wolkem India

In March 2019, Lehmann&Voss&Co. announced its distribution partnership with leading wollastonite producer Wolkem India Ltd.

With the acquisition of the business operations of the Osthoff Omega Group, Norderstedt, Germany effective 1 January 2019, Lehmann&Voss&Co. also acquired the distribution rights for wollastonite for Wolkem India Ltd.

The exclusive distribution partnership comprises the product groups KEMOLIT and FILLEX in Germany, Austria, Switzerland, the Czech Republic and Turkey.

Wollastonite has been used as a functional reinforcing filler for many years. Wolkem’s wollastonite is well established in many technical applications, including: the plastics sector (eg. thermosets, engineering thermoplastics); for the friction sector (eg. brake pads); and in surface technology for powder or anti-corrosion coatings.

Claimed as the world’s largest miner and producer of wollastonite, Wolkem is a 100% family-owned business established in 1972 in Rajasthan, north-west India, and employs over 2,000 staff.

The company is also India’s leading miner and producer of calcium carbonate and produces other minerals including talc, lime, limestone, dolomite, and cenospheres. Wolkem has 20 mining and processing plants in six Indian states, producing over 100 mineral grades/products, exporting to over 20 countries.

Of the total resources of Indian wollastonite, about 88% (14.47m. tonnes) including 2.24 m. tonnes reserves are located in Rajasthan, and the remaining about 12% resources (1.99m. tonnes) in Gujarat. Major Rajasthan deposits of wollastonite are found in Ajmer, Dungarpur, Pali, Sirohi, and Udaipur districts.

According to the Indian Bureau of Mines, Indian production of wollastonite was 153,000 tonnes in 2017-18, a decrease of 8% compared to 166,000 tonnes in the preceding year.

Wolkem, mining in Udaipur and Pali, accounts for the majority of the Indian wollastonite production (92%), the other producer is Renu Atre, in Ajmer.

The bulk of the demand for wollastonite in India is for the ceramics market in the manufacture of floor and wall tiles. In ceramics, wollastonite decreases shrinkage and gas evolution during firing.

There are limited commercial sources of wollastonite, the world leader is China (530,000 tonnes in 2018), followed by India, then just the USA and Mexico as primary sources.

NYCO Minerals Inc., the US producer and world leader in surface modified wollastonite grades was acquired by Imerys in 2015 through its acquisition of S&B Industrial Minerals (see Imerys seals S&B acquisition: so what does it mean?).

In February this year, Imerys was forced to close the wollastonite plant in Willsboro, New York, owing to asbestos contamination. Imerys acknowledged the issue at a press conference in May, which unsurprisingly triggered a dramatic drop in the group’s stock price, by as much as 15% to €40.02, nearing an all-time low.

In its H12019 results, Imerys recorded that the impact of the temporary shutdown of the wollastonite plant amounted to a loss of operating income of €9.0m. The plant resumed operations in early June.

IMFORMED is delighted to announce that Wolkem India will be participating in our upcoming

Indian Minerals & Markets Forum 2019, 18-20 November, Mumbai

Gaurang Singhal, Director, Wolkem India Ltd, India, will be presenting

Wollastonite and its market outlook

Other speakers include:

Supply & demand of important industrial minerals in India
Dr. Pradeep Kumar Jain, Chief Mineral Economist, Indian Bureau of Mines, India
The climate & outlook for mineral project investment & development in India
John Evans, Managing Director, Tractus Asia Ltd, Thailand
Minerals for the electrification of India
Dr Richard Flook, Managing Director, Mosman Resources, Australia
Developing markets for Li-ion batteries in India & Asia
Alison Saxby, Director, Roskill Information Services, UK
Graphite developments, markets & India’s mineral challenge
Shishir Poddar, Managing Director, Tirupati Graphite PLC, UK
Opportunities for Indian filler mineral suppliers in plastics, rubber, & coating markets
Samantha Wietlisbach, Principal Analyst Chemicals, IHS Markit, Switzerland
Refractory raw materials supply & demand in India
Hakimuddin Ali, Director Business Development & Strategy, India

Full list of confirmed speakers and other details

For Registration, Sponsor & Exhibit enquiries, please contact

Ismene Clarke ismene@imformed.com | +44 (0)7905 771 494

Gujarat Fluorochemicals subsidiary to expand in Morocco

At a time when fluorspar consumers are pondering their limited sourcing options as restricted supply and high prices dominate the market, newcomer GFL GM Fluorspar SA in Morocco is expanding capacity to meet demand.

GFL GM Fluorspar’s open pit mine is located on the western slope of Jebel Tirremi, 10km north-west of Taourirt, Taourirt province, Morocco. Courtesy GFL

GFL GM Fluorspar SA, a subsidiary of Gujarat Fluorochemicals Ltd (GFL), India, is to expand production capacity of acid grade fluorspar (acidspar) at its Taourirt operation in Morocco.

The mine and beneficiation plant have been operational since 2018 with a capacity of 40,000 tpa acidspar, which is now planned to be increased to 60,000 tpa, expected to be complete by Q2 2020.

The acidspar has very low content of arsenic, iron and phosphorous, at 0.006%, 0.2%, and 0.03%, respectively.

Owing to the strategic location of the mine in the north-east of Morocco, with a distance of only 95km north to the port of Nador and just seven days shipping time to the main ports, supply will be targeted to customers in Europe and the Mediterranean.

GFL has appointed XENOPS Chemicals GmbH & Co. KG, Germany, a specialist sourcing company focused on the fine chemical and life science industries worldwide, as exclusive marketing and sales agent.

“This capacity becomes available as the international market for acid grade fluorspar remains tight in a continuing squeeze between supply and demand.” said Dr. Oliver Rhode, CEO, XENOPS (for a review of fluorspar supply and demand see Fluorspar supply: trade trends & new sources and Fluorspar markets: the cold, the hot, & the energetic).

GFL, part of the US$3bn INOX Group of Companies, is India’s largest polytetrafluoroethylene (PTFE) producer with hi-tech state of the art technology plants at Dahej, Gujarat. With its backward integration including caustic soda, hydrofluoric acid and captive power, GFL is one of the world’s most integrated PTFE producers, the company produces a range of fluorochemicals and fluoropolymers.

IMFORMED is delighted to announce that both GFL and XENOPS Chemicals will be participating in our upcoming

Fluorine Forum 2019, 21-23 October, Prague

Key trends and outlook for the fluorspar market
Oliver Rhode, CEO, Xenops Chemicals GmbH & Co. KG, Germany
India: An emerging market for acid grade fluorspar
Bimlesh Jain, Executive President (Corporate), Gujarat Fluorochemicals Ltd, India

Full programme here

Moroccan fluorspar rejuvenates

GFL GM Fluorspar SA is a joint venture company between GFL Singapore (74%) and Global Mines SARL established in 2015 for the purpose of mining fluorspar in Morocco.

GFL GM Fluorspar’s open pit mine is located on the western slope of Jebel Tirremi, 10km north-west of Taourirt, Taourirt province, near the Fes-Oujda highway. Although apparently known since the 1940s, the deposit had received little or no development until now.

According to a USGS report published in 1980, the deposit hosts fluorite veins and massive replacement veins as much as two metres in diameter, hosted by Jurassic limestone and dolomite.

The Taourirt mine and plant started up in 2018. The plant was temporarily shutdown owing to some initial recovery issues, but with improvements to the processing was later brought back on stream.

Despite GFL’s growing requirements for fluorspar as it increases production of its fluoroproducts, the company has decided to sell its captive fluorspar production to other consumers in Europe while prices remain high.

Morocco’s primary fluorspar producer has historically been Samine, a wholly‐owned subsidiary of Managem, which since 1974 has operated the underground El Hammam Mine, in the north-central area of the country, 330km east of Casablanca (and 370km south-west of Taorirt). In 2015, Samine had a capacity of 80,000 tpa acidspar concentrate which was exported from Casablanca.

However, in recent years, the El Hammam Central Orebody reserves have been nearing depletion, and Samine was evaluating new mining methods to develop recently discovered ore bodies which present challenges of thinner dimensions and longer haulage distances.

In 2017, total reserves were recorded at just 379,800 tonnes, while production had declined 15% from 2016 to 56,395 tonnes.

In 2018, production dropped again, by 13.5% to 48,781 tonnes, and reserves were standing at just 318,000 tonnes (plus 161,000 tonnes resources).

Managem has pursued a development strategy for product diversification, and R&D efforts resulted in metallurgical grade fluorspar (metspar) being developed for the cement market. Some 27,400 tonnes was produced in 2017, accounting for almost 50% of production.

Elsewhere in Morocco, small scale fluorspar volumes maybe co-produced at barite and lead-zinc operations. In 2015, Office National des Hydrocarbures et des Mines (ONHYM), in partnership with Garrot Chaillac SA of France, was developing the fluorspar-lead-barium Zrahina deposit, located in the Western High Atlas region.

With Managem investment efforts appearing to be aimed more at its gold, silver, copper, and cobalt activities in Morocco and elsewhere in Africa, GFL GM Fluorspar may well assert itself as the country’s leading acidspar producer.

Find out the latest on fluorine raw material supply and demand at

Fluorine Forum 2019

21-23 October, Prague 

Presentations include:
A new approach to mining fluorspar
Peter Robinson, Chairman, British Fluorspar UK Ltd, UK
Cost factor trends in fluorspar processing
Ashok Shinh, Ashok Shinh Consultancy Ltd, UK
The evolution of refrigerant gas and the role of Chemours in the market
John Zielinski, Executive Buyer Fluoroproducts, Chemours, USA
Trends in aluminium fluoride supply and demand
Adam Coggins, Analyst, Roskill, UK
HF and fluorine developments in Saxony and eastern Europe
Johannes Scheruhn, Managing Director, Scheruhn Industries, Germany

Other speakers & full programme here

Over 100 companies already registered

Including: Alufluor, Arkema, Canada Fluorspar ,
Central Glass , Chemours, Chenco, Do-Fluoride Chemicals, Industries Chimiques du Fluor,Halopolymer, Lanxess, Masan Resources, Minersa, Solvay – Full list here

For Registration, Sponsor & Exhibit enquiries, please contact
Ismene Clarke ismene@imformed.com | +44 (0)7905 771 494

Liaoning Jinding Magnesite Group Co. Ltd’s Huaziyu magnesite mine near Dashiqiao, Liaoning. Courtesy JDMG.

With disruption to Chinese magnesite mining activities, ongoing consolidation of the supply sector, and some new operations coming on stream, IMFORMED is looking forward to assessing the situation at next week’s 8th China Liaoning International Magnesium Material Exposition (8th CLIMME), to be held in Haicheng, Liaoning, 11-13 September.

Mike O’Driscoll, Director, IMFORMED, will be presenting “Magnesia in motion: A step change in China & world supply trends?” to distinguished delegates representing Liaoning’s magnesia and refractory sector, one of China’s leading powerhouses of the industrial minerals world.

If you’re attending or just in town, please contact me for a chat, would be great to meet up

mike@imformed.com | Mobile & WeChat 447985986255

Joining Mike on the podium will be a range of illustrious speakers, including:

Guangqi Han, Liaoning Special Resources Industry Development Center – “Present situation and sustainable development of Magnesite Industry in Liaoning Province”
Hongxia Li, President, Sinosteel Luoyang Institute of Refractories Research Co. Ltd – “Innovation Driving and Optimizing Upgrading of Refractories”
Xueda Wang, President Nakamura, Shinagawa, Japan – “Application and Technical Progress of Alkaline Refractories in Japan”
Gao Yin, ACRE Coking & Refractory Engineering Consulting Corp., MCC – “Liaoning magnesite industrial kilns and environmental protection status”

Complete programme & full details

The 8th CLIMME features two conferences: on magnesia/refractories; and on talc. The event was founded in Shenyang, Liaoning in 2004, and was held once every two years until 2018, when it was postponed.

It is to be resumed this year and organised by the Liaoning Province National New Raw Material Base Construction Engineering Centre, Liaoning Special Resources Industry Development Centre, Anshan Municipal People’s Government, and China Refractories Industry Association

As well as the two conferences, there is a concurrent exhibition which is largely a showcase for Liaoning’s significant magnesia, refractories, and talc sectors, and an opportunity to visit local producers.

Certainly, it will be interesting to see who’s who after almost three years of industrial disruption, closures, and rationalisation. Watch this space!

Read online now: China minerals 2019: bauxite & magnesia mid-year report – Year of the Pig starting to live up to its name?

Mike O’Driscoll and IMFORMED will also be attending and exhibiting at

62nd International Colloquium on Refractories, 25-26 September 2019, Aachen

UNITECR 2019, 13-16 October 2019, Yokohama

If you are also attending these events, please drop by for a chat, would be great to catch up.

Coming soon!

Early Bird Rates closing | Book now

PROGRAMME ANNOUNCED

Fluorine Forum 2019 details here

PROGRAMME ANNOUNCED

Indian Minerals & Markets Forum 2019 details here

India has always been one of the world’s great sources and markets for industrial minerals, but now looks set to significantly raise its profile.

Already the world’s fifth largest manufacturer, India remains on track to be the world’s fastest growing economy with IMF estimated GDP growth forecasts of 7.3% for FY2019 and 7.4% for FY2020.

Meanwhile, the fiscal average in GDP growth in the last five years has topped 7.5%, defining a new normal for the Indian economy.

This economic boom has naturally driven strong growth in primary mineral consuming market sectors such as construction, steel, foundry, cement, glass, ceramics, paper, paint and plastics. This has been reflected in recent activity by overseas manufacturers keen to establish subsidiaries and participate in joint ventures in India, eg. RHI Magnesita, Imerys, Vesuvius, Omya, Almatis.

At the start of 2019 India had overtaken Japan as the world’s second largest steel producer, and by the end of the year is expected to become the world’s second largest steel consumer.

IMFORMED’s Indian Minerals & Markets Forum 2019, 18-20 November 2019, Mumbai will examine and discuss the current status and outlook for India’s key industrial minerals and markets and bring together all the key players involved and those looking to acquire the latest knowledge in this fascinating growth market.

Plus delegates will have the excellent and exclusive opportunity following the conference on 21-22 November 2019 to visit the mineral operations of leading Indian industrial minerals group Ashapura Minechem Ltd in Gujarat.

Full details here

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However, despite having an abundance of mineral resources, some of which still enjoy strong export markets, there are certain domestic markets which have been caught out by their overreliance on Chinese mineral imports – now interrupted, and in some cases declining in availability, while fluctuating in price – which has forced an urgent reassessment of domestic and import options.

This has given rise to a new wave of mineral resource and product development in India (and other Asian countries) as the challenge grows for consumers keen to secure new and alternative sources of industrial mineral supply as their markets expand.

The mining and minerals sector in India is expected to witness a major upward transition in the next few years, boosted by a new National Mining Policy unveiled in February 2019 (to mixed reviews), and driven by nationwide reforms such as “Make in India” initiative (making India a global manufacturing hub), “Smart Cities Mission” (urban renewal and retrofitting), “Saubhagya scheme” (rural electrification), and a focus on building renewable energy projects under the National Electricity Policy.

Rising demand from infrastructure and transportation sector schemes such as housing for all by 2022, “Bharatmala Pariyojana scheme” (84,000km new highways by 2022), expansion of the railway network, and development of “Industrial Corridors” (eg. Amritsar-Delhi-Kolkata, Bengaluru-Mumbai, Visakhapatnam-Chennai ) will also help boost and facilitate mineral demand.

India’s minerals: dominated by non-metallics

During 2017-18, India’s mining and quarrying industry accounted for about 2.3 % of the GVA (gross value added) at current prices, and, according the latest data from the Indian Bureau of Mines (IBM), mineral production in India increased by 2.3% (as per index of mineral production base year 2011-12) compared to the previous year.

This increase was mainly owed to a rise in production of raw coal, lignite and natural gas among fuel minerals; copper concentrates, gold, iron ore, lead concentrates, zinc concentrates, manganese ore and tin concentrates, among metallic minerals; and phosphate, diamond, fluorspar, garnet, kyanite, sillimanite and limestone among non-metallic minerals.

The value of metallic minerals produced in 2017-18 was INR500bn(US$7bn), an increase of about 27% over the previous year. Non-metallic minerals’ value was INR82bn(US$1bn), representing a decrease of 2%.

However, it should be noted that these figures do not account for “atomic minerals” (uranium, thorium, niobium, tantalum, beryllium, lithium, zirconium, titanium, rare earths), and, crucially, “minor minerals” (all other industrial minerals) as classified by the IBM.

The so-called “minor minerals” include many significant industrial minerals in which India is a world leading producer (eg. barite, bentonite, feldspar, kaolin, silica sand, talc), whose producers report production data directly to their respective state authorities and not to the IBM.

Nevertheless, it is clear that industrial minerals very much dominate India’s mining industry and are integral to the country’s economic ambitions (see table for summary of mineral production).

Presenting at Indian Minerals & Markets Forum 2019, Mumbai, 18-20 November we are delighted to welcome:
Supply and demand of important industrial minerals in India
By Dr. Pradeep Kumar Jain, Chief Mineral Economist, Indian Bureau of Mines, India

Investment: climate ripe although new mining policy questioned

With barely 20% of reserves mined, India presents a major opportunity for investors. The Geological Survey of India has earmarked 100 blocks for auctioning regional exploration.

100% FDI is allowed in the steel and mining sectors under the automatic route, and some US$13.83bn of FDI has been chanelled into the metallurgical and mining sectors since 2000.

On 28 February 2019, the Union Government approved the National Mineral Policy 2019, the key focus of which is on transparency, better regulations and enforcement, balanced growth and sustainability. The National Mineral Policy 2019 replaces the National Mineral Policy 2008.

Key features include:
• Encouraging the private sector to take up exploration
• Encouragement of merger and acquisition of mining entities
• Creation of dedicated “mineral corridors” to boost private sector mining areas
• Proposals to grant status of industry to mining activity to boost financing of mining for private sector and for acquisitions of mineral assets in other countries by private sector
• Long term import-export policy for minerals will help private sector in better planning and stability

The new policy has been described as both appropriate and timely. India’s mining sector has suffered many challenges including illegal and inefficient mining, environmental and statutory process violations, and a lack of investment.

However, the policy has not altogether been received as satisfactory, with some claiming it does very little to reform the country’s mineral sector.

Of high concern is a perceived lack a focus on the future of India’s minerals security. Owing to little or no major exploration and discoveries of certain domestic minerals, there has not been any significant change to their inventory base for decades. Moreover, there has been little development in required mineral processing technology. Opportunity knocks for new mineral investors and developers?

Presenting at Indian Minerals & Markets Forum 2019, Mumbai, 18-20 November we are delighted to welcome:
The climate & outlook for mineral project investment & development in India
John Evans, Managing Director, Tractus Asia Ltd, Thailand
Risks, concerns, & impact of mineral legislation & India’s mineral requirements to 2050
Anurag Ojha, Senior Manager (Mining), NMDC Ltd, India
Trading and investing in Indian industrial minerals
Ajay Kulshreshtha, AK Minerals Consultancy Services, India

Refractories: driven by steel growth

India is now the second largest crude steel producer in the world, generating an output of 106.5m tonnes in 2018, a growth of 3.7% year-on-year. Indian steel demand is set to grow by 7.1% in 2019 while globally, steel demand has been projected to grow by 1.3%. India is certainly one of the few bright spots for world steel growth.

As well as expanding, the Indian steel industry is producing higher grade steels which is demanding higher quality refractories and consequently higher quality refractory minerals. A major challenge is that much of India’s refractory raw material requirements are imported.

Refractories production in India for FY 2018-19 was 1.2m. tonnes, representing a significant recovery and growth of 9% over the previous year, driven mostly by steel, but also by the country’s growing cement and glass sectors.

Leading international refractory groups are present in India, eg. Krosaki Harima, RHI Magnesita, Vesuvius, and activity is increasing.

May 2019 saw Dalmia Seven, the Katni, Madhya Pradesh-based monolithics joint venture between Dalmia-OCL, India’s fastest growing refractory company, and Seven Refractories of Slovenia come on stream.

Meanwhile, RHI Magnesita expects in November 2019 to complete the merger of its three arms in India to become the largest refractory company in the country: Orient Refractories, RHI Clasil, and RHI India will become a single entity, RHI Magnesita India.

Parmod Sagar, CEO, RHI Magnesita India, said: “RHI Magnesita remains upbeat on the prospects of the Indian economy despite the current [global] downturn. The current situation is a temporary phase, before steel and cement sector will show a steep rise.”

Presenting at Indian Minerals & Markets Forum 2019, Mumbai, 18-20 November we are delighted to welcome:
New refractory developments
Ashapura Group, India
Refractory raw materials supply & demand in India
Hakimuddin Ali, Director Business Development & Strategy, Imerys, India
Overview of supply and demand of India’s refractories
Sameer Nagpal, CEO-Refractories, Dalmia OCL Ltd, India
Influencing factors impacting India’s refractories market
Anirbandip Dasgupta, Senior Executive Officer, Indian Refractory Makers Association, India
Secondary raw materials for refractory industry
Dr. Nilachala Sahoo, Director (Technical), Chaitanya Refractory Pvt Ltd/Global Recycling, India

Ceramics & Fillers: construction boom looms

Driven by the growing construction sector and a rise in exports, the Indian ceramic industry, which has the potential to be the largest producer in the world, is looking to double its turnover by 2021.

The industry produces around 2.5% of the total global output, in which Gujarat accounts for 70% of the total output.

With many new infrastructure projects in the pipeline, the construction sector is growing at an approximate rate of 7-8% per annum. The demand for industrial ceramic products such as ceramic tiles, sanitaryware and pipes required in construction applications are therefore expected to follow suit.

Planned infrastructure projects are also driving growth in India’s plastics market and these are
supported by upcoming domestic capacity increases in plastics manufacturing. There are huge growth opportunities in India for plastics owing to lower per capita consumption as compared to the world average.

According to PlastIndia Foundation, the 2017-2022 13th Year Plan is showing an average of 8% GDP growth with a 10.4% growth in polymer consumption.

Presenting at Indian Minerals & Markets Forum 2019, Mumbai, 18-20 November we are delighted to welcome:
Wollastonite and its market outlook
Gaurang Singhal, Director, Wolkem India Ltd, India
Feldspar and quartz production and markets
Dr. B. Venkatachalam, Director, Gaangey Minerals Pvt. Ltd, Group, India
Ceramic raw materials and the importance of white clay
Jayesh Dave, General Manager, Radheshyam Minerals, India
Opportunities for Indian filler mineral suppliers in plastics rubber & coating markets
Samantha Wietlisbach, Principal Analyst Chemicals, IHS Markit, Switzerland

Processing: essential support to mineral development

Core to the successful development and expansion of India’s mineral sector is the investment in and utilisation of modern processing technology.

Without the appropriate crushing and grinding equipment, calcination technologies, and beneficiation methods, India’s minerals will be unable to meet the growing and increasingly sophisticated requirements of the expanding minerals consuming markets.

Presenting at Indian Minerals & Markets Forum 2019, Mumbai, 18-20 November we are delighted to welcome:
Future oriented processing technology for high-end industrial minerals & their applications
Dietmar Alber, Business Development Director, Minerals & Metals Division, Hosokawa Alpine AG, Germany
Water-free electrostatic processing of fine minerals
Kyle Flynn, Sales Engineer, ST Equipment & Technology, USA
Wet processing of industrial minerals in India and South East Asia
Dr. Arabinda Bandyopadhyay, Chief Technologist, CDE Asia Ltd, India

Future developments: electrification & battery markets

As well as meeting the demand of India’s growing existing markets, mineral developers are also looking to the future mineral consuming markets in the region, in particular the new generation energy markets using lithium-ion batteries and solar power.

In January 2019, the government of India declared victory in rural electrification. According to widespread media reports, Prime Minister Modi’s Saubhagya scheme (free or heavily subsidised connections, launched in 2017) had met its goal of electrifying all Indian households a few months before the official deadline of 31 March 2019.

While there remains debate over the precise numbers and the “household” definition, the electrification of some 214m. households is no mean feat.

The lithium-ion battery market is expected to grow exponentially in the next five years in India, driven by initiatives such as the National Electric Mobility Mission Plan 2020, with a projection of having 6-7m electric vehicles on Indian roads by 2020, and installation of 175 GW of renewable energy by 2022.

Presenting at Indian Minerals & Markets Forum 2019, Mumbai, 18-20 November we are delighted to have:
Minerals for the electrification of India
Dr Richard Flook, Managing Director, Mosman Resources, Australia
Li-ion battery market
Alison Saxby, Director, Roskill Holdings, UK
High purity quartz supply & demand
Murray Lines, Managing Director, Stratum Resources, Australia
Graphite developments, markets & India’s mineral challenge
Shishir Poddar, Managing Director, Tirupati Graphite PLC, UK

The best route to understanding India’s industrial minerals markets for today and tomorrow

Indian Minerals & Markets Forum 2019
Mumbai, 18-20 November

EARLY BIRD RATES CLOSE MONDAY 7 OCTOBER – REGISTER NOW

Online registration here, or

Contact Ismene ismene@imformed.com | +44 (0)7905 771 494

Two weeks to go until Fluorine Forum 2019

With just under two weeks until IMFORMED’s Fluorine Forum 2019 at the Alcron Hotel, Prague, on 21-23 October, the great and the good of the global fluorine raw materials supply chain are readying themselves for two days of exceptional presentations, discussion, and networking.

In recent months the fluorine raw material supply market has had a several significant developments which are already raising questions and comments with regard to 2020 and beyond.

SepFluor Ltd in South Africa announced the official start-up of its Nokeng Fluorspar Mine and Plant Project in August and commenced loading its first 2,000 tonnes of acidspar on 24 September for European customers via Rotterdam.

The mine’s concentrator is designed to produce around 180,000 tpa of acid grade fluorspar (97% CaF2) and 30,000 tpa of metallurgical grade fluorspar from run-of-mine fluorspar ore production of 630,000 tpa.

SepFluor completed its Nokeng Fluorspar Mine and Plant in August (top) while in September a first shipment of 2,000 tonnes acidspar was loaded, to go by road to Durban, then to Rotterdam (bottom) “This is a key milestone for the company and we remain focused on the successful ramp-up of operations towards nameplate capacity’” said CEO, Rob Wagner. Courtesy SepFluor

Canada Fluorspar Inc (CFI) now appears unlikely to reach its nameplate acidspar capacity of 200,000 tpa acidspar concentrate at St Lawrence, Newfoundland, before the end of the year owing to technical issues.

Meanwhile, GFL GM Fluorspar SA, a subsidiary of Gujarat Fluorochemicals Ltd (GFL), India, is to expand production capacity of acid grade fluorspar at its Taourirt operation in Morocco.

The mine and beneficiation plant have been operational since 2018 with a capacity of 40,000 tpa acidspar, which is now planned to be increased to 60,000 tpa, expected to be complete by Q2 2020 (see New fluorspar source for European markets).

GFL GM Fluorspar’s open pit mine is located on the western slope of Jebel Tirremi, 10km north-west of Taourirt, Taourirt province, Morocco. Courtesy GFL

Mongolian fluorspar production has experienced a rejuvenation in 2018 and 2019 with increased output taking up the slack from declining Chinese availability, but political changes in the country have complicated and hindered fluorspar investment and development.

Australian Bauxite Ltd’s (ABX) wholly-owned subsidiary, ALCORE Ltd has achieved production of test samples of aluminium fluoride (AlF3) and several valuable co-products at its pilot plant in Berkeley Vale, New South Wales. Grades produced ranged 31.1-35.8% Al, 54.8-60.3% F.

This is an ongoing project by ABX to develop bauxite deposits in eastern Australia and Tasmania, which includes AlF3 production from low grade bauxite for aluminium smelters and Li-ion battery manufacturing.

In early September, leading fluorspar and fluorochemicals group Mexichem announced a major restructuring and name change: Mexichem’s corporate name has been changed to Orbia Advance Corp., headquartered in Boston, and Mexichem Fluor has become Koura Global.

Described as a “Human-Centered Business Transformation” the move reflects a year-long process to transform the company into a “future-fit, human-centered organisation… to address the challenges that define how people live and thrive today and in the future.”

In addition to the fluorspar business, Orbia is a world leader in speciality products and innovative solutions across multiple sectors of industry and commerce, from agriculture and infrastructure to telecommunications, and healthcare.

Key among the leading discussion topics at Prague will be:

• The changing role & performance of Chinese fluorspar supply & markets
• Ramifications of the latest round of environmental inspections affecting Chinese fluorspar and HF production
• Mongolia’s fluorspar future & trade with China and the world
• Which new world supply sources are emerging and when?
• How the world market will absorb new supply
• Is clarity on accurate world fluorspar consumption achievable?
• Changing demands for F compounds in the cooling markets
• How will growth in Li-ion, and maybe F-ion, batteries affect acidspar demand and price?
• Influence of trade wars & recession-hit industries on demand
• Impact of illegal HFC trade on EU emissions targets
• FSA processing & technologies to consider as real alternatives

Programme update: enter New Chemical Products, Russia

Owing to a late speaker drop-out, the Fluorine Forum 2019 programme has been updated with a slight alteration on Day 2 in order to accommodate a new speaker on a most exciting topic for the market.

IMFORMED is delighted to welcome Bob Welch, Sales Director, New Chemical Products LLC, USA to present on “A new proven technology to recover Anhydrous HF from FSA”.

Accompanying Bob will be Anton Mamaev, President, New Chemical Products, who will be participating in the Alternative Sources Roundtable.

Following the Welcome Reception, kindly sponsored by SepFluor Ltd, and featuring local musical entertainment, we have two full days of presentations and discussion:

OVERVIEWS
Key trends and outlook for the fluorspar market
Oliver Rhode, CEO, Xenops Chemicals GmbH & Co. KG, Germany
Trade & tariffs: Where we’ve been and where we might go
Ray Will, Director of Specialty & Inorganic Chemicals Consulting, IHS Markit, USA
MINING & PROCESSING
Cost factor trends in fluorspar processing
Ashok Shinh, Ashok Shinh Consultancy Ltd, UK
Fluorspar mining in Europe: mineral waste (tailings) management in a National Park
Peter Robinson, Chairman, British Fluorspar UK Ltd, UK
Fluorspar mining in the Czech Republic
Vít Kučera, Managing Director, Fluorit Teplice s.r.o., Czech Republic
SUPPLY: VIETNAM | CHINA
Nui Phao: Striving to be the best-in-class supplier
Craig Bradshaw , CEO, Masan Resources Group, Vietnam
The development of China’s fluorspar industry
Usman Khan, CEO, Kcomber Inc., China
China’s fluorspar market update
Liao Xinhua , Chairman, CNMIA Fluorspar Committee, China
MARKETS 1: REFRIGERANTS
The evolution of refrigerant gas and the role of Chemours in the market
John Zielinski, Executive Buyer Fluoroproducts, Chemours, USA
Changes in refrigerant use and its impact on the air conditioning and refrigeration markets
Andrea Voigt, Director General, European Partnership for Energy & the Environment, Belgium
MARKETS 2: HF & FSA DEVELOPMENTS
HF and fluorine developments in Saxony and eastern Europe
Johannes Scheruhn, General Manager, Scheruhn Minerals and Chemicals GmbH, Germany
HF from Fluorosilicic Acid (FSA): challenges and opportunities
Datta Umalkar, Technical Consultant, Chenco GmbH, Germany
A new proven technology to recover Anhydrous HF from FSA
Bob Welch, Sales Director, New Chemical Products LLC, USA
MARKETS 3: FLUOROCHEMICALS | ALUMINIUM FLUORIDE
India: An emerging market for acid grade fluorspar
Bimlesh Jain, Executive President (Corporate), Gujarat Fluorochemicals Ltd, India
Downstream markets for fluorochemicals, through to fluoropolymers & fluoroelastomers
Samantha Wietlisbach, Principal Analyst, Chemical, IHS Markit, Switzerland
Trends in aluminium fluoride supply and demand
Adam Coggins, Analyst, Roskill, UK

Plus, our acclaimed Roundtable Networking & Discussion session with table themes on China,
Alternative Sources, Processing Cost Factors, Aluminium Fluoride and Fluorochemicals.

Click here for full details and timings

Fluorine Forum 2019, 21-23 October, Prague

130 attendees already registered | Book now!

Register online here, or

Contact Ismene ismene@imformed.com | T: +44 (0) 7905 771 494

JUST ONE WEEK TO GO!

Forum Update | New Speakers

IMFORMED’s Indian Minerals & Markets Forum 2019, takes place on 18-20 November, at the JW Marriott Mumbai Juhu.

India’s minerals industry is on the threshold of a new era with exciting growth potential in both established and emerging new mineral consuming markets.

Programme Update

New speaker additions include:

Indian mining & minerals industry: opportunities & vision 2030
Arpan Gupta, Deputy Director & Head, Mines, Metals & Cement, FICCI, India

Kyanite in refractories: Indian economic drivers & markets
Aditya Newalkar, Executive Director, Maharashtra Minerals Corp. Ltd

We have a superb panel of expert speakers covering the key topics that are shaping India’s industrial minerals business future.

• Indian minerals overview

• Investment climate

• Mineral policy

• Mining outlook

• Trading

• Refractories

• Ceramics

• Fillers

• Processing

• Batteries

• New energy

Full Programme Details

Welcome Reception, Monday evening 18 November sponsored by   

Day 1 Reception, Tuesday evening sponsored by

Plus an exclusive Field Trip to the operations and sights of Ashapura around Bhuj, Gujarat. Full details.

You can still join us

Register  online here or,

Contact Ismene Clarke ismene@imformed.com 

T: +44 (0)7905 771 494

 Fluorine Forum 2019 Review

The great and the good of the global fluorine raw material supply chain gathered in Prague last month for an excellent three days of high profile presentations, discussion, and invaluable networking.

IMFORMED’s Fluorine Forum 2019, 21-23 October, was held at the centrally located and iconic Alcron Hotel in Prague. Now in its third year, the Fluorine Forum has clearly established itself as the primary annual meeting point for all those active in the fluorine raw materials industry.

The Sepfluor-sponsored Welcome Reception entertained with a fine Czech folk music band as delegates met and mingled on the eve of a busy but most rewarding conference.

“Excellent programme and venue, perfect exchange between participants.”
Erika Utner, Commercial Manager, CHENCO, Germany

“Thank you for providing a very well organised event and the opportunity to present to my peers and leaders in the fluorine industry.”
John Zielinski, Category Manager Fluoroproducts, The Chemours Co., USA

“Thank you for a great conference. Excellent speakers and attendee list.”
Bill Dobbs, Chief Executive Officer, Canada Fluorspar (NL) Inc., Canada

“Well thought discussions and presentations, roundtables gave an opportunity to interact.”
Haridas Sreedharan, President Supply Chain, Navin Fluorine Intl. Ltd, India

“Well-rounded programme, well put together, good venue and attendance.”
Malcolm Crawford, Delta Minerals Ltd, UK

CLICK HERE FOR Summary Slide Deck (programme, attendees, feedback) & Picture Gallery

Supply trends, trade & outlook

Mike O’Driscoll, Director, IMFORMED, UK, set the scene by highlighting some of the key evolving supply and trade trends, and underlined key discussion points for the next two days.

Oliver Rhode, CEO, Xenops Chemicals GmbH & Co. KG, Germany, presented “Key trends and outlook for the fluorspar market” covering global facts and figures, a focus on China with trade statistics and future trends, pricing and outlook, and new “European” supply alternative for acidspar.

Rhode asked the audience if lessons had been learned over the last decade, noting that many of the key issues and questions in 2009 remain just as apt in today’s market.

China’s role in the global fluorspar market has changed significantly, a net-importer of metspar, but not acidspar…yet. “Chinese fluorspar doesn’t have a major impact on global markets anymore. And Mongolia won’t continue China’s previous role in being the leading exporter to global markets.” said Rhode.

“Overall, the fluorspar market remains tight, even when the new producers are running at nameplate capacity next year. There are new projects, but it is not clear when they will start commercial production. And Plan B? sell to China! The biggest threats are a trade war, Brexit, and a global recession” concluded Rhode.

In “Trade & tariffs: Where we’ve been and where we might go”, Ray Will, Director of Specialty & Inorganic Chemicals Consulting, IHS Markit, USA, examined the impact of US-China tariffs and trade, and Brexit on fluorspar and fluorochemical trade.

Will brought us up to date with the latest on the US-China trade tariffs issues and its impact on HF, aluminium fluoride, and HCFC-22 (see below).

Will also pointed out that Brexit may well be consequential for UK-EU trade since most of the UK’s HF imports are from Europe, most of the UK’s acidspar exports are to Europe, and most of the UK’s PTFE trade is with Europe.

Just before the conference broke for morning coffee, delegates were invited to participate in our now regular, and very well-received, live online poll – a short period of gauging the audience’s feedback on certain topical market questions, it was insightful and fun. See below for some of the results:

Mining & processing | Fluorsid seeks fluorspar sources

“Cost factor trends in fluorspar processing” by Ashok Shinh, Ashok Shinh Consultancy Ltd, UK reviewed cost trends on acid grade fluorspar, hydrofluoric acid and aluminium fluoride.

Shinh commented that global economic growth is set to moderate in the near term, with GDP growth falling to around 3% p.a. and Chinese GDP is projected to slow to around 6%.

He considered that cost pressures on fluorspar processing should ease in the near term, translating into some softening of fluorspar prices. However, in the longer-term a tighter supply/demand balance for acid grade fluorspar should support a rebound in prices.

“The softening of acid grade fluorspar costs will feed into and impact hydrofluoric acid and aluminium fluoride productions costs. Prices for both these products should also ease in the near term.” said Shinh.

“Fluorspar mining in Europe: mineral waste (tailings) management in a National Park” by Peter Robinson, Chairman, British Fluorspar UK Ltd, UK, began with a significant announcement regarding Fluorsid’s future strategy in the fluorspar market.

“The market is approaching an imbalance between raw material demand and supply” intoned Robinson, before bringing the audience up to date with Fluorsid’s recent expansion activities and its ultimate aim for strengthened integration.

“Fluorsid is now a substantial fluorochemical company, and arguably the consumer of 5-11% of the acidspar market” said Robinson.

The group is to embark on exploration and development of fluorspar mining capabilities in order to improve its security of raw material supply, seeking captive sources in Europe and overseas – a prospect in South America is under development.

Robinson warned that the “usual” lead time of some ten years to start up a new fluorspar mine was too long, and Fluorsid would be seeking smaller scale, low cost projects, using semi-mobile plants, with 2-3 years lead time, and at the 50-75,000 tpa fluorspar level.

Robinson reviewed the processing at British Fluorspar, UK, where 1,310 tpd of polymetallic ore is processed at the Cavendish plant, explaining the importance and rewards of tailings processing, and reminding that in the overall cost of processing, “cost of recovery is King”.

“Fluorspar mining in the Czech Republic” by Vít Kučera, Managing Director, Fluorit Teplice s.r.o., Czech Republic, neatly provided a brief history of mining activities, market and a look into the future for the Czech Republic.

Fluorspar was produced between 1957 and 1993 at an average of 45,000 tpa, most deposits, hosting steeply dipping fluorspar veins, were located along the north-west border of the country, the main ones being Moldava and Harrachov.

The ore was processed at Teplice using two flotation lines each with 17 cells and using dense media separation to process metspar.

However, the 1990s saw major changes – Chinese imports, domestic industry restructuring, declining use of metspar in steel plants, HF manufacture ceased – which eventually closed the mines in 1995.

There remains a tailings processing project at Proboštov, potentially for the cement industry, and exploration licences at Moldava and Kovářská.

Fluorit Teplice s.r.o. based on site of the original flotation plant is active in trading and processing fluorspar, dead burned magnesia and other minerals, with a capacity of 50,000 tpa.

Of significant interest is the attention (by European Metals) to the potential development of Europe’s largest and the world’s fourth largest non-brine lithium deposit at Cínovec, combined with Skoda’s plans for future EV production, which may yet revive mining prospects in the Czech Republic (and surrounding region – see Johannes Scheruhn’s comments below).

Vietnam & China | All change for the new & the old

In presenting “Nui Phao: Striving to be the best-in-class supplier”, Tony Fitzgerald, former Sales & Marketing Director, Masan Resources Group, Vietnam, offered delegates more than an inkling of what they would be lucky enough to see first hand by attending next year’s event: Fluorine Forum 2020, Hanoi, 12-14 October 2020.

Fitzgerald took us from the first identification of the polymetallic ore deposit at Nui Phao in 2000, through to plant ramp up and commercial production in 2015, to operational efficiency and cost optimisation in 2017.

Key to the project’s success has been meeting a raft of community needs and compliances, such as successfully resettling >900 families as part of progressive resettlement to Equator Principles & IFC guidelines, as well as adhering to some of the strictest wastewater discharge standards in the world – above some EU standards.

It was clearly a period of much lesson learning: “You need an intellectually curious technical processing team – you constantly try to refine your processes. You have to be prepared to fail.
It is obvious, but you can never take the customer for granted. Requirements continue to change and evolve.” said Fitzgerald.

“The development of China’s fluorite industry” by Usman Khan, CEO, Kcomber Inc., China, covered prices of Chinese fluorochemicals, fluorspar production, consumption, prices and trade, and outlook trends.

The fluorochemical industry consumes the largest proportion of fluorspar in China (50%), followed by metallurgy (25%), construction (15%), and others.

The Chinese fluorspar industry is aiming at a large scale standardised and centralised, integration. To this end, the Fluorspar Industry Development Association has been established and industry standards have been published. China’s 13th Five Year Plan (2016-20) has included a plan for development of China’s fluorochemical industry.

“China’s fluorspar market update” by Liao Xinhua, Chairman, CNMIA Fluorspar Committee, China, provided a more detailed review of Chinese fluorspar supply and demand conditions.

The supply sector has continuing challenges such as: mining license renewal delays, temporary and permanent shutdowns, closure of most small-sized mines, unsustainable utilisation of low-grade ores, and many mid-/large-sized mines are now entering ore depletion phase.

There were just 251 mines by the end of 2018, down from >1,200 in 2013. All of the fluorspar mines are closed in Xinyang, Henan (200,000 tonnes capacity), Guangde, Anhui (300,000), and Qilianshan, Gansu (350,000).

Moreover, there is a lack of new sizable mines and resources and raw ore is being imported from Mongolia. Some new resources have been discovered in the south-west and north-west regions but production and transportation costs would be high.

“The impact of China to the world fluorspar industry has changed from a major fluorspar exporter and being downstream fluorochemicals import-dependent, to an exporter of the downstream fluorochemicals and importer of fluorspar.” said Liao.

Refrigerant market: trends & transitions

“The evolution of refrigerant gas and the role of Chemours in the market” by John Zielinski, Executive Buyer Fluoroproducts, Chemours, USA, reviewed Chemours fluorochemical products and the UN’s sustainable development goals before highlighting the environmental challenges driving industry transitions, ie. the recent global Kigali Amendment: HFC Phase-Down and the earlier Montreal Protocol: R-22 Phase-Out.

“Although not fully ratified by all signers of the Montreal Protocol, the belief is that Kigali will ultimately be fully ratified and set the direction for the global refrigerant market.” said Zielinski.

Most instructive for the attendees was a very neat explanation in determining the nomenclature of the myriad refrigerants eg. R-134a, 1234yf.

The evolution of refrigerant technology was outlined. “Selection of refrigerants for the future will need to balance performance (capacity and efficiency), safety and sustainability, and total cost of system ownership.” said Zielinski.

“Changes in refrigerant use and its impact on the air conditioning and refrigeration markets” by Andrea Voigt, Director General, European Partnership for Energy & the Environment, Belgium, reminded how we must not take the function of cooling for granted, with its critical use throughout everyday life and industry.

Voigt explained the 4 main pillars of the EU F-Gas Regulation: Sectoral bans; HFC phase-down; Competence; and Containment, before reviewing how it worked and if is it working. HFC emissions have been decreasing since 2014, with expected emission savings of 71 Mt CO2-eq by 2030, in addition to the first F-Gas regulation.

During the small phase-down steps in 2016/17, refrigerant prices spiked in response, partly owing to a lack of awareness and anticipation, panic reactions when the 2014 stockpile was gone and with the looming 2018 step-down, plus illegal imports.

Overall, Voigt considered that there was no need to replace F-gas compounds as long as there were many other low GWP refrigerants in the pipeline.

HF & FSA | Battery market & FSA-sourced HF emerging

“New fluorite mining and downstream activities in Saxony and Eastern Europe” by Johannes Scheruhn, General Manager, Scheruhn Minerals and Chemicals GmbH, Germany, introduced Scheruhn Minerals & Chemicals and the Fluorchemie Group, before relating historic mining in Thuringia and Saxony, why there is new mining in eastern Germany, and new downstream activities.

Scheruhn underlined a number of drivers, such the EU Resource Risk Assessment, trade wars, and climate agreements, which have shifted focus onto a new outlook involving new downstream industries, specifically Li-ion batteries (LIB) in EVs.

LIB use an electrolyte comprising the fluorine containing compound LiPF6. By 2040, some 100-153,000 tonnes of LiF will be required to meet LiPF6 demand. This has prompted the potential of “new mining” in eastern Germany for fluorspar and lithium.

This has been given added impetus by Chinese battery making giant CATL starting construction of a €1.8bn plant at Erfurt, Thuringia, expected on stream in early 2022.

Also of significance, in nearby Poland, announced in June 2019, South Korean group Foosung is to build Europe’s first LiPF6 plant in Kędzierzyn-Koźle, starting up in 2021.

“HF from Fluorosilicic Acid (FSA): challenges and opportunities” by Datta Umalkar, Technical Consultant, Chenco GmbH, Germany, reviewed the importance of HF and emphasised that the economics of the HF production process depends heavily on fluorspar price, with around 60% of production cost attributed to fluorspar.

Umalkar detailed the alternative production process of HF from FSA, concluding that the FSA process has more pros than cons: FSA is more economical, more environment friendly, and further R&D will make it far more competitive than fluorspar.

“FSA will be more attractive to new investors than current HF manufacturers. The new producers of HF are more likely to be from the phosphate fertilizer industry rather than stand alone producers.” postulated Umalkar.

“A new proven technology to recover Anhydrous HF from FSA” by Bob Welch, Sales Director, New Chemical Products LLC, USA, was a very engaging insight into a relatively new company in Russia which has developed highly efficient processes to recover high purity AHF from depleted UF6 and to extract 100% AHF from 25% hexafluorosilicic acid.

A 250 tpa plant was completed in mid-2018 and results sent to various institutions including the Russian Council of Science and Technology. In September 2019, agreement was reached to build a large scale plant to recover AHF from DUHF.

Multiple patents have been filed and received for New Chemical Products’ FSA-to-AHF process, and the results of further development and testwork should be ready by Q2 2020.

There followed a spirited discussion on the potential of FSA-sourced HF, with a few delegates, including Peter Robinson, British Fluorspar, questioning the likelihood of its fruition, and pointing to the lack of such plants active today, and whether fluorspar producers should be worried.

These views were met with a strong riposte from Olivier Ruffiner, Buss ChemTech, advising that China had four such FSA plants in operation with another to come on stream at the year’s end, and possibly another in 2020.

Kerry Satterthwaite, Roskill, also countered that the Florida phosphate majors are very much keen on FSA development and that, in her view, “fluorspar producers should be worried!”.

Fluorochemicals | Aluminium fluoride

In “India: An emerging market for acid grade fluorspar”, Bimlesh Jain, Executive President (Corporate), Gujarat Fluorochemicals Ltd, India, introduced his company and parent group before outlining why India is an emerging market and will expect to see increased fluorspar consumption (among other industrial minerals – all under the spotlight at IMFORMED’s Indian Minerals & Markets Forum 2019, 18-20 November, Mumbai – click link for details).

India is the fastest growing economy with an GDP growth of 6.9% in FY2018-19 and one of the major manufacturers of refrigerant gases, fluorochemicals and fluoropolymers.

Increase in acid grade fluorspar consumption is expected to be 16% in 2019 over 2018. Fluorochemicals, especially for agrochemicals and pharmaceuticals demand growth, and fluoropolymers will substantially add to the requirement of fluorspar in addition to refrigerant gases.

GFL is producing about 18,000 tpa of fluoropolymers, with a past YoY growth of 25% and has plans for a PTFE plant. China is India’s biggest competitor in this sector, with its domestic fluorspar sources, while India relies on imports.

“Downstream markets for fluorochemicals, through to fluoropolymers and fluoroelastomers” by Samantha Wietlisbach, Principal Analyst, Chemical, IHS Markit, Switzerland, was as ever a detailed dissection of the fluorspar supply chain, fluorocarbons, fluoropolymers, fluoroelastomers, and level of integration in the fluorochemical chain.

The AAGR 2018-2022 globally for fluoropolymers is considered to be about 4% for PTFE and around 5% for others, mostly consumed in the chemicals market.

For inorganic fluorochemicals, the Li-ion batteries and catalysts markets hold promise, with an AAGR of around 4-5% globally, but these are much smaller volume markets.

The outlook for fluoroelastomers with an AAGR of 2.4%, is heavily dependent on growth in automotive and aerospace markets.

Wietlisbach also commented on the vertical integration of certain fluorochemical groups outside China including Koura, Solvay, Lanxess, and Fluorsid. This trend may continue as consumers seek to minimise security risk over raw material sourcing.

Adam Coggins, Analyst, Roskill, UK, presented “Aluminium fluoride and aluminium: 2019 trends and outlook to 2029”, examining the industry sectors, drivers, and future prospects.

Coggins demonstrated the cost breakdown of AlF3 production commenting that the main cost components were the raw materials, ie. fluorspar and alumina trihydrate, accounting for 41% and 24%, respectively.

While demand for air travel is expected to grow strongly over the next 20 years, led by Asia Pacific region, it is the automotive sector which holds most promise for increased demand for aluminium, with hybrid and EV sales to exceed ICEs by 2029.

EV sales have grown by 26% p.a. since 2010, compared to 3% in total vehicle sales, and market penetration by EVs is forecast to reach 29% in 2025 and >50% in 2029.

Thank you, and see you at Fluorine Forum 2020!

As ever we are indebted to the support and participation of all of our sponsors, exhibitors, speakers, and delegates for making Fluorine Forum 2019 such a success.

We very much appreciate all the completed feedback forms and please continue to provide us with your thoughts and suggestions.

We look forward to meeting you next year at Fluorine Forum 2020, Hanoi, 12-14 October 2020.

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CLICK HERE FOR DETAILS

Indian Minerals & Markets Forum 2019 Review

They call it the “City of Dreams”, or Mayanagri: Mumbai, rich in history and trade, is India’s financial and business hub as well as home to Bollywood.

Last week the city was host to a major gathering of international leading lights of the industrial minerals sector attending IMFORMED’s inaugural Indian Minerals & Markets Forum 2019 at the beautiful beach side JW Marriott Mumbai Juhu.

Their key objective? To assess the reality of India’s startling economic growth in terms of industrial mineral demand and development opportunities – fact or fantasy. It was all laid bare here.

Over two days a panel of high profile industry experts delivered 20 informative and insightful presentations providing a wealth of data and much food for thought.

“Outstanding agenda and excellent choice of venue, great attention to detail in the organisation.”
Jose Martin, Global Sourcing Manager, Allied Mineral Products, USA

“Excellent and insightful sessions, good ambience, very well done.”
Sumeet Verma, Snr. General Manager, Golcha Group, India

“Good programme and well organised.”
Isabelle Florens, Purchasing Manager, Saint-Gobain SEPR, France

“Nicely organised and very informative. Mobile app very nice initiative and “Mentimeter” [live online audience poll] is very effective.”
Dr Mahesh Kulkarni, Snr. Scientist R&D, Ashapura Group, India

CLICK HERE FOR Summary Slide Deck (programme, attendees, feedback) & Picture Gallery

Proceedings were initiated by the wonderful Welcome Reception sponsored by Maharashtra Minerals Corp. Ltd, one of India’s few independent mining companies operating in industrial minerals for over 60 years.

 

          

 

Overview & Outlook: issues to be addressed

Longstanding friend to the global industrial minerals community and doyen of India’s minerals sector, Chetan Shah, Chairman, Ashapura Group, India, has been instrumental in guiding India to its respected place in the global mineral value chain, so IMFORMED was honoured to give him the floor to formally open the conference.

In his Welcome Address, Shah offered a useful perspective on the Indian mineral industry, but did not hold back: “Our mineral excavation rate has been pitifully disproportionate to our large resource base. However, I am fairly optimistic that reforms in this sector will unlock tremendous potential and value by doing away with certain bugbears that impede its growth.”

These “bugbears” included:

• an ambiguous new mining policy
• unfounded environmental concerns
• administrative delays
• social unrest
• unclear land titles
• relatively low priority given to mining as compared to other industries

Shah then touched on the global mining outlook, acknowledging an expected rise in mineral demand but warning that environmental challenges are going to be a major roadblock for developed and nearly-developed nations, the largest consumers of minerals.

“So what is the solution? There will be a seismic change in the ‘mining geography’ of the world. Mining activities will shift from developed nations to either developing nations or to regions which are yet to join the ranks of developing countries.” said Shah.

Shah spotlighted Africa as an example, and postulated Latin America as a next target.

In his introduction, Mike O’Driscoll, Director, IMFORMED, UK, reminded that India has always been one of the world’s great sources and markets for industrial minerals, and is on track to be the world’s fastest growing economy.

This has driven strong growth in primary mineral consuming markets, such a refractories, ceramics, filler markets, prompted emerging markets, such as Li-ion batteries, and enhanced activity by overseas subsidiaries and joint ventures in India.

In particular, raw material demands have boosted mineral resource and product development in India and surrounding countries.

So India’s minerals industry is on the threshold of a new era with exciting growth potential in both established and emerging new mineral consuming markets. But key issues need to be addressed, including:

• Uncertainty over impacts of global recession, trade wars
• Reality of nationwide reforms and infrastructure schemes
• Logistics infrastructure challenges
• Overreliance on mineral imports
• Debatable new National Mining Policy
• Investment concerns
• Lack of domestic mineral development
• Environmental pollution

Concern over these topics was echoed in the results of the live online audience poll where “infrastructure”, “government”, “technology”, and “mining policy” dominated feedback in the word cloud of challenging issues of the day.

And while most agreed that the time is now to exploit new opportunities in India’s growth, domestic mineral development and improvement of the National Mining Policy should be high on the agenda (see results below).

Investment & trade climate: “Potential yet to be tapped”

“Mineral Project Investment & Development in India” by John Evans, Managing Director, Tractus Asia Ltd, Thailand, looked at India as the emerging key economic growth engine in Asia and projected to be the fastest growing major economy surpassing China at least until 2024.

“India’s true mining and exploration potential is yet to be tapped, and offer opportunities for investors. New Government policies and regulations should positively impact the sector’s growth in the near future. But, India needs to adopt advanced mining practices, equipment as well as standards for safety and environment.” said Evans.

Evans highlighted various opportunities for investors including: equipment manufacturers & suppliers; exploration companies; technical service providers; mine developers and operators; and ancillary services providers.

He concluded with some case study examples including Neometals, an Australian company which has partnered with India’s Manikaran Power to fund a feasibility study into developing India’s first lithium refinery.

“Trading and investing in Indian industrial minerals” by Ajay Kulshreshtha, AK Minerals Consultancy Services, India, covered some historical facts, minerals, and an Indian economic review, investments, trade, and price trends in selected minerals.

Kulshreshtha highlighted that the new National Mining Policy makes efforts to harmonise taxes, levies and royalties with world benchmarks to help the private sector, as well as encouragement of mergers and acquisitions of mining entities and the creation of dedicated mineral corridors to boost private sector mining areas.

Areas of investment opportunities in mineral processing include extraction of potassium from natural nepheline syenite; drilling grade barite; and recovery of alumina from fly-ash from cement production.

Refractories: rising demand amid raw material shortage

“New refractory developments: high performance refractory aggregate” by Manan Shah, President, Orient Abrasives Ltd and Dr. Mahesh Kulkarni, Senior Scientist R&D, Ashapura Minechem Ltd, India, began with a review of Ashapura’s latest acquisition, Orient Abrasives Ltd (OAL) by Manan Shah.

Shah (below left) outlined OAL’s production capacities in calcined bauxite and chamotte (175,000 tpa combined), brown and white fused alumina, white fused mullite and fused zirconia (28,000 tpa), and castables (24,000 tpa).

With the industry in need of lower cost alternative raw materials, Ashapura has responded by launching a range of sintered brown tabular alumina (BTA) grades.

Kulkarni (above right) introduced BTA and its four grades of 87%, 89%, 91%, and 95% Al2O3 content, imparting properties of high refractoriness, hardness, thermal shock, corrosion and abrasion resistance, and claiming to outperform fused products in castable applications.

“Refractory raw materials supply & demand in India” by Hakimuddin Ali, former Chairman Imerys India & former Chairman IRMA, India, was a detailed and passionate review of India’s refractory mineral resources, their domestic demand and reserve limitations, and overreliance on imports.

“The refractory industry is crushed between the two big rollers of suppliers and end users.” said Ali.

Ali made several recommendations for the industry including detailed exploration so that workable reserves are identified and opened for mining, eg. fireclays and graphite; a thrust on beneficiation to improve low grade minerals, eg. bauxites and magnesites; sintering plants /fusion plants should be set up to increase the capacity eg. of fused chrome, fused magnesite.

Sameer Nagpal, CEO, Dalmia OCL Ltd, India, presented “Overview of supply and demand of India’s refractories” and reviewed the overall refractories market demand before focusing on India.

With several major infrastructure projects in the pipeline, Nagpal expects steel refractories demand in India to double from 1.4m tonnes in FY20-21 to 2.8m tonnes in FY30-31, and cement refractories demand to increase from 0.28m tonnes in FY18 to 0.42m tonnes in FY31.

“The Indian market is the only one showing this trend – it is the most exciting refractories market in the world”. said Nagpal 

However, Nagpal also lamented the state of India’s refractory mineral development, warning: “It is to risky to rely 100% on China for refractory raw materials. This should be made an issue of national importance.”

He concluded that there is a need for local processing of minerals to support refractory making in India; there needs to be closer working with the government for exploration of refractory minerals; and minerals should get priority attention from the government.

“Kyanite in refractories: Indian economic drivers & markets” by Aditya Newalkar, Executive Director, Maharashtra Minerals Corp. Ltd, homed in on one of India’s refractory minerals in high demand, about which Hakimuddin Ali had earlier urged “an urgent need to convert resources into reserves”.

Newalkar reviewed world kyanite supply and demand, commenting that Indian reserves were restricted mainly to Jharkhand (76%) and Maharashtra (24%) states, and concentrated around Singhbhum and Bhandara, respectively, and owned mostly by private companies.

Indian kyanite production has remained just under 70,000 tpa since 2013. MMCL has some 925,000 tonnes of mineable reserves, and has developed kyanite beneficiation processing technology jointly with NML Jamshedpur to beneficiate low to mid grade kyanite (40-58% Al2O3) on a pilot scale.

MMCL is seeking strategic partnerships to realise its objectives to re-initiate kyanite production, and install a higher capacity beneficiation plant with modern technology.

In “Secondary raw materials for refractory industry” Dr. Nilachala Sahoo, Director (Technical), Chaitanya Refractory Pvt Ltd/Global Recycling, India, outlined his company’s activities in reprocessing of waste refractory products and making usable refractory raw materials, and R & D work to use different industrial wastes as refractory raw materials and commercialisation of the developed process.

Chaitanya Refractory and associate Global Recycling are processing and marketing about 2,000 tpm secondary refractory raw materials.

Sahoo supported this with a range of examples including MgO grains from recycled magnesia-carbon bricks; fused AZS grains; and fused alumina chrome.

Ashapura invited delegates to a fabulous “Bollywood Nights” Reception with a spectacular dance troupe and band performing a range of dance and music from Maharashtra and Gujarat. Much to everyone’s horror, not least their own, IMFORMED was invited on stage to join in!

 

Feldspar, quartz & plastics markets

“Feldspar and quartz production and markets” by Dr. V. Balasubramaniam, Director, Gaangey Minerals Pvt. Ltd, Gimpex Group, India, highlighted the industrial mineral activities of the Gimpex Group, which included on 4 July 2019 Gimpex’s wholly owned subsidiary Gaangey Minerals Pvt. Ltd acquiring 100% shares of the feldspar process plant with all 11 mines from Sibelco in Balanagar near Hyderabad, Telangana.

Dr Balasubramaniam reviewed world feldspar supply and demand and described Gaangey Minerals’ facilities of which the Balanagar plant has a capacity of 300,000 tpa feldspar. The company also produces quartz for a range of markets.

“Opportunities for Indian filler mineral suppliers in plastics rubber & coating markets” by Samantha Wietlisbach, Principal Analyst Chemicals, IHS Markit, Switzerland, examined the various Indian mineral fillers for these markets, dominated by calcium carbonate, but also using talc and kaolin.

Key outlook trends include HDPE blow molding AAGR 8% per year to 2024,flexible PVC applications India AAGR >6%, and growth of ca 10% per year for PLA bio polymers.

Wietlisbach expects calcium carbonate demand in India to grow at 3.3% p.a. up to 2023.

Processing developments

“Wet processing of industrial minerals in India and South East Asia” by Dr. Arabinda Bandyopadhyay, Chief Technologist, CDE Asia Ltd, India, described the company’s activities across the four main sectors of Manufactured Sand Production, Construction & Demolition Waste Recycling, Industrial Sand Processing, and Mineral Processing.

Patented minerals processing machines used for processing minerals such as limestone, bauxite, and chromite were illustrated.

“Future oriented processing technology for high-end industrial minerals and their applications” by Dietmar Alber, Business Development Director, Minerals & Metals Division, Hosokawa Alpine AG, Germany, examined the challenges in the processing market to meet today’s mineral demands.

Chief among these are targeting finer products at the highest quality, consistency and profitability; demands of new and high end industrial mineral applications; end to end cost efficiency solution through optimised process control; and the influence of particle shape and size in the end applications and how to control it, by use of the latest powder processing technology.

Key trends include dry processing of these fine powders down to the submicron range; low energy solutions are required; master tailored particle size distributions and “shaping” of particles; and much bigger sized production capacities/plants.

“Water-free electrostatic processing of fine minerals” by Kyle Flynn, Sales Engineer, ST Equipment & Technology, USA, was subject to one of the longest Q&A sessions after the presentation, reflecting delegates’ interest in this dry separation technology.

Vast quantities of fresh water are used each year for minerals processing, estimates range from 1,000-4,000 litres/tonne of ore. Flynn noted that South East Asia, and India especially, face a critical shortage of fresh water.

STET’s process requires low energy consumption (1-2 kWh/tonne feed), makes consistent product from highly variable feed material, and is very efficient at fines and ultra-fines. Flynn illustrated with examples for fly ash, calcium carbonate, bauxite, talc, and barite.

Electric markets: driving future mineral demand

“Minerals for the electrification of India” by Dr Richard Flook, Managing Director, Mosman Resources, Australia, was a comprehensive evaluation of electricity generation trends, India power and electricity mission, Indian electric news, electric vehicle minerals, solar energy minerals, and why we should look at Australia and India.

Flook commented on the Indian Cabinet decision (7 March 2019) to set up the National Mission on Transformative Mobility and Battery Storage with its mission to formulate and launch a Phased Manufacturing Program with a focus on batteries including: raw materials, electrochemistry, end of life treatment (recycling), manufacture of cells, modules, battery packs usage in vehicles. India is also expected to be fourth largest electrical storage market.

“Giga-scale manufacturing in India will be required. Policy will be to secure materials used in lithium-ion batteries, including lithium, cobalt, nickel, manganese, and graphite & other strategic materials such as rare earths & tungsten.” said Flook.

Flook highlighted lithium, graphite, nickel, manganese, high purity alumina, and rare earths supply sources, suggesting some potential in Indian future demands being met with Australian supply, and concluded with estimates of minerals and volumes needed for India‘s short term targets.

“Li-ion batteries – Where we are now and what is the direction of travel?” by Alison Saxby, Director Operations, Roskill, UK, covered a lot of ground including: fundamental drivers, lithium ion battery (LIB) demand, LIB capacity by region, Indian battery companies, and the battery value chain.

For India, Saxby considered that regulation and high purchasing power are the main drivers of EV growth, and forecasts that by 2030 plug-in car sales will reach 1.4m units. “That is still approximately 35% of India auto market today. Cheaper electric vehicles in India with LFP cathode-batteries may revolutionise the market.” said Saxby.

The announced goal of the India government goal is to build four gigafactories with some US$4bn. Saxby compared this to China, where it spent US$60bn in direct and indirect EV subsidies to build a 250GWh/year battery industry in 2018.

“Thus India will likely need more than US$bn, tax breaks, foreign experienced battery companies, and perhaps 5-10 years to build a domestic battery industry. By 2030, most countries will still rely on China’s battery capacity combined with Japanese and South Korean technology and know-how.” concluded Saxby.

New markets for high purity quartz, wollastonite, & graphite

“High purity quartz supply & demand” by Murray Lines, Managing Director, Stratum Resources, Australia, highlighted the very limited world sources of high purity quartz (HPQ) and their high specifications.

Indian HPQ production represents just 6% of the world HPQ supply market, supplied by small mines feeding several processing plants centred in Rajasthan.

Lines examined HPQ processing and underlined how crucial this is to its end value, and highlighted the key markets of electronics, solar, construction, medical, optics and other uses.

The Asian HPQ market is forecast to increase from 51,900 tonnes in 2018 to 62,900 tonnes in 2021. This is dominated by China and Japan, with little impact, yet, from India. “India is expected to be an emerging market for high purity quartz. Government initiatives towards promoting semiconductor industries are expected to drive high demand.” said Lines.

“Wollastonite and its market outlook” by Gaurang Singhal, Director, Wolkem India Ltd, India, was a concise summary of the global market for this unique mineral.

World production of about 800,000 tpa is produced by just six countries: China, India, USA, Mexico, Canada, and Finland in descending order of output.

Global demand is projected to grow at 8-10% CAGR, and mostly in China, India, Africa, the Middle East and Asia.

Singhal considered this would easily be met by existing suppliers. However, he acknowledged interest in new wollastonite sources in Canada, Chile, Kenya, Namibia, South Africa, Spain, Sudan, Tajikistan, Turkey, and Uzbekistan.

The key markets remain ceramic and metallurgical applications (50%), construction (15%), polymers (15%), paint & coatings (10%), and others such as friction products, welding, and adhesives (10%).

“But this mix is expected to change” said Singhal, and highlighted other emerging applications in environment controlling CO2 emissions, soil conditioning, phosphorus adsorbent, forest restoration, supplement in sugar cane cultivation, and substituting up to 10% in cement to enhance resistance to carbonation and permeation.

“Graphite developments, markets & India’s mineral challenge” by Puruvi Poddar, Group Manager Business & Project Development, Tirupati Graphite PLC, India, was an excellent review of the global supply and demand of graphite with a focus on Tirupati’s activities.

Poddar gave an overview of African developments and commented on the high demand growth in multiple applications, such as Li-ion batteries, flame retardants, foil and thermal management, composites, recarburisers, fuel cells, lubrication, and graphene.

A phased approach across the value chain by Tirupati was outlined, with reference to the company’s recent Vatomina and Sahamamy graphite mine projects in Madagascar, downstream plant expansion at Tirupati Specialty Graphite in India (expandable graphite for flame retardants), and Tirupati Graphene & Mintech Research Center, also in India.

Neatly bringing the conference full circle, Poddar concluded with a reminder of issues influencing India’s wider “mineral challenge”:

• over the past five years no new mine has come into production
• exploration is required to be undertaken across various kinds of minerals
• the framework for grant of concessions for niche minerals may need a relook as the current auction process may not be workable. Graphite is an example of this
• a focus on development and implementation of green mining technologies.

Field Trip: visit to Ashapura operations in Kutch, Gujarat

IMFORMED would like to express special thanks to Ashapura for organising a superb field trip to Kutch, Gujarat to see its bentonite & bauxite mines; Baraya Minerals Complex (bentonite; calcined bauxite & kaolins; GCC; geosynthetic clay liners); Perfoclay plant (bentonite, attapulgite bleaching earths) and R&D Centre; with a finale visit to the unique and inspiring Vande Mataram Memorial.

The Baraya complex comprises five plants supplied by raw material from surrounding mines within a 150-200km radius, with the following production capacities:

• Bentonite 420,000 tpa (Ca-bentonite, treated with soda ash)
• Ground calcium carbonate 60,000 tpa (raw material imported from Egypt)
• Sintered brown tabular alumina 60,000 tpa (from calcined bauxite; 87%, 89%, 91%, 95% Al2O3 grades)
• Chamotte 40,000 tpa (calcining kaolin in a 55 x 25m dia. rotary kiln; 42%, 46% Al2O3)
• Geosynthetic clay liners 3m sq metres

The Perfoclay plant, covering 100 acres, produces 250,000 tpa of bleaching earths from 8 production lines based mainly on sulphuric acid treated Ca-bentonite, but also using calcined attapulgite from Ashapura’s mines. It is the single largest plant of its kind in the world supplying the edible oils and petrochemical catalyst markets, and enabling Ashapura to account for 80% of the domestic market; about 40% of output is exported.

Giving back to society has been one of Chetan Shah’s core tenets, and over the years his philanthropic zest through the Ashapura Foundation has touched thousands of lives through initiatives in water harvesting, education, vocational training, women’s empowerment, and social upliftment through the restoration and promotion of arts & crafts from Gujarat. This is none more so evident than at the spectacular Vande Mataram Memorial at Bhuj – a unique 4D non-profit national monument dedicated to India’s freedom struggle from the revolt of 1857 to the country’s Independence in 1947.

The memorial complex is over 10 acres of land, with the 100,000 sq. ft museum modelled on the likeness of the “Sansad Bhavan” (the Indian Parliament Building). It took four years to build at a cost of about INR600m.(US$8.3m.) and was completed in 2017.

A secondary structure of 50,000 sq.ft is modelled on the Agra Fort (Red Fort), hosting a special gallery of freedom fighters from Gujarat. There is also a “village” hosting workshops making a range of local arts and crafts.

CLICK HERE FOR Summary Slide Deck (programme, attendees, feedback) & Picture Gallery

Thank you, and see you again in 2020!

As ever we are indebted to the support and participation of all of our sponsors, exhibitors, speakers, and delegates for making Indian Minerals & Markets Forum 2019 such a success.

We very much appreciate all the completed feedback forms and please continue to provide us with your thoughts and suggestions.

We look forward to meeting you at one of our Forums in 2020.

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