Introduction to Mining Engineerings’ annual review of industrial minerals

IMFORMED is delighted and honoured to have been invited to write the introductory article “2020 Vision for Industrial Minerals” for Mining Engineering’s latest annual review of industrial minerals.

The article, written by Mike O’Driscoll, Director, IMFORMED, has just been published in the July 2020 issue of Mining Engineering (ME; July 2020, Vol.72, No.7) – the monthly magazine for the Society of Mining, Metallurgy, & Exploration (SME).

“2020 Vision for Industrial Minerals” reviews the key factors influencing the global industrial minerals market and how they might shape the near to medium future of the industry.  These include the impact of COVID-19, critical minerals security, overreliance on Chinese mineral sources, logistics, quest for alternative sources, and increased recycling of minerals.

In his July 2020 column, ME Editor William Gleason writes: “Mike O’Driscoll…points out that the importance of these minerals was put into a sharp focus by the spread of the COVID-19 virus and the lockdowns that followed…and the challenges being faced today could lead to needed changes, among them changes to the global supply chain and an eventual break from China.”

FREE DOWNLOAD OF PUBLISHED ARTICLE

Each year, ably supervised by Jim Norman, Executive Vice President, Tetra Tech Inc., ME reviews the previous year’s industrial mineral sector spotlighting an A-Z of minerals authored by a range of independent contributors.

The SME’s Industrial Minerals & Aggregates Division has a global membership and aims to “further the arts and sciences involved in the exploration, production, and use of industrial minerals”.

Expert discussion on industrial minerals outlook

The industrial minerals sector has been rocked; first, by the US-China trade war, its ensuing political tensions, and then by the pandemic.

Join IMFORMED and Tractus Asia to learn about recent market developments, potential strategies to mitigate risk and take advantage of opportunities, with a focus on M&A.

WEDNESDAY 22 JULY 2020 | 22:00 SINGAPORE | 15:00 LONDON | 10:00 EST

Industrial Minerals: The Market and Fallout
Mike O’Driscoll, Director & Co-owner , IMFORMED Industrial Mineral Forums & Research

Opportunities and Strategies for Recovery
Richard Smith, Head of Corporate Finance, Tractus Asia

 

 

Moderator: John Evans, Managing Director , Tractus Asia

Q&A: please send any questions in advance to John john.evans@tractus-asia.com

 

 

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Report on NAIME’s Magnesia & Refractory Webinar Dashiqiao 9 July 2020

Last week IMFORMED was delighted to be invited to present on world magnesia supply trends at a special conference and webinar organised by the Northeast Asian Industrial Minerals Exchange (NAIME), Beijing Easynai Information Technology Co. Ltd, and the Liaoning Magnesium Industry Development Group.

“2020 Global Magnesia Refractory & Industrial Internet Promotion Conference” took place 9-10 July at the Lihua Hotel, Dashiqiao, Liaoning, China.

The virtual and in-person conference was well chaired by Christopher Zhao, of ZNHCL, known to many as a past speaker on the Chinese magnesia industry at IMFORMED’s MagForum conferences.

WEDNESDAY 22 JULY 2020 | 22:00 SINGAPORE | 15:00 LONDON | 10:00 EST

DETAILS & FREE REGISTRATION HERE

“Affected by the novel coronavirus epidemic, the development of global trade is facing unprecedented challenges. In order to give full play to the role of our centre as a professional magnesia industry platform, and help companies develop markets, our centre will join with Easynai and ZNHCL to hold the 2020 Global Magnesia Refractory Conference and Industrial Internet Promotion Conference.” said NAIME.

The first day was devoted to eight speakers covering overseas magnesia supply, China’s magnesia and refractory industry, the pandemic impact, related internet platform developments, and a new generation of environment friendly refractory bricks (see panel below).

The second day comprised a Bidding Session between Chinese steel producers and refractory manufacturers “in order to continue to help companies develop markets and maintain trade operations during the epidemic prevention and control period.”

Webinar Day 1 Speakers 

World (ex-China) Magnesia Supply Trends
Mike O’Driscoll, Director, IMFORMED, UK
The Refractory Market in the Epidemic Situation
Xu Dianli, Consultant, China Refractories Association (and former President)
The Introduction of Luotai Intelligent System
Qiu Bingwei, CEO, Shenyang Luotai Intelligent System Co. Ltd, Chairman of Process Industry Automation Technology Innovation Strategic Alliance
The Construction and Operation of National Industrial Internet Identification Node
Zhang Xu, Director, Institute of Industrial Internet and Internet of Things, China Academy of Information and Communications
Interpretation of the Novel Coronavirus Epidemic and Industry Response Methods
Zhang Shile, Chairman of Shanghai Juzhai Network Information Technology Co. Ltd, Fudan University
Introduction to the Online Bidding of the Easynai Platform
Li Fengyue, Operations Manager, Easynai
Promoting Effect of the National Cross-border E-commerce Business Pilot on the Refractory Industry
Wang Liwen, General Manager Assistant, NAIME
Development and application of new magnesium carbon-free environmental protection materials
Sun Guang, Sun Guang Refractory R&D Studio

World magnesia supply trends

Mike O’Driscoll, Director, IMFORMED, highlighted the key trends and developments regarding refractory magnesia supply outside China. The context of magnesia in refractory minerals demand was examined, followed by a review of world magnesia supply sources and trade.

After refractory clays, magnesia is the second largest volume refractory mineral in demand, accounting for around 26% of all refractory mineral demand.

Most magnesia is derived from natural magnesite deposits, rather than synthetic sources (seawater, brines); and dead burned (DBM) and caustic calcined magnesia (CCM) production account for most (92%) magnesia produced, in roughly equal shares, with fused magnesia (FM) just 8%. More DBM (64%) is produced from synthetic sources.

Of note was the fact that several magnesia country sources serve mostly local markets or are captive producers; this is especially so with the relatively few producers of FM outside China.

Overall, there are relatively few primary refractory DBM/FM producing companies outside China supplying world markets. Most are naturally sourced and integrated with refractories production or a refractory owner (with the exception of just three – incidentally, each of which is a synthetic magnesia producer).

Recent newcomers and potential new sources were highlighted in Greece, Saudi Arabia, Turkey, Serbia and Jordan.

A quick look at magnesia trade showed that 79% of world magnesia imports were within the top 25 steel producing countries, emphasising the importance of the steel market for magnesia.

Regarding key trends and developments, O’Driscoll covered:

• The China factor stimulus: environmental controls; various bans; inconsistent quality/supply; COVID-19; domestic demand
• Overall overseas response: new/alternative source development; expansions/restarts/new starts; M&A; vertical integration; new material evaluation; recycling
• Spotlight on latest in: Refratechnik’s vertical integration; Magnezit’s large-scale investment programme; RHIM’s dolomite push

Among his conclusions, O’Driscoll considered that while some recovery will emerge in China, uncertainty remains over future Chinese magnesia supply (inconsistent quality & availability), industry structure reforms, and its investment climate (particularly as trade war and geopolitical issues are riding high yet again).

Certainly, new or upgraded facilities to produce high quality magnesias will be vital for China’s magnesia supply future, eg. such as recently undertaken at Haiming, Haimag, and PRCO (latter recently developed its high purity Tibet source for export to its new MgO-C brick plant in the USA; see Magnesia from the “Roof of the World” to Kentucky).

Meanwhile, magnesia producers outside China are strengthening resources, capabilities, and vertical integration for supply security. There is continuing interest in developing alternative sources outside China, even as captive sources.

At the same time on the consumer side, there are ongoing trends in the refractories industry to evaluate use of new and alternative materials and product formulations – increasing development of dolomite, synthetic minerals, and recycled materials.

ACCESS HERE FREE DOWNLOAD OF MIKE O’DRISCOLL’S PRESENTATION

China’s magnesia & refractory status: demand for high purity grades debated

Xu Dianli, Consultant, China Refractories Association (and former President), talked about China’s refractory market amid the epidemic by reviewing the refractory industry in 2019, looking at demand changes owing to the epidemic, and concluding with several views on the current refractory market situation.

In 2019, China’s output of refractory materials was 24.3m tonnes, a year-on-year increase of 3.65%. Compact shaped refractory products were 13.4m tonnes, up 1.05%; insulation and refractory products 589,900 tonnes, an increase of 8.87%; and monolithic refractory products 10.1m tonnes, an increase of 6.93%.

China’s 2019 exports of refractory raw materials totalled 4.3m tonnes, down by 5.66% year-on-year, valued at US$1.920bn, a decrease of 16.25%; and refractory products 1.7m tonnes, down by 7.74%, and valued at US$1.6bn, a decrease of 14.50%..

The reason for the decline of export value was not only because of decreased export volume, but also because of the ongoing drop in product price.

Xu considered that the main domestic markets for refractories, such as steel, nonferrous metals, glass, were not greatly affected by the epidemic, and except for cement (which suffered a 24% decrease in Q1 2020), their output is increasing.

“China quickly resumed production after the epidemic, and economic operations in the second quarter have tended to grow steadily.” said Xu.

In 2020, January to May saw China’s total export volume of refractory raw materials increase (by 4.9%) to 1.8m tonnes over the same period in 2019, though at a value of US$732m, down 13.1%.

The export volume of refractory products was 635,700 tonnes, a decrease of 7.4%, at US$553m, a decrease of 20.2%.

Magnesite mine of Haicheng Zhonghao Magnesite Co. Ltd, Pailou, Haicheng, Liaoning; Xu Dianli suggested that high grade magnesite ore in Liaoning might be exploited at greater depths than is currently mined.

Xu urged Chinese refractory companies to actively track changes in the international market. With the hoped-for gradual improvement of the epidemic situation in H2 2020, countries and regions such as Europe and Japan may have the possibility of increasing steel production and thus recovery in demand for refractories.

“Overcapacity is the main factor leading to chaos in the [Chinese] refractory market. This problem has been plaguing us for decades, causing refractory production companies to operate at a marginal level, and hindering the high-quality development of the refractory industry.” said Xu.

Xu questioned whether the concern of the paucity of high grade magnesite ore was “alarmist”, and asked: “How could there be no high-quality ore?”, after the Ministry of Land and Resources announced in 2010 that China’s proven magnesite reserves were 3.6bn tonnes, of which Liaoning accounted for 89.3%.

“At present, the main reason for the shortage of high-quality ore is the mining method that has only been exploited without stripping [ie. the overburden by much], mining more and stripping less, and mining the rich [ore] and discarding the poor [ore].” said Xu. In other words, there could be higher purity ore at greater depths below the surface.

The main challenge now for China’s magnesia producers is to produce high purity magnesia with ≥98% MgO, and achieve “comprehensive utilisation” of resources, ie. upgrading low grade ore.

In pursuit of such high purity, only ores with very low Fe2O3, Al2O3 and CaO can be selected to remove SiO2 to achieve this goal, and for ore upgrading, high silica ore flotation is necessary.

In 2019, Yingkou Jiachen Group made a major breakthrough in magnesite beneficiation technology, and produced extremely high purity magnesia with MgO ≥98% and volume density greater than 3.40g/cm3 through beneficiation of low grade ore.

Part of Haicheng Haiming Mining Co. Ltd’s impressive state-of-the-art 850,000 tpa capacity magnesia flotation plant complex in Haicheng, Liaoning, producing CCM, DBM, and FM. Xu Dianli considered such beneficiation technology necessary for achieving high purity grades in Liaoning, though questionned the extent of its domestic market demand.

Interestingly, Xu then questioned the demand for such high purity magnesia. Indeed, he suggested that in China, except for refractories used on both sides of the trunnions and slag lines on steel converters, such products made of high purity magnesia are not necessary in other areas.

He also underlined that the higher the purity, the less the binding phase, thus the more unstable. Therefore it is not necessarily suitable for making many refractory products.

Xu concluded: “In short, I am not against beneficiation of magnesite. High purity magnesia does have a certain market demand, but the size must be determined according to the market demand.”

Which then begs the question from an outside observer: How much incentive is there to develop high grade refractory magnesia in China? Especially if it means investing in deeper (and underground) mines and expensive flotation plants.

Will such development be limited to the few players already established? And once domestic demand for high grade magnesia is met, how much, if any, will be left available for overseas customers?

Carbon-free environment friendly magnesia refractory bricks

Sun Guang of Refractory R&D Studio, talked about the application of carbon-free environmentally friendly refractory bricks being developed and used in China.

This includes magnesia-alumina-spinel bricks in refining ladles using an environmentally friendly binder technology, replacing phenolic resin, to meet odour elimination issues raised by Shandong Environmental Protection.

The bricks use a magnesia high temperature composite ceramic binder employing as the main ingredient FM97 and graphite.

Sun also reviewed the use of new energy-saving and environment-friendly high purity magnesia calcium bricks used to produce stainless steel in AOD, GOR converters.

Interested in China, refractory minerals, & magnesia? Then don’t miss:

China Refractory Minerals Forum 2021 Dalian, 15-17 March 2021

Field Trip: Haimag, Haicheng, 18 March 2021

FULL DETAILS HERE

MagForum 2021, Noordwijk (Amsterdam) 28-30 June 2021

Field Trip: Nedmag, Veendam, 1 July 2021

FULL DETAILS HERE

EARLY BIRD RATES | SPONSORSHIP OPPORTUNITIES | REGISTER NOW!

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IMFORMED-Tractus Asia Webinar Reviewed

The industrial minerals sector has been rocked; first, by the US-China trade war, its ensuing political tensions, and then by the pandemic.

Last week 150 attendees signed up to a webinar on Wednesday 22 July organised by IMFORMED and Tractus Asia to learn about recent market developments, potential strategies to mitigate risk and take advantage of opportunities, with a focus on M&A.

Chaired by John Evans, Managing Director, Tractus Asia, two informative presentations by Mike O’Driscoll, Director, IMFORMED and Richard Smith, Head of Corporate Finance, Tractus Asia, were followed by an extended Q&A Session as many questions and comments were put to the panel.

The Market & Fallout

Mike O’Driscoll reviewed the key elements of what makes the global industrial minerals business tick before highlighting the main effects of the pandemic on the mineral supply chain and end user markets, concluding with some thoughts on major trends going forward.

How the “essentiality”, and in some cases, the “criticality”, of industrial minerals was sharply exposed by the US-China trade war and then COVID-19 was examined, along with the main mineral supply chain options for buyers and the long-standing overreliance on China as the world’s leading source of industrial minerals.

The impact of COVID-19 on the main driver of mineral markets, GDP, and more specifically ramifications for the steel and oilfield sectors were highlighted as examples.

Overall, there will be a slow recovery in H2 2020, and perhaps if no second wave, some accelerated momentum in Q1 2021.

There will be, and perhaps already is taking place, a revision of supply chain strategies and raw material sourcing.

We shall likely see more policies and drive from governments and regions (eg. EU) to stimulate resource development and security, with infrastructure projects to stimulate economies from COVID recession, including an increase in mergers and acquisitions as companies restructure to survive.

While China will remain a key factor in the minerals business domestically and overseas, there will be a certain amount of “decoupling” attempted, eg. India’s steel industry has already announced a “no China” policy of procurement for refractories.

The situation has stimulated more mineral development of new sources worldwide to lessen China overreliance and improve resource supply security. This may be accompanied by more vertical integration by end user companies.

Equally there will be an acceleration in the evolution of the mineral recycling sector. “Recycled raw materials from waste will become a ‘normal’ supply chain option for mineral buyers.” said O’Driscoll.

“At the same time, as well as a proliferation of recyclers, more primary mineral producers will become active in recycling tailings and other waste sources to offer wider product range (including blends?) with a favourable “green” label on portfolio” O’Driscoll added.

Recent examples announced this year include:

• LKAB – REE, fluorspar, gypsum, phosphorus from iron ore tailings
• Norsk Hydro/Univ. Pará – low-C cement from bauxite residue
• Nutrien/Arkema: anhydrous HF (replacing fluorspar) from phosphate processing FSA waste
• Rio Tinto: scandium oxide from ilmenite processing waste

Opportunities & Recovery Strategies

Rick Smith shared Tractus Asia’s view on the economy, outlined unique factors of the downturn, implications for M&A, commented on China, concluding with opportunities for small and medium-sized enterprises.

A “fairly pessimistic view” on the near-term outlook for the global economy was outlined, although some countries are managing better than others.

Global trade and political tensions are not expected to go away anytime soon while economic growth projections are dropping rapidly.

However there are unique factors to this downturn which may see a relatively fast recovery to M&A, these include:

• Stock market at or near all time high
• Borrowing rates at 50-year low
• Corporates are cashed up
• Private equity firms are cashed up

In general, downturns offer excellent opportunities for M&A. After an initial period of focus on costs, risk mitigation and protecting the business, firms will then turn their attention to growth.

Organic growth is very tough in slow markets since you will need to take business from a competitor. “In today’s environment, most growth will be driven by M&A. Interestingly enough, downturns provide opportunities on both the Buy and Sell side.” said Smith.

China will remain too important to ignore, and we expect an active M&A market in China.

Smith concluded: “SMEs do not need to be bystanders or targets in terms of M&A.”

Access to Free Webinar Presentation Downloads CLICK HERE

Industrial Minerals: The Market and Fallout
Mike O’Driscoll, Director & Co-owner , IMFORMED Industrial Mineral Forums & Research

Opportunities and Strategies for Recovery
Richard Smith, Head of Corporate Finance, Tractus Asia

Access to Webinar Video CLICK HERE

Q&A Session: selected questions and answers from Mike O’Driscoll

How naïve are the politicians on the total supply chain process?
Well, maybe it’s more a case of ignorance rather than naivety; certainly the industrial minerals industry as a whole can do better to educate and raise awareness of its rationale, importance, and role in the economy and everyday living. At the same time, mineral resource distribution and sourcing needs to be underlined, and supply chains and logistics understood. With better communications between industry and governments, then we can be better prepared to deal with such crises, and indeed run the industry and meet market demand more efficiently and in a sustainable fashion.

Recycled materials are priced higher than the basic [primary] material. Will the industry buy the [recycled] product?
Great question, and underlines a long-standing “stigma” in the recycling sector. In the past this was very much the issue, but now is less so with more economic recycling processing and better alliances and partnerships between waste sources and recyclers. Advances in processing technology, especially in sorting, have greatly contributed to more competitive recycled materials. Improvements in all this must and will continue.

Can you share your views on perspectives for MgO (DBM, FM)? Market will recover by 2021?
Can I be cheeky and economic and refer you to my recent report? Magnesia in Question: China & World Trends Discussed

How do you see India as a refractory market?
With India’s growing population, range of infrastructure development projects, growth in refractory markets of ceramics, glass, cement, but above all its ambitious steel capacity projections (in 2018 India took over Japan as no.2 steel producer in world, retained in 2019), the country has massive potential for large volume future refractory demand. Further demonstrated by overseas companies such as Krosaki Harima, RHI Magnesita, Imerys, investing in Indian refractory and refractory material producing plants.

Many are looking for alternatives [ie. in raw material sources] to China, is it possible to get better product and value other than China?
The quick answer is “Yes”; while in the past 2-3 decades, China always scored over undercutting western rivals (and still can to a certain extent), the trend today is far more discerning by western buyers, in that they are prepared to pay more for demonstrated consistent quality and volume availability, and stable pricing, rather than simply low prices; that said, in reality we might see a mixed response, of some Chinese supply bolstered by western alternatives.

If there is a relatively rapid recovery next year, do you feel there are enough alternative sources of many minerals outside China to satisfy demand in short term, or are buyers going to have to return to China and continue to rely on supplied from there?
Another good Q, and sits nicely with the former Q: This of course depends on which minerals for which markets, each have their own market dynamics. But in the main, the answer is yes for most minerals imported from China. Exceptions might be barite, where some more sources may need to be developed quickly (and some have been) for large volume supply (COVID-19 impact aside!), and fused magnesia (very few non-captive sources in the West), and other fused minerals (BFA, SiC) where energy costs in the West may still outstrip Chinese energy costs (although these are rising, and environmental controls are hitting output).

Understand that Russia has many reserves of magnesite: do you think any large scale mining activities might start in the near future? What would be the challenges?
Yes, Russia ranks no.2 in hosting world magnesite reserves (after N. Korea and before China). Pretty much most Russian magnesite development is under Magnezit Group, which since 2016 has embarked on a series of large scale investment projects to expand mining and processing which will come to fruition during 2020-24 (see Magnesia in Question: China & World Trends Discussed where these are highlighted). While most output will be consumed in-house, if there is demand and opportunity to supply overseas customers I am sure Magnezit would consider this (thus also likely negating viability of overseas magnesite development in Russia). Challenges include logistics mainly owing to remote locations of main reserves, as well as investment in suitable mining engineering and processing technology.

How the industrial minerals market recovers and shapes itself for the future will be examined and discussed in detail by a range of expert speakers at next year’s IMFORMED Rendezvous, 12-14 April 2021, located in the beautiful beach side Grand Hotel Huis ter Duin (Noordwijk), Amsterdam.

We already have an excellent panel of confirmed speakers and still have opportunities for sponsors and exhibitors.

We look forward to seeing you in 2021!

IMFORMED would like to thank all those that participated in the webinar, and especially the Tractus Asia team for its co-operation in putting together the event, hosted from Singapore, Bangkok, and London.

Tractus has nearly 25 years of experience helping companies expand their business across Asia, advising industrial mineral companies on entering Asian markets with both sales and investments, and assisted in structuring their operations in Asia for success. For more information please visit the Tractus website or contact: John Evans, Managing Director john.evans@tractus-asia.com | Richard Smith, Head of Corporate Finance richard.smith@tractus-asia.com

COMING IN 2021

FULL DETAILS HERE

For established players seeking new horizons & newcomers evaluating industrial minerals

Critical Minerals Policy | Mineral Pricing Strategy | CO2 Reduction | Port Logistics | Rare Earths | Lithium | Ti-minerals & TiO2 | Graphite | Bauxite | Paint Pigments Market | Ceramics Market | Exploration | Africa | Processing Developments | Mineral Lab Testing

First Bauxite high grade alternative source for non-met. markets

PLUS: Australian Bauxite progress | China bauxite latest

Early July saw First Bauxite LLC load the first bulk ocean vessel of its Guyanese raw high grade non-metallurgical bauxite for overseas markets in refractories, cement, abrasives, and water treatment.

Although it has taken some 10 years to get here, First Bauxite’s timing of its mine and export facilities coming to fruition just when consumers are keenly seeking alternative non-met. bauxite sources to China appears most favourable.

First Bauxite is now shipping bauxite in ocean vessels from its recently constructed wharf at Sand Hills on the Demerara River, about 21km east of the company’s Bonasika bauxite mine. Until now, bulk vessels had to receive raw material barged down the Demerara River to Georgetown for transloading.

The first bulk shipment (pictured above) was 6,500 tonnes bound for Savannah, USA, which was followed by another shipment of 9,500 tonnes to western Europe.

John Karson, VP Sales and Marketing, First Bauxite told IMFORMED: “As customers increase their volumes, many may switch from container shipments to larger bulk shipments. However, containers to India and China are still very good value.”

“We do bulk in containers and may start doing bags because customers want different sizing to trial. We still have to barge materials to Georgetown when doing containers, so if someone wants 50-100 tonnes of a specific size, we have to find a way to segregate, so supersacks is a natural option. For right now it is bulk ships and loose bulk in containers.” said Karson.

Bird’s eye view of bauxite: First Bauxite’s operations in Guyana: (left) the open pit mines, sizing and washing plant at Bonasika 6 and 7, and (right) about 21km east, the Sand Hills storage and wharf facilities on the Demerara River, with bulk ocean going vessel being loaded. Courtesy First Bauxite

First Bauxite, previously publicly traded, and now a privately owned US enterprise, owns the mining subsidiary, Guyana Industrial Minerals Inc. (GINMIN), which opened its mine at Bonasika early 2019.

In November 2019, a new wash plant started up raising production to 30,000 tpm raw ore. Since then shipments have been made to North and South America, China, India, Europe including Ukraine, and Africa.

The single product line raw bauxite contains 63% Al2O3, and on calcining yields 93% Al2O3, with low iron and impurity levels. Clearly a high grade bauxite and ideal for refractories (see below).

Some calcining has been conducted in the USA to achieve high density (3.45 g/cm3), low porosity products, and as feed for brown fused alumina manufacture.

Similar testing is being conducted in China and India. “India is a very hot market as the reliance on Chinese [raw material] is diminishing and there seems to be a need for higher grades or the ability to upgrade lesser grades of bauxite.” said Karson.

First Bauxite is surface mining a high grade gibbsitic bauxite (left); extraction began in 2018, and in 2019 a new washing plant was installed (right) which became operational in November. Courtesy First Bauxite

In Spain, First Bauxite has an agreement with refractory minerals processor Arcillas Refractarias SA (ARCIRESA), Oviedo, to calcine the bauxite (branded as Bauxstar90) for distribution throughout Europe. ARCIRESA has capacity to produce some 45,000 tpa calcined bauxite.

On 5 March 2020 ARCIRESA and Possehl Erzkontor GmbH & Co. KG signed a contract for Possehl to distribute run of kiln material to European markets and purchase for sizing in its processing plant Mineralmahlwerk C. Welsch GmbH in Wesel, Germany.

Perhaps unsurprisingly, there is apparent interest from several other players for Bonasika bauxite distribution rights in other parts of the world, however, to date these have not been pursued.

Redirected to refractory market focus

It has taken some 10 years of exploration, permitting, evaluations, construction and mining to get the Bonasika mine in Guyana fully operational.

During that time, First Bauxite has been funded by Resource Capital Funds, Denver, and managed by a succession of different executive teams, the latest of which includes the relatively recent appointments of Thibault Van Stratum, Executive Board Chair, as acting CEO (formerly CEO Asia, Sibelco) and John Karson, as Vice President Sales & Marketing (formerly Sales Manager, FX Minerals Inc.).

Initial business plans by First Bauxite focused heavily on developing high strength ceramic proppants from the Bonasika material, lured no doubt by the buoyant US hydraulic fracturing market prevailing at the time (mid- to late-2000s).

This included a proposed calcination plant near the Port of South Louisiana, USA to receive the beneficiated ore from Guyana.

While the material has been successfully tested as ceramic proppant feedstock (and that remains a market option) changing market dynamics and good sense (outside China, only Guyana hosts high grade refractory bauxite), saw a redirected focus in 2017 on producing for the refractories market.

Ideally, First Bauxite would probably like to have its own calcination plant, and that may still be on the cards further down the road. However, it soon became apparent to prioritise development of the mine and wash plant in order to export high grade raw ore into the market as soon as possible, with the option of developing partnerships with third party processors for calcination of the product.

This has already been enacted with ARCIRESA in Spain, and there are no doubt more possibilities in the USA, particularly with steel furnaces restarting and prospects for some recovery in the US refractory market.

There are clearly any number of idled kilns available in the decimated US ceramic proppant sector, but there also exist several well established refractory material processors operating calciners such as Imerys High Temperature Materials & Solutions, Andersonville, Georgia, and Mineral Manufacturing Corp., Eufaula, Alabama.

Bonasika bauxite

The First Bauxite Bonasika properties are located between the Essequibo River and Demerara River, approx. 70km south-west of the capital Georgetown, Guyana (see map below).

The Bonasika mining licenses extend across more than 18,940 acres within a 25-30 km wide arcuate belt and comprise five deposits in relatively close proximity namely Bonasika 1, 2, 5, 6, and 7, which form a cluster known as the Essequibo Group in the northerly part of Guyana’s Coastal Plain Bauxite Belt.

The bauxite is mainly composed of gibbsite and minor boehmite with kaolinite, anatase, siderite, and pyrite.

The Bonasika 6 and 7 deposits are estimated to contain proven and probable ore reserves of 9.7m tonnes of raw bauxite, grading 57.5-59% Al2O3.

Small-scale production, using contract mining and ore beneficiation, commenced in Q1 2018 and 1,000 tonnes of bauxite ore was shipped to a Chinese customer in June 2018, followed by 4,100 tonnes to a European customer in October 2018.

The company has since delineated approximately 13m tonnes of raw bauxite for open pit mining at Bonasika 6 and 7 over the next 15 years. Scoping studies are underway to form the basis of further exploration and increased resources of high quality bauxite ore.

Mining is currently active in the Bonasika 7 pit targeting near surface ore which is hauled by truck to the Bonasika Processing Plant. The operation has a production capacity of 350,000 tpa raw washed ore.

A ceremony to officially open the mine commercially took place on 20 February 2020 in the presence of Prime Minister, Moses Nagamootoo, Minister of Natural Resources, Raphael Trotman, GGMC Commissioner, Newell Dennison, and Minister of Finance, Winston Jordan.

First Bauxite has already invested over US$100m in the project, and, according to local news reports, is set to inject over US$387m into the local economy over the next 15 years; this includes a projected US$50m that will be indirect payments to the government.

Market demand

Commercially developed deposits of non-metallurgical grades of bauxite outside China are relatively rare, and even more so for those hosting refractory grade.

In fact, outside the Chinese bauxite-rich provinces of Shanxi, Guizhou, and Henan – the main producing centres in China – until now the only other refractory bauxite source was the Linden, Guyana operations owned by China’s Bosai Minerals Group (see below).

With Chinese bauxite supply facing concerns of interrupted or unpredictable availability in volume and quality, consumers are naturally evaluating alternative sources.

While First Bauxite has broken ground in Guyana to meet this demand, there are emerging players also developing in Australia (see below) and Brazil.

Karson commented: “There is high interest across the globe as the Bonasika raw ore tests out at 63.2% alumina. When fully sintered, this translates to over 93% alumina with low silica, low iron, low alkalis, and other low impurities like S and P. It is approximately 80% corundum with a mullite phase, has high density (3.35-3.45+ g/cm3) with low porosity. This is an excellent refractory material with some suggesting it as a substitute in recipes that call for higher grade alumina.”

While refractories is a primary market, there are other outlets such as feed for aluminium sulphate for water treatment, slag conditioning, welding flux, ladle sand, BFA feed, abrasives, highway friction products, ultra high strength proppants, calcium aluminates and speciality cement feed, and as a flame retardant/fire-proofing material.

“Acceptance has been superb despite the Corona virus negating nearly all marketing activities.” said Karson.

“First Bauxite: new source from Guyana in a class of its own”

is to be presented by John Karson, VP Sales and Marketing, First Bauxite LLC, USA at the

IMFORMED Rendezvous 2021, 12-14 April 2021

Grand Hotel Huis ter Duin (Noordwijk), Amsterdam

Programme of confirmed speakers | Full details here

Bosai Minerals investing in Guyana

BMGG’s Montgomery mine at Linden, Guyana (left) and two rotary kilns (right), #13 and #14, both 97.5 metres and 3.5 metres diameter; the 17 yr-old #13 kiln is to be replaced with a new #15 kiln, with 170,000 tpa RASC capacity. Courtesy BMGG

Bosai Minerals Group, headquartered in Chongqing, China, acquired the Linden bauxite operations in 2006, which are operated by subsidiary Bosai Minerals Group (Guyana) Inc. (BMGG).

Bosai states that it has about 200m tonnes “best quality” bauxite reserves with high alumina and low iron with annual production capacities of 1.5m tonnes Metallurgical Grade Bauxite (MAZ), 300,000 tonnes Refractory “A” Grade Super Calcined Bauxite (RASC), 200,000 tonnes Sized Chemical Grade Bauxite (SCGB), and 200,000 tonnes Cement Grade Bauxite (CBG).

However, production of RASC has normally been around 200,000 tpa. Output for 2019 was 175,560 tonnes RASC, 176,332 tonnes SCGB, 100,000 CGB, and 1.4m tonnes MAZ.

In late 2019, BMGG commenced preparatory work for the installation of a new #15 kiln and a #16 rotary drier. The #15 kiln is required to be operational before the planned 12 month shutdown of the ageing #13 kiln (#14 kiln is still operational).

Kiln #15 represents a reported investment of about $US20m and will produce 170,000 tpa RASC. The #16 drier and its auxiliary facilities is expected to cost $US3m will produce 150,000 tpa SCGB. Completion of the upgrades was scheduled for mid-2020.

BMGG has not been immune to the frequent worker issues which seemed to have plagued Guyana’s bauxite industry over the decades, and has been involved in a long-running dispute over workers’ salaries which is set for arbitration.

More dramatically, in February 2020, RUSAL’s subsidiary Bauxite Company of Guyana Inc. (BCGI) fired 326 workers and announced the suspension of its operations, as protesting workers continued to obstruct traffic on the Berbice River. BCGI produced mostly metallurgical grade, and also smaller volumes of cement, chemical, and proppant grades.

Australian Bauxite progress

Australian Bauxite Ltd is progressing with development and production of non-met. bauxite deposits in Australia.

In late July, Australian Bauxite announced production of its next cargo of 35,000 tonnes of cement grade bauxite from its Bald Hill mine near Campbell Town, northern Tasmania. Ship loading at Bell Bay port commences on 8 August.

This part of the bauxite project was accelerated so as to use the transport and port infrastructure during a period of under-utilisation, to benefit from low fuel prices and to allow the cement grade customer to take advantage of shipping opportunities.

Australian Bauxite’s mine at Bald Hill, Tasmania; extracting cement and fertiliser grade bauxite for loading onto trucks for transport 115km to Bell Bay port. Courtesy Australian Bauxite

During the COVID-19 pandemic the company has been able to secure sales contracts for fertiliser grade bauxite and cement grade bauxite totalling more than A$2.5m.

New orders have been received for fertiliser grade bauxite as agricultural fertiliser demand rises as droughts break; earlier in the year the company fulfilled an urgent order of 778 tonnes of fertiliser grade bauxite from the Bald Hill mine as part of an on-going supply contract to Impact Fertilisers in Hobart, Tasmania.

Australian Bauxite has 11 bauxite tenements in Queensland, New South Wales and Tasmania amounting to 662 km2, and hosting cement, fertiliser, and refractory grade bauxite.

The company is progressing with its Binjour Project in Queensland to produce met. grade bauxite in co-operation with Chinese and Indian customers.

While in New South Wales, the company has decided on a strategy to selectively exploit layers of its Penrose bauxite deposit for different non-met. customers.

Penrose is located 90km inland of Port Kembla and hosts a bottom layer grading 55% Al2O3 with very low iron content, suitable for refractory bauxite applications. Australian Bauxite is currently seeking “a primary customer-partner”.

All the latest trends & developments on China’s refractory minerals supply & demand

China Refractory Minerals Forum 2021
InterContinental Dalian
15-17 March 2021

Full details here

Chinese bauxite quality down, but so is overseas demand

While China has in the main recovered from Covid-19’s initial and widespread impact, with logistics and refractory markets getting back to normal as steel growth revives, the domestic bauxite supply sector remains challenged.

Problems for the bauxite industry in Shanxi province, one of the traditional leading production centres, were already ongoing with restrictions in mining of raw bauxite limiting ore availability.

As a result, all available raw bauxite is being used up and to compound matters quality is declining, with ore reported as becoming lower in alumina and higher in iron and alkalies.

“At the moment, there is another round of tight supply in Shanxi, and it is very difficult to find up to 86% Al2O3 material, even 85% is not easy. Also, Shanxi bauxite is getting higher and higher in alkalies.” commented a leading Chinese bauxite trader.

As IMFORMED commented in 2018 (see China’s refractory mineral supply – a New World: review & outlook), Guizhou province has emerged as a slightly stronger bauxite supply base survivor to Shanxi and Henan, with its higher Al2O3 content and lower alkalies.

“We do believe in the future Guizhou bauxite will have more market share because Guizhou bauxite does not have that much higher K2O+NA2O than Shanxi now. Some players in Henan and Shanxi have already bought ores from Guizhou to calcine.” said the trader.

Sorting refractory grade rotary calcined bauxite at CMP Guizhou Co. Ltd’s 100,000 tpa plant at Xiuwen, Guizhou, which came on stream in early 2018; Guizhou bauxite supply appears to be faring better under the challenging conditions compared to Shanxi and Henan where mining restrictions continue.

Perhaps some relief may be in sight in Shanxi. It was reported in June that Xiaoyi Huaqing Aluminum Industry Co. Ltd is planning to start a new bauxite mining operation, envisaging 100,000 tonnes raw ore produced in the first month, rising to 200,000 tpm. The target output is 1m tpa high grade 70%min. Al2O3 bauxite for refractory manufacturers.

Prices for Chinese calcined refractory bauxite, bulk FOB per tonne have been quoted as: 85% Al2O3, $375-390; 86%, $390-400; 87%, $400-420; and 88%, $420-450.

However, while Chinese traders may bemoan the paucity of good quality Chinese refractory bauxite availability, the dramatic drop in demand from overseas refractory customers as their end use customers undertook shutdowns from the pandemic during March-June, has surely have provided some kind of short-term breathing space. This is why prices have dropped considerably and exports have been down by some 30%.

Although European and US steelmakers are just restarting furnaces, recovery in refractory mineral demand is likely to be slow at best for the rest of the year.

Should bauxite supply shortages from China persist, and western refractory market recovery maintains a steady course, then prices may stabilise and start to rise before the year end.

Certainly, such a situation would also favour the likes of new players such as First Bauxite, keen to offer a high grade alternative to China, albeit uncalcined, but with consistent availability and quality.

Refractory Raw Material World Sources Map®

Primary world sources & production capacity of key refractory raw materials

A NEW EDITION IS BEING PREPARED FOR PUBLICATION 2020 – NEW MINERALS ADDED

Alumina | Fused Alumina | Andalusite | Kyanite | Sillimanite | Bauxite | Chromite | Graphite | Dead Burned Magnesia | Fused Magnesia | Dolomite | Pyrophyllite | Silicon Carbide | Zircon

Is your company on the map?

Ensure your refractory mineral supply profile is visible with an advertisement. Spaces limited (see below).

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

IMFORMED interviewed for Interceram’s Refractories Manual 2020

Recovering spent MgO-C refractory bricks from a ladle at Sidenor, Spain – a very active pioneer in valorisation of refractory waste. Courtesy Sidenor

IMFORMED was delighted to have been interviewed for this year’s Refractories Manual 2020, the annual Special Edition of Interceram.

Interceram – International Ceramic Review is a comprehensive source on science and technology in the areas of the ceramics and related technologies, and publishes each Autumn a special issue focused on refractory materials.

Interviewed on behalf of Interceram by experienced ceramics freelance writer Charlie Wallin, IMFORMED’s Mike O’Driscoll was asked to comment on several key trends impacting the refractory raw materials sector.

“In this Refractories Special Edition of Interceram, we turned to industrial minerals and markets specialist Mike O’Driscoll of IMFORMED – Industrial Mineral Forums & Research, to sound him out on refractory materials matters – particularly as they apply to the European industry. We were interested to interview him to see what he had to say about critical minerals, the supply chain, potential changes in the future, and the role of recycling.”

Q&A extracts in brief

Which do you regard as the critical raw materials for today’s European refractories industry?

Each refractory product can have its own ‘critical’ raw material, such as insulation refractories need perlite or vermiculite, while specialist high resistance components need zircon or silicon carbide.

However, in the main, for today’s European refractories industry, the classic refractory categories of acidic refractories require aluminas (fused, calcined, tabular), bauxite, andalusite, refractory clays (kaolins, chamotte) and silica; basic refractories require graphite, magnesia (fused, dead burned), dolomite, chromite, and spinel; speciality refractories require zircon, silicon carbide.

There is also increasing development and use of ‘synthetic’ refractory raw materials

The criticality factor for refractory raw materials is very much influenced by their source, and recent events have now shaped changes in mineral sourcing and use.

Where are the main sources for these materials?

With the exception of silica, and perhaps refractory clays to some extent, both of which can generally be sourced close to most refractory producing centres, all other refractory minerals are actually quite limited in their sources.

Magnesias and aluminas are probably the most widely sourced, relative to the remainder. But even these are limited: high purity magnesias from Europe, Russia, Turkey, Brazil, Australia, Japan and China; aluminas from the USA, Europe, India, Japan and China.

What stands out of course is just how prevalent China is in supplying refractory minerals to world markets. In fact, based on global exports, China dominates world refractory mineral supply in bauxite (almost 100%), magnesias (57%), natural graphite (60%), fused alumina (58%), silicon carbide (53%), and for fireclay is second (11%) after Ukraine (80%).

Do you see any of the imports or supply lines being compromised in the short to medium-term?

As any mineral consumer knows, having all your mineral supply in one source basket – for example China – might be rather risky (and it is!).

The last few years have witnessed a sea change in consumers’ attitudes on this reliance on China. There were warning signs from 2000, during the SARS outbreak of 2003, the Beijing Olympics of 2008, and most recently and dramatically, the continuing anti-pollution drive from 2017; and now in 2020, the Covid-19 pandemic.

All these events, almost immediately at their time of occurrence, negatively impacted refractory mineral supply from China, and at a stroke forcefully reminded consumers how dependent they were on Chinese sources and thus sensitive to any supply disruption.

The upshot is essentially less availability of minerals from China, a big reduction in the number of mineral suppliers, and uncertain pricing.

Of course, the Covid-19 impact has massively slowed down Western manufacturing sectors, so mineral demand has declined thus easing the supply situation and mineral prices are plummeting – but, recovery will come.

There is much talk of an ‘economic decoupling of China’ from traditional supply chains by some developed countries and the next few years may see a major change in mineral sourcing options – consumers are seeking sources outside China.

With this latest stimulus, the start of the 2020s may well herald another surge in global mineral project development in order to lessen markets’ reliance on China’s mineral resources.

What is the status and outlook for recycling refractories?

Recycling refractories has received a boost from the above raw material supply situation. While not new, the sector has recently increased in size, and in attention to research and development.

Recycling refractories is still not that widespread, led mostly in Europe, but is fast gaining traction in China, India, and South Korea.

Advances in processing and above all, sorting technology, has already enabled a few companies in Europe to specialise in independent recycling of refractories – more will surely follow. The objective, which is slowly being realised, is to have recycled refractory minerals on the menu for refractory buyers side-by-side with primary raw materials, and at competitive prices.

Key to the evolving new mineral supply chain incorporating more recycling will be a drive to modify refractory product formulations to permit easier end of life recyclability. There will be increasing economic alliances between the waste sources (such as steel, cement and glass makers), the recyclers, and the refractory manufacturers, plus more investment in suitable processing and accurate sorting technology.

Industrial waste resources such as refractories will emerge as the new alternative ‘mineral resource’ and eventually become the ‘new normal’ supply chain option for mineral consumers.

Download the full 4-page article PDF with charts here

Refractory Raw Material World Sources Map®

Primary world sources & production capacity of key refractory raw materials

A NEW EDITION IS BEING PREPARED FOR PUBLICATION 2020 – NEW MINERALS ADDED

Alumina | Fused Alumina | Andalusite | Kyanite | Sillimanite | Bauxite | Chromite | Graphite | Dead Burned Magnesia | Fused Magnesia | Dolomite | Pyrophyllite | Silicon Carbide | Zircon

Is your company on the map?

Ensure your refractory mineral supply profile is visible with an advertisement. Spaces limited (see below).

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

 

Fluorine Forum 2020 ONLINE Programme Confirmed

IMFORMED is delighted to announce the programme for Fluorine Forum 2020 ONLINE, 12.00-16.30 BST Tuesday 13 October.

While our original planned event in Hanoi has been postponed to 18-21 October 2021 (see Fluorine Forum 2021) we are pleased to offer delegates an online alternative with which to assess the latest trends and developments impacting the market, and provide an opportunity to pose questions and comment to our panel of experts.

Programme*

All times shown are British Summer Time (corresponding time zones shown below)

12.00 Welcome & Introduction
Ismene Clarke & Mike O’Driscoll, Directors, IMFORMED

12.15 Supply chain overview
Oliver Rhode, CEO, Xenops Chemicals GmbH & Co KG, Germany

12.45 COVID-19 impact on steel markets for fluorspar
Kerry Satterthwaite, Manager Industrial Minerals & Chemicals, Roskill, UK

13.15 An update on the comparison between FSA and CaF2 raw material
Olivier Ruffiner, Business Manager Fluorine, Buss ChemTech AG, Switzerland

13.45 Fluorochemicals outlook
Samantha Wietlisbach, Director Minerals Research & Analysis, IHS Markit, Switzerland

14.15 Rise of EV battery megafactories: what should fluorspar producers prepare for?
Caspar Rawles, Head of Price Assessments, Benchmark Mineral Intelligence, UK

14.45 Lost Sheep Fluorspar Project
James Walker, CEO, Ares Strategic Mining, Canada

15.15 Latest developments in recovering AHF from FSA in DUHF project
Bob Welch, Sales Director, New Chemical Products LLC, USA

15.45 Sensor-based sorting technology for fluorite: using fluorescence effects of fluorites for highly efficient and economic sorting
Michael Klug, Sales Manager, Binder+Co AG, Germany

16.15 Final Discussion & Wrap-up

16.30 Close of Forum

* All timings approximate; subject to change

Register Online Here | Places Limited

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

IMPORTANT NOTES

• Each presentation has a scheduled 30min. slot for approx. 15min. presentation followed by approx. 15min. Q&A.

• Unless a panellist, your camera will be turned off, and your microphone muted (unless Moderator permits otherwise).

• You will be able to view and listen to all presentations and panel discussions.

• You can submit at any time questions using the Q&A button in tool bar at foot of screen, with option to send anonymously, and also comment on Q&A.

• We will also conduct Polls to engage discussion please do participate.

• The event will be recorded, and after the event attendees will be sent a link to access the recording for playback.

• All presentations (and any other information submitted by speakers) will be available as PDF for attendees to download via a sent link after the event.

Challenges & Opportunities

IMFORMED was honoured to be asked to present the Keynote presentation at the General Session of the recent Industrial Minerals Association-North America Virtual Annual Meeting.

Industrial Minerals Association-North America (IMA-NA) is the representative voice of the industrial minerals sector in North America, bringing together the industry’s leaders to promote best practices, organising workshops and meetings. IMA-NA Sections represent ball clay, barite, bentonite, borates, calcium carbonate, feldspar, industrial sand, kaolin, mica, soda ash, talc and wollastonite.

IMA-NA, in line with other event organisers (ourselves included), was required to switch its important annual Fall gathering of North America’s leading industrial mineral players to an online version (originally to be held in Park City, Utah).

This was successfully achieved resulting in a series of mineral section and committee meetings, general sessions, and awards presentations stretching through 14-24 September 2020.

On 21 September, Mike O’Driscoll, Director, IMFORMED presented “The world of industrial minerals under COVID-19: Challenges & opportunities” providing an overview of the main impact of the pandemic on the industrial mineral supply chain with some thoughts on the outlook for the industry.

Key among the opening comments was how the pandemic had spotlighted the “essentiality” of industrial minerals to manufacturing industry and everyday life, and also the vulnerability of mineral supply chains, not least the overreliance on certain sources, notably China.

The emergence over the last decade or so of the recognition of the “criticality” of certain minerals (and metals) was also highlighted, shown to have come to prominence especially in the last two years, and climaxing this year in a raft of US and EC-led actions (most recently the US President’s 30 September “Executive Order on Addressing the Threat to the Domestic Supply Chain from Reliance on Critical Minerals from Foreign Adversaries”).

The structure of the industrial minerals industry was reviewed in context of the impact of the pandemic, with a focus on Chinese mineral supply to key world markets.

The impact on consuming markets was demonstrated with a focus on the main economic drivers for the industry and a specific look at the steel and oilfield markets.

The presentation concluded with O’Driscoll’s thoughts on the outlook for the market: some general observations on market recovery, corporate readjustment, policy input and drive from governments, environmental factors, education of the “essentiality” of minerals; with more detailed comments on the future for China, rethinking mineral sourcing strategy, and accelerated mineral recycling.

IMFORMED would like to thank Mark Ellis, President IMA-NA, and Chris Greissing, Exec. VP IMA-NA, for the opportunity to present.

For 2021, IMA-NA has scheduled its Spring Meeting for 20-22 April 2021, Washington, DC, and Fall Meeting for 21-23 September 2020, Park City, UT – details here.

FREE PDF DOWNLOAD OF PRESENTATION

Fluorspar a Critical Mineral

For all the latest trends & developments in supply & demand

Fluorine Forum 2020 ONLINE

12.00-17.00 BST Tuesday 13 October

FULL DETAILS – BOOK NOW – LIMITED PLACES

Panglobal action to kickstart domestic mineral projects driven by critical mineral demand

It is regrettable that it takes a pandemic to spotlight what many have been warning about for some years: a shortage of commercially developed critical mineral resources and processing plants, and a risky overreliance on imports from limited overseas sources. But that’s what’s happening.

Title picture Mountain Mission: MP Materials, the USA’s sole rare earth minerals producer at Mountain Pass, California, now on a “mission to restore the full rare earth supply chain to the USA”,  is expecting to have full processing capacity by 2022, and has recently been issued a contract with the US Dept of Defense. Courtesy MP Materials 

Speaking Tuesday last week at the Benchmark Mineral Intelligence Summit 2020, Washington DC – The Keynotes, Senator Lisa Murkowski (R-Alaska), Chairman, US Senate Committee for Energy & Natural Resources acknowledged that Covid-19 had “helped elevate the issue and given greater recognition of this threat”.

Murkowski made a plea to all concerned to help break down barriers to meaningful legislation and start substantial engagement to source critical minerals domestically before it is too late.

This follows hot on the heels of US President Trump’s Executive Order call to action announced 30 September (see below) and in just the last few days as we near the US Election, US Democratic presidential candidate Joe Biden has pledged support to boost domestic production of minerals critical to green energy and electric vehicles. The Biden campaign is reported to have privately told US miners that the Democrat will support projects crucial to his climate plan.

And across the Atlantic, earlier on 3 September 2020, as the European Commission announced an invigorated Action Plan, Thierry Breton, EC Commissioner for Internal Market, said: “The pandemic has revealed Europe’s dependencies in certain products, critical materials and value chains”.

For most critical minerals, and also other minerals of significant industrial value which may not be formally labelled as “critical”, it is not that there is a shortage of world resources, merely that for too long consumers have been relying on imports from limited sources overseas while their respective domestic mineral development has received little or no support, thus struggling to bring local/regional mines to fruition.

Sure, initially consistent high volumes, good quality, and above all, low prices, ensured consumers’ attentions and support were very much focused on these imports, while, frankly speaking, in the main, governments were blissfully unaware.

And yes, a large proportion of these mineral sources are to be found in China – mostly down to nature but also down to diligent exploration, development, and hard work on establishing trading relationships by the Chinese mineral sector over the years, initially supported by relatively lower labour, freight, and energy costs, and central and local government incentives.

But times change, other influencing factors are brought to bear and there is now very much a sea change in attitudes, albeit belated to some, in mineral consumer reliance on China and a more enlightened approach in diversification of mineral sourcing strategy.

Even before Covid-19 this trend was gathering momentum, driven by two key factors:

1. China in change: the last five years in particular has seen mineral supply from China impacted by inconsistency in volumes, quality, and prices owing to a range of factors including environmental and other central government-imposed controls, exhaustion of high quality reserves, ban on mining and exploration licences, lack of industry investment in modern plant and infrastructure, reduction in production capacity, and a swiftly growing domestic market – in both established and new hi-tech manufacturing – demanding domestic (and more recently, imported) minerals, thus making the export market less a priority for producers. (see China’s refractory minerals crisis: dark days of the Dog continue).

2. Emergence of hi-tech growth markets: particularly in the energy sector (eg. Li-ion batteries, EVs, solar, wind), and especially demand for so-called critical minerals (eg. lithium, graphite, rare earths).

At the beginning of 2020 the onset of the Covid-19 pandemic merely brought into sharp focus the vulnerability of mineral supply chains and the overreliance on China as the primary mineral source.

But it is important to note that this was not just for the emerging hi-tech growth markets but also for established key manufacturing industries such as steel, ceramics, glass, oil and gas drilling (for a review see: China’s mineral supply to global markets: dominance, diversity & disruption).

So what has been the response so far? During the year, and just in the last few weeks, a range of actions and plans have been announced worldwide.

EC revises List of Critical Raw Materials, launches Action Plan

On 3 September 2020 the European Commission (EC) announced an Action Plan on Critical Raw Materials, revised its List of Critical Raw Materials, and published a Foresight Study on Critical Raw materials for Strategic Technologies and Sectors from the 2030 and 2050 Perspectives.

Maroš Šefčovič, Vice-President for Interinstitutional Relations and Foresight said: “A secure and sustainable supply of raw materials is a prerequisite for a resilient economy. For e-car batteries and energy storage alone, Europe will for instance need up to 18 times more lithium by 2030 and up to 60 times more by 2050. As our foresight shows, we cannot allow to replace current reliance on fossil fuels with dependency on critical raw materials. This has been magnified by the coronavirus disruptions in our strategic value chains.”

Regarding the List of Critical Raw Materials, last revised in 2017, the EC has now added bauxite, titanium, lithium, and strontium – all key industrial minerals essential to a range of industries, as well as having metallic value (especially bauxite for aluminium).

The EC explained the update “to reflect the changed economic importance and supply challenges based on their industrial application.”

The 2020 EU list now contains 30 materials as compared to 14 materials in 2011, 20 materials in 2014, and 27 materials in 2017. The EC removed helium from the 2020 critical list owing to a decline in its economic importance, and will monitor nickel closely, in view of developments relating to growth in demand for battery raw materials.

Despite the EC assessment of bauxite almost totally focused on its importance in the aluminium metal supply chain, the addition of bauxite is certainly warranted from the viewpoint of bauxite as an industrial mineral.

There are very few sources developed worldwide for non-metallic bauxite grades, and until very recently, China owned and operated all sources of refractory grade bauxite (ie. China and Guyana; see Guyana bauxite newcomer starts bulk shipments).

The EC assessment contains a cursory reference to the non-metallurgical applications of bauxite and bauxite-sourced materials to the downstream manufacturing industry.

No assessment was made for the criticality of the intermediate stage between bauxite and primary aluminium, ie. the production of alumina (which also has many non-metallic markets, see table).

Strontium was assessed for the first time by the EC, and was very much based on its non-metallic market demand. For titanium, both metallic and non-metallic market demand was used in the assessment.

In its Critical Raw Materials for Strategic Technologies and Sectors in the EU A Foresight Study the EC identifies in essence the mineral markets of the future; grouping recognised “strategic technologies” and their respective mineral demands, in the three sectors of Renewables, E-mobility, and Defence & Space.

The EC’s Action Plan, unveiled at the same time, is aimed at reducing Europe’s dependency on third countries, diversifying supply from both primary and secondary sources, and improving resource efficiency and circularity while promoting responsible sourcing worldwide.

The Action Plan comprises ten tasks:

1. Launch an industry-driven European Raw Materials Alliance
2. Develop sustainable financing criteria for the mining and extractive sectors
3. Launch research and innovation on waste processing, advanced materials and substitution of critical raw materials
4. Map the potential supply of secondary critical raw materials in Europe and identify viable recovery projects
5. Identify priority mining and processing projects for critical raw materials in the EU that can be operational by 2025
6. Develop expertise and skills in mining, extraction and processing in regions in transition
7. Deploy Earth-observation programs and remote sensing for resource exploration, operations and post-closure environmental management
8. Develop research and innovation projects to reduce environmental impacts of raw materials extraction and processing
9. Develop strategic international partnerships to secure a diversified supply of sustainable critical raw materials, starting with pilot partnerships with Canada, interested countries in Africa and the EU’s neighbourhood in 2021
10. Promote responsible mining practices for critical raw materials

The plan appears detailed, wide ranging, and ticks a number of key boxes, not least a clear emphasis on inclusion of processing projects (so often forgotten while mining is highlighted) and above all, recycling as a key facet of the future: “waste processing”, “supply of secondary critical raw materials”.

However, perhaps what stands out most are the two bold deadlines regarding priority mining and processing projects in the EU that can be operational by 2025, and strategic international partnerships with Canada, Africa and the EU’s neighbourhood in 2021.

Anyone who has been involved in trying to get a new mine started in the Europe will understand just how challenging and arduous the process is of getting it anywhere near to fruition.

But let’s be optimistic. By this Action Plan the EC is clearly laying down a marker that it wants to fast track “priority mining and processing projects for critical raw materials”.

Indeed, since the launch of the European Raw Materials Alliance (ERMA) on 29 September 2020, over 50 new industrial and non-industrial partners have joined and endorsed ERMA.

The ERMA network now consists of an impressive list of >200 partners from over 30 countries in and out of Europe across the entire raw materials value chain, covering primary raw materials extraction, processing, advanced materials and product design, as well as recycling.

Sweden: a chance for graphite & fluorspar?

Most recently, ERMA has also been supported by the North Sweden European Office, which represents the four northernmost counties of Sweden with a significant share of Europe’s most critical mineral and metals deposits: Norrbotten, Västerbotten, Jämtland Härjedalen and Västernorrland.

North Sweden wants to strengthen its position as a global frontrunner for sustainable development, a reliable and efficient supplier of raw materials, an innovative testbed and a high-tech knowledge hub, as well as a vital facilitator for the European green and digital economy.

One example is the Northvolt gigafactory, partly financed through the European Investment Bank, which will produce lithium-ion batteries for the European automotive industries, while also conducting recycling of critical raw materials such as lithium, cobalt, nickel and manganese.

In June this year, the Swedish Geological Survey decided that Talga Resources’ Vittangi graphite project  in Norrbotten county should be designated “a mineral deposit of national interest”.

Talga is planning to build a wholly owned fully integrated anode supply chain in Sweden with development of its anode refinery fed by graphite from Talga’s Vittangi project.

Northern Exposure: Talga Resources’ Vittangi graphite (left) and Tertiary Minerals’ Storuman fluorspar (right)

Under the Swedish Environmental Code, deposits of valuable substances or materials can be defined as being of national interest, meaning municipalities and central government agencies may not authorise activities that might prevent or significantly hinder exploitation of the mineral deposit.

In this climate of renewed interest in critical minerals, it would be surprising if UK mineral developer Tertiary Minerals Plc did not urge the Swedish authorities to take another look at its Storuman Fluorspar Project, in Västerbotten county: a well documented 100,000 tpa acidspar project, granted a mine permit in 2016, and all but ready to go until the permit was rescinded in 2017 in its current form owing to several concerns, since addressed by Tertiary, but remains subject to appeal.

USA: Executive Order from the top

There has been a clamour for development of critical minerals in the USA for some years now, largely led by the rare earths community, but now joined by those realising just how much US new hi-tech growth markets will depend on Chinese and other imports.

But it has only been in the last three years or so that the US government has reacted with any force, and even that has been questioned.

In 2017, there was US Executive Order 13817, a Federal Strategy to Ensure Secure & Reliable Supplies of Critical Minerals, followed by the Dept. of Interior (DOI) Final List of Critical Minerals 2018, and Dept. of Commerce (DOC) Calls to Action in 2019.

Also in May 2019, Senator Lisa Murkowski (R-Alaska), Chairman, US Senate Committee for Energy & Natural Resources launched the American Mineral Security Act, introduced as comprehensive approach to begin reducing the USA’s dependence on foreign minerals.

There followed in 2020 a raft of similarly intentioned legislative announcements, including:

• May 2020: On-shoring Rare Earths (ORE) Act was introduced to end US dependence on China for rare earth elements and other critical minerals used in the manufacture of domestic defence technologies and high-tech products.
• May 2020: American Critical Mineral Exploration and Innovation Act of 2020 aims to reduce America’s dependence on foreign sources of critical minerals by supporting responsible domestic mineral development.
• July 2020: American Mineral Security Act is included in new legislation to help the US recover from the COVID-19 pandemic, ie. the Phase IV COVID-19 relief bill, the HEALS Act (Health, Education, Assistance, Liability Protections, Schools Act).
• Sept. 2020: Reclaiming American Rare Earths (RARE) Act seeks to decrease the US’s dependence on China for rare earths, aims to establish tax incentives for domestic production of rare earths.

And on 30 September 2020, this movement culminated in orders straight from the top: President Trump signed an Executive Order (EO) declaring a National Emergency to expand the domestic mining industry, support mining jobs, alleviate unnecessary permitting delays, and reduce US dependence on minerals imports.

The rhetoric used perhaps underlines the frustration, and may be belated concern over the issue: “I therefore determine that our Nation’s undue reliance on critical minerals, in processed or unprocessed form, from foreign adversaries constitutes an unusual and extraordinary threat, which has its source in substantial part outside the United States, to the national security, foreign policy, and economy of the United States.”

“Many Americans are not understanding the fundamentals of minerals, and oppose all mining. The challenge now is to modernise our policies at federal levels so that we can produce more minerals.” urged Senator Lisa Murkowski (R-Alaska) during the Benchmark Minerals webinar last week.

The aim is that the EO begins the process for the DOI to develop a programme to use its authorities under the Defense Production Act (DPA) to fund mineral processing that protects national security.

Key to prospects for US mineral development, the intention is that this action will accelerate the reopening and expansion of US mines and processing plants.

Critical minerals from China were spotlighted: “The President will continue to protect our domestic supply chains for critical minerals from predatory Chinese action.”

The EO pronouncement highlighted other critical industrial minerals (as determined by the US DOI) and their key markets such as barite and graphite.

Also of interest, was the prospect of widening the scope of mineral development beyond the so-called critical minerals: “In addition, I [US President Trump] find that the United States must broadly enhance its mining and processing capacity, including for minerals not identified as critical minerals and not included within the national emergency declared in this order.”

The DOI has until the end of the year to report back to the President with its conclusions from the investigation and recommendations for executive action, which could include the imposition of tariffs or quotas, or other restrictions on import source countries. Thereafter, a report is expected every 180 days on the latest on the threat to US mineral supply chains.

Just on a final note re. the US: as has been well documented elsewhere, during 2018-19 the US imposed tariffs on a wide range of >$550bn worth of Chinese imports including certain industrial minerals and mineral products.

One interesting offshoot of the situation that became apparent earlier this year was highlighted by leading Chinese refractory producer Puyang Refractories Group Co. (PRCO) announcing plans to construct a new magnesia-carbon brick plant in Kentucky (see Magnesia from the “Roof of the World” to Kentucky).

While US import tariffs have been imposed on Chinese magnesia-carbon bricks, one of PRCO’s main products, imports of the product’s main raw material, refractory grade magnesia (in this case high purity dead burned magnesia from Tibet) have been excluded from the tariff list, mainly owed to US refractory industry lobbying.

Thus through its US subsidiary, PRCO will be able to supply the recovering US refractories market with a new 22,000 tpa brick plant in Hickory, KY using imported refractory grade magnesia.

Whether this encourages other Chinese manufacturers consuming minerals to set up plants overseas and import Chinese feedstock raw materials remains to be seen.

Elsewhere: Canada | Brazil | Australia | India

Canada-US joint action

On 9 January 2020, Canada and the US finalised the Canada–U.S. Joint Action Plan on Critical Minerals Collaboration.

The Action Plan will guide co-operation in areas such as industry engagement; efforts to secure critical mineral supply chains for strategic industries and defence; improving information sharing on mineral resources and potential; promote joint initiatives, including research and development cooperation, supply chain modelling and increased support for industry.

Brazil’s Mining Development Programme

On 29 September 2020, a very wide ranging and comprehensive Mining and Development Programme (PMD) was launched by Brazil’s Ministry of Mining & Energy (MME).

The MME has been working on this since 2019, and it comprises 110 well-defined goals, in addition to actions in ten thematic concentration areas for mining for the period from 2020 to 2023.

The overall objective is to promote the growth of the entire Brazilian mineral sector, and includes the project “Mining of the present for the future”. This entails among other tasks, defining the policy for minerals of strategic interest for Brazil, and taking steps to strengthen their supply chains.

Australia’s Critical Minerals Strategy

In March 2019, Australia launched its Critical Minerals Strategy, aimed to position Australia as a leading global supplier of “minerals that will underpin the industries of the future”. This includes the agritech, aerospace, defence, renewable energy and telecommunications industries.

This was followed in November with the formalisation of an Australia-US partnership on critical minerals focused on developing both nations’ critical mineral assets; a project agreement was signed by Geoscience Australia and the United States Geological Survey (USGS).

In January 2020, the Australia government opened the Critical Minerals Facilitation Office to provide national policy and strategic advice on critical minerals, and connect Australian critical minerals projects to investors, regulators, government financing facilities and Australia’s strategic partners.

On 21 October 2020, the government released an updated edition of the Australian Critical Minerals Prospectus 2020 for investors to identify the commercial opportunities within the country’s mineral projects. The prospectus aims at attracting more investment towards critical minerals projects and greenfield opportunities in Australia.

Over 200 potential investments are outlined in the prospectus for critical minerals including lithium, cobalt, manganese, antimony, tantalum, zirconium, tungsten, vanadium and niobium.

India: Atmanirbhar Bharat Abhiyan | Steel & refractories lead domestic utilisation drive

On 12 May 2020, in response to the pandemic’s disruption of the country’s economy, India’s Prime Minister Narendra Modi announced an overall economic assistance package worth US$260bn, 10% of India’s GDP.

The stimulus package came with a key emphasis of Atmanirbhar Bharat Abhiyan – self-reliant India – the pursuit of policies that are efficient, competitive and resilient, and being self-sustaining and self-generating.

Although India is endowed with many industrial mineral resources, its refractories sector (supplying the rapidly expanding steel, cement, glass industries) has relied heavily on imports of both refractory raw materials (eg. fused and dead burned magnesia, bauxite, mullite, fused alumina, graphite, silicon carbide) and refractory end products, eg. mag-carbon bricks, and mainly from China.

India’s steel industry requires some 1.2m tpa of refractories, of which almost 30% is imported. With several major infrastructure projects in the pipeline, in his presentation at last year’s Indian Minerals & Markets Forum 2019, Sameer Nagpal, CEO, Dalmia-OCL, expected 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 (see India’s mineral markets potential dances to the Bollywood Beat)

First stirrings of a recognition of this supply dependency on imports were apparent at IREFCON 2018 (see Refractory raw material supply “the single most important challenge” )

In FY17, India’s imports of refractory materials surged 40% from Rs180m in 2016 to Rs25.3bn; and in FY 2018 increased by 49% year-on-year to Rs37.6bn. Overall, India’s refractory sector imports about 40% of its raw material requirement from China.

In common with refractory markets elsewhere in the world, India’s refractory manufacturers experienced disruption in raw material and refractories supply as the pandemic hit China early 2020, a sharp reminder of their supply chain vulnerability.

In July 2020, JSW Steel Ltd, India’s second largest private sector steel company, announced that it would cease all imports of materials from China. JSW Group chairman Sajjan Jindal said: “We have recently put a clause in all our purchase orders that specifies no materials should come from China. At JSW, we used to import around 100% of refractories from China, and now we have worked out an alternative supply from Brazil and Turkey, and some from India.”

Dalmia-OCL is India’s fastest growing and second largest refractories group and has been instrumental in leading the call for more utilisation of domestic resources and manufacturing.

In September 2020 the company started up the first phase of its 108,000 tpa mag-carbon refractory brick plant at Rajgangpur, Odisha, comprising of three phases of 36,000 tpa each. When up to full capacity the new plant will be India’s largest mag-carbon brick plant, taking a 25% share of the market, and, crucially, will substitute some 50% of India’s imported mag-carbon brick requirement.

Dalmia-OCL CEO Sameer Nagpal has proposed a plan to encourage the Indian refractory industry to be self-sufficient, while the start-up of its new mag-carbon refractory brick plant at Rajgangpur, Odisha is expected to substitute some 50% of India’s imported mag-carbon brick requirement. Courtesy Dalmia-OCL.

Dalmia-OCL CEO Sameer Nagpal has proposed a three-pronged approach to encourage the Indian refractory industry to effectively contribute to the dream of a self-reliant India:

1. Unlocking access to local sources of raw material
2. Collaboration between refractory makers and users
3. Special benefits and incentives from the government to catalyse the speed with which refractory makers can scale up to meet the demands of Atmanirbharbharat and to ensure ample availability of locally made refractories for steelmakers as they move towards their long-term steel production goal of 300m tpa

India’s ambitious steel growth plans (India now ranks world no.2 steel producer after China, overtaking Japan in 2018) has already attracted much foreign investment from leading refractory players in recent years, such as Krosaki-Harima, RHI Magnesita, Imerys/Calderys, Seven Refractories.

Now these players are further strengthening their raw material, intermediate, and end product supply to India’s refractories industry, including raw material sourcing from outside China.

Mineral sourcing strategy rethink: 2020 examples

The year has already seen a number of interesting announcements regarding changing and innovative strategies in mineral sourcing and processing of critical minerals. Many of these tick the boxes of sourcing security and diversification, consumer vertical integration, and market diversification.

Graphite

Elkem ASA, Norway : Si & C producer diversifying; Northern Recharge Project, Herøya, potential large-scale plant for battery graphite production. Elkem constructing US$7.2m pilot plant in Kristiansand, expected to open early 2021.

Imerys, Switzerland: to invest €35m at its plant in Bodio, Switzerland, to expand the production of high-purity graphite materials in order to supply growing demand from battery manufacturers in Asia, Europe and North-America, who are rapidly increasing their output.

Lithium

Rio Tinto, Serbia, USA: Rio Tinto has approved an additional investment of almost $200m to progress the next stage of the development of the lithium-borate Jadar project in Serbia. Also started work on the commissioning lithium “demonstration plant” extracting lithium from waste rock at Boron, CA mine.

Sibelco, Zimbabwe: Sibelco signed offtake agreement to buy 100,000 tpa ultra-low iron petalite over seven years from Australian developer Prospect Resources’ Arcadia lithium project in Zimbabwe.

Tesla, Nevada: Tesla is to build a lithium hydroxide chemical plant in Texas in what is the first move by an automotive company into lithium chemical production. The plant will be adjacent to the Terafactory/Gigafactory 5 in Austin, Texas. Hard rock spodumene ore will be converted into lithium hydroxide for direct use in its battery cells – a process that traditionally occurs in China using Australia-sourced spodumene.

Fluorspar

Commerce Resources, Canada: has announced plans for its advanced-stage Ashram rare earth deposit in northern Quebéc to upgrade the mine’s potential fluorspar by-product.

Ares Strategic Mining, USA: high grade assays bolster development of Lost Sheep Fluorspar Project, Utah with potential to be only mine in USA; secured two-year 60,000 tpa metspar offtake agreement with Possehl Erzkontor North America; strategic partnership with the Mujim Group, a Shanghai-based fluorspar producer and trader.

Magnesia

Refratechnik, China, Australia: German refractory major invested in 100,000 tpa magnesia processing JV Haicheng, Liaoning, China; and in 2020 acquired (from Sibelco) major magnesia producer QMAG, Australia (>300k tpa); primarily for DBM/FM, but also looking at CCM non-refractory markets.

Rare earths

MP Materials, USA: MP Materials, the USA’s sole REE producer at Mountain Pass, merged with private equity firm Fortress Value Acquisition Corp., in a “mission to restore the full rare earth supply chain to the USA.” In July, the US Dept of Defense issued a contract with MP Materials, which is expecting to have full processing capacity by 2022.

Mineral recycling evolution to accelerate

And finally, these developments in mineral sourcing strategy will also be accompanied by the continuing evolution of the mineral recycling sector.

This is expected to accelerate, driven by benefits of alternative recycled mineral sources, cutting costs (from waste disposal), the overall move to develop the Circular Economy to protect the environment, and to provide mineral suppliers and mineral consumers with a “green” portfolio.

It is significant that the EC’s recently announced Action Plan, in line with the “European Green Deal”, will also address circularity and sustainability of the raw materials value chain, develop sustainable financing criteria for mining and extractive sectors by the end of 2021, and map the potential of secondary critical raw materials from EU stocks and wastes to identify viable recovery projects by 2022.

The future should see:

• Opportunities to process minerals from waste, develop & supply sorting technology & equipment
• Increasing economic alliances between waste sources (end users) + recyclers, new logistic chains
• Supply chain co-operation in modifying end product formulations to ease end-of-life recyclability

Another expected trend will be more primary mineral producers involved in recycling tailings and other waste sources to offer wider product range (including blends?). Projects announced this year include:

LKAB, Sweden: REE, fluorspar, gypsum, phosphorus from iron ore tailings
Hindalco, India: to supply 1.2m tpa bauxite residue to UltraTech Cement
Noranda Alumina, USA:  to supply 60k tpa bauxite residue to CemTech Materials
Rio Tinto, Canada: scandium oxide from ilmenite processing waste
Nutrien/Arkema, USA Nutrien: to supply 40k tpa anhydrous HF from phosphate rock processing FSA waste to Arkema (replacing fluorspar imports)

Future fluorspar alternative? Nutrien’s huge Aurora, NC phosphate mine (1) produced 4.3m tonnes phosrock in 2019, supplying its processing complex (2) (prod. cap. 5.4m tpa phos. concentrate, 1.2m tpa phos acid, and 0.8m tpa DAP/MAP). By 2022 a new 40,000 tpa FSA-to-AHF plant will be installed (may look like 3 – this is FSA-to-AHF plant built by Buss ChemTech in China) to supply Arkema’s Calvert City, KY plant (4), producing fluoropolymers and fluorochemicals (5).

With such projects in progress, changes in mineral sourcing strategy, and a boost from national and regional initiatives and legislation, the 2020s will certainly herald a new era of industrial mineral and mine developments. This cannot come soon enough in order to stimulate economies and meet demand when market recovery starts in earnest.

IMFORMED looks forward to covering all these developments in next year’s exciting agenda of Forums – latest details here.

Interested in presenting?

Please contact Mike O’Driscoll mike@imformed.com | T: +44 (0) 7983 986 255

Interested in sponsoring/exhibiting?

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

Fluorine Forum 2020 ONLINE Review

IMFORMED’s inaugural virtual event Fluorine Forum 2020 ONLINE took place last month and was hailed a great success by attendees keen to keep abreast of trends and developments in supply and demand for fluorine raw materials.

Key takeaways included:

• Significant commercial interest in FSA-route plants in operation by 2022 as an alternative fluorine source
• New US fluorspar mine expected to be producing acidspar by May 2021
• Growing interest in fluorspar’s input to EV lithium ion battery manufacturing
• Covid-19 accelerating shift of trade patterns and demand slowdown

Although sadly not held at the originally planned venue in Hanoi, Vietnam (postponed to next year, see Fluorine Forum 2021), 75 attendees from across the global fluorine supply chain logged in on 13 October to participate in a most informative online live conference, comprising nine excellent presentations each sparking enthusiastic and extended discussion.

While most acknowledged that the virtual conference cannot fully replicate the in-person experience that IMFORMED usually provides, the online format was nevertheless deemed most valuable and informative.

“Thank you for organising and animating the Fluorine Forum, in spite of the challenging conditions. It was Itafos’ first attendance, and was very insightful on the fluorine markets, projects, and technologies.” Alex Benedetti, Commercial Director, Itafos, USA

“Thank you for your wonderful job! FF2020 was beautifully organised: interesting presentations and discussions. It was very convenient and compact with no technical problems.” Evgeniy Torochkov, Head of Industrial Ecology, NIUIF (PhosAgro), Russia

“The online conference was very good. However, I prefer the old style and I’m already looking forward to Hanoi next year!” Oliver Rhode, CEO, Xenops Chemicals GmbH & Co KG, Germany

Missed attending the Forum?

Summary Slide Deck Download

A full set of PDF presentations plus access to live recording maybe purchased.

Please contact Ismene Clarke T: +44 (0)7905 771 494 ismene@imformed.com

After a Welcome Introduction by Ismene Clarke, Director, IMFORMED, the industry scene was set by Mike O’Driscoll, Director IMFORMED commenting on key influencing factors, and emerging potential new sources of fluorspar and alternative sources of fluorine feedstock material.

Thereafter followed eight presentations on key aspects shaping the future of the industry.

Fluorspar supply & demand overview
Oliver Rhode, CEO, Xenops Chemicals GmbH & Co KG, Germany

Rhode presented a fine overview of the market situation with global facts and figures, the status of China, influencing factors affecting the supply demand balance, and highlighting Xenops Chemicals’ fluorspar activities.

Rhode said: “The trade pattern of fluorspar has changed dramatically. Covid-19 is accelerating the shift of trade patterns and the slowdown of demand, while most fluorspar mines are not running at nameplate capacity. The offtake volumes of 2020 will be postponed to 2021.”

Fluorspar has a long term growth potential of about 2.4% p.a. CAGR, mainly driven by acidspar, the supply of which will depend mainly on Mexico, South Africa, Canada, and Vietnam.

Rhode touched on the emergence of fluorosilicic acid (FSA) as an alternative source, commenting that the economic advantage of the FSA route depends on the “price” of FSA, proximity to a phosphoric acid producer is required, and that the biggest opportunity for FSA is China.

Xenops is active in marketing and distributing fluorspar from two sources: Gujarat Fluorochemicals Ltd’s subsidiary GM Fluorspar SA, at Taourirt, north-east Morocco, operational since 2018 with a capacity of 40,000 tpa acidspar (see New fluorspar source for European markets); and more recently, developing “a combination of mines” in Coahuila, Mexico, hosting high quality, low arsenic fluorspar reserves, mainly targeting the Americas and Asia.

COVID-19 impact on steel markets for fluorspar
Kerry Satterthwaite, Manager Industrial Minerals & Chemicals, Roskill, UK

Satterthwaite reminded that most metspar is consumed in the iron and steel industry, with smaller volumes used in cement production and other applications, and explained how all metspar applications have been hit by the demand slowdown this year.

Global crude steel production has been slowing for a number of years based on maturing rates of industrialisation in China and slowing Chinese output. Chinese steel production declined for the first time in 2015, before seeing some recovery to 2019, and falling in 2020 with reduced global demand amid COVID 19.

Satterthwaite said: “The fluorspar market was already disrupted by shifting supply structure, and the Covid-19 pandemic has again just accelerated what was happening already. China had a total fluorspar trade deficit of over 323,000 tonnes in 2019 and 227,000 tonnes by end-Sept 2020.”

Roskill’s new “base case” economic analysis forecasts a decline in global GDP of 3.9% this year before growth of 5.7% is achieved in 2021 followed by a 4.9% increase in 2022. This bisects our previous scenarios and is significantly more optimistic.

Satterthwaite concluded on a positive note: “The recent decline in steel production is not unprecedented and recovery should be quick, many sectors in developed economies are now recovering.”

An update on the comparison between FSA and CaF2 raw material
Olivier Ruffiner, Business Manager Fluorine, Buss ChemTech AG, Switzerland

With the talk of the fluorine town very much focused on the June 2020 announcement of Arkema-Nutrien’s FSA feedstock 40,000 tpa AHF plant project, this was a keenly awaited presentation which attracted much discussion (see Fluorine focus: new & alternative source developments Part 2 – FSA a game changer?).

Ruffiner reviewed some 60 years of fluorine technology development at Buss ChemTech (BCT) before outlining the company’s proprietary Hybrid Route (using FSA & fluorspar) for HF production.

Ruffiner highlighted some key facts: “FSA is a by-product that is wasted if it is not recovered; environmental policies are getting more strict on the global fertiliser industry; and the cost of neutralization of FSA is high.”

BCT has five FSA Route plants in operation in China (all at phosphate giant Guizhou Wengfu Group Co. Ltd):

20,000 tpa AHF Machangping (2008)
12,000 tpa AHF Lantian (2012)
20,000 tpa AHF Hubei (2013)
30,000 tpa AHF Yunnan (2018)
30,000 tpa AHF Guizhou ( 2020)

BCT is now active with the Nutrien/Arkema project in construction phase in the USA.

Ruffiner went on to explain how market developments since 2016 (as he presented in IMFORMED’s inaugural Fluorine Forum 2017, San Luis Potosi) had impacted to change, for the positive, the economic comparison of costs to produce HF using the FSA route versus the traditional fluorspar route.

Primary influencing factors included:

• Fluorspar being declared strategic and critical by the EU, US and China
• Green Initiatives in China: older and smaller fluorspar mines closed permanently
• China becomes a net fluorspar importer
• Boom of electric vehicles worldwide
• New battery factories under construction
• HF consumers reducing their supply dependency on China
• Fluorspar prices increased

While the future could well see the emergence of more FSA-to-AHF projects, sadly the industry will be without Oliver Ruffiner, who announced his moving on to new pastures. We wish him well, and look forward to maintaining rapport with Emre Sen, Sales Manager, BCT, whom Ruffiner kindly introduced live during the conference.

Fluorochemicals outlook
Samantha Wietlisbach, Director Minerals Research & Analysis, IHS Markit, Switzerland

Wietlisbach provided a very comprehensive review and forecast for downstream markets for fluorochemicals through fluoropolymers and fluoroelastomers.

Chinese and world HF supply and demand was examined first. China leads the world in HF capacity, production and consumption, with about 27% of HF production traded.

Only minor capacity increases are foreseen in China and possibly Africa leading up to 2024, plus the new US Arkema/Nutrien plant.

Fluorocarbons accounted for 60% of global HF demand in 2019, the largest end uses being refrigerants and polymer precursors. About 45% of fluorocarbons are used as polymer precursors, refrigeration and air conditioning, 40%, foam blowing, 10%, other uses include aerosol propellants and solvent cleaning.

Wietlisbach highlighted the growing EV battery market as having a positive impact on fluorochemical demand, such as polyvinylidene fluoride (PVDF) binders in electrodes and separators in lithium ion batteries (LIB), and lithium hexafluorophosphate production (used as LIB electrolyte) forecast to grow >25% over the next five years.

Rise of EV battery megafactories: what should fluorspar producers prepare for?
Caspar Rawles, Head of Price Assessments, Benchmark Mineral Intelligence, UK

Having drawn attention to the emerging EV market and its ramifications for increased demand for new generation battery raw materials, the scene was set for a more detailed focus on this growth sector.

Fluorspar’s input to the EV battery supply chain can be broadly summed up as raw material feedstock to manufacture: LIB electrolytes eg. LiPF6; cathode, anode and separator bindings eg. PVDF; and for HF used in natural graphite processing leading to battery grade spherical graphite.

Rawles underlined that EVs are a key part of post-Covid policy-related stimulus efforts, and illustrated a range of ambitious global policy statements supporting EV adoption by 2030.

Moreover, with all major OEMs now backing EV adoption, this will see vehicle availability rise and costs fall.

There are now 175 EV battery megafactories worldwide with a capacity of 2,900GWh, compared to just 3 factories and 57GWh in 2015.

Although China dominates the “global battery arms race”, Europe is rapidly becoming the second global battery hub with European governments accelerating the transition to electrification – a downstream supply chain is starting to develop, especially in Germany, Poland, Hungary, Sweden, and France.

North America was described as remaining “very Tesla-dependant”.

Rawles showed how demand for key LIB raw materials such as lithium, graphite, and cobalt is forecast to rise significantly by 2029, and by as much as 5 to 13 times depending on the material.

The implication being that demand will therefore rise for all required materials to make LIB: “Do not make the mistake we have seen elsewhere in the raw material supply chain – prepare to supply the battery industry.” cautioned Rawles.

Unsurprisingly, the presentation was met with a barrage of questions, which frequently requested information on just how much fluorspar would be required to either make an EV battery or equivalent to 1GWh. However, precise answers to this remain a work in progress and will undoubtedly feature in Fluorine Forum 2021.

Sensor-based sorting technology for fluorite: using fluorescence effects of fluorites for highly efficient and economic sorting
Michael Klug, Sales Manager, Binder+Co AG, Austria

Klug explained how Binder+Co. has successfully developed sensor based sorting for the mineral processing and environmental industry, employing chute, belt, and multiway variants.

The first UV filters were developed for glass recycling, and then for minerals which emit visible light when activated by UV light. Around 560 minerals, including fluorspar, are fluorescent, caused by activator elements (typical cations of metals), crystal structural defects, and organic impurities.

Klug showed UV sensor sorting of samples of fluorspar sourced from Turkey and Mexico and explained process routes using the MINEXX UV.

Using a UV sensor system is claimed to offer low maintenance costs compared to other sensor based solutions, and key benefits of saving energy, water, CO2 emissions, and chemicals per tonne of fluorspar produced.

Latest developments in recovering AHF from FSA in DUHF project
Bob Welch, Sales Director, New Chemical Products LLC, USA

Recovering HF or AHF from depleted uranium hexafluoride waste from uranium processing is another alternative source of fluorine that has attracted much R&D in recent years.

At Fluorine Forum 2019 in Prague (see Fluorspar market outlook: Pitch-perfect in Prague), Welch introduced the Forum to New Chemical Products’ (NCP) projects in this field with only limited insight as to the process involved. This time around he was able to share much more information on the NewChem Process for FSA-to-AHF Conversion.

The NewChem process design contains two “separable” stages. This permits the physical separation of the first stage (FSA conversion to a non-hazardous crystalline intermediate, ammonium bifluoride, ABF) from the second stage (crystalline intermediate ABF to AHF).

Moreover, Welch reported that all tests were completed in July 2020, a final report was submitted to FSA and AHF clients for evaluation, and a joint decision has been made to move forward to design a full scale plant.

A project design and estimate for a full-scale 10,000 tpa “split” plant (ie. FSA-ABF, ABF-AHF) costing US$20.5m was prepared for a phosphoric acid producer in collaboration with an AHF end-user, both in Russia. Discussions are now in progress for approval: capital approval is expected in Q2 2021 with an estimated construction start in Q2 2021, and operational in Q3 2022.

Interest in NCP’s process has also spread to the USA, where NCP has prepared a plant design and construction estimate for a 40,000 FSA-to-AHF plant. If approved, the US phosphoric acid producer will build Plant A (FSA-ABF), and an AHF producer will build Plant B (ABF-AHF) under the provisions of a joint venture agreement. The estimated capital expenditure is US$61m not including plant engineering and financing costs, agreement is expected to be finalised by Q3 2021.

Welch explained several benefits with the NCP 2-step process, including, crucially, removing the previous limitation to do everything at one site. Transportation of ABF to a “Plant B” elsewhere for the second process stage eliminates the need to transport highly hazardous AHF from the FSA location to the AHF manufacturing/distribution site, or alternatively, to the final AHF end user site.

The estimated COGS (cost of goods sold) from the two projects also piqued interest: the Russian plant, US$380/t AHF (excluding FSA cost and transportation, labour and plant overheads); the US plant, US$335/t AHF (excluding FSA cost and rail transportation).

Lost Sheep Fluorspar Project
James Walker, CEO, Ares Strategic Mining, Canada

There are several potential fluorspar prospects in North America (see Fluorine focus: new & alternative source developments Part 1) but Ares Strategic Mining is looking to become the USA’s sole producer of high grade fluorspar by 2021.

Walker highlighted the USA’s 100% dependence on fluorspar imports, mainly from Mexico, Vietnam, South Africa, and China, before outlining how Ares has consolidated a 586ha land package covering the entire Spor Mountain District, 72km north-west of Delta, Utah, hosting “uniformly high grades, averaging 87% fluorspar”. The 2020 drilling programme confirmed “high-grade fluorspar”.

“No fluorspar deposits of comparable size and grade have been identified in North America. We have near-term production potential on fully permitted land at the Lost Sheep Mine.” said Walker.

The fluorspar mineralisation occurs as rising intrusive bodies forming breccias hosted in limestone. Mineralised breccia pipes are typically steeply plunging and elliptical. The clusters of mineralised pipes in short distances suggest the possibility that the pipes may be interconnected. The Lost Sheep product is claimed to contain no sulphides or arsenic.

Ares has already developed a future customer base with committed orders exceeding US$10m, in discussions with major offtake partners, currently supplying small shipments of metspar to steel producers, and existing metspar customers have also now requested acidspar.

For metspar production, past producing areas are currently permitted for mining, which includes the development of an underground operation at the Little Giant Pit, and a newly discovered pipe north of the Purple Pit. Existing stockpiles may also be sourced for processing. Ares has a re-start capital requirement of about US$3-5m, with a three month lead time, and envisages capability to produce 3,000 tpm metspar.

The company is also evaluating the potential to expand the operation to produce acidspar “within months” of re-starting the metspar operation. An estimated US$6m is required, and includes installation of a flotation circuit at the processing facility to initiate a first phase of 5,000 tpm acidspar, then a second phase to 10,000 tpm.

At present, Ares is finalising the mine plan. “I would estimate that by May 2021 we will producing acidspar at good quantities. Estimated mine life will likely be about 40 years.” said Walker.

A special thank you, and see you again in 2021!

Under these especially challenging conditions for home and business at this time, we are indebted to the support and participation of all of our partners, speakers, and delegates for making Fluorine Forum 2020 ONLINE 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 again – hopefully in person at Fluorine Forum 2021, Hanoi, 18-21 October 2021.

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

Missed attending the Forum?

A full set of PDF presentations plus access to live recording maybe purchased.

Please contact Ismene Clarke T: +44 (0)7905 771 494 ismene@imformed.com

IMFORMED is delighted to announce a new online Forum for the refractory raw materials industry.

Refractory Minerals Forum 2021 ONLINE

16-17 March 2021

FULL DETAILS HERE

PLEASE NOTE NEW DATES FOR

China Refractory Minerals Forum 2021, Dalian, 25-27 October 2021 

Field Trip to Haimag, Haicheng Thurs 28 October 

The new conference will cover global trends and outlook in supply and demand for refractory raw materials and markets.

With so many of the refractory industry’s traditional in-person meeting opportunities cancelled or postponed in 2020 and H12021, IMFORMED anticipates that Spring 2021 will be the ideal time to bring together the refractory raw materials community in a virtual conference environment to take stock.

ALUMINA | ANDALUSITE | BAUXITE | CHROMITE | DOLOMITE | GRAPHITE | KYANITE | MAGNESIA | MULLITE | REFRACTORY CLAYS | SILICON CARBIDE | ZIRCON

CALL FOR PAPERS

Interested in presenting? Please contact: Mike O’Driscoll mike@imformed.com

The pandemic of 2020 sharply exposed the vulnerability of refractory mineral supply chains, the “essentially” and “criticality” of certain commodities, and impacted primary consuming markets.

The world refractories market, like all others, has had to swiftly adjust to the prevailing market conditions.

Looking ahead, the industry needs to reassess its outlook for survival and meeting the needs of its evolving markets. This includes:

• Exploration and development of new mineral sources

• Strategies on mineral sourcing by consumers

• Development and utilisation of synthetic minerals

• Increased evolution and use of recycled materials

• Corporate restructuring and consolidation

• Vertical integration and diversification

• Greater collaboration between suppliers and consumers

• Achieving low CO2 emissions

Refractory Minerals Forum 2021 ONLINE will bring together a panel of industry experts to present, discuss, and network with international attendees from across the refractory raw material supply chain.

Until we can meet in-person, Refractory Minerals Forum 2021 ONLINE will be the next most invaluable opportunity to get together first hand with leading players active in refractory raw material:

• Exploration

• Development

• Production

• Processing

• Trading

• Logistics

• Purchasing

• Application in refractories

At present, we are using Zoom Pro Webinar, and we are aiming to add breakout rooms and wider networking functions for 2021. We shall keep you posted on this with appropriate advisories.

All registered delegates will receive a complimentary new edition of IMFORMED’s Refractory Raw Material World Sources Map® – details here

EARLY BIRD RATES | REGISTER ONLINE HERE or,

Contact Ismene for all Registration and Sponsorship enquiries:

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

Contact Mike for all Programme & Speaker enquiries:

T: +44(0)7985 986 255 | mike@imformed.com

PLEASE NOTE NEW DATES FOR

China Refractory Minerals Forum 2021, Dalian, 25-27 October 2021 

Field Trip to Haimag, Haicheng Thurs 28 October 

Refractory mineral processor MMW Hamm acquired by Possehl Erzkontor

World leading industrial mineral trading company Possehl Erzkontor GmbH & Co. KG is on a mission to transform itself through diversification and verticalisation into “an integrated end-to-end provider of raw material solutions” by 2024.

Title picture Trading up: Dead burned magnesia being loaded in big bags for export at Bayuqan port, Liaoning, China, one of Possehl Erzkontor’s primary traded minerals; Inset pictures Destination MMW Hamm: processing plant and discharge of vessels in the heart of the Ruhr area, Germany. Courtesy Possehl Erzkontor, MMW Hamm

Despite the challenges of the Covid-19 pandemic on mineral supply chains and consuming markets, Possehl Erzkontor, headquartered in Lübeck, Germany, and handling almost 1m tpa minerals, has spent much of 2020 gearing up for perhaps its most dynamic transition since acquisition by CREMER in 2014.

In February, Possehl Erzkontor appointed a new CEO, Jan Weber; in July the company announced it was taking first steps of its newly launched “Road#2024PLUS” strategy process; and most recently, in October, Possehl significantly expanded its mineral processing capabilities with a majority stake in major German refractory mineral processor Mineralmahlwerk Hamm GmbH (MMW).

And for those industry analysts and media reporters having endured decades of finding little or no joy in news and comment flow from Lübeck, the company’s April 2020 announcement “Possehl Erzkontor goes Social Media” will have shaken more than a few out of their lockdown languor. Welcome to the new Possehl Erzkontor.

MMW Hamm adds mineral processing & recycling capacity

This latest chapter in the long history of Possehl Erzkontor’s industrial minerals business may also be viewed somewhat as a rebuilding exercise for the trading arm.

A highly respected global mineral trader since 1915 with offices and subsidiaries worldwide (see chart), when formerly part of the original and wider group L. Possehl & Co. mbH, the trading arm Possehl Erzkontor was originally associated with several mineral processing subsidiaries (more details later).

However, from 2007 culminating with the move to CREMER, Hamburg, 2012-2014, these assets were gradually divested, leaving Possehl Erzkontor with just one processing unit: Mineralmahlwerk C. Welsch GmbH, acquired in 1991.

Mineralmahlwerk C. Welsch is located near the Rhine port of Wesel, Germany, with nine production lines offering a processing capacity of 50,000 tpa handling a range of minerals including activated carbon, bauxite, chromite, graphite, iron oxide, magnetite, manganese ore, silicon carbide, and zircon sand.

Thus, alliances and partnerships with independent processors became the trend, such as with MMW Hamm, which also occasionally purchased raw material from Possehl Erzkontor.

A more recent example in May 2020 was with Arcillas Refractarias SA (ARCIRESA), Spain, signing a contract for a co-operation in Europe for calcined bauxite (Bauxstar90): imported raw from First Bauxite LLC’s new operation in Guyana and calcined at ARCIRESA’s plant near Oviedo, Asturias. First Bauxite commenced its first bulk shipments in July 2020 (see Guyana bauxite newcomer starts bulk shipments).

But late October 2020 saw Possehl Erzkontor significantly reinforce its processing capabilities by acquiring a majority share of MMW Hamm.

“We no longer want to just be a commodities trader for our customers, but also generate more value for them. By adding Mineralmahlwerk Hamm, we are broadening our portfolio and can now offer a full-service package from sourcing to financing, trade and logistics, right up to processing and distribution”, said Jan Weber, CEO.

Established in 1961, MMW Hamm is focused on the production, processing and recycling of mineral raw materials, particularly dead burned magnesia, sourced worldwide utilising three primary crushers and seven processing lines to produce 180,000 tpa raw materials.

Port processors: on the Datteln-Hamm Canal, the plants of MMW Hamm (right) and HAG (left; not part of the deal), handling 180,000 tpa refractory minerals and 100,000 tpa chrome ore, respectively. Courtesy MMW Hamm

MMW Hamm is equipped with dryers, modern screening machines and ball mills and has a total operating area of 70,000 sq metres, of which 50,000 sq metres is used for the storage of minerals, and 20,000 sq metres of the storage areas is covered.

MMW Hamm is a leading supplier of processed refractory minerals for European markets. The main volume minerals processed at MMW Hamm are magnesite (dead burned magnesia, fused magnesia) and aluminosilicates (eg. bauxite, mullite, andalusite, flint clay), but also olivine, dunite, and cement. A mixing station is available to provide magnesia masses to the steel industry.

Most raw materials are delivered by barge via the Datteln-Hamm Canal. It takes about one and a half days for a barge to travel the approx. 300 km from Europe’s key northern seaports to Hamm.

Possehl Erzkontor serves a range of industrial minerals markets, but is very strong in the refractories sector, so MMW Hamm appears a good fit.

The move gives Possehl Erzkontor an advantageous logistical platform among the steel and foundry refractory consumers of the important industrial Rhine/Ruhr region, as well as bolstering its market share in European refractory mineral supply, especially in magnesia.

Outlook for refractory minerals supply & demand? All to be presented & discussed at our new

Refractory Minerals Forum 2021 ONLINE

16-17 March 2021

Early Bird Rates Book Now!

“I am very pleased to have found a good successor for our family business in Possehl Erzkontor”, said Stefan Frevel, former CEO and shareholder of MMW Hamm. “We are linked to the Lübeck trading company through a long and trustworthy collaboration. We are convinced that Erzkontor will continue the business following the vision of our family.”

Not included in the deal is HAG Trading & Processing Co. for Minerals mbH, an independent family company set up in 2012 which processes some 100,000 tpa chrome ore.

The HAG plant, located adjacent to MMW, has a state-of-the-art fluidised bed dryer, as well as a modern screening machine with 20,000 sq metres raw material storage and 4,000 sq metres of covered storage space.

Stefan Frevel took over management of the MMW Hamm and the majority share in the company in 1998. The Frevel family will continue to manage HAG and develop its chromite business.

Key employees of MMW Hamm are expected to get important and essential roles in the group organisation.

“Recycling in refractories will become a game changer in the future”

A key element of Possehl Erzkontor’s new strategy is to increase its recycling activity. “MMW Hamm is also active in the processing and recycling of raw materials – a field that we are expanding in and wish to explore more strongly”, said Weber.

MMW Hamm processes a range of recycled materials including spent refractories from the steel, glass, and foundry industries, iron ore, chamotte, magnesia, and silicon carbide.

Ellen Steger, Director Sales/Supply Chain Management, MMW said: “Recycling has grown in importance when talking about sustainability. We have seen years with sharp price increases for virgin raw material, and that is when recycling material becomes an important part of ‘the bouquet of raw materials available’”.

Weber commented: “We [Possehl Erzkontor] are already today running some recycling activities. In the new organisation which we announced lately after the strategy, one division will focus on Sustainability in different industries. Personally I believe recycling in the value chain of refractories (and other industries) will become a game changer in the future as certain rules and guidelines will be set to consider such value in a serious manner.”

Latest trends & developments in refractory (and other waste) recycling to be presented & discussed at

Mineral Recycling Forum 2021 ONLINE

Tuesday 9 February 2021

Early Bird Rates Book Now!

Possehl Erzkontor’s new CEO & future strategy

In February 2020, Jan Weber was appointed the new CEO at Possehl Erzkontor GmbH & Co. KG, taking over from Anthony Cremer, who has joined the advisory board of CREMER. Erzkontor has been a part of the family company since 2012 (see chart).

Weber brings both logistics and minerals experience to Erzkontor. He was formerly CEO and chairman of the logistics service provider Meyer & Meyer SE & Co. KG in Osnabrück. Prior to that, from 2000 he worked at Nordkalk Corp., Finland, a leading lime producer in Europe, eventually becoming Chief Operating Officer and member of the management board.

Working with the Erzkontor management team Weber has developed the future strategy of Possehl Erzkontor under the motto “ROAD#2024PLUS”.

Weber explained: “We defined a strategy for the coming five years. Verticalization and diversification have been defined as focus areas in the strategy. This is in order to maintain and develop our position in the market, and as part of the CREMER portfolio. We will act within four divisions: Refractory & Steel, Industry, Sustainability, and Chemicals in four regions (Europe, North America, Latin America and Asia & Middle East) and be ready to grow our presence in interesting and growing markets.”

In taking over MMW Hamm, Possehl Erzkontor has taken the first step along the way to become an integrated end-to-end provider for raw materials, a journey scheduled to be completed in 2024.

On the prospects of further expanding its processing assets, Weber said: “As verticalization is a ‘must win battle’ we will further evaluate opportunities and be ready to invest.”

Possehl Erzkontor’s processing full circle?

Those industry observers with long memories may be forgiven for thinking: “Hang on a minute, but didn’t the Possehl Group once have a bunch of mineral processing companies?”

And the answer is “Yes they did”; but it must be remembered that this was when Possehl Erzkontor, the trading arm, was within the wider holding company L. Possehl & Co. mbH. By the time CREMER acquired Possehl Erzkontor in 2012 (50%), then 2014 (remaining 50%), only the Wesel facility remained, with stakes in the other processing assets divested.

Exceptions are the iron and steel waste recycling processor Possehl Kehrmann GmbH, Germany, which became PK Rohstoffe GmbH and remained with L. Possehl & Co., as did silica sand and quartz producer, Euroquarz, acquired in 2010.

Processing companies in which the Possehl Group had an interest up to 2011 included: Van Mannekus & Co. BV and MAF Magnesite BV,  both in the Netherlands; Steinsvik Olivin AS, Norway; and Tianjin Huade Mineral Product Co. Ltd, China (see chart).

Survival strategies for mineral traders: have we reached another milestone?

What’s clear is that under CREMER and a new CEO, Possehl Erzkontor is now rejuvenating, and perhaps unsurprisingly is finding the need to rebuild its processing capacity capability to meet its new strategy objectives.

On the MMW Hamm acquisition, Weber told IMFORMED: “The transaction is the first step to develop the value we are going to offer to our customers. The mineral markets as well as the structure and environment of the trading business has changed during past 3 to 5 years. Having manifested our role along the whole value chain the benefit for the customer will grow.”

The role of traders in the industrial minerals supply chain always comes under review from time to time, and is most often prompted by a major sea change or event impacting the industry in general.

Perhaps the last such dramatic transition occurred in the early- to mid-1990s when a combination of the promise of large volumes of low cost minerals from China coincided with high value demands from western consumers and, crucially, an opening up of conducting more business inside China by western companies (followed by other mineral source countries in East Asia).

This included the hot trend of western mineral traders rushing to establish port-based operations to semi-process and add value to increasing volumes of exports (previously mostly in crude lump), as well as initiate partnerships and joint ventures at the mineral source(s) – ie. the Chinese producers.

Not all succeeded, there were many challenges, but those that persevered reaped the rewards for many years to come.

At the same time, European traders in general realised they needed to up their game and start to provide a more integrated package to consumers that went beyond the traditional match-making between buyer and seller.

This involved expanding their functionality to include financing, logistics, warehousing, inspection, closer co-operation with end users, R&D, marketing and distribution, and where possible adding mineral processing capacity, either at point of loading or at discharge, or both.

Another ramification of this change was the dismantling and downsizing of the huge, multinational trading houses in the West – eg. F&S Group, Thyssen, Cometals, and Possehl – at the same time as the dissolution of China’s large and unwieldy state-owned trading corporations.

What emerged was a range – and in China, a plethora! – of smaller and more streamlined outfits, swiftly adapting to market conditions (and though we have since seen a steady expansion of the likes of Cofermin and Traxys in recent years, these companies are still sleek enough to diversify on demand).

Quay advantages: the refractory mineral processing facilities of MMW Hamm and its favourable logistics located on the Datteln-Hamm Canal are seen as a good fit for Possehl Erzkontor and its ROAD#2024PLUS strategy.Courtesy MMW Hamm

Right now, we are facing another of those critical transition periods. The 2020 Covid-19 pandemic and its impact on the Chinese mineral supply chain was perhaps the final straw for a business wracked by a series of impacts since late 2016 (well reported by IMFORMED on this website, eg. China’s mineral supply to global markets: dominance, diversity & disruption, China minerals 2019: bauxite & magnesia mid-year report).

The last party is well and truly over and a new era is upon us (see New era of mineral exploration, sourcing & development dawns).

Chinese supply of many high quality industrial minerals is unlikely to recover to previous levels any time soon, especially for export, consumer confidence is low or twitchy at best, mineral sourcing alternatives to China is very much the trending option, and guess what? Chinese demand for industrial mineral imports is going to rapidly increase as its domestic markets develop and grow (magnesia, andalusite, graphite, bauxite, fluorspar already inbound).

On mineral sourcing, Ellen Steger commented: “China still plays an important role for sourcing minerals because of its huge resources. But being dependant on only one source is dangerous, as the past has taught us during times of shortages or non-availability. Furthermore, we would like to be an open-minded partner, especially when it comes to new products and new reserves for which we can add value or offer a wide range of services”.

Which brings us to the role of the trader in today’s market environment – is there a need?

Jan Weber: “We believe yes, but not in the same way as in earlier years. The world has got smaller and in most geographical areas partners are able to communicate with each other. That means ‘traders’ need to develop in order to secure sustainability. Possehl Erzkontor will for sure continue to trade big volumes which will be the majority of its turnover.”

For mineral traders and consumers worldwide, it’s now the time to adapt: while it will be prudent to nail down (and keenly monitor) any surviving reliable Chinese sources, securing diverse mineral sourcing options outside China should be the order of the day.

At the same time, there should be a healthy assessment of vertical integration with in-house processing facilities, and perhaps even intermediate/end product manufacturing (eg. alumina cements, monolithics), tracking growth market trends, and above all, investing in recycling and other functions, for a new role in the future Circular Economy.

IMFORMED is delighted to have been the recipient of the Southern Enterprise Award 2020 for Best Independent Specialist Industry Event Organiser.

The SME (Small Medium Enterprise) Awards are organised by SME News and celebrate the success stories of one of the most important sectors in the UK economy.

The Southern Enterprise Awards 2020 recognise and reward the often-un-noticed efforts of SMEs from the region with the second highest annual turnover in the UK.

With the number of businesses per person being higher in Southern England than anywhere else in the UK, there is a wealth of award-worthy candidates. SME News seeks out the very best small and medium enterprises along with the enthusiastic and determined people who lead and enable them.

The IMFORMED Southern Enterprise Award 2020 listing reads:

Founded by Mike O’Driscoll & Ismene Clarke in 2015, IMFORMED provides professional networking opportunities and market research expertise for the global industrial minerals business. Specialising in: Industrial Minerals Supply/Demand | Mineral Recycling | Magnesia | Oilfield | Fluorspar | Refractories | China | India. IMFORMED gathers the leading players at its acclaimed Forums: Programmed with Intelligence | Moderated by Experts | To Engage and Serve the Industry.

The impact of COVID-19 has wreaked unprecedented upheaval and many in the business community are still getting to grips with the biggest peace-time crisis they have ever had to deal with. It has however, offered business leaders an opportunity to innovate and bring about permanent positive change and this is an incredibly exciting time to be nominated and get noticed.

The Southern Enterprise Awards are judged purely on a merit. In order to determine worthy winners, an SME News in-house research team carefully analyses the information that is available both online and in the public domain as well as any materials supplied by nominees.

The SME awards are based on quality, not the number of votes received. The process works to ensure that we reward parties based on their reputation, commitment, innovation, determination and contribution to society.

To move successfully from award nominee to winner, there must be evidence of extensive expertise and skills, dedication to customer service and client satisfaction with an on-going commitment to excellence and innovation demonstrated by the nominated business.

Small businesses “the beating heart of the UK economy”

According to SME News, at the start of 2017 small businesses alone accounted for 99.3% of all private sector businesses, making the sector the beating heart of the UK economy.

SMEs may be overlooked by mainstream business awards for recognition despite their often innovative and creative achievements and their power to truly disrupt their industry.

The SME awards are aimed at specific regions or industries looking to showcase some of the key players for doing great things. Whether it be using technology and data in new ways, offering something radically new by way of a product or service or for great services provided.

IMFORMED looks forward to continuing its award-winning service to the global industrial minerals market in 2021 – please check out our latest line-up of Forums here

Early Bird Rates and Sponsorship Opportunities available!

Stay well, and look forward to seeing you in 2021!

12.00-17.00 GMT Tuesday 9 February 2021

EU Action | Mine Tailings | Refractories | Li-ion Batteries | Ceramics | Alumina | Graphite | Magnesia

IMFORMED is delighted to announce Mineral Recycling Forum 2021 ONLINE, 12.00-17.00 GMT Tuesday 9 February 2021.

This year’s pandemic has amplified the issues of overreliance on certain mineral sources and the vulnerability of mineral supply chains.

More than ever, the fast evolving mineral recycling sector has an essential and increasing role to play as consuming markets undergo a major rethink on strategic mineral sourcing and evaluate alternatives.

Essential to all those in the mineral recycling supply chain: sourcing, trading, logistics, sorting, processing, end use application, R&D

Developments in mineral sourcing strategy will be accompanied by the continuing evolution of the mineral recycling sector, driven by benefits of alternative recycled mineral sources, cutting costs (from waste disposal), the overall move to develop the Circular Economy to protect the environment, and providing mineral suppliers and mineral consumers with a “green” portfolio.

It is significant that the EC’s recently announced Action Plan, in line with the “European Green Deal”, will also address circularity and sustainability of the raw materials value chain, develop sustainable financing criteria for mining and extractive sectors by the end of 2021, and map the potential of secondary critical raw materials from EU stocks and wastes to identify viable recovery projects by 2022.

The mineral industry future should see:

• Opportunities to process minerals from waste, develop & supply sorting technology & equipment
• Increasing economic alliances between waste sources (end users) + recyclers, new logistic chains
• Supply chain co-operation in modifying end product formulations to ease end-of-life recyclability
• More primary mineral producers involved in recycling tailings and other waste sources to offer wider product range (including blends?)

With such developments in progress, changes in mineral sourcing strategy, and a boost from national and regional government-led initiatives, the 2020s will certainly herald a new era of industrial mineral recycling. This cannot come soon enough in order to stimulate economies and meet demand when market recovery starts in earnest.

Until we are able to provide our usual high quality in-person event, we are offering the market an excellent alternative: a live online conference to examine and discuss these key mineral recycling trends and developments.

At present, we are using Zoom Pro Webinar, and we are aiming to add breakout rooms and wider networking functions for 2021. We shall keep you posted on this.

Confirmed Speakers

Critical raw materials resilience: charting a path towards greater security and sustainability –increased circularity and efficient use of resources Maria Nyberg, Policy Officer, EC, Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs, Belgium

Considerations for use of mineral waste streams for ceramic material use in construction Carl Sorrell, Vice President, IntoCeramics, OPF Enterprises LLC, USA

EcoGraf: Closing the Carbon Loop Andrew Spinks, Managing Director, EcoGraf Ltd, Australia

Reclamation & repurposing tailings as a source of low-risk MgO supply for construction market J. Michael Sullivan President & CEO, BAIE Minerals Inc., Canada

Refractory recycling developments Wilker Felipe Silva, Refractory Purchasing Manager, ArcelorMittal Brazil, Brazil

Requirements for implementing Circular Economy in the refractory waste management of a steel plant Aintzane Soto, R&D Process Engineer, Sidenor, Spain

Zero waste alumina production using alternative sources: status & objectives of the ENSUREAL project Dr David Konlechner, Owner, KON Chemical Solutions e.U, Austria

Full Details Here

EARLY BIRD RATES END 31 DECEMBER 2020

Register Online Here, or

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

Bauxite, BFA, Andalusite, Magnesite impact | Supply reforms in pipeline

As if 2020 had not dished out enough disruption for one year, suppliers and consumers of Chinese refractory minerals are facing more issues impacting the supply chain in the form of operational closures and a shortage of shipping containers.

Title Picture A mountain to climb: China’s centre of magnesite mining and processing, Haicheng, Liaoning, is enduring a period of wide-ranging environmental inspections, suspensions, and closures as local government officials meet to consider structural reforms to the industry; elsewhere, central Chinese provinces key to bauxite and BFA supply face similar restrictions with high pollution alerts.

The upshot, as well as anticipated supply delays and shortages, is that freight prices are soaring, leading to rapidly increasing mineral prices, which throughout 2020 had until now seen a dramatic decline owing to the drop in demand from export markets hit by the pandemic.

The end of the year also marks some significant moves in respect of supply sector reforms for bauxite and magnesite.

Refractory Minerals Forum 2021 ONLINE
16-17 March 2021

Global trends & outlook in supply & demand for refractory raw materials & markets

Let’s keep in contact & conversation! IMFORMED is delighted to announce a new online Forum for the refractory raw materials industry

CONFIRMED SPEAKERS | EARLY BIRD RATES | FULL DETAILS HERE

Winters of discontent

It’s a famililar refrain at this time of year. The onset of the Chinese industrial winter shutdown during the months of October to March was always on the cards, it now being an annual event since its inception in 2017.

Over this period, high energy consuming and high emission plants in particular are ordered to close, or at least markedly reduce utilisation rates. The only variable is to what extent each year, and this differs from region to region.

Naturally, this impacts all mineral processing plants, especially those, such as refractory minerals, involving drying, calcination, and fusion, the refractory brick manufacturing plants, and the plants of their end use market sectors such as in steel, aluminium, cement, glass, foundry.

Unfortunately, 2020 has delivered an additional unforseen negative factor in the Covid-19 pandemic. This has played havoc with consuming markets, supply chains and shipping.

This year’s initial winter shutdown pollution targets in China set by the Ministry of Ecology & Environment (MEE) in September were considered less stringent than those of 2019-20. However, perhaps unsurprisingly, they are already looking unattainable as China’s industrial recovery, and thus emissions, have accelerated markedly since April.

The heavily industrialised Beijing-Tianjin-Hebei region, which covers 28 cities, was aiming to keep emissions from October to December 2020 at the same level as the previous year. But PM2.5 concentrations in October were already registering 52mg/m3, up 15.6% compared to 2019.

Hebei, China’s top steelmaking province which surrounds Beijing, produced 210.8m tonnes of crude steel in the first 10 months of 2020, up 4.1% on 2019. Output in October stood at 20.95m tonnes, up 17%. The province is supposed to be cutting production capacity to enable “ultra-low emissions” to a maximum of 200m tpa by the end of 2020.

The MEE targets were to keep average PM2.5 concentrations in the Beijing-Tianjin-Hebei region at <63mg/m3 from October to December, and then <86mg/m3 January to March 2021. The figure is still more than double China’s official air quality standard of 35mg/m3.

Although large scale industrial closures were seeking to be avoided as China recovered from the pandemic, this now looks unavoidable, and already many plants in industrialised regions are being forced to close under subsequent revised official emergency measures.

NEW EDITION OUT NOW!

IMFORMED’S Refractory Raw Material World Sources Map

Primary world sources & production capacity of key refractory raw materials

Alumina | Fused Alumina | Andalusite | Kyanite | Sillimanite | Bauxite | Chromite | Graphite | Dead Burned Magnesia | Fused Magnesia | Pyrophyllite | Silicon Carbide | Zircon

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

Henan BFA impacted

In addition to the Beijing-Tianjin-Hebei region, the key bauxite and fused alumina producing provinces of Henan and Shanxi are also heavily impacted.

Since October, environmental protection inspections in Henan have been continuously upgraded with ongoing revision of performance ratings of key enterprises and levels of emergency emission reduction.

According to Refractories Window, only Zhengzhou Yufa Abrasives Co. Ltd has been rated as a B level enterprise, with the rest of the companies having lower C and D level ratings.

By the end of November, 17 provincial cities in Henan and the Jiyuan Demonstration Zone had declared orange warnings and level II response of heavy pollution.

China’s four company classifications have differing levels of required response depending on the severity of the pollution alert coded by colour – see below chart.

By late November/early December, most fused alumina producers in the main production hub of Sanmenxia, Henan province, were reported to have stopped production until the end of December 2020 at least, while others in Henan were facing reduced utilisation rates.

According to official statistics, in the first half of 2020, China produced about 509,000 tonnes BFA, a decrease of 38.7% from H1 2019, of which about 224,000 tonnes were produced in Henan.

BFA spot prices in early to mid-December were reported as ranging US$650-700/t Ex-works, 95% Al2O3.

Bauxite remains challenged | New reforms put forward

Bauxite availability has been in decline for some time in Shanxi province with the previously large volume mines now exhausted or closed. Any mining of raw bauxite is severely restricted, if permitted at all, and bauxite calcination plants have been using up their stocks of crude Shanxi ore.

Already by August 2020, around 80% of the remaining operational plants in the Xiaoyi district of Shanxi were having to import Guizhou and Henan raw bauxite.

Typical calcined bauxite rotary kiln operation in Shanxi province; many are closed owing to environmental controls, and those that are operating have very limited stocks of primary ore, some are importing bauxite from Guizhou and Henan. Courtesy JSM Refractory Co. Ltd

The 19th Central Committee of the Community Party of China held its Fifth Plenary Sessions in Beijing between 26-29 October to set the outline for the upcoming 14th Five Year Plan 2021-2025 (to be rubber stamped by the National People’s Congress in March 2021).

For its part, the Shanxi Provincial Refractories Association put forward five suggestions for the development of the refractory industry to the Shanxi Provincial Department of Industry and Information Technology:

1. Allocation of “refractory aluminous clay” resources (ie. refractory grade bauxite) for refractory companies.
2. Give full play to the role of leading enterprises and establish a “Shanxi Refractory Group Co.” through transformation and upgrading and capital co-operation.
3. Implement the Shanxi Province Green Building Materials Industry 2020 Action Plan, and increase policy support for key enterprises.
4. Build two industrial clusters of refractory materials production around Yangquan and Luliang.
5. Persist in green development, create green enterprises, and enhance corporate competitiveness.

Laudable initiatives, which, as anticipated (and feared?) by some market players, appear to largely follow the reforms already underway for magnesite in Liaoning province (see below). They also somewhat echo those first heard for Shanxi bauxite development at IMFORMED’s inaugural China Refractory Minerals Forum back in 2018 (for a review see China minerals supply outlook: Shanghai showdown).

Whether this second drive to initiate a much-needed resumption of Shanxi refractory grade bauxite reserve evaluation and mining actually comes to fruition remains to be seen. However, on current form it may seem unlikely. Shanxi’s calcined bauxite plants will continue to have to rely on input from China’s other key bauxite producing provinces of Guizhou and Henan, which is by no means guaranteed.

Mid-December 2020 calcined bauxite spot prices were reported at US$435/t FOB Xingang, 85% Al2O3; US$495/t FOB Xingang, 88% Al2O3; although early December Ex-works prices had been quoted at US$300-320/t 85% Al2O3.

Andalusite winter production extended

With supply of refractory bauxite threatened, other aluminosilicates are clearly on consumers’ radars such as andalusite. The two minerals are not necessarily interchangeable in every refractory application, but there are specific areas where they may substitute each other.

China has limited sources of andalusite, mainly concentrated in central Xinjiang province in the far west of China, exploited by just two producers. China also imports about 30,000 tonnes andalusite, mostly from South Africa, but also from France and Peru.

Xinjiang Xinrong Yilong Andalusite Co. was originally planning to halt production in late November 2020, as it does most years during the severe winter months in that region.

However, owing to high customer demand from a recovering domestic market and no doubt some influence from the deteriorating bauxite situation, the company was reported to have postponed its winter shutdown for as long as it can operate. Typical output is about 2,000 tpm of 56%, 57% and 58% Al2O3, in 0-1mm,1-3mm, sizes.

Xinjiang Xinrong Yilong Andalusite Co. in the far west of China produces about 2,000 tpm andalusite, and owing to market demand has extended its mining operations into its normal winter shutdown period. Courtesy Yilong Andalusite

Magnesia hit by wide-ranging closures | Provincial supply controls

China’s key magnesite production centres in Liaoning province, north-east China have been severely hit by continuing mine and plant closures recently, as the local government targets producers and associated truck traffic not meeting environmental protection standards.

This has resulted in a tightening of supply, particularly of “mid-grade” 95% MgO grades, and prices are rising each week.

Huang Runqiu, China’s new Minister of Ecology and Environment visited Liaoning early December to urge that “environmental protection and vertical reform goals and tasks must be fully completed, and provide solid institutional guarantees for the in-depth fight against pollution and building a beautiful China.”

The Dashiqiao district is nearing the end of an intensive “100-day tackling of comprehensive rectification” of the industry initiated on 22 September.

Apparently, those companies with incomplete environment licence certificates have had their water and electricity disconnected to ensure they stop production for “rectification”. A large number of dead burned (DBM) and fused magnesia (FM) producers have had to close.

On 27 November, the Department of Ecology & Environment of Liaoning Province announced its revised air pollution controls and response to the heavy pollution during autumn and winter.

And during 11-12 December, Huang Runqiu, China’s Minister of Ecology and Environment visited Liaoning to research and advise on “environmental protection vertical reform”. Appointed in April 2020, as well as a politician, Huang is also a geologist.

Overall, more than 8,000 magnesia kilns were investigated resulting in 111 companies ordered to close, 94 companies have been suspended for rectification, and 588 companies have been promoted to meet environmental standards.

On 3 December 2020, an environmental law enforcement experience exchange meeting was held in Dashiqiao to implement comprehensive management of pollution in the magnesite industry. This to facilitate the “Opinions of the General Office of the People’s Government of Liaoning Province on Promoting the Sustainable and Healthy Development of the Magnesite Industry” (Liaoning Administration Office (2020) Order No. 33).

This has included the implementation of online monitoring facilities of magnesia plants, high-altitude video and working conditions monitoring. By early December, 229 magnesia plants in Dashiqiao City were equipped with 342 sets of online monitoring equipment. So far, 249 magnesia companies were found to meet 2021 emission targets.

In Yingkou, the Yingkou Emergency Management Bureau has recently reported its investigations: 22 mining companies have completed comprehensive rectification. Among them, 16 mines have completed comprehensive remediation and are now permitted to operate; 53 mines have been suspended pending remediation work; 47 mines have been closed.

The Yingkou Emergency Management Bureau at work examining magnesite mines in the Yingkou district, Liaoning province.

Magnesite mining with explosives has been banned for some time, and while companies have been attempting to mitigate raw ore supply shortages by using mine excavators, even this looks set to cease soon if not already.

According to Andy Zhang, Director, Southern Minerals International, there are indications that there could be a prohibition on all magnesite mining and sale of raw magnesite from 1 January 2021.

Not surprisingly, this has driven FM and DBM producers rushing to purchase all available raw magnesite resulting in drastic price increases.

Estimates for raw magnesite pricing mid-December stood at: 47.2% MgO US$138/t (up 80% in the last month); 47.0% MgO: US$92/t (up 50%); 46.8% MgO: US$61/t (up 21%).

The final two months of the year has seen the latest moves from the Liaoning provincial government in progressing its reform programme for the magnesite industry, “in order to optimise the supply of magnesite resources and promote the replacement of production capacity in related fields”.

Feedback was requested from industry and the public on the local government’s “Draft Measures for the Provincial Total Management of Magnesite Resources in the Province and Measures for Capacity Replacement in the Province’s Magnesite Flotation and Magnesium Industry.”

The new measures, to be controlled at provincial and municipal levels, are aimed at magnesite ore (≥35% MgO) mining, stock ore supply, and low-grade magnesite resources, including tailings, “rubble (rock wool)”, ore mixtures and other resources.

A “total control coefficient” of provincial annual magnesite supply is to be calculated based on factors such as the implementation of environmental control indicators.

By 15 December, the Liaoning government had announced that it is now strictly forbidden to increase the production capacity of magnesite flotation and magnesia production plants, and to prepare any new production lines.

The full conclusion to these reforms will be keenly awaited by the global magnesia industry to see how it may shape the future of Chinese magnesia production (and thus export supply).

Frustrating traders and consumers alike, magnesia prices have been increasing weekly with fewer producers operating. It has been estimated that the price of Chinese DBM rose by about 30% since the new round of environmental control activities were implemented in October 2020. One Chinese player commented: “The problem is, even if you want to pay for it, you couldn’t get the order. Because the suppliers are waiting for a new round price rise.”

Early December spot prices for DBM grades were reported at US$400/t Ex-works 97% MgO, US$340/t Ex-works 95% MgO, US$200/t Ex-works, 92% MgO; FM, US$550/t Ex-works, 97% MgO, US$410/t 96% MgO.

By mid-December, these had increased: DBM98 US$610/t DBM97 US$460/t; DBM95 US$350/t; DBM92 US$238/t; DBM90 US$230/t; FM97 US$630/t; FM96 US$538/t (all Ex-Works).

The chart below from the Northeast Asia Magnesia Exchange indicates the trend in DBM and FM pricing since mid-2020; a steady decline as export market demand drops due to the pandemic, followed by a sharp uptick from late October as pollution controls kick in.

As Cathy Wang, Director, Refractories Window, reported recently, October 2020 appeared to be a turning point for magnesia, as prices stopped falling and gently increased before rising sharply in November and December (see below).

MagForum 2021 Amsterdam

28-30 June 2021

Keep up with the latest trends in magnesia supply & demand

Visit to Nedmag’s operation at Veendam Thursday 1 July

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Freight costs rise with container shortage

Compounding the interruption and uncertainty over mineral supply from China has been the steadily worsening freight situation, ie. rising freight rates, shortage of containers, port congestion, and delayed shipping.

It is considered by some that the situation is likely to continue until February 2021, possibly even through April 2021.

Container freight rates in particular have soared: one mineral trader suggested it had increased by 7-10 times from March 2020 for China to Europe.

The Wall Street Journal reported that container freight rates have soared to a ten-year high. The average spot-market price to ship a 20-foot container from Asia to Europe hit $2,091 early December, surpassing the $2,000 mark for the first time since May 2010. The rate has more than doubled from $1,029 at the end of August.

By 10 December, Drewry’s composite World Container index had risen 0.5% to $3,451.32 per 40ft container.

The impact of the pandemic on shipping throughout the year has seriously upset container traffic, creating shortages of empty containers or having them stranded in various ports.

Added to this is rising demand from the public’s increased rate of buying consumer goods (especially with Christmas pending) as they endure national lockdowns and spend on home buying rather than on banned and restricted holidays and travel.

UK ports have been especially hit, not least with the ongoing debacle over UK-EC Brexit trade negotiations creating heightened uncertainty for businesses already stockpiling to mitigate fall-out from the fast approaching UK post-Brexit transition period expiry date of 31 December 2020.

Outlook: Bleak Mid-Winter…and Spring?

The Chinese Year of the Ox (12 February 2021) is apparently characterised by Chinese astrologers as being hardworking and methodical, “when we will fully feel the weight of our responsibilities”.

Indeed. In light of the world and economic situation this appears most apt. There is no doubt that challenging conditions are to extend into 2021, certainly for first quarter, and maybe the first half.

Clearly, the good news has been the advent of a series of Covid-19 vaccines, already being rolled out and it is hoped that this will have a positive impact on the world economy.

China is already pushing ahead from its economic recovery period, while Europe and North America appear on the road to recovery despite early 2021 uncertainties.

With ox-like devotion, methodical hard work combined with clear and decisive strategies will be required to shape and secure mineral trade in 2021 and beyond.

As has already been reported by IMFORMED (see New era of mineral exploration, sourcing & development dawns), key among the decision-making will be new and changing strategies for mineral supply chains and mineral sourcing. Such sentiments have been further prompted by these latest refractory mineral issues in China. Expect some interesting developments for 2021. Watch this space…and attend our Forums!

Mineral Recycling Forum 2021 ONLINE 9 February 2021

Refractory Minerals Forum 2021 ONLINE 16-17 March 2021

MagForum 2021, Amsterdam, 28-30 June 2021 – Field Trip: Nedmag, Veendam

China Refractory Minerals Forum 2021, Dalian 26-27 October 2021 – Field Trip: Haimag, Haicheng

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For this past year, of all years, IMFORMED would like to thank its delegates, sponsors, partners, contacts, and families for all their kind support and participation for a most challenging last 12 months.

The number seven is hailed as being lucky, harmonious, and of perfection. As IMFORMED heads into its seventh year of business, we sincerely hope that the New Year will bring some of these most welcome characteristics to us all.

We wish you a very healthy and peaceful 2021.

While there are glimmers of hope for a much-wanted return to IMFORMED running the kind of award-winning high quality in-person events that we all crave, until that time comes we have little choice but to facilitate as best we can our online alternatives.

To that end, below is a reminder of IMFORMED Forums coming up for 2021. Please check out our attractive Early Bird Rates and exciting Programmes, and do not hesitate to contact us with any queries.

Let’s keep in contact & conversation!

COVID-19 Virus: Ensuring the health and safety of our attendees, exhibitors, partners & staff is our top priority. IMFORMED is monitoring the situation and assessing contingencies. The events below are planned to be in-person, though circumstances may dictate, especially for early 2021, that an online version prevails in certain cases – we shall keep you updated.

Mineral Recycling Forum 2021 ONLINE

9 February 2021
EARLY BIRD RATE EXTENDED TO 15 JANUARY 2021

The latest developments in recycling industrial minerals from a range of waste sources, including tailings, refractories, slags, ash

FULL DETAILS HERE

Refractory Minerals Forum 2021 ONLINE

16-17 March 2021
EARLY BIRD RATES UNTIL 1 FEBRUARY 2021

Global trends and outlook in supply and demand for refractory raw materials and markets

FULL DETAILS HERE

IMFORMED Rendezvous 2021 ONLINE

Lead Sponsor 

13-14 April 2021
EARLY BIRD RATES UNTIL 26 FEBRUARY 2021

Essential for those wishing to get a handle on where the industrial minerals market is heading and understanding its basic principles. The industrial minerals supply chain from mine to market examined.

FULL DETAILS HERE

Oilfield Minerals & Markets Forum 2021

25-27 May 2021, Houston

Global outlook in supply & demand for industrial minerals used in the oil & gas drilling industry

FULL DETAILS HERE

MagForum 2021

Lead Sponsor  

28-30 June 2021, Amsterdam
Includes Field Trip to NEDMAG, Veendam 1 July

For the full spectrum of global magnesia minerals and markets supply/demand analysis and outlook

FULL DETAILS HERE

Fluorine Forum 2021

Lead Sponsor 

18-20 October 2021, Hanoi
Includes Field Trip to Masan Hi-Tech Materials, Nui Phao 21 Oct.

High quality knowledge and networking for fluorine minerals and markets supply and demand

FULL DETAILS HERE

China Refractory Minerals Forum 2021

Lead sponsor 

25-27 October 2021, Dalian
Includes Field Trip to Haimag Magnesite, Haicheng, 28 Oct. 2021

Evaluating China’s refractory raw materials supply and demand for domestic and export markets

FULL DETAILS HERE

For past Forum programmes, attendees, pictures, and feedback please go to Past Forums.

Enquiries:

Registration, Exhibits, Sponsorship: Ismene Clarke ismene@imformed.com +44 (0)7905 771 494

Presentations, Programme: Mike O’Driscoll mike@imformed.com +44 (0)7985 986 255

We very much look forward to meeting you online, and of course in-person as soon as we can!

Please stay well, and stay in touch.

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Refractory Raw Material World Sources Map

Primary world sources & production capacity of key refractory raw materials

Alumina | Fused Alumina | Andalusite | Kyanite | Sillimanite | Bauxite | Chromite | Graphite | Dead Burned Magnesia | Fused Magnesia | Pyrophyllite | Silicon Carbide | Zircon

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Kümaş joins Almatis within OYAK group | Vertical integration strategy rolls on as end users target supply security

After several years of speculation, and some close calls from leading competitors, one of the world’s leading magnesite producers, Kümaş Manyezit Sanayi A.Ş. (Kümaş) of Turkey has been acquired by the country’s leading steel producer Ereğli Demir ve Çelik Fabrikaları T.A.Ş. (Erdemir) for US$340m.

Title picture The main Saludere Ana Damar magnesite mine of Kümaş; one of 12 mining sites exploiting a 160m tonne magnesite resource; with insets of its three rotary kilns at Kütahya, and ladle furnace at Erdemir’s Ereğli steel plant, a major consumer of refractories as Turkey’s leading steel producer. Courtesy Dr Ian Wilson; Erdemir

The Share Transfer Agreement was signed on 4 January 2021 between Erdemir and Kümaş’ owners Gözde Girişim Sermayesi Yatırım Ortaklığı A.Ş. (51%) and Yıldız Holding A.Ş. (49%), and will conclude after legal approvals.

Erdemir is part of the Mining Metallurgy Group of OYAK, Turkey’s largest complementary occupational pension fund with assets worth around US$16bn, headquartered in Ankara.

OYAK has a wide ranging industrial and services portfolio, including its Chemicals Group which acquired world leading speciality alumina producer Almatis in 2015. Both Kümaş and Almatis supply the global refractories market with key raw materials.

The move reinforces the prevailing ownership trend affecting the shrinking group of refractory magnesia producers worldwide as they are subsumed into larger magnesia refractory end user groups (see chart).

Just over a year ago, leading magnesia producer QMAG was sold by Sibelco to major refractory producer Refratechnik, Germany (see Magnesia supply sector consolidates further).

In the case of Kümaş, a well-established integrated producer of magnesia and refractories, and fourth largest in the world (outside China), its buyer, Erdemir, is a major consumer of steel and cement refractories, with potential end user synergies for magnesia elsewhere in the OYAK group.

Stay in touch with the latest trends & developments in mineral recycling, including refractories, ceramics, critical minerals

EARLY BIRD REGISTRATION ENDS FRIDAY 15 JANUARY  2021 FULL DETAILS HERE

Confirmed speakers include

Refractory recycling developments
Wilker Felipe Silva, Refractory Purchasing Manager, ArcelorMittal Brazil, Brazil
Requirements for implementing Circular Economy in the refractory waste management of a steel plant
Aintzane Soto, R&D Process Engineer, Sidenor, Spain
South Korea’s refractory recycling status & key challenges to address
Joo Yongdon, CEO, Korea Material Co. Ltd, South Korea & Sangpil Raul Hwang, Industrial Minerals Trader, Sojitz Corp., Japan
ENSUREAL – Pedersen Process Revisited: Changing the colour of alumina production
Dr David Konlechner, Owner, KON Chemical Solutions e.U, Austria
Reclamation & repurposing tailings as a source of low-risk MgO supply for the construction market
J. Michael Sullivan President & CEO, BAIE Minerals Inc., Canada

“A strategic position” for Turkey as RHIM bid fades

In its 5 January 2021 statement, OYAK announced that the acquisition “…will achieve cost control and efficiency by ensuring vertical integration in its activities in the iron, steel, and cement industries.”

“By acquiring this valuable company, which is important for our country and national resources, we have taken our country to a strategic position… with raw material advantages and export potential.” Süleyman Savaş Erdem, OYAK General Manager and Erdemir Board Chairman. Courtesy OYAK

There is no doubt of the synergistic benefits in merging Kümaş within OYAK (see below), but perhaps there was also an element of incentive in ensuring Kümaş remained under Turkish ownership. After all, most major magnesia operations, including integrated refractory producers, in Turkey are foreign-owned (see below).

OYAK would also have been aware that on 11 August 2020, Paris-based global industrial minerals giant Imerys signed an agreement for the acquisition of a 60% stake (with options to purchase the remainder), of the Haznedar Group, Turkey’s high grade monolithic refractories and refractory brick manufacturer.

Haznedar is to be consolidated as Haznedar Durer Refractories in Imerys’ High Temperature Solutions business area, led by major refractory subsidiary Calderys. Haznedar’s refractory dolomite producing subsidiary, Vadar Dolomit, North Macedonia, was not included in the sale and remains independent.

And it was no secret that Vienna-headquartered RHI Magnesita (RHIM), global leader in magnesia and refractories, which already has a magnesia production facility in Turkey (MAS, Eskişehir) had been eyeing Kümaş for the last two and half years, with formalities in train as recently as May 2020.

On the Kümaş acquisition, OYAK General Manager and Erdemir Board Chairman Süleyman Savaş Erdem said: “By acquiring this valuable company, which is important for our country and national resources, we have taken our country to a strategic position in this area with the rich reserves and raw material advantages, and by creating opportunities for our local industrialists in terms of raw materials supply and with the export potential.”

Yildiz Holding AS, Turkey’s largest food manufacturer, acquired Kümaş in 2012, holding 49%, and its private equity unit, Gozde Girisim Sermayesi Yatirim Ortakligi AS, 51%.

In mid-2018, having completed a huge loan restructuring, Yildiz and Gozde began talks with several potential international buyers from Russia, India, Europe, and China, over the divestment of Kümaş, reportedly valued then at US$500m.

February 2019 saw an exclusivity agreement signed between Yildiz and RHIM on Kümaş’ divestment.

This was followed in September 2019 by the signing of a non-binding letter of intent between the sellers of Kümaş and RHIM, permitting the latter to commence competition clearance and other regulatory filings in relation to the proposed acquisition.

In its 2019 Annual Report published April 2020, RHIM indicated a decision would be made by late Q2 2020, while formalities were apparently proceeding, such as clearance by the UK Competition & Markets Authority, full documents published in May 2020.

However, it became clear that the proposed buy by RHIM was not to be, since early November 2020 saw OYAK commence talks with Yildiz, citing that such an acquisition would be an important integration with its iron and steel and cement sector companies and help reduce costs.OYAK had also noted, “Kümaş is also a major exporter and of value for Turkey to earn foreign exchange.”

This followed an announcement in August 2020 by OYAK on a major four year investment plan across its divisions, including Mining Metallurgy Group, focused on sustainable growth.

Want to know what’s happening with refractory raw material supply? Find out and network with the key players at

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With so many of the refractory industry’s traditional in-person meeting opportunities cancelled or postponed in 2020 and H12021, Spring 2021 will be the ideal time to bring together the refractory raw materials community in a virtual conference environment to take stock.

Confirmed speakers

Refractory futures: the Circular Economy, climate change and its effect on refractory mineral markets
Dr Richard Flook, Managing Director, Mosman Resources, Australia
Andalusite supply outlook
Dirk Auge, Managing Partner, Cofermin Rohstoffe GmbH & Co. KG, Germany
Refractory bauxite trends
Ted Dickson, TAK Industrial Mineral Consultancy, UK
Update on First Bauxite’s high grade bauxite supply from Guyana
John Karson, VP Sales and Marketing, First Bauxite LLC, USA

Kümaş’ new owner Erdemir – fully integrated & with mining pedigree

Established in 1961, Ordu Yardımlaşma Kurumu – OYAK, translated into the “Army Solidarity Organisation”, operates in a wide range of industries, including mining metallurgy, cement concrete paper, automotive logistics, finance, services, chemistry, agriculture and animal husbandry and energy, and has operations in 23 countries across the world.

In 2019, OYAK Group’s total revenues soared to US$6.6bn while its total assets climbed to US$16bn. With total exports amounting to US$4.9bn, OYAK Group had a 2.7% share of Turkey’s total exports.

OYAK’s Mining Metallurgy Group is already fully integrated with iron ore mines, iron ore pelletising plant, crude and finished steel plants, and owns two ports: Ereğli on the Black Sea and İskenderun on the Mediterranean. The addition of a primary integrated magnesia and refractory producer significantly reinforces the group’s self-sufficiency.

Erdemir is Turkey’s largest iron ore extraction and production company in the Sivas region (left), and is the largest integrated flat steel producer in Turkey (right). Courtesy Erdemir

The group produced 8.6m tonnes of crude steel in 2019, accounting for 26% of Turkey’s total crude steel production, and sold 7.2m tonnes of flat finished products and 1m tonnes of long finished products.

In 2018, OYAK Mining Metallurgy Group ranked 4th among EU member states, 9th in Europe and 45th in the world in the crude steel production ranking.

Erdemir, the flagship company of the Mining Metallurgy Group, began operating in 1965 and celebrated its 55th year in 2020. Acquired by OYAK in 2006, it is the largest integrated flat steel producer in Turkey, based in Ereğli on the Black Sea coast, producing hot and cold rolled steel, tin, chromium and zinc coated flat steel. Erdemir has 4m tpa crude steel and 5m tpa final products production capacity.

İskenderun Demir ve Çelik A.Ş. (İsdemir) became part of Erdemir in 2002, and is the only integrated plant producing flat and long products in Turkey, with annual capacity of 5.8m tonnes of liquid steel, 3.5m tonnes flat products, 0.6m tonnes of wire rod, and 2.5m tonnes of billet.

Erdemir is also very much active in mining. Erdemir Madencilik San. ve Tic. A.Ş. (Erdemir Maden) began iron ore production in Divriği, in the Sivas region, in 1938, joining Erdemir in 2004.

Erdemir Maden is Turkey’s largest iron ore extraction and production company, the source of 33% of Turkey’s iron ore and supplying 12% of the country’s iron ore requirements, producing 0.75m tpa lump iron ore and operating the country’s sole iron ore pelletising plant (1.5m tpa).

The company also holds a total of eleven mineral-extraction licenses: 9 for iron ore, and one each for coal and manganese.

Synergies in steel, cement, chemicals, agriculture

The obvious synergy between Kümaş and OYAK is with its steel production by Erdemir and İsdemir, where magnesia-based refractories are consumed in a range of steelmaking applications, and magnesite and caustic calcined magnesia can be used as a slag conditioner. However, there may be other potential benefits with Kümaş on board.

Turkey’s steel industry is in relative good health, comprising 24 electric arc furnace plants (EAF), 7 induction furnace plants, and three basic oxygen plants. In 2019, Turkey’s output was 33.7m tonnes representing a decrease of 9.6% from 2018, and was ranked 8th in world production.

However, the pandemic-impacted global steel industry of 2020 saw Turkey somewhat buck the trend with a swift recovery. Steel production for 2020 in Turkey is expected to exceed, if not match, 2019’s performance.

According to the latest data from the Turkish Steel Producers Association, crude steel production in November 2020 stood at 3.2m tonnes, an increase of 11.6% compared to the same month of the previous year. In the January-November 2020 period, crude steel production increased by 4.9% to 32.4m tonnes.

There was also good news in steel demand. In November 2020, Turkish finished product consumption increased by 8.8% to 2.6m tonnes, and for the January-November 2020 period, finished product consumption increased by 15.5% over 2019, reaching 27m tonnes.

Currently the EU’s second largest steel producer, it is thought that Turkey could surpass Germany by the end of 2020.

Elsewhere in the OYAK Group, magnesia and dolomite refractories manufactured by Kümaş could be supplied to the OYAK Cement Concrete Paper Group, with a combined 32.6m tpa cement production capacity from Turkish and overseas plants.

Over the last four years, the Group has expanded its cement capacity by 52%. In 2019 OYAK acquired the Portugal and Cape Verde operations of CIMPOR, one of the largest cement brands in Europe.

Continuing its investments abroad, OYAK aims to rank in the top five in the world in cement in the next five years. OYAK has identified Africa as its growth area and is getting ready for production in Cameroon while it begins production in the Ivory Coast.

In its efforts to contribute to the Circular Economy, Erdemir processes granulated blast furnace slag from the Ereğli plant as an alternative raw material in the production of additive-cement in OYAK Cement Concrete Paper Group companies (keep up with the latest trends in steel waste recycling at IMFORMED’s Mineral Recycling Forum 2021 ONLINE, 9 February 2021 – full details here).

Concerning the paper market, Group company OYKA, has the only integrated paper plant of Turkey, manufacturing 100,000 tpa kraft paper and products made of kraft paper.

Although no longer a large market outlet for magnesia, it is used as a precursor for magnesium sulphite or hydroxide used an additive in bleaching in the Kraft pulp and papermaking process.

OYAK sees agriculture and animal husbandry as a strategic sector. OYAK Agriculture and Animal Husbandry Group company Hektaş Tic. Tas produces, sells and markets plant protection and plant nutrition products, and also sells and markets animal health products and feed additives. Caustic calcined magnesia is an important animal feed and fertiliser ingredient.

Regarding the chemicals sector, OYAK Chemical Group ranks among the world’s largest manufacturers in the PVC sector, with an annual PVC polymer chemical admixture production capacity of 300,000 tpa. Magnesium hydroxide, derived from caustic calcined magnesia, is used as a flame retardant additive in PVC and other plastics.

And just a final and relevant note on OYAK’s Chemical Group. In 2015, the world’s largest speciality alumina producer, Almatis GmbH, was acquired by OYAK from Dubai International Capital.

Almatis produces some 600,000 tpa speciality aluminas from nine production facilities in the USA, Germany, the Netherlands, India, China, and Japan. The refractories market is a core sector for Almatis, consuming its range of calcined, tabular, and sintered aluminas, spinels, and alumina cements.

Thus, OYAK now possesses two world leaders in the production of the key acidic and basic raw materials required for refractory manufacture, alumina and magnesia, respectively. A powerful complementary supply package to the refractories market.

Kümaş top producer in Turkey’s rich magnesia supply sector

Turkey hosts several areas rich in magnesite and dolomite deposits, and is the world’s second largest producer of magnesite after China, ranked third in magnesia (CCM, DBM, FM) after China and Russia, and fourth in world magnesia exports (see charts).

Kümaş has a 163m tonne total magnesite resource and claims to own nearly 20% of the world’s high quality cryptocrystalline magnesite deposits, which are characterised by very fine grained magnesite crystals, typically 1-10 μm giving a high surface area and high reactivity, and >40% of total magnesite reserves in Turkey. Kümaş also has a 96m tonne dolomite resource.

The company is Turkey’s top producer, both in magnesia products and integrated refractory production, supplying the steel, cement, lime, glass, and non-ferrous metal industries. Non-refractory magnesia markets are also served (see chart for synergies with OYAK).

Founded in Kütahya in 1972, Kümaş was established to provide a domestic-owned source of magnesite. The OYAK buy maintains that objective. Kümaş was sold to Zeytinoğlu Holding in 1995 as part of its privatisation, and then was transferred to the Savings Deposit Insurance Fund (TMSF) in 2009, before joining Yildiz in 2012.

After Magnezit Group’s Satka plant, SMZ’s Jelsava plant, and RHIM’s Brumado plant, Kümaş is the fourth largest DBM producer outside China.

Kümaş produces magnesia and refractory products in two facilities in Kütahya (see chart), and completed major upgrades in FM and CCM capacities in 2015 and 2017, respectively. According to OYAK, in 2020, Kümaş increased its sales by 14% year-on-year and exports to more than 50 countries with an annual processing capacity of approximately 1.2m tonnes magnesite ore.

The two other main magnesite producers in Turkey are Magnesit AŞ, Eskişehir, near Kümaş (260,000 tpa capacity DBM), and Konya Selçuklu Krom Magnezit Tuğla Sanayii AŞ, Konya (45,000 tpa capacity DBM); the former is owned by RHIM and the latter is an independent integrated refractories producer.

Elsewhere, Madkim Maden, Bursa supplies raw magnesite; Asmaş, Kütahya, is a leading monolithic refractory producer with captive DBM production (40,000 tpa capacity) owned by US-based Minteq; Akdeniz Mineral Kaynakları AŞ, Eskişehir, produces CCM (36,000 tpa capacity) and is majority owned (89.6%) by Grecian Magnesite SA, Athens.

Turkmag Madencilik Sanayi ve Ticaret AŞ., a subsidiary of Cihan Group, has a 100,000 tpa capacity DBM plant. RHIM was to acquire the operation in 2014 but later abandoned proceedings.

The surest way to acquire the latest developments and outlook trends in global magnesia supply and demand

Field Trip to Nedmag at Veendam, Thurs 1 July 2021

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Supply strategies in change | Steel market outlook hopeful

Perhaps the acquisition of Kümaş by Erdemir is not that surprising. The last few years, and 2020 in particular, have certainly pointed towards primary mineral consumers increasing vertical integration and preserving security of key raw material supply, and in general, re-assessing sourcing options (see New era of mineral exploration, sourcing & development dawns).

Add to that the threat of increasing foreign ownership of mineral resources and the whole “critical” or “strategic” mineral supply over-reliant on limited key sources, with magnesia from China a case in point, then it starts to make sense.

Another leading independent magnesia producer, QMAG in Australia, was acquired by refractories major Refratechnik, Germany, in April 2020 (see Magnesia supply sector consolidates further). This now leaves just a handful of small to medium size natural DBM, and three synthetic DBM producers independent.

Indeed, Erdemir will be alert to that fact that Kümaş, as one of the world’s leading high quality magnesia suppliers outside China, will be a potential alternative supplier to consumers wary of relying too much on Chinese magnesia supply.

Since November 2020, the Chinese magnesia supply sector, mostly concentrated in Liaoning province, has been subject to another extended period of disruption, not expected to ease until perhaps April 2021 (see Refractory minerals from China: shutdowns & shipping spark price surge).

Changes afoot in China – find out the latest in Chinese refractory minerals supply and markets at

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On the upside for Kümaş and other refractory mineral suppliers, the outlook for steel refractories may not be too bad.

Erdemir officials told IMFORMED: “After the effects of the pandemic eased in May 2020, there was a stronger recovery than expected in Turkish domestic consumption and steel demand. Steel demand is highly correlated with GDP growth, and the IMF has forecast Turkey’s GDP growth as 5% for 2021.”

“Considering the potential improvement in local steel supply-demand dynamics, and recovery in hot-rolled coil prices, it is expected that the recovery will continue in the first and second quarters of 2021. However visibility is low after the first half.”

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Following some 18 months of uncertainty and delay, South Africa’s remaining independent andalusite producer and world no.2, Andalusite Resources (Pty) Ltd (AR), is finally seeing light at the end of the tunnel.

Having successfully warded off acquisition attempts by Imerys in 2017 (see Imerys appeal dismissed: Andalusite Resources merger prohibition stands) AR became mired in debt and financial distress in mid-2019.

This resulted in AR being put under Business Rescue and supervision of an interim business rescue practitioner.

The company initially ceased trading when it was placed in Business Rescue on 27 June 2019, but recommenced operations in August 2019, when a new contract miner, Tokata Metals Pty Ltd was appointed.

A new investor and owner has now been approved by AR’s creditors, shareholders and management to steer the company through its Business Rescue Plan, ie. facilitating rehabilitation of AR.

In an announcement on 14 January 2021, through AR’s longstanding agents Cofermin Group, Germany, the new owner of AR was revealed as ARM Andalusite (Pty) Ltd, a private company led by Schalk Burger, a well-established South African business man, who, together with other investors, has other active and long standing interests in the mining industry.

Blue Skies Again: Company directors Piet Kolbe (left) and Colin Bain (right) survey andalusite processing at Andalusite Resources’ plant, Maroeloesfontein, South Africa.

ARM is a wholly-owned subsidiary of Nikkel Trading 392 (Pty) Ltd (and in turn both entities appear to form part of the Schalk Burger (SA) Group). Pretoria-based Nikkel Trading 392, was established in January 2018 with the exclusive purpose to hold shareholding in various entities related to the mining industry.

ARM won the bidding process which started in July 2019, subsequently delayed by the pandemic, and was contested by one other party, Afrimat Ltd, a leading iron ore, industrial minerals, and construction materials producer in South Africa. ARM’s offer amounted to ZAR121.4m (US$8.1m), and Afrimat’s was ZAR100.0m(US$6.7m).

The next stage will see ARM comply with the conditions of the acquisition set by the Business Rescue Practitioner and Government authorities (Competition Commission and the Dept. of Mineral Resources). This is expected to take around 10-12 months, after which the company will emerge from Business Rescue and be transferred to its new owner.

Find out the latest on andalusite supply and demand

Dirk Auge, Managing Partner, Cofermin Rohstoffe GmbH & Co. KG, Germany is presenting

Andalusite Supply Outlook at

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Going forward AR is expected to be financially stronger and independent, and can now focus on improvements in mining and processing facilities which had been placed on hold.

Cofermin said: “We are in full support of these coming steps, changes and restructurings, as we are now beginning to see more certainty and clarity on the horizon for the Maroeloesfontein mine, its customers, employees and business partners.”

AR was established in 2001 to exploit the Maroeloesfontein andalusite deposit in the Northam/Thabazimbi region of Limpopo province, an important mining area in South Africa with neighbouring platinum, chrome and iron ore mines.

AR’s 75,000 tpa capacity andalusite operation, hosting >50 years of andalusite reserves, is situated close to Imerys’ Rhino Mine at Thabazimbi (Imerys has other South African andalusite operations, a mine at Glomel, France, and as yet undeveloped reserves in Peru).

AR is a leading supplier of andalusite mostly to the refractories industry, and one of only three primary andalusite producers which together account for >90% of world production. Total world andalusite production capacity is estimated at around 325,000 tpa (see chart).

AR is the second largest producer, after Imerys, with approximately 23% of the world andalusite market. The third primary producer is Andalucita SA, at Paita, Peru.

Elsewhere, China’s leading producer Xinjiang Xinrong Yilong Andalusite Co. (formerly of Imerys until 2018) increased production in 2020 to 30,000 tpa and in December 2020 postponed as much as possible its seasonal winter closure of mining owing to increased demand as China’s refractory markets recover.

China has limited sources of andalusite, mainly concentrated in central Xinjiang province in the far west of China, exploited by just two producers. China imports about 30,000 tonnes andalusite, mostly from South Africa, but also from France and Peru.

Latest trends & developments in refractory recycling discussed at

Refractory recycling developments
Wilker Felipe Silva, Refractory Purchasing Manager, ArcelorMittal Brazil, Brazil
Requirements for implementing Circular Economy in the refractory waste management of a steel plant
Aintzane Soto, R&D Process Engineer, Sidenor, Spain
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Joo Yongdon, CEO, Korea Material Co. Ltd, South Korea & Sangpil Raul Hwang, Industrial Minerals Trader, Sojitz Corp., Japan

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Unique NZ perlite operation for sale amid limited world sources

Blue Pacific Minerals Ltd, New Zealand, is looking to sell its perlite extraction and processing division as it focuses on its zeolite business.

Title picture: BPM’s perlite mine near Tokoroa, North Island, New Zealand, which was producing about 10,000 tpa crude ore; inset: expanded BPM perlite Courtesy BPM

There are very few companies in the world producing this unique industrial mineral, with just China and New Zealand as the key country sources in the Asia-Pacific region. Greece, Turkey and the USA are the primary sources after China.

World trade in perlite, which finds important applications in a wide range of low to high value markets including horticulture, insulation, construction, and fillers (see chart), is dominated by exports from Greece and Turkey, while the US and China consumes most of its own production (see charts).

Blue Pacific Minerals Ltd (BPM) is New Zealand’s largest processor and distributor of zeolite and perlite ore for domestic,
Australia, Asia and South Pacific markets and holds significant reserves of zeolite and perlite, either by access agreements or direct ownership.

Dave Hill, Managing Director, BPM told IMFORMED: “After a recent review of the total business growth we considered our internal resources were best applied to zeolite growth opportunities”.

BPM produces some 100,000 tpa of zeolite ore from its two mines in central North Island which is used in absorbents, agriculture, feed/toxin-binding, and soil conditioning and exported to Australia, North Africa, Europe, UK, and South East Asia.

BPM has thus decided to seek international expressions of interest and divest the business assets associated with its Perlite Division, which include:

• Access, management and extraction rights for a high quality perlite resource and quarry.
• A dedicated perlite processing plant based in Tokoroa, New Zealand.
• Intellectual property including technical data and research on new applications, and a customer list.

The proposed BPM sale represents a rare opportunity to acquire a turn-key perlite extraction and processing operation exploiting a high quality perlite resource well-placed for Asia-Pacific markets.

In recent years the perlite supply sector has shrunk considerably with acquisitions and consolidations by leading players, particularly by Paris-based Imerys (see later), while increasing concern over raw material supply security may also see interest from leading perlite consumers as they assess vertical integration options, not least with sources outside China (see New era of mineral exploration, sourcing & development dawns).

BPM pedigree in perlite

Based in Tokoroa, Waikato, on New Zealand’s North Island, BPM is a private company founded to build an industrial minerals business exploiting the unique natural volcanic mineral resources located in the Central North Island of New Zealand (see chart history below).

Since the early 2000s, BPM has been extracting, processing and exporting high quality perlite ore and has established best practice perlite manufacturing processes as well as growing an international customer base for high value perlite products.

Hill commented: “A New Zealand-based mineral businesses needs to be ‘multi-mineral’ given the capital invested and the slow build of market demand, especially for a zeolite/non-commodity type offering. This is until markets build and minerals can stand on their own feet – which is what we have now. We had existing plant and equipment that suited perlite ore processing in place and access to very good perlite ore locally. Markets, LNG projects typically, were eager for us to supply them”.

BPM’s Tui perlite resource and open-pit mine is located 22km south-east of its processing facility in Tokoroa. Tokoroa is located approximately 90km south-east of Hamilton and 90km south-west of the major Port of Tauranga.

The mine is situated on 15 hectares of private forestry land managed by a third party management company. The operation has been on a care and maintenance basis since late 2019.

BPM has a Mining Licence Agreement with the landowner which permits access and mine operation to a maximum of 50,000 tpa of perlite ore; recent years have seen approximately 10,000 tpa ore extraction rates on a periodic basis.

Want to know more about this asset? BPM has retained Campbell MacPherson to manage the business sale process. All enquiries should be directed to: Alistair Ward, Executive Director, Campbell MacPherson T: +64 (09) 377 1094 M: 021 2402 988 E: alistair@campbellmacpherson.com

While no exploration drilling has been undertaken to date, a field-based evaluation of the perlite deposit by independent engineering consultants Sinclair Knight Merz Ltd in 2006 (updated in 2007), as well as further on-site excavation by BPM, estimate that the mine area has inferred reserves of approximately 2.5-3.0m tonnes perlite.

BPM believes it is likely that proven reserves would be significantly greater than 3.0m tonnes if a formal drilling programme was undertaken.

The minerals associated with the Quarry are classified as private minerals, as such, a formal Crown Mining Permit is not required, nor is a Crown royalty payable upon the extraction of the perlite resource.

The Sinclair Knight Merz report concluded that: “The Quarry appears to contain a deposit of some of the highest quality perlite the author has seen. Based on the field assessment, the resource quality should persist throughout the perlite deposit.”

The excellent 30x expansion ratio property of BPM perlite (see chart below) was objectively and independently tested to be compared favourably with leading brand reference samples.

Dave Hill commented: “No selective mining other than owing to some very minor obsidian. The deposit is relatively clean and contamination is only obsidian in very small, but visible seams.”

BPM has historically used a combination of its own equipment (excavators and loaders) and that of local contractors to operate the mine (the proposed sale excludes this equipment). All transport from the mine to the Tokoroa processing plant is by a local road transport contractor.

The perlite processing facility at Tokoroa comprises multi-staged crushing, screening, drying, grading, classifying and bagging with an average production capacity of approximately 6 tph.

On site is a sea-freight container loading bay and road B train access/egress, suitable for a 20-30,000 tpa operation. There is covered bulk perlite ore storage of up to 500 tonnes.

Recent plant upgrades include a complete kiln (for drying) upgrade in 2013, and a full electrical distribution board upgrade in 2012.

BPM produces a range of product grades (see chart above) which are sold into cryogenic, building materials, and steel making/foundry markets in Australia, China, Malaysia, Taiwan, Japan, Singapore and South Korea.

Clearly, the foundry/steelmaking sector is BPM’s largest market consumer by sale value. Geographically, BPM supplies 65% to Australia and 35% to Asia-Pacific, by value.

BPM perlite prices typically range NZ$150-340(US$107-242)/t FOB depending on market application and location.

The accompanying charts illustrate BPM sales by market share in 2018 and 2019. Owing to BPM winding down its Perlite Division in late 2019, BPM maintains that FY19 performance is not reflective of true operating performance.

Indeed, BPM reports that in FY17 it sold 10,388 tonnes of perlite valued at NZ$1.5m. In FY18, a sales and revenue decline (NZ$1.37m, 7,921 tonnes) was driven by a fall in LNG capital investment in the Asia-Pacific region, as well as an associated stock/product mix devaluation.

Perlite pozzolan potential

BPM has also identified an opportunity for fine graded perlite <75 microns, a purpose-classified product of the primary manufacturing process, for use as a natural pozzolan additive to cement materials, ie. as a supplementary cementing material (SCM).

Perlite supplied by BPM has a significant amount of amorphous Si-O-Si and Al-O-Al, this is a prerequisite to be used as a pozzolanic material.

Testing for BPM by Callaghan Innovation (a New Zealand government research and development agency) has proven that under optimised conditions, BPM perlite samples demonstrated very high pozzolanic reactivity.

On SCM market prospects, Dave Hill, MD, BPM, said: “There is a distinct opportunity into SCM markets. NZ alone at 30% inclusion would demand 400,000 tpa.” Courtesy BPM

The results also confirmed that the pozzolanic reaction happened in less than 7 days. If the perlite material is used correctly, it will react within a week, rather than needing to wait up to 56 days for the reaction to occur, as is the case with some other pozzolans. This has the advantage that the concrete will be close to designed strength sooner.

Although the existing BPM processing plant does not have the grinding capability to reduce the perlite particle size to a level whereby it is optimised for use as a natural pozzolan in concrete products (ie. reducing the perlite fines from <75 microns down to <40 microns), prospective purchasers could consider the use of their own grinding capability, development of a dedicated grinding plant, or the use of a third-party’s existing grinding capabilities.

Fly ash derived from coal-fired power stations is a primary source of pozzolanic material. However, with the impending demise of these fossil-fuelled energy sources, fly ash supply is expected to diminish and other alternative materials will be sought.

Perlite: an expanding mineral in a shrinking world

Perlite occurs worldwide in young, glassy, rhyolitic high-silica volcanic rocks. Its unique key feature, when kiln-heated rapidly expanding by up to 20 to 30 times its original bulk density, has been known for almost 2,000 years. But modern commercial production only started in 1949, in Superior, Arizona, USA.

While crude perlite ore has industrial uses, the expanded, or “popped” perlite is the widely commercially traded grade, and has excellent insulating properties, is lightweight, and maybe coated, making it suitable for a wide range of industrial applications (see chart below).

As such, the key properties important to perlite ore for its commercial development are those associated with its expansion on heating to 600-900°C. These include its loose weight or expanded density (<3.0lb/ft³ desirable), furnace yield (90% min.), and sinks percentage (impurities falling to the furnace bottom during expansion, which can include quartz, feldspar, biotite, and magnetite; 5% max. generally).

Other useful attributes include high brightness (70% optimal; good in wallboard) and the relatively rare “onionskin” texture perlite (most ore is granular texture) which is sought after for high value filtration grades.

Careful crushing and grinding is also important for different end uses (see chart) from coarse grades for horticulture (<US$100/t FOB) to fine coated grades (microspheres) for filler applications, which command prices in the US$400-600/t FOB or higher range.

The main large volume markets are in construction, horticulture, and fillers, which tend to follow the GDP trend and economies of countries. Demand growth is clearly linked to growing urbanisation and thus India, Indonesia, Vietnam and China are prime markets.

However, novel and small markets for perlite have also increased during the past ten years in cosmetics, environmental remediation, personal care products, and – where it is permitted – marijuana cultivation (eg. now legal in 18 states in USA).

As with all industrial minerals, economic logistics is key to success, but for perlite it is imperative. Owing to demand for expanded perlite (ie. shipments of low weight, high mass), and that perlite sources are usually remote, the industry is structured in that perlite miners generally process crude ore to desired sizes before shipping to perlite expansion facilities close to the end markets.

The resultant industry structure is essentially one of few perlite miners (producers) and many perlite expanders (processors).

As can be seen from the charts, the leading country producers are China, Turkey, Greece and the USA, though China and the USA consume most of their perlite, while Turkey and Greece mainly export.

New Zealand features in the lower scale production tier, along with Armenia, Hungary, Mexico. But apart from China, New Zealand is well placed to serve Asia-Pacific markets. Indeed, BPM reports that competition in the region is mostly from Turkish and Greek perlite (although most Greek perlite appears to be exported West), with little if any from China.

Although the main player, BPM does not have a monopoly on New Zealand perlite: there is some production (with expansion facility) from INPRO (Industrial Processors Ltd), with 10,000 tpa perlite processing capacity at its Atiamuri mine also in central North Island (affiliated with Australian Perlite Pty Ltd (Ausperl); incorporated in 2006 to take control of the perlite and vermiculite processing business previously operated by FERNZ, New Zealand and then ORICA in Australia).

Elsewhere, the perlite supply sector has contracted further in recent years owing to a spate of consolidation.

Imerys has shot to perlite pole position by acquiring World Minerals Inc., USA (2005), S&B Industrial Minerals SA, Greece (2015; see Imerys seals S&B acquisition: so what does it mean?), and Cornerstone Industrial Minerals Corp., USA (2020) – securing mines and plants (including some expansion plants) in Europe, North and South America.

Omya AG, Switzerland, acquired Mexican perlite producer Termolita S.A.P.I. de C.V. (2019), while in the USA US Silica acquired diatomite and perlite producer EP Minerals LLC (2018).

In the main, few perlite producers also operate expansion plants, exceptions being Imerys and Dicalite Management Group, the latter US-based but operates the world’s largest perlite filter aid plant at Ghent, Belgium with a production capacity of 50,000 tpa expanded perlite.

There has been little news of development of new or existing perlite sources. In Armenia, a new 66 hectare perlite mine was approved to start in 2018 by Hidden Gold LLC at the Aragats mining area, famous for perlite, in Aragatsotn province. This may have come to fruition, perhaps reflected in the uptick in Armenian production and exports (mainly to Russia, Ukraine) since that year.

Interestingly, in 1998, Dicalite acquired a major stake in perlite production from Armenia, including the right to extract >1m tpa of crude perlite and to export 24m tonnes of perlite during its 22-year licence period – which would have concluded in 2020. What development took place, if any, is not clear. Meanwhile, until recently, leading Armenian producer Aragats Perlite OJSC listed Dicalite as its main customer.

Interest in BPM’s perlite may well emerge from one or two of the main multi-national group players – Imerys is a likely contender, and is already active in New Zealand in producing high value halloysite clay at Kerikeri, at the northern tip of North Island.

But there are also many perlite end users – in construction, horticulture cat litter, paper – operating their own perlite expansion plants, which may also favour securing raw material supply from one of the few independent sources available to buy. Watch this space!

Want to know more about this asset? BPM has retained Campbell MacPherson to manage the business sale process. All enquiries should be directed to: Alistair Ward, Executive Director, Campbell MacPherson T: +64 (09) 377 1094 M: 021 2402 988 E: alistair@campbellmacpherson.com

Like the idea of an objective, well-written and researched article about your company or products?

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RHI Magnesita sells PPL & RHI Normag to private equity firm; Normag renamed Magnor Minerals

It only seems very recently that RHI Magnesita (then RHI AG) was reinforcing its captive magnesia supply base with the acquisition of Premier Periclase Ltd (PPL), in the Republic of Ireland, and SMA Mineral Magnesia AS, in Norway, with the latter having a new fused magnesia plant built on site and becoming RHI Normag.

Title Picture On a new high: aerial view of Premier Periclase Ltd’s seawater magnesia operation at Drogheda, Republic of Ireland, now owned by Callista Private Equity Courtesy PPL

In fact, it was just ten years ago in 2011 when both acquisitions were completed to assist RHI’s mission to achieve 80% self-sufficiency in magnesia raw materials by mid-2012.

Fast-forward to 1 February 2021, and global refractories leader RHI Magnesita (RHIM) completes the sale of both assets to Munich-based Callista Private Equity GmbH.

Few details on the transaction were released by either party. In its brief statement RHIM said that it “explains the selling decision with its ongoing global network optimisation.”

Callista added that the sale contributed to the execution of RHIM’s 2025 Strategy, stating that as the new shareholder “Callista will pave the way for increasing the competitiveness as well as for a sustainable and successful expansion in the future…while the companies’ management remains responsible for daily operational business.”

Callista is to set the companies up as standalone entities with own business functions and a proprietary corporate identity. RHI Normag AS has been renamed Magnor Minerals AS, while Premier Periclase is to keep its name.

CERHA HEMPEL Rechtsanwälte GmbH, which advised RHIM on the sale, revealed that the buyer was found through a bidding process at the end of which Callista emerged as the best bidder. Closing took take place in early February 2021 after the successful demerger of the two target companies from the group network of RHIM and the carve-out of certain business divisions of RHI Normag AS.

IMFORMED has since learned that RHI Normag’s 85,000 tpa fused magnesia plant was not included in the sale and has been dismantled. Since its start-up in 2012 the plant was beset with technical problems and experienced periods of mothballing and restarts with reduced capacity utilisation until RHIM announced its final closure in H1 2020 (see later).

The seawater magnesia facility of RHI Normag, now renamed Magnor Minerals, at Porsgrunn, Norway – former site of magnesium metal production by Norsk Hydro. Courtesy RHIM

Interestingly, what each party did state, was that PPL and RHI Normag (Magnor) “predominantly produce caustic calcined magnesia products for the fertilizer, animal feed, hydrometallurgical, pulp and paper, environmental and refractory industries.”

While it is certainly true to the extent that PPL and Magnor possess capacity and capability for caustic calcined magnesia (CCM) production, both companies were predominantly active and well-known for their refractory magnesia supply of dead burned magnesia (DBM) and fused magnesia (FM), respectively.

CCM and magnesium hydroxide (MDH) grades for the so-called speciality (non-refractory) magnesia markets were not greatly developed by each company – it now seems that is all about to change.

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Who is Callista?

Callista, in true private equity (PE) style, describes itself as “specialised on acquisitions of loss-making Group subsidiaries, consolidated non-core affiliated companies and business units facing ‘special situations’. The company’s success is based on post transaction restructuring focused on sustainable profitability.”

Of note perhaps, is that this appears to be Callista’s first foray into a raw material producing business, but not its first exposure to the refractories industry and RHI.

In June 2016, RHI sold leading US fused cast refractory producer Monofrax LLC to Callista, having deemed it a non-core business.

Elsewhere, Callista’s focus has included picking up metallurgical, manufacturing and engineering assets such as Alupress Berlin GmbH, renamed Berlin Millhouse, specialised in processing aluminium die cast and forged parts for the automotive industry, and ArcelorMittal Ringmill SA, renamed Halo Steelrings, a manufacturer of seamless steel rings and gearboxes.

Together with PPL and Magnor Minerals (which had a combined 2020 revenue of €44m), Callista has now expanded its portfolio to 12 companies with a combined revenue of >€300m.

Generally, the model of PE groups is to strengthen and steer the acquired asset, then sell for a profit after a period, frequently after 4-5 years.

This is not the first time that a PE company has taken an interest in a magnesia producer. QMAG, Australia, was owned for eight years by Resource Capital Funds, USA, while Kümaş was owned by Gozde Girisim Sermayesi Yatirim Ortakligi AS, and over 50% of Magnesita before merging with RHI was owned by GP Investments, Gavea, and Rhone Group.

What does Callista get with PPL and Magnor Minerals?

Now that PPL and Magnor Minerals are no longer part of RHIM, albeit owned by Callista, they can now join, or rather re-join, the small global group of independent synthetic magnesia producers (ie. sourcing generally higher purity magnesia from seawater or brines, as opposed to “natural” sources such as magnesite, serpentinite, dolomite, brucite etc.).

Indeed, it is interesting to note that the remaining active seawater magnesia producers are all independent: PPL, Republic of Ireland; Magnor, Norway; Buschle & Lepper, Brazil; and Ube Material Industries, Japan.

Other major synthetic magnesia producers outside China include: Nedmag, the Netherlands; Manaseer Magnesia, Jordan; ICL Industrial Products Magnesia Division, Israel; Industrias Penoles, Mexico; Martin Marietta Magnesia Specialties, USA; Nikochem LLC, Russia

As far as Magnor Minerals is concerned, events have turned somewhat full circle, as it returns to its originally intended operation focusing on CCM (and MDH) production for non-refractory markets.

Magnor Minerals’ rotary kiln (left) and CCM in bags ready for supplying Yara Porgrunn’s fertiliser plant in 2020 (right) Courtesy Herøya Industrial Park website

Utilising seawater and dolomite sourced from third parties in Norway and Sweden, before being harnessed by RHI in 2011 as feedstock for its new FM plant, Magnor was formerly SMA Mineral Magnesia SA (subsidiary of SMA Mineral AB, Sweden), established at the former Norsk Hydro magnesium metal facility at Herøya industrial park in Porsgrunn in 2002, with a production capacity of 90,000 tpa CCM and MDH.

One of the key advantages of SMA’s original seawater process is that it can use different qualities and types of raw materials, including marble, limestone, and dolomite or dolomitic limestone. Markets served included pulp and paper, agriculture, and chemicals.

From 2015, RHI Normag was producing CCM in excess of its FM needs, and started selling some 50,000 tpa to customers in Norway, Sweden, Germany and Hungary.

After the FM plant shut down in 2020, RHI Normag continued to produce magnesia to supply Yara Porsgrunn’s fertilizer production at Herøya.

  
RHI Normag’s 85,000 tpa fused magnesia plant started up at Porsgrunn in late 2012 to supply RHIM refractory plants with FM and reduce its reliance on imported Chinese FM. However, the plant was beset with technical problems, high costs, and experienced periods of mothballing and restarts with reduced capacity utilisation (around 30,000 tpa). In H1 2020, after a review of raw material inputs, RHIM concluded that its internal costs to produce FM were too high relative to Chinese-sourced “equivalent materials” triggering its decision to suspend FM production facilities in Porsgrunn, Norway (and Contagem, Brazil) and to enter into long term alternative supply arrangements. Courtesy RHI Normag

In a recent interview for the Herøya Industrial Park website, Jan Petter Hestvik, Managing Director (and Plant Manager), Magnor Minerals said: “We are now moving from being a raw material supplier internally in the RHI Magnesita Group, to becoming an independent factory unit that will develop new magnesium products and qualities. And we will work in an international market.”

Magnor Minerals is now running production campaigns, and aims to “intensify” and increase production volume in 2021.

Over in County Louth, in the Republic of Ireland, in spite of some developments in CCM and MDH over the years, PPL has in the main been focused on high purity DBM production for the refractories market.

PPL was established in 1977 and formerly owned by construction materials group CRH Plc before the RHI buy in 2011.

Production capacity at the Drogheda seawater magnesia facility is in the order of 72,000 tpa DBM; 85,000 tpa CCM; and 140-160,000 MDH.

Two key DBM grades for refractory customers in Europe and Asia are SKLS and LC160, while limited markets for CCM/MDH in waste water treatment have been pursued in Ireland and the UK.

PPL’s magnesium hydroxide thickening tanks (left) and rotary kiln (right). Courtesy PPL

Clearly, now with Callista behind them, PPL, like Magnor, is keen to explore the potential of the wider ranging, and often more lucrative, speciality magnesia markets.

Indeed, with PPL’s high purity magnesia it is the mid to upper end of the specialities market that perhaps should be targeted, ie. environmental, chemicals, fillers, flame retardants, coatings, paper, food/pharma applications rather than say animal feed and fertiliser. That said, anyone familiar with developing speciality magnesia grades for high value applications knows just how long a road it can be with extensive R&D and specification and standards demands to be met.

PPL’s important DBM production is expected to remain active, but we may see a change in plant utilisation emphasis to CCM/MDH grades.

This is not only an exciting time for PPL, but crucially no longer limits the company’s sales performance to be governed solely by the highs and lows of the refractories market, primarily controlled by steel and cement production.

Mike O’Driscoll will be presenting a review of the magnesia business at

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And coming up later in 2021

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Mineral Recycling Forum 2021 ONLINE Reviewed

EU Critical Minerals | Refractories | Ceramics | Graphite | Bauxite | Magnesia | Mining Waste | LIBS Sorting

The latest trends and developments in recycling industrial minerals were presented and discussed at IMFORMED’s Mineral Recycling Forum 2021 ONLINE on 9 February.

Title Picture Mountains of Magnesia: the serpentine tailings pile at Baie Verte, Newfoundland, 850 x 600 x 150 metres, hosting some 50m tonnes grading 39% MgO; BAIE Minerals is looking to recycle the tailings, targeting the growing MgO board market. Courtesy BAIE Minerals

Ten presentations by leading experts covering European Commission action, graphite, alumina, refractories, ceramics, magnesia-tich mine tailings, and laser spectroscopy sorting, provided valuable data and topics for discussion for a worldwide online audience active in the development and applications of mineral recycling.

“This would be difficult to improve on. You had steel producers, refractory producers, new technology developers, academics, government officials and experts presenting and sharing current info on very relevant real time topics. Well done!”
Bill Porter, National Manager USA & Canada, PRCO America, USA
“Really enjoyed the session and was very well hosted.”
Andrew Spinks, Managing Director, EcoGraf Ltd, Australia
“Congratulations, it was a very well organised and good Forum. The roundtable session was a very good idea.”
Werner Odreitz, Managing Director, REF Minerals GmbH, Germany

Talking (and smiling!) heads at the Breakout Roundtable on Refractories – an informal networking session following the presentations

Overviews: New era for recycling | EC Critical Raw Materials Action Plan

Mike O’Driscoll, Director, IMFORMED opened proceedings by observing a new era of mineral development and sourcing strategy upon us, which is to include an increasingly significant role to be played by mineral recycling.

This has largely been an inevitable development, but which has been particularly spotlighted and advanced by the Covid-19 pandemic since early 2020, prompting a mineral sourcing strategy rethink and accelerated mineral recycling.

Key drivers for the increase in mineral recycling were outlined by O’Driscoll’s “Rule of Six”:

1. Limited primary sources: shortage of commercially developed “critical” mineral resources and processing plants
2. Source overreliance: risky overreliance on supply/trade from limited overseas source
3. China in change: supply issues, range of factors.
4. Emergence of hi-tech growth markets: to become mainstream, particularly in the energy sector (eg. Li-ion batteries, EVs, solar, wind), and thus demand for respective critical minerals (eg. lithium, graphite, rare earths).
5. Recycling technology more economic/established: from esoteric, expensive sideshow, to mainstream processing line; opportunities sensed and sought after
6. Environment: saving the environment, drive for the “Circular Economy” gathering momentum

While challenges remain to be met across the supply chain, the uptick in mineral recycling is going to involve much more of the following:

• The “new normal”: recycled raw materials becoming a regular supply chain option for mineral buyers
• Government action: input in policy, support, and finance from governments and regional organisations
• Primary mineral producer mindset: miners increasingly involved in recycling tailings and other waste sources to offer wider product range (including blends?) with a favourable “green” label on their portfolio
• Opportunities: to process minerals from waste; to innovate, develop and supply sorting and processing technology and equipment to recyclers
• Economic alliances: between waste sources (mineral product end users) and recyclers, new logistic chains
• Supply chain co-operation: in modifying end product formulations to ease end-of-life recyclability and enhance market application

“Critical raw materials resilience: charting a path towards greater security and sustainability –increased circularity and efficient use of resources”, presented by Maria Nyberg, Policy Officer, EC, Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs, Belgium, set the scene wonderfully by outlining the EC’s recently announced Critical Raw Materials Action Plan with special regard to the circular use of raw materials.

Nyberg reviewed the EC’s categorised critical minerals and their consuming markets at present and their forecast demand in 2050, before explaining the ten points of the Action Plan:

1. Establishment of the European Raw Materials Alliance (ERC)
2. Develop sustainable financing criteria for mining
3. Research and innovation on waste processing, advanced materials and substitution
4. Map the potential supply of secondary CRM from EU stocks and wastes
5. Investment needs for mining projects that can be operational in 2025
6. Develop expertise and skills in mining
7. Deploy Earth observation programmes for exploration, operation and post-closure environmental management
8. Develop research and innovation projects on exploitation and processing of CRMs
9. Develop strategic international partnerships to secure CRMs supply
10. Promote responsible mining practices for CRMs

Nyberg highlighted two key goals: the mapping of potential supply of secondary critical raw materials from EU stocks and waste and to identify viable recovery projects by 2022; and the successful launch of the ERC on 29 September 2020, which has already attracted more than 200 partners from 30 countries in joining the ERC.

“The ERC is to initially build resilience and open strategic autonomy for the rare earths and magnets value chain, before extending to other critical raw materials.” said Nyberg.

Want to get the latest views and outlook on critical minerals? Join us at

Speakers include:

How will strategic minerals ride the next economic cycle?
Neal Brewster, Chief Economist, Roskill, UK
The security of critical mineral supply chains: the US perspective
Dr Steven Fortier, Director, National Minerals Information Center USGS, USA
Understanding the geopolitics of critical minerals: Are they the same in regard to China, Europe, the USA, and Japan?
Jack P. Lifton, Director, Critical Minerals Policy Institute & Ken N. Santini, Managing Director, Santini & Associates, USA
Creating reference & benchmark pricing for lithium in the 21st Century electric vehicle supply chain
Simon Moores, Managing Director, Benchmark Mineral Intelligence, UK
Transforming strategy into cash in the industrial mineral sector
Miguel Galindo, Managing Director, Strateg-On, Spain

FULL DETAILS HERE

Graphite recycling in Li-ion batteries

“Closing the Carbon Loop in Li-ion batteries” by Andrew Spinks, Managing Director, EcoGraf Ltd, Australia, shared his fine insights of EcoGraf’s vertically integrated HF-free battery anode material business supporting the global transition to clean energy and e-mobility.

The business is focused on three key strands: a 20,000 tpa battery graphite manufacturing plant in Kwinana, Western Australia; the Epanko Graphite Project, Tanzania, a 60,000 tpa natural flake graphite mine; and the recovery of battery anode materials, using proprietary EcoGraf™ purification technology.

Spinks emphasised the significance of graphite as the leading material by volume required in Li-ion batteries (55% of battery mineral demand by 2050), and the EU as the world’s fastest growing Li-ion battery market with some 24 gigafactories announced to be built with 600 GWh total annual production capacity (= 9-10m electric vehicles (EV) per year).

“The EV market is forecast to drive a +700% growth in natural graphite demand by 2025” said Spinks.

Spinks also brought attention to the EC’s December 2020 new measures announced regarding Li-ion batteries and the Circular Economy in that a minimum proportion of battery content is to be made up of recycled materials.

It was reminded that battery recycling efforts have to date mainly focussed on cathode metals, while carbon anode material is currently not recovered. However, with the battery representing >40% of the carbon (CO2) emission footprint of EV production, recycling of carbon anode material has an important role in reducing carbon emissions.

So EcoGraf has developed a cost effective, eco-friendly multi-stage chemical purification, washing and filtration process, that eliminates hydrofluoric acid use, to recover carbon anode material. A provisional patent was lodged for recycling applications in May 2020.

The EcoGraf™ proprietary purification process has now been applied successfully to recycling of both battery production scrap and “black mass” materials (carbon material remaining after recycling high value cathode metals).

The company is now positioning itself to recover and reuse carbon anode material, and to that end, and in keeping with Spinks’ urging that “Collaboration is the solution”, EcoGraf has signed an agreement with South Korea’s largest Li-ion battery recycling group SungEel HiTech Co. Ltd.

Reducing & using processed bauxite residue with the Pedersen Process

Dr David Konlechner, Owner, KON Chemical Solutions e.U, Austria, presented “Pedersen Process Revisited: Changing the colour of alumina production”.

Starting with a most salient reminder, Konlechner revealed that of the 132m tonnes of alumina produced in 2019, mostly by the Bayer Process, to produce 63.7m tonnes of primary aluminium, some 160m tonnes of Bauxite Residue (BR) was generated. In 2016, a mere 3% of BR was recycled and used productively.

With the EU heavily dependent on imports of bauxite and alumina, the EU-funded ENSUREAL Project was formed in 2017 to prevent waste generation in alumina production by using the Pedersen Process, utilising low grade bauxite, yielding waste products in “grey mud” which could find use in fertilisers and rare earth production.

A wide range of industry, technology, and academic members participate in ENSUREAL, including KON Chemical Solutions, responsible for upscaling the project.

The Pedersen Process has actually been around since about 1915, and which essentially involves the smelting bauxite or another aluminium source; generating a Ca/Al slag; leaching with NaCO3; precipitation with CO2; roasting for Al2O3 production; CaCO3 grey mud as by-product.

ENSUREAL work has focused on re-engineering the metallurgical process, fast testing at small scale, using best recipe for upscaling, and generating a leachable Ca/Al slag.

By 2022, the project is looking forward to having a deeper understanding of chemical process behaviour, having reasonable amounts of sample material available (100 kg range), having life cycle assessment and life-cycle cost analysis, and attaining process and economic concept prefeasibility level (FEL 1.5).

Refractory recycling developments: S. Korea | Spain | Brazil

“South Korea’s refractory recycling status & key challenges to address” was presented by Sangpil Raul Hwang (left, top), Industrial Minerals Trader, Sojitz Corp., Japan, who also introduced co-author Joo Yongdon (left, below), CEO, Korea Material Co. Ltd, South Korea.

Since 2011, Korea Material has been recycling a range of refractory minerals including alumina, chamotte, magnesia, zircon, graphite, and silicon carbide. The company opened its third plant in 2020 at Pyeongtaek.

For its part, leading Japanese trading company, Sojitz Corp., has been working with Korea Material and is diversifying more into mineral recycling and intends to restructure in April 2021 with a new department: Metals, Mineral Resources, & Recycling Division.

Hwang provided an excellent summary of the South Korean refractory industry, which produces almost 500,000 tpa refractories, and imports just over 200,000 tpa, mainly from China.

In 2019, refractory waste amounted to just over 700,000 tonnes, of which 35% was landfilled and 65% recycled into a range of market applications (see chart).

South Korea’s refractory recycling rate has increased from 33% in 2013 to 65% in 2019, somewhat boosted by increased landfill and waste disposal costs initiated since 2018.

Hwang explained how recycling refractories had shown benefits with lower expansion and shrinkage in products, price competitiveness (10-20% lower), and reduced dependency on imported materials.

However, challenges remain such as the persisting stigma about recycled materials; difficulties with controlling consistent chemical composition; costs of recycling, difficulties in acquiring waste recycling permit; lack of support from the government; and changing regulations that limit the recycling capacity based on warehouse capacity rather than actual processing capacity.

“Requirements for implementing Circular Economy in the refractory waste management of a steel plant” by Aintzane Soto, R&D Process Engineer, Sidenor, Spain, updated us with Sidenor’s impressive pioneering work in refractory recycling.

Sidenor is a market leader in European special steel long products as well as an important supplier of cold finished products; the company sold 660,000 tonnes steel products in 2019, and consumed 11,000 tonnes of refractories.

Soto explained how Sidenor has evolved its management of refractory waste recycling through the LIFE 5RefrAct Project, which started in 2018, focused on developing high value added refractory materials incorporating a significant amount of refractory waste.

“The challenging goal has been to increase the potentially recoverable fraction including the magnesia masses.” said Soto.

Sidenor has successfully worked with Magnesitas Navarras to develop 9 new magnesia-based refractory products incorporating 70% recycled material, and with Refralia, 12 new alumina-based refractory products incorporating 65% recycled material.

Soto explained how Sidenor utilised laser-induced breakdown spectroscopy (LIBS) technology to sort waste material, and concluded the project resulted in 1,878 tpa less waste being sent to landfill.

While there were clear positive outcomes, such as attaining very high valorisation of MgO masses from tundish, challenges remain such as the remoteness of the valorisation agent facilities increasing transport costs, and insufficient environmental and technical awareness by end users that makes it difficult to sell a recycled product.

Wilker Felipe Silva, Refractory Purchasing Manager, ArcelorMittal Brasil SA, Brazil presented “Refractory recycling developments” which introduced methodology to reuse and recycle refractories with a focus on eccentric bottom taphole (EBT) sand used in electric arc furnaces.

Silva reviewed the overall industry strategy to reduce the specific consumption of refractories, summed up by the following actions known as the “3 Rs”: Reduce the wear rate; Reuse refractory material; Recycle refractory material.

Analysing the refractory matrix is important in recycling refractories, and Silva also explained in detail the cutting process for refractory bricks, and crushing process for castables, in the recycling process.

Silva concluded by sharing the successful lab test results of an EBT sand developed by ArcelorMittal Brasil using 100% of recycled refractory material which has significant potential for hot testing in the EAF.

Mineral waste utilisation for ceramic & construction products

“Mineral waste streams in ceramic construction products: Potential & limitation” by Carl Sorrell, Vice President, IntoCeramics, OPF Enterprises LLC, USA, looked at the magnitude of mineral waste generated, the limitations of the material, concluding with a targeted approach.

Sorrell put into perspective the same of mineral waste generation by revealing that some estimated world annual mineral production of 18-20bn tonnes generates around 88-89bn tonnes of waste ore, rock and tailings (not including stone, sand and gravel production).

He noted that the estimated 44bn tpa of bricks and leading ceramic products manufactured, could perhaps consume around 50% of mineral waste generated.

However, there are important limitations to be aware of in using such waste in ceramic products: such as chemical composition (iron and silica sensitive ceramics), waste materials must be compatible; further treatment of the material maybe required; and of course, logistics, eg. virtually all brick manufacturing is located very near the raw material, and often captive, source, to keep costs down.

Sorrell concludes that use of mineral waste streams in ceramic products is feasible, but requires a targeted approach that may comprise four phases in a stage gate process:

Phase 1 Is it possible?: Analytical and ceramic processing testing; laboratory samples
Phase 2 Does it make sense? Market potential; formulation, physical processing and testing with other materials if needed; high level capex/opex; environmental & regulatory issues
Phase 3 Pilot process: prove process at larger scale with full properties testing; design facility; capex/opex at high accuracy
Phase 4 Build and start-up

A case study was described whereby Intoceramics evaluated mineral waste produced at a rate of 30,000 tpa by a company that was deemed unsuitable for backfill and expensive to landfill. Following a targeted approach it was found that although the material was unsuitable for brick, tile, or other traditional ceramics, it had very good potential for use as lightweight aggregate in many applications.

J. Michael Sullivan, President & CEO, BAIE Minerals Inc., Canada, also talked about recycling mineral waste, and in this case, the often delicate issue of reprocessing asbestos mine tailings, in “Reclamation & repurposing tailings as a source of low-risk MgO supply for construction market”.

BAIE Minerals Inc. (BMI) has what is described as a large-scale, potentially “world-class” mineral resource, with high mineral concentration, and “de-risked”, ie. low risk from an exploration/mining/supply perspective.

The resource comprises pits and dry waste serpentine rock piles and tailings from a former asbestos mine located at Baie Verte, on the west coast of Newfoundland. Asbestos production commenced in the 1963, and ceased in 1990.

The tailing pile dimensions are approximately 850 metres long, >600 metres wide, and 150 metres high; holding approximately 42m cu. metres, or about 50m tonnes grading 39% MgO, 36% SiO2.

The mine site has year round access to major roads, deep water, power, water and communications, and has been extensively evaluated with environmental assessments Phase I, II, & III completed.

Sullivan stressed the tailings are not asbestos. The tailings are the waste generated from industrial fibre extraction found in serpentine minerals, and may contain free fibre content of <3% chrysotile structures.

BAIE Minerals envisages utilising the established hydrometallurgical extraction process to recover amorphous silica, magnesia, rare earth and other metals. At the leaching stage all fibres are completely eliminated, all products are 100% asbestos free.

The two primary target markets for recovered minerals are magnesia for magnesia construction boards and precipitated silica in the rubber/tyre industry.

BAIE has identified the magnesia board industry as one of the fastest growing markets in North America. MgO is cost competitive to drywall or cement board, with superior attributes such as lower environmental impact, stronger (impact proof), and resistant to mould, insects, mildew, weather, and fire.

There is also increasing demand for precipitated silica as a filler in tyres to meet environmental and legislative regulations to improve automotive fuel efficiency. The use of precipitated silica in tyre treads is expected to significantly reduce CO2 emission by 45m tpa in the USA alone.

Use of LIBS in recycling

“Use of LIBS in recycling and in steel, refractory and mining industry” presented by Amit Ahsan, Sales Engineer, SECOPTA analytics GmbH, Germany, demonstrated, using neat some video clips, the employment of Laser Induced Breakdown Spectroscopy (LIBS) in helping sort industrial waste for mineral recycling.

In essence, each element has a unique fingerprint. A laser pulse aimed at a spot on the waste sample creates plasma on the sample surface which is analysed in milliseconds providing simultaneous measurement of all elements.

Clear benefits in using this technology include: no sample preparation; multi-element analysis; fast and precise; contactless; nearly non destructive.

LIBS analysis of a typical slag sample may take 1-2 mins, whereas conventional slag analysis take on average 20mins.

A special “Thank You”, and see you again in 2022!

Under these challenging conditions for home and business at this time, we are indebted to the support and participation of all of our partners, speakers, and delegates for making Mineral Recycling Forum 2021 ONLINE a success, and ensuring a fruitful and convivial time was had by all.

We are grateful for all the completed feedback surveys and please continue to provide us with your thoughts and suggestions (please either email us direct or complete our brief survey click here).

We very much look forward to meeting you again at another of our Forums, and of course, hopefully in person as soon as possible. Watch this space for details of Mineral Recycling Forum 2022.

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

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