China Crisis Deepens | Refra-Horn Recycling JV | Cofermin Magnesia Arm | Alumina Issues

Last week’s 64th International Refractories Colloquium held in Aachen, organised by the European Centre for Refractories gGmbH (ECREF) was a somewhat surreal experience: a mix of euphoria and novelty in finally reconnecting with each other again face to face (or mask to mask!) – was it as long as 18 months ago when we were last doing this? Long may it continue.

The collective excitement was somewhat tempered, or in some quarters increased, by the prevailing climate of raw material supply and logistical challenges, especially from China, which having dogged the industry all year, significantly intensified just prior to the conference.

Ulf Frohneberg, Steuler-KCH Materials GmbH (left) welcomed attendees at the ICR Aachen with an address warning of the industry’s challenges. For many it was the first time for a long while reconnecting face to face, much welcomed by those visiting the IMFORMED stand (right).

In his opening address, Ulf Frohneberg, Head of BU Refractory Linings, Steuler-KCH Materials GmbH, and President of Deutsche Feuerfest Industrie eV, pointed to the challenges facing the industry including the availability of raw materials and the start of decarbonisation in the industry.

Frohneberg warned that the industry remained “…far away from any reliable plan” and urged “Let’s stay in the driver’s seat and cross-fertilise our ideas”.

China crisis challenges supply lines…again!

Above all else, China and logistics issues dominated the talk at the conference.

For how long and for how many times are refractory mineral traders and consumers alike going to put up with interruptions in raw material availability and shipments from China? Surely it’s time to take a strategic decision to seriously evaluate alternative options in mineral sourcing?

Yes, OK, this author has banged on about this theme over the last few years in various articles and presentations, but despite the clear warnings from several earlier supply squeezes in China, each of which worse than the previous, it is astonishing how unprepared the market is when the next curve ball from China is pitched.

And what a curve ball was played in the lead-up to ICR Aachen! With little or no warning, the last weekend of September saw widespread power supply cuts to industries and homes across most of the country’s high-energy use provinces, and at a peak time of production as we approach the annual winter factory slow/shut down during October-March.

Chinese refractory minerals production relies on energy intensive processing such as calcining bauxite (left) and fusing magnesia (top right); while Chinese mineral exports are seeing a move from big bags in containers to break-bulk vessels, all facing great challenges at present.

The severe rationing, and in parts total cut in power supply is having an immediate and disastrous impact on mineral processing (especially crushing and grinding, calcining, fusing) and likewise in the mineral consumer sectors such as refractories, ceramics, cement, glass, and steel.

This significantly further compounds pressure on China’s industrial mineral supply capacity, already burdened with demand from growing domestic markets, upgrading with anti-pollution equipment, and the threat of closure from government inspections – not to mention depleting reserves of high quality ore and resurfacing of Covid-19 hotspots throughout the year which has impacted mineral production centres and ports.

Find out the latest on China’s refractory mineral supply & demand

CONFIRMED SPEAKERS | FULL DETAILS HERE

The primary reasons for the power squeeze include a shortage of coal supply (remember, China has stopped importing from Australia), reinforced emissions standards, and strong demand from domestic industries recovering from the pandemic slowdown of 2020/21; coal prices have been pushed to record highs (see chart) and triggered tight supply.

But in addition, with exquisite bad timing, China’s energy situation was also impacted by the National Development and Reform Commission (NDRC) updating measures of its existing Dual Control Policy (DCP) on 16 September. However, the timing and misinterpretation of the measures by provinces has worsened the situation.

The DCP has been in place for some time, initiated by the NDRC to curb China’s energy consumption and energy intensity. In March 2021, the NDRC released the outline of its 14th Five-Year Plan (2021-2025), which proposed to further reduce China’s energy intensity by 13.5% by the end of 2025.

But in August and September, clearly without any regard to the prevailing market situation described above, the NDRC upped the pressure by issuing “red alerts” to certain provinces, and “improvement plans” to energy intensive sectors such as chemicals, steel, non-ferrous metals, and non-metallic minerals, forcing a nationwide “rectification” of energy use.

Example: Fused alumina sector suffers power cuts

As an example, the fused alumina industry in Sanmenxia Corundum Park, Henan has been severely impacted, and some 70% of Henan production capacity is already affected, according to sources.

On 29 September, the local power supplier Sanmenxia Vientiane Industrial Co. Ltd was forced to increase prices by RMB0.06/kWh, representing the fourth, and largest, energy price increase since the start of the year.

Sanmenxia Vientiane’s power output is limited, and apparently cannot operate continuously and “normally”, therefore leaving fused alumina producers in the park with insufficient power and interrupted production.

Energy intensive WFA production in Henan is facing a tough time to maintain production rates.

The upshot is that the energy consumption cost of BFA will increase by RMB300/t, and for WFA by about RMB130/t. The energy price rise unsurprisingly has already led to sharp increases in BFA/WFA prices which are nearing the $800-$1,000/t FOB level.

Under these conditions of rising energy and raw material feedstock (bauxite) prices, some fused alumina producers may choose to temporarily suspend production once they have secured pre-orders, for which they are imploring customers to place as urgently as possible.

Elsewhere, in Liaoning’s magnesia industry, magnesia prices are increasing. Reported ex-works prices include: DBM, MgO≥95% RMB2,700/t; DBM, MgO≥97% RMB3,000/t; FM, MgO≥97% RMB3,950/t.

It was reported that many fused magnesia (FM) plants with high electricity consumption were closed. After the Golden Holiday the provincial office is to hold meetings to discuss the next step policy of electricity control for the FM plants.

In Gansu, one of the main silicon carbide producing centres, adjustments to coal and electricity prices are expected to increase the cost of SiC by RMB300/t. The price of raw anthracite and imported petroleum coke has increased by RMB200-300/t since August, and the price of raw materials is still rising continuously.

On top of all this, the logistics situation appears to be worsening, with continuing port congestion and delays in loading and discharge (both in China and Europe), lack of vessel/hold availability, limited stevedore capabilities, and soaring freight prices.

Many mineral consumers are avoiding expensive container freight (20ft container Jan. 2020 about US$400-500, now about US$8,000-10,000) and moving their big bags to bulk vessels to transport in break-bulk mode, though prices here are rising too, around US$175/t, and there’s talk of it nearing the US$200/t level if things do not improve.

Moreover, with so many individual loads of contrasting mineral types, the break-bulk holds were described by one trader as now resembling a real “cocktail” of shipments. These are proving most challenging, and costly, with longer times to load and discharge, poor bag qualities, and with increased risk of breakages and contamination during voyage.

With continuing port congestion and stevedoring challenges, the time now taken for from a vessel’s arrival at its first Chinese load-port until discharge completed in north Europe port, is about 120 days, compared to the normal around 60 days.

And here’s the real rub, prospects for “breathing again” may not materialise until June/July 2022. Why? A perfect storm of events to maintain the pressure on China’s mineral supply chain through Q1 2022 (see table below):

So, it’s looking like April-May 2022 being the first period following the above events, when the industry might be able to ascertain a damage report and start to claw back to some semblance of normality in starting to balance China mineral supply with demand. But it’s anyone’s guess when things might get back to normal.

One trader summed up the outlook: “My guess is that the tsunami of problems will lead to very large [mineral] price increases in 2022 for those who can get material, and leave many customers short of deliveries. In my nearly 40 years in the commodity business, I’ve never seen this situation before, so it’s difficult to predict the next 6-9 months.”

Indeed, it is likely, and perhaps arguably imperative, that many traders and consumers will/should spend this period evaluating, or re-evaluating, alternative mineral sources to China elsewhere in the world. Which is precisely why the likes of Bautek Minerais Industriais Ltda, in Brazil (see New dawn for Brazilian bauxite) and First Bauxite, in Guyana (see Guyana bauxite newcomer starts bulk shipments) are busy ramping up to get in on the action.

By then, we shall be well into the Chinese Year of the Tiger: as a spirit animal, the meaning for the Tiger is said to be willpower, courage, and personal strength – attributes which will be sorely required for all those in this business!

Hear it from the experts…

Refractory mineral market dynamics, trends & outlook
Charles Compson, Marketing Director & Hans-Leo Gross, Global Product Line Manager Aggregates, Almatis GmbH, Germany
High purity magnesia supply
Puyang Refractory Co. Ltd, China
Refractories: Essential and Growing Industries
Heiki Miki, Managing Executive Officer & Division Director – Overseas Business, Shinagawa Refractories Co. Ltd, Japan
Overview of strategy & markets | “Green mining” in China
Marco Olszewsky, President APAC & China, RHI Magnesita, China
Recent impact of China’s energy costs, cuts, & environmental controls
Shiying Jia, Director, China Magnesia Research, Replus Business (UK) Ltd, UK
Challenging times: Moving minerals from China
James Devlin, Managing Director, China Mineral Processing Ltd, UK
Aluminosilicate trends & developments (TBC)
Imerys Refractory, Abrasives & Construction, France

FULL DETAILS HERE

Refra-Horn refractory recycling JV

On a more positive note, and indeed a hot topic for future alternative raw material supply, was the announcement during the conference that Refratechnik Steel GmbH has entered a joint venture to produce refractories using recycled material with Horn & Co. Minerals & Products Management GmbH.

The JV is called Refratechnik Horn Produktions GmbH, with Refra as the majority shareholder, which is to further expand and operate the Horn Group’s mag-carbon brick plant in Hünsborn, near Siegen.

The move brings together the expertise of two internationally respected German companies in the refractory business: Refra’s expertise in product development, production, and application in steelworks, and Horn’s specialist know-how in recycling and preparation of raw materials.

This marks the latest step taken by Refra to secure refractory raw material supply, following its acquisition of leading magnesia producer, QMAG, in early 2020 (see Magnesia supply sector consolidates further).

As was made clear in his excellent presentation “Alternative Raw Materials for Refractories Made in Europe – Reducing the Carbon Footprint”, Prof. Dr. Helge Jansen, Managing Director, Refratechnik Steel GmbH, explained that the rationale behind the initiative is to reduce dependency on primary raw materials, especially from China, and create a “Made in Germany” brand using recycled material.

Revived Recycling: Horn’s MgO-C brick plant sourcing recycled and primary magnesias at Hünsborn is to be ramped up to 20,000 tpa in 2022 under new Refractechnik Horn Producktions JV announced at the ICR Aachen. Courtesy Refra

Hünsborn’s central location in Germany will help ensure a reliable supply and short delivery times for customers in Europe.

For many years Horn has been pioneering refractory waste recycling and is one of the main refractory recyclers in Europe, also having invested in laser sorting technology at its Siegen plant (visited by delegates as part of the Horn Field Trip at IMFORMED’s Mineral Recycling Forum 2018, for a review see here).

Horn initially started a MgO-C brick plant at Hünsborn in 2017 using recycled magnesia in co-operation with KCH-Steuler, however this project only lasted a short time.

The new JV intends to revive the Hünsborn plant and ramp up to a 20,000 tpa MgO-C brick capacity in 2022, with the potential to double this in 2026; the bricks will be for ladles and EAF. A second hydraulic 2,000 tonne press is under construction at the site and will be operational by Q2 2022.

At least 25% of the raw material used will be recycled refractory material from Horn, with the remainder being DBM and FM sourced from QMAG in Australia. Helge demonstrated that such a recycled component offers annual savings in total CO2 emissions of 7,924 tonnes.

Want to learn more about this initiative and the refractory recycling market?

Helge Jansen, Managing Director, Refratechnik Steel GmbH will be speaking at IMFORMED’s

Listen to expert speakers on the latest trends & developments in industrial minerals recycling | Network with leading players in the recycling supply chain

FULL DETAILS HERE

Cofermin launches IMagine for magnesia sourcing & supply

Leading industrial minerals distributor Cofermin Group has strengthened its magnesia offering amid its expanding mineral portfolio by establishing a new division to specifically focus on magnesia material supply and markets.

The new arm is called IMagine, which will focus not just on refractory grade magnesias, but across the whole spectrum of magnesia raw materials (eg. caustic calcined, sulphate, hydroxide, synthetic) and non-refractory markets, often referred to as “industrial” or “speciality” markets, ranging from animal feed, environment, cement, fillers, flame retardants, to food and pharmaceuticals.

As explained to IMFORMED by Sally Wulf, Sales & Marketing Manager, IMagine is very much active in and evaluating magnesia sources outside China, which, as exemplified by the above report will be a strategically smart move at present and no doubt welcomed by the market.

IMagine is just the latest step in Cofermin’s recent restructuring as it evolves to meet new market demand (for more details see Cofermin evolves: talkin’ ’bout a new generation and M!NERALS now one of Europe’s largest industrial mineral suppliers).

Interested in all things magnesia? Don’t miss…

FULL DETAILS HERE

Alumina under pressure: Alteo | Almatis

Other Aachen talking points included the alumina sector and specifically announcements made during the conference by Alteo and Almatis.

In response to rising energy prices, Alteo announced a “temporary energy surcharge” to cope with the increased electricity and gas prices, effective 4 October on all its alumina shipments.

The energy price rises were described as having a very strong impact on alumina production, unpredictable in scale, and very sudden. This announcement follows an earlier price rise announcement in July, effective 1 September 2021.

Alteo was acquired in January 2021 by United Mining Supply (UMS), of Guinea. Alteo maintains that it is “actively pursuing its transformation plan focusing on speciality aluminas” and that initially planned investments in production capacity are to continue, ie. a three-fold fine grinding capacity increase in Busan, South Korea, by the end of 2021, and a 50% increase at Gardanne, France in Q1 2022.

On 27 September, Alcoa declared force majeure to Almatis GmbH, under its alumina feedstock supply agreement, following another, this time indefinite, strike by workers at Alcoa’s San Ciprian, Spain aluminium smelter and alumina refinery.

The strike may have an impact on Almatis’ ability to procure sufficient feedstock to maintain supplies at current market demand levels and thus Almatis considered that it may face potential shortages after the middle of November for tabular alumina, BSA-96 sintered aggregate, and spinels sourced from its European operations.

Almatis is evaluating all possible options in the market to secure alternative feedstock volumes and reduce supply deficits caused by an extended strike.

New dawn for Brazilian bauxite

Bautek expands & enters refractory, abrasive, chemical markets

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Bautek expands & enters refractory, abrasive, chemical markets

It is often said that timing is everything. And right now, the timing of bringing to market any new or alternative source of aluminosilicate minerals outside of China is most apposite.

Indeed, there are relatively few commercially developed world sources of high quality non-metallurgical bauxite, andalusite, kyanite, and refractory clay.

Title Picture: Brazilian bauxite beckons: Sunrise at TGM’s crushing and sizing site at Barro Alto, Goiás, source of Bautek’s products. Courtesy Bautek.

In Brazil, an emerging new bauxite player, Bautek Minerais Industriais Ltda, has made significant investments to launch itself as a new force for global non-metallurgical bauxite and refractory clay markets, and has partnered with M!NERALS from the Cofermin Group for downstream support on the marketing and distribution side (featured in our recent article M!NERALS now one of Europe’s largest industrial mineral suppliers – Cofermin’s evolution 2: Expanding beyond a Chinese minerals focus).

China’s bauxite dominance: tide is turning

Supply of calcined non-metallurgical grade bauxite has been dominated by China for many years, in particular intensifying from the early 1990s at the expense of the few existing western sources.

Back in the day, low prices and the ready availability of large non-met. bauxite volumes facilitated by a growing network willing traders enabled Western consumers to overcome their (generally well-founded) fears and issues of inconsistent mine sourcing and qualities, price fluctuations, and the vagaries of the infamous former Chinese export licence system.

A further ramification was the switch by some Western refractory consumers from using established aluminosilicate materials, such as andalusite, to the low cost Chinese bauxite imports.

Fast forward 30 years or so, and while China remains a significant world non-met. bauxite supplier, that golden era of easy flowing cheap Chinese bauxite exports is very much on the wane, forcing traders and consumers to consider alternative options.

“The times they are a-changin”: The golden era of easy flowing cheap and readily available Chinese bauxite production and exports (above) is very much on the wane, forcing traders and consumers to consider alternative options.

Although this has been a steady, if low profile, trend for the last decade, it has significantly strengthened from about 2017, fuelled by frequent problems with high quality primary ore availability, environmental controls, government reforms, rising and unpredictable prices, logistics, and most recently compounded by the impact of the Covid-19 pandemic. Indeed, most recently the situation has worsened with China’s energy crisis and ongoing logistics challenges (see Refractory Mineral Maelstrom: The Heat is On).

Speaking in a webinar in July on industrial minerals organised by Brasil Mineral magazine, Bautek CEO Reinaldo Noronha commented: “Between 2012 and 2018, China was the world’s leading producer of non-metallurgical bauxite for industrial purposes, and held 52% of the market. Between 2013 and 2018 this production fell from 60% to 44% of world demand.”

Interest in bauxite alternatives to China has now heightened appreciably: enter Bautek.

Noronha told IMFORMED: “Bautek’s project gladly got accelerated given the current market momentum. We invested a lot of effort and CAPEX to have our new calcination plant ready by 2022, we will have additional capacity of 150,000 tpa of calcined products.”

Unique bauxite and clay from Goiás

Founded in 2016, Bautek is a mineral processing company active in the drying, calcination, sintering, grinding and sizing of minerals. Its philosophy is to create wealth in line with mineral sources, regulatory bodies, environment, and the satisfaction of its customers.

The company envisaged a role in meeting the growing demand for industrial minerals of high quality and differentiated products for the market.

To achieve this goal, Bautek has co-operated with its bauxite mining company, Terra Goyana Mineradora (TGM), in a vertical integration concept adding value to the unique sources of bauxite and clay found in Goiás state in central Brazil.

The name “BAUTEK” comes from bauxite + clay + technology.

Special source: TGM mines a high grade bauxite deposit at Barro Alto, Goiás hosting 200m tonnes of proved reserves grading >55% Al2O3, dry basis; 75-95% Al2O3, 1.5-7.5% Fe2O3, calcined basis. Courtesy Bautek.

Headquartered in Goiânia, Goiás, TGM was founded in 1985 and is one of the largest bauxite producers in Brazil, responsible for 5.5% of national production.

Bautek’s bauxite source is a gibbsite deposit discovered in 1999 located in the municipalities of Barro Alto and Santa Rita do Novo Destino, in Goiás.

The property consists of three mining concessions owned by TGM, totalling 6.178 hectares, exploiting >200m tonnes reserves of proved “high grade and special grade” bauxite (>55% Al2O3, dry basis; 75-95% Al2O3, 1.5-7.5% Fe2O3, calcined).

TGM commenced mining at Barro Alto in 2013, and mines and processes approximately 1.5m tpa bauxite, and for 2021 it is expecting to produce about 1.7m tonnes. TGM’s crushing and sizing plant at Barro Alto has a 200,000 tpm production capacity.

Of this about 85% is metallurgical grade for aluminium production and the remainder for non-met. industrial uses.

The latter is supplied to Bautek to process calcined bauxite (refractory, abrasive and welding grades); chamotte (50%; 60%; and 70% Al2O3), and chemical grade bauxite.

TGM also operates a bauxite mine at Poços de Caldas, Minas Gerais, hosting 18.5m tonnes (65-80% Al2O3, 6-15% Fe2O3, calcined).

Processing and added value from Bautek

Bautek started in 2016 by establishing a calcination and grinding plant at Poços de Caldas, Minas Gerais, followed in 2017 by a calcination plant at Prudente de Morais, Minas Gerais, and in 2018 by a milling plant in Barro Alto, Goiás (see chart and map).

To date, Bautek has invested US$30m, most recently contributing to:

• a dedicated fleet of 25 trucks to transport products from the plants to the nearest ports
• the drying and milling plant at Barro Alto to produce chemical grade bauxite for water and wastewater treatment
• a new laboratory in Goiás, for quality control and development of new products
• 3 new rotary kilns at Barro Alto for abrasive, refractory, and welding grades; the first 36,000 tpa rotary kiln is under construction and expected to double the company’s kiln capacity by February 2022; 2 further kilns are planned for December 2022 with a combined capacity of 140,000 tpa.
• new ball mill and briquetting plant at Barro Alto for 2022.

The new calcination plant close to the mine at Barro Alto will greatly help the current logistical challenges of transporting raw bauxite >1,000km to Bautek’s existing calcination plants. In the future, the company hopes to utilise a rail route from Barro Alto to serve export markets.

The company is also developing a line of clay minerals for the agricultural market, assisted by the new laboratory in Goiás. For this product line, the company has a favourable location, since it is geographically within this consumer market.

Investing for the future: (left) Construction of a new 36,000 tpa rotary kiln at Barro Alto, GO, scheduled for completion in early 2022, will double Bautek’s calcination capacity; (right) Bautek has also invested in a 25-truck fleet to meet the logistical challenge of transporting bauxite and clay to its plants and Brazilian ports. Courtesy Bautek

Bautek points to a range of factors helping to drive forward a successful breakthrough into the market:

• Sustainable mining process: dry processing of bauxite and clay avoiding water waster and the risks of dams; no waste generated, all products are marketed.
• State of the art equipment for production/laboratory/R&D: essential to analyse and assure top quality products to the customers. The company is ISO 9001 certified.
• Highly qualified team with more than 30 years of experience in the industrial minerals sector.
• Sustainable logistics to local customers and ports with own fleet of trucks.
• Working with experienced partners like M!NERALS (Cofermin Group) on the marketing and distribution side.

Overall, bauxite production for Bautek is expected to increase significantly over the next two years:

• non-met. bauxite production by TGM at Barro Alto is expected to increase from 300,000 tonnes in 2021 to 600,000 tonnes in 2023
• while calcined bauxite production by Bautek is expected to increase from 48,000 tonnes in 2021 to 176,000 tonnes in 2023 (see charts).

Bautek’s products can supply a wide range of applications, for both domestic and export markets in:

• Refractories
• Abrasives
• Chemical (for water and wastewater treatment)
• Welding
• Synthetic Slag and Powder Flux (steel)
• Flame Retardants
• Investment Casting

Going forward in co-operation with Cofermin

Bautek acknowledges that it is a newcomer to the international industrial minerals market, and has taken steps to bolster its standing on the world platform by working with the Cofermin Group, Germany, and specifically with its M!NERALS division.

“Cofermin has been key to introducing Bautek’s products into highly demanding markets. The joint effort between companies has proved that this will be a long term and successful partnership.” said Noronha.

Going forward, Bautek plans to be a “One Stop Shop” for refractory materials offering a wide range of refractory minerals in several grades, such as chamotte, calcined bauxite, brown fused alumina, white fused alumina and calcium alumina cements.

For western bauxite and aluminosilicate consumers this news will be most welcome, and for some, perhaps cannot come fast enough.

Bautek website

M!INERALS website

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Being designated a “critical mineral” in the EU and more recently in the USA has certainly assisted fluorspar’s standing as an exploration target.

However, those already in the market have known for some years now that mine closures and production capacity reductions in the West combined with China becoming a net importer, a growing consumer, with its domestic supply sector diminishing, mean that alternative and new sources of supply are needed.

Title Image Expanding fluorspar horizons: a view across the Shine Us mine and plant site of Gobishoo LLC, Dundgobi province, Mongolia; a new 35,000 tpa acidspar processing plant was commissioned in 2020. Courtesy Gobishoo.

With just one week to go until IMFORMED’s Fluorine Forum 2021 ONLINE, Wednesday 20 October, covering the latest trends and developments in fluorine raw material supply and demand, we report on the latest news of emerging potential supply from Mongolia, the USA, Canada, and Greenland.

Fluorspar Supply | AlF3 | Steel | Refrigerants | Semiconductors | HF | Li-ion Batteries

Expert Presentations | Networking | >80 already registered (see here)

FULL DETAILS HERE

Confirmed speakers

Alcore: aluminium fluoride production in Australia
Dr Mark Cooksey, CEO, ALCORE Ltd, Australia
Steel production outlook in a world of low carbon
James F. King, Steel Industry Consultant, UK
European HFC refrigerants market and F-gas alternatives
Barbara Gschrey, General Manager, Öko-Recherche, Germany
Fluorocarbon products as critical enablers in the production of semiconductor materials and IC devices
Dr Robert Syvret, Chief Scientist, Electronic Fluorocarbons LLC, USA
Hydrofluoric acid and downstream market outlook
Samantha Wietlisbach, Director Minerals Research & Analysis, IHSMarkit, Switzerland
Supply chain resilience in the Acidspar-HF-Lithium Ion Battery chain
Kerry Satterthwaite, Division Manager Strategic Minerals, Roskill, UK
Lost Sheep Mine: ramping up to become the sole US fluorspar supplier
James Walker, Chief Executive Officer, Ares Strategic Mining, Canada
Fluorspar mining trends & outlook post-Covid
Peter Robinson, Chairman, Fluorsid British Fluorspar, UK

Gobishoo: a new source from Mongolia

Established in 2005 as a private company by Ch. Ganbaatar, Gobishoo LLC is ramping up to serve Asian and European markets with acidspar and metspar grades.

In May 2020 Gobishoo commissioned its 35,000 tpa acidspar plant, which consumes a raw feed of 100,000 tpa fluorspar ore.

The company mines and processes at the same location, at the Shine Us mine in Dundgobi province (also spelt Dundgovi = Middle Gobi), in south-central Mongolia about 245km south of Ulaanbaatar.

The mining license covers around 150 hectares, exploiting an approx. 30m tonne fluorspar deposit using surface and underground mines. The “current shelf” mined hosts 700,000 tonnes reserves, “leading to” 4.5-5.0m tonnes. The Gobishoo ore grade is around 18-40% CaF2.

Underground at Gobishoo’s Shine Us mine, which is currently exploiting a “shelf” of 700,000 tonnes fluorspar Courtesy Gobishoo

Gobishoo, which employs 200 full-time staff on a year-round operation, claims that both the flotation and gravitation processing methods it uses allow for a reduction in water usage below the industry average.

Final products are washed acid and washed metallurgical grade fluorspar grades, in 10, 30, and 50mm lumps. Grades offered include: 97%+ CaF2 acid grade; 85% to 95% CaF2 metallurgical/ceramic grade; and 80% to 85% CaF2 metallurgical grade.

Typical specification for CaF2 97%+ powder is: 98.0% CaF2, 0.4% CaCO3, <0.01% SiO2, 0.20% P, 0.07% S.

Gobishoo can produce 2,000 tpm acid grade powder. Recently secured new funding is apparently available to increase this output to 100,000 tpa acid grade.

Gobishoo commissions its new plant in May 2020 (left), and intends to concentrate on the 90%+ CaF2 grade supplying 24,000 tpa, and 12,000 tpa 85%+ CaF2 grade. Courtesy Gobishoo

Regarding metspar grades, Gobishoo intends to concentrate on the 90%+ CaF2 grade supplying 24,000 tpa, and 12,000 tpa 85%+ CaF2 grade.

Approved to export by the Foreign Trade and Economic Cooperation Department, Ministry Of Foreign Affairs, Gobishoo transports its products in 1 tonne bags in both covered and open rail cars using DAP terms via the border trade hubs of Erlian (also called Erenhot), Inner Mongolia, China and Naushki, Republic of Buryatia, Russia.

The international freight terminal at Choir, Govisümber province, is 100km west of Gobishoo, which enables access to the Trans-Mongolia Railway. Markets served include customers in Germany, India, China, South Korea, and Russia.

In September 2021, Gobishoo announced that it had entered in an exclusive sales agent agreement with Fluorspar Ltd, based in the UK and managed by Stuart Evans, which is looking to pursue market opportunities across Europe and Asia.

Ares progresses Lost Sheep Mine

On 30 September, Ares Strategic Mining Inc. (ASM) filed its NI 43-101 compliant updated Technical Report on its Lost Sheep Fluorspar Project, located near Delta, Utah.

The Lost Sheep Fluorspar Project, is located within a former fluorspar mining district in the Spor Mountain area, Juab county, Utah, approximately 214km south-west of Salt Lake City.

The project is 100% owned and consists of 111 claims over 2,100 acres. It is fully permitted, including mining permits.

The Lost Sheep fluorspar deposits occur as siliceous vein fillings, breccia pipes, disseminated and replacement deposits along faults, fractures in intermediate to felsic volcanic and volcaniclastic rocks. Mineralisation consists of 65-95% fluorite, with montmorillonite, dolomite, quartz, chert, calcite, chalcedony and opal as impurities.

Following surface exploration and a drill programme, five areas have been identified “exhibiting loosely quantifiable tonnages and fluorite grades that qualify as Exploration Targets”: Purple Pit, Little Giant Pit (LGP), Dell No. 5, Fluorine Queen No. 3 and No. 4, and Bell Hill.

The Estimated Exploration Target is 200,000 to 350,000 tonnes at a fluorite grade of 40%-60%.

Drilling the Lost Sheep Fluorspar Project, Utah where mineralisation consists of 65-95% fluorite. It could become the USA’s sole fluorspar producer. Courtesy Ares Strategic Mining

In February 2021, ASM announced discovery of a large unmined zone at the Purple Pit averaging 80% CaF2 confirmed at over 60 metres vertical extent and remains open at depth.

In May, construction work started at the company’s intended plant site in Delta, Utah. The site will host a metallurgical grade lump and briquetting plant to supply the steel industry. The operation will be the only one of its kind in the USA.

The plant site will also include buildings, offices, and bagging facilities. ASM is also readying its rail system to enable it to transport product anywhere in North America.

Alongside the Delta site construction, design and permitting for ASM’s Lynndyl site was expected to get underway, which will host an acidspar flotation facility.

In July, ASM acquired a US$2m fluorspar lump manufacturing facility for its Delta site facilitated by a Profit Sharing Agreement between Ares and The Mujim Group, China.

ASM entered into a strategic partnership with Mujim in March 2020. Mujim is a Shanghai-based fluorspar producer and trader, with production facilities in China, Thailand, and Laos, and claiming 150,000 tpa in sales.

ASM has agreed to pay Mujim US$20/tonne to cover the ongoing technical updates and guidance services relating to the Facility as well as US$10/tonne upon ASM beginning lump production operations and the achievement of agreed upon production targets.

James Walker, CEO, Ares Strategic Mining will be presenting the latest on the Lost Sheep Fluorspar Project at IMFORMED’s

Fluorine Forum 2021 ONLINE Wednesday 20 October

ASM has also secured various offtake agreements, including a two-year 60,000 tpa metspar MoU with Possehl Erzkontor North America Inc.

It should be noted that ASM has not yet completed a Feasibility Study nor a Mineral Reserve or Mineral Resource Estimate at the Lost Sheep Mine.

In a recent statement, ASM said: “Based on historical engineering work, geological reports, historical production data and current engineering work completed or in progress by Ares, Ares intends to move forward with the development of this asset.”

ASM has decided to proceed without established Mineral Resources or Mineral Reserves, basing its decision on past production and internal projections.

Canada Fluorspar: first shipment from new terminal

Late July saw another milestone in Canada Fluorspar Inc.’s (CFI) development of the St. Lawrence fluorspar deposit in Newfoundland when it celebrated the first fluorspar shipment from the new terminal recently completed at Blue Beach in St. Lawrence Harbour.

CFI reactivated the mine in 2017, and it has taken a while to ramp up production with various interruptions.

The arrival of the FWN Paula at St. Lawrence represents the first shipment of fluorspar from the harbour in 31 years. Since 2018, CFI has been loading fluorspar shipments at the Kiewit Cow Head terminal in Marystown.

Canada Fluorspar Inc.’s new marine terminal at Blue Beach in St. Lawrence Harbour received its first vessel, FWN Paula, in late July 2021 for fluorspar loading; the 17 metre draft now permits larger vessels and wider markets to serve. Courtesy CFI

The new Blue Beach marine terminal with its 17 metre draft, permits access to more markets since it can accommodate larger ore carriers than the terminal at Marystown.

Bill Dobbs, President and CEO, CFI told IMFORMED that the “high grade low impurity” label was now being applied to CFI fluorspar, and on the general market situation commented: “We have seen increasing pricing and enquiries as [demand] volumes have picked up, especially from refrigerant-focused North American consumers of fluorspar; while European consumers have lagged, we are getting increasing tonnages as fluoropolymer consumers follow suit.”

CFI has invested just over US$400m in the operation over the past five and a half years, and has a production capacity of around 180,000 tpa acidspar. CFI is wholly owned by private equity firm Golden Gate Capital.

Commerce Resources’ REE push could unlock fluorspar

In late September Commerce Resources Corp. initiated a mineral processing programme to determine the final Prefeasibility Study (PFS) design criteria of the front-end flowsheet for its Ashram Rare Earth and Fluorspar Deposit, in Quebec, Canada

The programme has been developed in coordination with the Qualified Persons for the Project’s PFS flowsheet design and will be carried out at Hazen Research, where the conventional base flowsheet has been developed.

Commerce Resources’ exploration camp at its Ashram Rare Earth and Fluorspar Deposit, in Quebec, Canada; a >97% CaF2 sample was produced and sent to a major user for testing. Courtesy Commerce Resources

In December 2020, Commerce delivered a sample of acidspar produced from the Ashram project to an industry major as per their request.

The 0.5kg sample graded >97% CaF2 and was produced by Hazen Research using the front-end beneficiation approach developed at their facilities in Colorado, USA.

Commerce completed a summer drill programme of 2,814 metres of NQ size coring over 12 drill holes at the Ashram Deposit, targeting further delineation of the mineralised body.

Mineral resources at Ashram are reported as:

• Measured: 1.6 Mt averaging 1.77% REO and 3.8% F (7.7%CaF2)
• Indicated: 27.7 Mt averaging 1.90% REO and 2.9% F (5.9%CaF2)
• Inferred: 219.8 Mt averaging 1.88% REO and 2.2% F (4.5%CaF2)

If commercial processing of the rare earths comes to fruition at Ashram, then it is likely that the fluorspar component will be a valuable co-product.

Peter Robinson, Chairman, Fluorsid British Fluorspar will presenting

Fluorspar mining trends & outlook post-Covid at IMFORMED’s

Fluorine Forum 2021 ONLINE Wednesday 20 October

Eclipse Metals’ Greenland cryolite revival?

Eclipse Metals Ltd, Australia is continuing its examination of historical diamond drill core from the Ivittuut cryolite mine district within its exploration licence located in southwestern Greenland.

The Ivittuut open pit mine was the world’s largest producer of the relatively rare fluorine mineral cryolite (Na3AlF6, sodium hexafluoroaluminate).

Aerial image of Ivittuut and the cryolite mine in 1960, showing the working open pit, mine infrastructure, ore and waste dumps and ship loading facilities; Eclipse Metals is evaluating the unmined part of the deposit. Courtesy Eclipse Minerals

Mining commenced in 1855 and continued until 1987 through various stages of production. A total of 3.8m tonnes of ore was mined with an average grade of 58% cryolite.

It was historically used as an ore of aluminium and later in processing aluminium from bauxite. Synthetic aluminium fluoride processed from fluorspar via hydrofluoric acid is now used in aluminium smelting.

Eclipse has received an initial batch of samples from historical drill-core from the project and has submitted this to Perth-based laboratories for chemical and petrological evaluation.

This initial assessment of the core provides a greater understanding of quartz, cryolite and siderite mineralisation within the pit environ and a preliminary understanding of the Gronnedal-Ika carbonatite complex located less than 10km from Ivittuut and only 5km from the port of Gronnedal.

A further surface sampling program has been conducted and additional samples are expected to be despatched in November 2021.

FULL DETAILS

Oil & Gas Market | Barite | Bentonite | Pollucite/Caesium Formate | Gilsonite

While it wasn’t quite the usual fizz and excitement of our annual in-person event in Houston where we bring together the great and the good of the world’s oilfield minerals industry for a networking and knowledge extravaganza, our virtual version earlier this year, Oilfield Minerals & Markets Forum 2021 ONLINE 26 May, was the next best thing under the circumstances and turned out to be a good day at the “home office”.

Hopefully, next year we can continue where we left off in 2019 (mark your diaries: Oilfield Minerals & Markets Forum 2022, Houston, 23-25 May 2022 – see link for details).

CALL FOR PAPERS

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Please contact: Mike O’Driscoll mike@imformed.com

Leading experts and attendees across the global oilfield mineral supply chain ensured an excellent day spent presenting and discussing key trends and developments impacting the industry. Our virtual Roundtable Networking Session also emphasised the need for continuing first hand communication across the market.

The oilfield market for industrial minerals remains a significant consumer for a range of minerals: a primary market for several (eg. barite and bentonite), as a secondary market for many (eg. calcium carbonate, potash), and a niche market for some rare minerals (eg. Gilsonite, pollucite).

However, the sector overall has reached a critical point in its evolution with the advent of alternative energy development.
This, combined with the ongoing covid-19 pandemic and its impact on markets and logistics during 2020-21, ensured there was plenty to discuss online this year, and, all being well, sets up the next in-person Forum in May 2022 as a must-attend event for all those involved.

What delegates thought about Oilfield Minerals & Markets Forum 2021 ONLINE

“It was extremely interesting, the market is evolving, even though it has suffered badly in 2020, and we are now looking forward to an upturn in our industry. At least with the conference we were able to keep a track of new applications and new markets to look into. Thank you for arranging such a high quality meeting and it’s always a pleasure to see new and old faces.”
Valentin Cardon, Head of Communication & Marketing, Poittemill, France

“The very efficient and effective way you both organised the programme and timing of the presentations was perfect. The agenda was certainly sufficient to cover the important themes and aspects of the oilfield market outlook.”
Michael Redman, Director, KGCS Trading, Spain

“Great forum today. I know it’s tough running everything virtual versus getting everyone together and I thought it was well put together in the way it accommodated everyone in all time zones.”
Calvin Loa, Managing Director, Mekong Minerals, USA

“Really enjoyed, and great slate of speakers.”
Joe Gocke, Consultant, USA

Free Oilfield Minerals & Markets Forum 2021 ONLINE Summary Slide Deck Download here

Missed attending the Forum? A full PDF set of presentations plus access to live recording maybe purchased.
Please contact Ismene Clarke T: +44 (0)7905 771 494 ismene@imformed.com

Industrial minerals & the oilfield market
Mike O’Driscoll, Director, IMFORMED, UK

Kicking off proceedings, Mike O’Driscoll underlined the important role of a wide range of industrial minerals (at least 36 types) in the oilfield market emphasising the supply chain from mining, processing, logistics, to market application.

He reviewed the market’s performance illustrated by the US rig count vs WTI oil price during 2018 to 2021, which showed a sharp drop in US rig activity from March to June 2020, before a slow continuing recovery from October 2020 into 2021, as the oil price recovered more sharply if intermittently.

Overall, world oil markets have rebounded from the initial demand shock triggered by Covid-19 – its biggest ever annual decline – but still face a high degree of uncertainty.

Attention was drawn to the International Energy Agency’s (IEA) “Net Zero by 2050 – A Roadmap for the Global Energy Sector” published in May 2021. Claimed as ““The world’s first comprehensive study of how to transition to a net zero energy system by 2050 while ensuring stable and affordable energy supplies”.

In it the IEA states that >400 milestones are required to meet global net zero by 2050. In summary, until the 2030s, spending on oil and gas exploration and production is to remain low and steady; natural gas demand in 2050 to hold up better than oil; demand for gas is expected to rise as feedstock for hydrogen’s role as a clean fuel; and geothermal energy emerging as an area of interest for petroleum engineers.

However, on the flipside, beyond projects already committed as of 2021 “there are no new oil and gas fields approved for development in our pathway”. The energy sector would be based largely on renewable energy; fossil fuel share slightly over one‐fifth by 2050 (down from almost four‐fifths total energy supply today).

It probably comes as no surprise that the IEA Roadmap received a somewhat chilly response from the industry. That said, things are going to change and some positive strategy for the near future will be required.

Oil & gas market outlook
Uday Turaga, CEO, ADI Analytics LLC, USA

Uday Turaga provided a much more detailed and professional overview of the oil and gas outlook, summarised in six main messages:

1. Demand growth expectations are supporting oil price increases
2. Supply restraints are also supporting oil price increases driving new supply consolidation in the Permian
3. Natural gas prices will pick up to ~$3 per Mcf in 2021 but continue to stay around that level
4. Shale gas supply growth will be led by Marcellus and Permian with new growth in Haynesville while LNG will drive demand
5. E&P capex will rise in 2021 albeit from an all-time low with growing emphasis on digital and ESG
6. Broader sustainability risks are sufficiently serious for oil and gas operators to seriously consider new initiatives

Barite market trends: major developments over the last 12 months
John Newcaster, Principal, IMPACT Minerals LLC, USA

John Newcaster reviewed the key trends shaping the barite market sector. The presentation covered a range of important aspects including:

• Overall, global barite production slowed in 2020
• Slow recovery of barite demand in 2021 from slow recovery in drilling activity
• Saudi Arabia planning a higher offtake in 2021
• Indian state government tender resulted in modest upward global market cost
• Freight increases impacting all barite supply chain costs
• Global dry bulk and container freight drives landed costs of barite shipments
• US domestic barite production in a state of near hibernation
• US politics casts uncertainty on oil and gas
• API 13A Standards Committee work underway on new grades

Bulk buying barite: an independent perspective
Joe Gocke, Consultant, USA

This was a view from the sharp end of barite supply: Joe Gocke highlighted the challenges and key practices in bulk buying barite. He started with underlining the “great tension” in inventory management between the three primary functions of reliability to customer, operational efficiencies, and carrying costs.

The key decisions are: When to schedule? What to buy? And how much to order?

Plenty can go wrong such as in scheduling delays owing to weather, at terminals with open births/equipment, geopolitical, pandemics, and demand uncertainties.

Gocke discussed shipping volume decisions, grades, trade offs with “time is money”, optimal solutions and considerations in how much to order, vendor diversification, and supplier vetting.

Laos’s barite developments & future projects
Calvin Loa, Managing Director, Mekong Minerals Co. Ltd, USA

Laos has been one of several “new kids on the block” for world barite supply, and Calvin Loa presented an excellent round-up of developments to date.

Loa covered Laos at a glance, an overview of a Laotian barite mine, current developments, and the future outlook.

Laos opened up in 1990s and joined the WTO in 2013. It is one of fastest growing economies in the world, at +8% YOY and a +4% YOY target to 2025.

Lao Barite spent ten years developing to enter the world barite market. Starting in 2008 by looking for gold, copper, and other minerals; then manufacturing cement for the local market through a JV with Siam Cement Group in 2015; then entering the barite market in 2018.

There is a total estimated “geological resource” of 45m tonnes, including 4.3 SG barite grades with low impurities, to be exploited by six planned open pits with a production capacity of 30-50,000 tpm.

“We had strong growth for our first 2 years to market” said Loa. Then in 2020-21 the company focused on internal development. This included appointing exclusive sales agents (A-Chem Resources Pte Ltd) in the Middle East and North America, a new jig plant, two new spiral washers, two new powder mill facilities, and using an additional port at Nghi Son.

New rail networks under construction will greatly improve Lao barite’s export potential, especially to smaller volume customers at Fangcheng, Guangxi, in southern China. Quality upgrade facilities are under for development of higher grade barite for other industries.

Barite processing: Extending life of assets through equipment wear reduction
Santiago Carassale, Category Manager Mined Products, Halliburton, USA

In this presentation Santiago Carassale first considered the main elements of barite sourcing versus barite processing, concluding that “throughput is King” with its inputs of wear, production per hour, and feed-in size.

Carassale then examined the main concerns driving process decisions:

• System design assumptions: What were the equipment design assumptions? Based on what kind of mineral spec was the equipment designed?
• Feed-in size: What are the max and min feed-in size ranges?
• Expected production rate
• What the mine has in store for us? Mineral characterisation

There are two main concepts usually driving process decisions with regard to raw material selection that usually are tied in together: wear and hardness.

Carassale outlined some of the methods known to understand process implications with wear and hardness when using different equipment set ups such as jaw crusher, HPGR, and ball mills.

Changing the sourcing mindset for a process driven mindset will enable: longer equipment life; higher ROI; enhancements on equipment productivity; reduction on carbon footprint; geological and geotechnical approach as an evolution to current mining practices; higher focus on higher end technology Capex.

Bentonite from a supplier’s perspective: overview & bringing a source on-stream for the oilfield market
Michael Barr, Mineral Resource Coordinator, Bentonite Performance Minerals-Halliburton, USA

Going upstream to the point when an oilfield mineral resource is considered for development was the topic for Michael Barr’s presentation, using bentonite as an example.

Barr covered bentonite data and trends, chemistry of bentonite, geology of bentonite deposits, life cycle of mining projects, and the Baroid and Halliburton Industrial Products Service Line.

The USA remains the world’s leading bentonite producer, and has maintained reasonably consistent production levels since 2011.

Barr explained how bentonite’s unique chemistry facilitated its role in oilfield drilling where it is used to: cool and lubricate the drill bit and tooling; suspend cuttings; transport cuttings to the surface; create hydrostatic pressure; apply filter cake; create stability; and is environmentally safe.

Using the classic economic bentonite districts of Wyoming as a case study example, Barr went through the typical life cycle of a bentonite mine:

• Identify and Explore
• Acquire Rights
• Permit Exploration
• Drill and Develop a Resource
• Develop Mine and Reclamation Plan
• Permit Mine & Reclamation Plan
• Execute Plan
• Reclamation
• Closure

Pollucite & caesium formate fluids in oilfield drilling: supply, processing & demand
Siv Howard, R&D Manager, Sinomine Specialty Fluids, USA

Sinomine Specialty Fluids has been the world’s leading caesium formate fluids supplier to the oil & gas industry since 1999 explained Siv Howard.

Headquartered in Aberdeen, Scotland, UK, Sinomine owns and operates the TANCO mine in Manitoba, Canada, with sales offices and stock points strategically located around the world.

Formerly Cabot Specialty Fluids, since June 2019 the operation has been part of Sinomine (Hong Kong) Rare Metals Resources Co. Ltd, which is part of Sinomine Resource Group (public company). The acquisition has enabled access to additional reserves and mining expertise.

Howard went on to explain the pollucite/caesium formate supply chain, the main properties of caesium formate, how it is processed from pollucite ore, and its application in the oilfield market.

Caesium is a limited resource and caesium formate fluids are rare and costly. The fluid is supplied according to a leasing model while Sinomine retains ownership and stewardship of the fluid. Some 8,000 tonnes of caesium formate fluid are on lease every year, and after use on the drilling rig, the fluid is recovered and recycled.

Caesium formate has unique properties that enable challenging applications, especially in HPHT and ultra-HPHT environments in drilling and OH completion applications.

It has completely displaced zinc bromide as a clear brine completion fluid in the North Sea, its largest volume regional market (70%; there is limited use in the GOM).

Gilsonite used in oilfield applications
Craig Mueller, Chief Commercial Officer, American Gilsonite Co., USA

Craig Mueller presented on another intriguing niche oilfield mineral, Gilsonite – a glossy, black, solid hydrocarbon resin, similar in appearance to coal or hard asphalt, with global applications across multiple industries, including oilfield.

Gilsonite® is American Gilsonite Co.’s (AGC) trademark brand name for uintaite, a naturally occurring hydrocarbon resin, found only in north-east Utah, USA.

Mueller highlighted the properties and geological formation of Gilsonite before reviewing the development of Gilsonite in the USA from the 1880s.

Reserves are formed in parallel, near-vertical fractures and hand-mined in underground shafts using pneumatic jack hammers, to depths of 500-1,400+ft. AGC has a production capacity of about 130,000 tpa.

The material finds use in a range of diverse market applications including inks, paints, asphalt, foundry; in the oilfield sector it is used as a loss circulation material, a wellbore stabiliser, and in well cementing improving zonal isolation and eliminating gas migration.

Thank you and hope to see you in 2022!

Under these challenging conditions for home and business at this time, we are indebted to the support and participation of our sponsors Baramin, and all our partners, speakers, and delegates for making Oilfield Minerals & Markets Forum 2021 ONLINE such 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.

We very much look forward to meeting you again, hopefully in person, at Oilfield Minerals & Markets Forum 2022, Houston, 23-25 May 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

Free Oilfield Minerals & Markets Forum 2021 ONLINE Summary Slide Deck Download here

Missed attending the Forum? A full PDF set of presentations plus access to live recording maybe purchased.

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

Announcing for 2022…

FULL DETAILS HERE

As IMFORMED nears its seventh anniversary, Mike and Ismene would like to thank all our customers, sponsors, friends, and families for their unstinting support during this last, and somewhat challenging, year.

May we take this opportunity to wish all of you a most Happy, Peaceful, and Prosperous New Year, and very much look forward to continuing our business and, above all, hopefully meeting you in 2022.

Forums for 2022

Programmed with Intelligence | Moderated by Experts | To Engage and Serve the Industry

Get back into action with IMFORMED for 2022

CLICK ON TITLE FOR DETAILS

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Mineral Recycling Forum 2022

28-30 March
Hilton Imperial, Dubrovnik

The latest developments in recycling industrial minerals from a range of waste sources, including tailings, refractories, slags, ash and their markets FULL DETAILS HERE

IMFORMED Rendezvous 2022

24-26 April
Grand Hotel Huis ter Duin (Noordwijk), Amsterdam

The vision for industrial minerals. 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 outlook from mine to market examined. FULL DETAILS HERE

Oilfield Minerals & Markets Forum 2022

23-25 May
Hilton Post Oak Hotel, Houston

Global outlook in supply and demand for industrial minerals used in the oil and gas drilling industry. FULL DETAILS HERE

MagForum 2022

7-10 June
Grand Hotel Huis ter Duin (Noordwijk), Amsterdam
(Field Trip to Nedmag, Veendam 10 June)

For the full spectrum of global magnesia minerals and markets analysis and outlook. FULL DETAILS HERE

China Refractory Minerals Forum 2022

12-15 Sept
InterContinental, Dalian
(Field Trip to Haimag, Haicheng, Liaoning 15 Sept.)

Evaluating China’s refractory raw materials supply and demand for domestic and export markets. FULL DETAILS HERE

Fluorine Forum 2022

17-20 October
Pan Pacific, Hanoi
(Field Trip to Masan High Tech Materials, Nui Phao 20 Oct)

High quality knowledge and networking for fluorine minerals and markets supply and demand FULL DETAILS HERE

Please contact us:

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

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

We look forward to meeting you in 2022!

COVID-19: Ensuring the health and safety of our attendees, exhibitors, partners & staff is our top priority. Our Forums are planned to be in-person, though circumstances may dictate an online version prevails in certain cases. We shall keep you updated.

Review of China Refractory Minerals Forum 2021 ONLINE

As we head towards the Chinese New Year of the Tiger (1 February 2022), it is timely to review some of the key issues influencing the supply of Chinese refractory raw materials to global markets.

Title Image Peak Magnesite: PRCO’s Kamado high purity, and high altitude (4,200 metres), magnesite deposit, north-east Tibet, hosting >50m tonnes reserves of magnesite grading 47.6% MgO with low iron and silica, supplies new CCM, DCM, and FM plants in Qinghai and Liaoning. Courtesy PRCO (main & ladle inset); Refmin China (loading inset).

China has dominated this supply chain for nearly half a century – but for how much longer?

This was very much top of the agenda across the presentations and discussion at the recent IMFORMED Chinese Refractory Minerals Forum 2021 ONLINE, which took place 3 November 2021.

Although some mineral prices have since stabilised, and in certain cases have slightly softened as some plants resumed production at the year’s end, there remains concern over the long term.

Ongoing issues include inconsistent availability of high quality grades impacted by environmental controls, government imposed national and provincial shutdowns, logistical issues, energy shortages, increasing domestic demand, and internal structural reforms – not to mention continuing outbreaks of Covid-19 strains.

A high profile panel of speakers provided an excellent online platform for discussion and dissemination of the latest information in the China refractory minerals market, the highlights of which are reviewed below.

Naturally, we hope that we can bring to fruition our originally planned in-person event China Refractory Minerals Forum 2022, Dalian, 12-14 September 2022, with a visit to Haimag’s magnesia operations in Liaoning (details here).

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What delegates thought about China Refractory Minerals Forum 2021 ONLINE

It’s really a fantastic conference, especially for me and I learnt a lot from other speakers and those questions raised during the Forum. I look forward to the Forum in China.
Michael Zhang, Assistant to President, RHI Magnesita, China

As always, the selection of speakers, the presentation content and the level of detail is superb. I “participated, learnt, and enjoyed”!
Jenny Warburton, General Manager China and Global Materials, HarbisonWalker International, USA

Many thanks for the conference. The programme was excellent.
Ted Dickson, Consultant, TAK Industrial Mineral Consultancy, UK

Excellent programme and organisation. This is a good Forum, I will attend again.
James Ying, Agent, Nedmag, Netherlands

Free China Refractory Minerals Forum 2021 ONLINE Summary Slide Deck Download here

Missed attending the Forum? A full PDF set of presentations plus access to live recording available for purchase.
Please contact Ismene Clarke T: +44 (0)7905 771 494 ismene@imformed.com

Overview: the heat is on

Mike O’Driscoll, Director, IMFORMED, introduced the Forum with an overview of the range of refractory minerals and how China dominates their world trade.

Attention was drawn to past (and ignored) warning signs of impending “perfect storms” of Chinese mineral supply restrictions and high prices, concluding that we are now amid “Perfect Storm #2” which is likely to carry through 2022.

Key impacting factors such as the energy and shipping crises which hit China in late 2021 were examined along with ramifications in western refractory markets.

O’Driscoll concluded with a range of outlook points, including:

• many refractory mineral traders and consumers will/should spend this next period evaluating, or re-evaluating, alternative mineral sources to China elsewhere in the world
• plus, take a serious view on using recycled refractory material
• with suppliers and users co-operating on both technical and investment aspects (of both new primary mineral and recycling projects)

Does this latest chapter signal an end-game for Chinese mineral supply to export markets? That’s probably too much at this stage, but certainly it’s created cause for concern.

For a free download of Mike O’Driscoll’s full presentation please click here

Mike O’Driscoll will be presenting “Riding the Tiger: Refractory raw material supply outlook” at UNITECR 2022, 15-18 March, Chicago – details here

China raw materials & refractory market movement

Chen Feng, Sales Director China Refractory Producers and Qing Miao, Market Manager Refractory Producers & Investment Casting, Imerys, China, provided insight on the current status of China’s refractory raw materials, reflections from the market and customers, and some projections for the future.

Feng described the situation as “skyrocketing” re. prices and supply disruption, created in 2021 by a combination of uneven industrial recovery, relative weak demand growth, and strong supply constraints. Moreover, some of this was foreseeable.

Price increases were illustrated with a look at bauxite, zircon, alumina, fused alumina and magnesia, while the ramifications of the “butterfly effect” on the market prompted by China’s more recent energy shortage were also examined.

Feng spotlighted a range of new demands required by the future refractories industry, driven by achieving “carbon peak” and “carbon neutralisation”, including more use of hydrogen metallurgy, EAF, heat efficiency, recycled refractories, and synthetic materials (see below).

Imerys innovations in developing MagArmour and AluArmour products were explained before Feng concluded that raw materials and refractories will not be cheaper in the short term, China would export more finished goods, and refractory product design will focus on longer in service life, being safer, more environmental, less energy consumed, and more recyclable.

Overview of strategy & markets | “Green mining” in China

Marco Olszewsky, President APAC & China, RHI Magnesita, China, began by reviewing the salient features of RHI Magnesita and its role in the global refractories industry, before focusing on the group’s activities in China.

RHIM operates four refractory plants and one refractory dolomite mine in China (see chart), the latter receiving a Green Mining Award in 2020. In the China and East Asia region RHIM employs 4,000, earns >€500m in revenue (2020), and ships some 1m tonnes of products.

Olszewsky emphasised RHIM’s commitment to digitisation and automation in its Chinese plants, describing some “game changing” projects, including the world’s largest water model laboratory.

Sustainability targets for 2025 were also highlighted including CO2 emission reduction by 15%/tonne, energy reduction by 5%/tonne, and an increase of secondary raw materials to 10%.

The rest of the presentation focused on the transformation of RHIM’s dolomite operation at Qingyang County, Chizhou City, Anhui province, to become a “Whole Green Value Chain”, through the employment of green initiatives at both the two open pits and sinter plant sites.

The RHIM Chizhou Plant has “deep dived in recycling” by using recycled material instead of primary dead burned dolomite; the carbon footprint of the final product can be reduced by up to 14%.

RHI Magnesita, plus Refratechnik and Saint-Gobain will also be presenting at Mineral Recycling Forum 2022, Dubrovnik, 28-30 March | Early Bird Rate ends 14 February!

Recycling refractories: developments & outlook
Sabrina Salmen, Senior Executive Recycling, RHI Magnesita, Netherlands
Sustainable refractory concepts
Dr Helge Jansen, Managing Director, Refratechnik Steel, Germany
Recycling ceramics: new approaches to respond to growing demand
Bruno Dorier, Director, Valoref Saint-Gobain, France

Full details and other confirmed speakers

Refractories: Essential & growing industries

In his presentation, Heiki Miki, Managing Executive Officer & Division Director – Overseas Business, Shinagawa Refractories Co. Ltd, Japan, provided a fine overview of refractories’ critical role in the daily operations of almost every sector of manufacturing.

Miki used an examination of the steel industry in Japan and globally to illustrate refractories’ largest primary market. By 2050, steel use is projected to increase by around 20% compared to present levels in order to meet the needs of our growing population. The housing and construction sector is the largest consumer of steel today, using more than 50% of steel produced.

Highlighted was Shinagawa’s mantra “Proximity: Key to Success for Shinagawa”: with regards to space, time, and relationship. To that end, the group has embarked on a “Sky is the Limit: Shaping the Future of Refractories” mission to expand services and collaborate on a global scale (see chart).

Miki underlined that “Maintaining stable supply chains of raw materials are essential to properly serve our customers’ industries”.
Key challenges include extremely high dependency on just one country, China (exemplified by Japanese import sourcing of key refractory minerals); impact of environmental regulations; and logistics vulnerability exposed by covid-19.

Miki urged that actions were required which Shinagawa’s “Proximity” initiative should help facilitate: securing multiple suppliers in multiple countries; establishing a stable global supply chain; increasing usage of recycled materials; and developing new products with locally available raw materials.

High purity magnesia supply to new US refractory plant

Bill Porter, General Manager, PRCO America Inc., USA, shared the rationale and development of a high purity Tibetan magnesia source to supply overseas refractory markets, notably PRCO’s new magnesia-carbon brick plant at Mayfield, Kentucky.

PRCO is actually exploiting three high purity magnesia sources for domestic and overseas markets: Kamado Magnesite Mine (highest grade magnesite), Tibet, western China; Xinjiang Harlehat Magnesite Mine, western China; and Haicheng Linli Magnesite Mine, Liaoning, eastern China.

The integrated raw materials-refractories group has been most active in the last few years. From 2017-2020 PRCO launched CCM, DBM, and FM production at Xiangchen, Tibet; from 2018-2020, PRCO launched CCM, DBM, and FM production at Minhe, Qinghai province; and since 2018 has developed magnesias and fused aluminas output at Haicheng, Liaoning.

The Kamado microcrystalline magnesite is extremely pure (47.67% MgO) and is used to produce 60,000 tpa FM in a one-step process, and 60,000 tpa large crystal FM in a two-step process (see chart and Magnesia from the “Roof of the World” to Kentucky).

Refractory mineral market dynamics, trends & outlook

Charles Compson, Marketing Director & Hans-Leo Gross, Global Product Line Manager Aggregates, Almatis GmbH, Germany, presented on Almatis’s operational global footprint, including its Asian facilities in China, Japan, and Indonesia, before going onto the leading refractory market trends.

Again, steel was a major focus and in particular developments in China. China dominates global crude steel production with published volumes of about 1.06bn tonnes in 2021, though actual production may be higher.

China is generally expected to reach a peak in crude steel production in the next five years or so, as a transition occurs between production technology, carbon emission reductions and scrap utilisation.

Attention was drawn to increasing use of EAF in steelmaking, which is expected to have an impact on refractory minerals, such as a demand reduction of tapping clays and BOF basic refractories.

Compson highlighted a significant opportunity for increase in Chinese adoption of EAF production and scrap recycling; China current EAF usage is 9.2%, compared to EU28 (42.4%), and North America (69.9%).

Trends in higher quality steel required in the automotive sector will see demand in ladle refractories, and thus for increased functional refractory usage, higher-alumina containing refractories and increased usage of white aggregates.

More synthetic alumina based castables or bricks will be used in ladle side walls for both, Al- and Si-killed steel. For the Chinese market, Almatis has developed T66 Tabular Alumina – high density tabular for improved performance in purging plug and slide gate applications; and ES-Y 88 – reactive alumina as an environmentally friendly and healthy replacement for chrome oxide in purging plug applications.

China’s magnesia supply crisis in climate push

Shiying Jia, Director, China Magnesia Research, Replus Business (UK) Ltd, UK, presented on one of the leading refractory minerals, magnesia, by examining: the refractory industry in China, magnesia demand and supply, and internal and external influencing forces.

China’s refractory production reached 24.78m tonnes in 2020, and rose 1.94% year on year, with 89% of total capacity contributed by eight regions, led by Henan (32%), Liaoning (21%), and Shandong (12%).

Jia went on to analyse China’s largest magnesia producing region in Liaoning province, which is split between Haicheng, Anshan district and Dashiqiao, Yingkou district, the former having more magnesite resources while the latter hosts more processing companies (and is closer to the key ports of Bayuquan and Yingkou).

In 2020, Liaoning magnesia production met 60% of domestic demand and 40% of international demand. For the first eight months of 2021, China produced 790,000 tonnes DBM and CCM, up 34.28%, and produced 419,700 tonnes FM, up 61.26%, compared with the same period of 2020.

Jia emphasised that “Supply side structural reform, SSSR, is a key component of China’s economic policy agenda. The motivation for reform is the view that the supply side of China’s economy is out of balance with the demand side and requires adjustment.”

The five components of SSSR are:

1. Cutting excess industrial capacity
2. Destocking property inventory
3. Corporate deleveraging
4. Lowering corporate costs
5. Improving “weak” links

During 2020-21, further industry consolidation, environmental controls, higher coal costs, and the power crisis in the climate push all contributed to pushing magnesia prices to a two-year high.

Jia concluded that magnesia pricing from China may keep increasing because of the national winter plan and energy shortage.

Announcing MagForum 2022 bringing together the world’s magnesia market – CALL FOR PAPERS contact Mike O’Driscoll mike@imformed.com

Visit to Nedmag 10 June 2022 | FULL DETAILS

For a review of MagForum 2021 ONLINE please go to Magnesia markets outlook

China – Europe logistics: Why is the supply chain failing?

James Devlin, Managing Director, China Mineral Processing Sales Europe, UK, talked about one of the most significant and ongoing issues regarding trade of Chinese minerals – the supply chain logistics aspect, pretty much what could be termed the “jugular vein” of global mineral trade.

He reviewed the chief causes and symptoms in historical trends, the pandemic, container price boom, mismatch of vessels and cargo, and the collapse of port efficiency.

The upshot has been a massive increase in lead times for vessels to reach western destinations, with increased voyage times, huge queues of vessels at load and discharge ports, and capacity induced port delays for both containers and conventional cargo. Not to mention skyrocketing freight prices.

Devlin said: “It will get worse before it gets better, expect this to last for the next six months. A serious shortage of products will persist for months in destination markets as a tsunami of cargo remains to be shipped.”

Devlin opined whether it might be the end of an era: with small parcel packed cargo rates remaining high and negating low processing costs in China, customers diversifying supply chains both geographically (away from China), structurally, and politically, and anticipating the supply of energy intensive fused mineral products from China to diminish.

Thank you and hope to see you in 2022!

As we are amid China’s national winter shutdown (till mid-end March 2022), and with both the Chinese Spring Festival Holiday (31 January-6 February) and XXIV Winter Olympic Games (4-20 February) looming large, it’s going to take a few more months until we can accurately assess just what shape China’s mineral industry will be in to serve world markets.

It was a most stimulating day of discussion, albeit online, and we cannot wait to return to in-person events in 2022.

Under these challenging conditions for home and business at this time, we are indebted to the support and participation of our sponsors Haimag and Imerys Refractories, Abrasives & Construction, and all our partners, speakers, and delegates for making China Refractory Minerals Forum 2021 ONLINE such 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.

We very much look forward to meeting you again, hopefully in person next time, at one of our 2022 Forums:

Mineral Recycling Forum 2022, Dubrovnik, 28-30 March

IMFORMED Rendezvous 2022, Amsterdam, 24-26 April

MagForum 2022, Amsterdam, 7-9 June

China Refractory Minerals Forum 2022, Dalian, 12-14 September

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

Free China Refractory Minerals Forum 2021 ONLINE Summary Slide Deck Download here

Missed attending the Forum? A full PDF set of presentations plus access to live recording available for purchase.
Please contact Ismene Clarke T: +44 (0)7905 771 494 ismene@imformed.com

Announcing for 2022

FULL DETAILS

FULL DETAILS

We are delighted to announce that ANFRE, Spain (National Association of Manufacturers of Refractories, Materials and Related Services) and IMFORMED, have joined forces to present the:

XI European Congress of Refractory Raw Materials, Machinery & Installation

Hotel Condes, Barcelona, 11-12 May 2022

A stimulating conference focusing on key aspects of the refractory raw materials industry and enabling an excellent networking platform.

MINERAL DEVELOPMENTS | SUPPLY TRENDS | LOGISTICS | PROCESSING | ENERGY

The conference will start with a networking dinner on the evening of Wednesday 11 May at the wonderful El Cangrejo Loco, Port Olímpic, followed by the conference at the Hotel Condes, Barcelona, on Thursday 12 May (click here for venue details).

REGISTER ONLINE HERE or contact:

Registration, Exhibit, & Sponsorship Enquiries

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

Programme, Speaker Enquiries

Mike O’Driscoll mike@imformed.com | +44 (0)7985 986 255

Ceramic clay supply cut off | Tile producers’ stocks running out | Graphite expansion on hold

As the Russia-Ukraine war tragically passes its 50th day, with still no end in sight, industrial mineral supply chains and markets continue facing widespread disruption and uncertainty.

Since the war started on 24 February 2022, many industrial mineral companies we have talked to had very quickly set about the first priority of ensuring the safety of staff within the conflict area and in wider Ukraine (and Russia) in general. Naturally, our thoughts and hopes for peace are with everyone caught up in this war.

Title image Taking stock: VESCO is Ukraine’s largest ceramic ball clay producer, which under normal circumstances has some 900,000 tonnes of clay grades available; VESCO sold 2.4m tonnes of clay in 2020, exporting about 84% to 18 countries. The largest consumers were ceramic tile manufacturers in Spain, accounting for >26%; this market sector, dependent on these white-firing clays, is now urgently assessing alternative options Courtesy VESCO

The ramifications of the conflict have impacted several important industrial mineral markets. The country hosts a range of important industrial mineral resources and has long been an important consumer of minerals for its refractories, steel, glass, cement and ceramics manufacturing.

The stand-out minerals which are produced and exported in volume are kaolin (particularly the important ceramic ball clays of the Donbas region), the titanium minerals ilmenite and rutile, and zircon – one of Europe’s few sources of these minerals.

There is also note-worthy production of fused alumina, silicon carbide (centred in Zaporizhzhia), graphite (Zavallya), and kyanite (by-product of titanium-mineral mining at Vilnohirsk) – these minerals are of great interest to the refractories market, and for graphite, also the emerging lithium-ion battery market, though their export volumes have been at small to moderate scale.

Ceramic tile clay supply for Europe cut off

Of all the minerals produced in Ukraine, it is the ceramic clay supply sector which is perhaps going to have the most severe impact on European consumers.

Ukraine is one of the world’s leading suppliers of high quality ceramic clays, also called ball clays. The majority of deposits are concentrated in the Donbas region, near Donetsk, eastern Ukraine, with some single deposits also in other Ukrainian regions such as Zaporizhzhia and Kirovograd.

There are in total around 40 recognised refractory and ball clay deposits in Ukraine amounting to over 600m tonnes in resources, with about 20 deposits of kaolinite clays, possessing 360m tonnes of resources under exploitation according to Galos (2010).

Ball clays for the production of porcelain tiles in Poland Dr Krzysztof Galos (2010) Gospodarka Surowcami Mineralnymi 26(4):21-43; Ph.D. Eng., Mineral and Energy Economy Research Institute of the Polish Academy of Sciences, Kraków, Poland; AGH University of Science and Technology, Kraków, Poland

Ball clays from the Donetsk region are highly suitable for porcelain tile production as they exhibit high plasticity, high whiteness, and low water absorption after firing.

The leading domestic producer is VESCO Group, part of UMG Investments, which sold 2.4m tonnes of clay in 2020. VESCO exported about 84% to markets in 18 countries. The largest consumers were ceramic tile manufacturers in Spain, accounting for over 26% of all sales.

Leading Ukrainian ball clay producer VESCO produces >60 types of clay grades and has a production capacity of 3m tpa, and exports to >25 countries. Courtesy VESCO

Some of Europe’s leading ceramic mineral supply groups have established operating subsidiaries in the Ukrainian clay sector, such as Sibelco, Imerys, AKW.

Well-established Sibelco subsidiary Donbas Clays PJSC, for example, produces 1.3m tpa high quality plastic clays from three mines at Mertsalovo for the ceramics industry. In 2020, Sibelco expanded its Ukrainian clay portfolio with the acquisition of producers Euromineral LLC and Kurdyumovsky Plant PrJSC, located in the Donetsk region.

Although USGS data indicates kaolin production in Ukraine to be 1.6m tonnes, the country’s ball clay production has been reported at levels of 4m tpa.

Indeed, export data shows that almost 5m tonnes of ball clay (termed “fireclay” in trade data, so may also contain some refractory clay) was exported by Ukraine in 2019, ranking as the world no.1 accounting for 81% of all such exports.

The main export destinations, mostly through the port of Mariupol, but also via Olbia and Mykolaiv ports, can be seen to be the all-important ceramic tile producing centres of Spain and Italy, and also Poland and Turkey.

Thus ceramic tile manufacturers in these countries will certainly be concerned about future supplies of quality ball clays.

In Spain for example, in recent years the ceramic tile sector has undergone a transition from production mostly based on red bodies, with a high percentage use of domestic clays, to production mostly based on white bodies, significantly depending on imported white-firing ball clays mainly from Ukraine (70% of requirements), and also feldspar from Turkey.

The industrial cluster in the province of Castellón accounts for around 94% of Spain’s total ceramic tile production, home to 80% of the companies operating in the sector.

Spanish white-fired tile production has now increased from 15% to >70% in 2021. And with recently increased demand for ceramic tiles, domestic clay consumption increased by 24% in 2021, while imported clay consumption grew by 34% (see charts).

According to a recent article by Francisco Javier García Ten, Head of Ceramic Materials & Technologies, Institute of Ceramic Technology, Spain, some of the Ukrainian ports, such as Olbia and Mykolaiv, were bombed by the Russian army on 7 March, and the last shipment of ball clay, 40,000 tonnes, was discharged at Castellón on 8 March (see The crisis in the supply of clays for the ceramic sector: how this situation is generated and the difficulties of implementing alternatives; 15 March 2022).

With about just three months’ worth of Ukrainian clay in stock, suspecting the worst outcome, Spanish ceramic manufacturers are attempting to modify formulations to reduce dependency on Ukrainian ball clay.

But this is extremely challenging given the special qualities of the Ukrainian material now established in plant production, quality and logistical issues with alternative sources, and a lack of planning to use domestic resources.

Guzman Minerals, the Valencia-based global suppler of raw materials for ceramic, glass, refractory and coatings, has described the situation as an “earthquake” for the tile sector: “With the current stock levels, it can be foreseen that the market will need about 1m tonnes to maintain planned production levels.”

Brendan Clifford, Co-CEO, Mota Ceramic Solutions, Portugal, said: “The world is ‘scrambling’ to find alternatives to fill the 4m tonne hole left in the market! I suspect this market disruption will result in a major reformulation of tile body formulation and the question remains will ‘red’ become the new ‘white’?”

The Stephan Schmidt Gruppe, Germany, supplies the Italian tile industry with 500,000 tpa of clay. In March, Stephan Schmidt, CEO, urged its rail logistics provider, DB Cargo AG, to increase the circulation of trains and the number of wagons, and at short notice.

“The reserves of Ukrainian clay located in the port of Ravenna, Italy, are still sufficient for about two months. After that, 1.5m tonnes of raw materials for the tile industry in Italy will be missing per year! Tens of thousands of jobs are at stake. Because: without raw material – no production. And without functioning logistics – no raw material.” said Stephan Schmidt.

On ceramics markets, Brendan Clifford, Co-CEO, Mota Ceramic Solutions, Portugal will be presenting

“Ceramic raw materials & markets: challenges & outlook”

On logistics, Hugo du Mez, Strategy & Analysis Advisor, Port of Rotterdam, Netherlands will be speaking on

“Mineral logistics: Dry bulk shipping challenges, trends & outlook”

Also speaking:
Trends in demand for mineral pigments & fillers in paints & coatings
Stefan Schlag, Director Inorganic Chemicals & Minerals, S&P Global Commodity Insights, Switzerland
Investment & development of industrial mineral projects in Sub-Saharan Africa
Rudolph de Bruin, Founding Partner, AMED Funds, South Africa

at the IMFORMED Rendezvous 2022 ONLINE 25 & 26 April 2022 BOOK NOW!

Graphite upgrade suspended

There are very few producers of graphite in Europe, and those that are operational are relatively small scale. Unsurprisingly, with the evolution of lithium ion battery technology and production, there is much interest in developing graphite sources in the region.

Ukraine is one of the few graphite producers in Europe, and Zavalievsky Graphite has been a producer of natural graphite from the Zavalievsky deposit (Kirovohrad region, central Ukraine) since 1934.

The graphite mine and processing facilities are located adjacent to the town of Zavallya, approximately 280km south of Kyiv and 230km north of the main port of Odessa.

Zavalievsky Graphite’s graphite mine and processing facilities are located near Zavallya, Kirovohrad; Volt Resources, Australia, plans to expand production and develop downstream processing facilities, although all operations are suspended at present. Courtesy Zavalievsky Graphite

Production capacity has been reported of up to 30,000 tpa graphite, although 17,000 tonnes was reported as produced in 2021. The company manufactures >25 major grades of graphite with a carbon content of 85% to 99.5% and a size of 10 to 200 microns, as well as colloidal graphite preparations, and lubricants and coolants based on graphite.

In 2021, Australian graphite producer/developer and gold explorer Volt Resources Ltd acquired a 70% controlling interest in Zavalievsky Graphite and has plans to expand graphite production in Europe and develop downstream processing facilities for battery anode material (BAM) and other high-value graphite products.

Volt Resources’ estimate of tonnage of graphite mineralisation for the south-eastern area of the Zavalievsky Graphite Project in Ukraine totals 22.913m tonnes at a grade of 6.8% carbon.

Although the area has seen no military action, following the Russian invasion, graphite mining and processing operations at Zavallya were suspended while all staff were relocated from Kyiv to Lviv and the surrounding areas near the Polish border in western Ukraine.

On battery mineral outlook Robert Colbourn, Publisher, Benchmark Mineral Intelligence, UK will be speaking on

“COP26 & The Great EV Raw Material Disconnect”

Also covered will be the all-important topics of energy and decarbonisation for the industrial minerals business:
The energy crisis and industrial minerals: climate policy and case studies
Vasili Nicoletopoulos, Owner, Natural Resources PC, Greece
Decarbonisation & renewable energy technology for industrial minerals production
Phil Hodgson, CEO, Calix Ltd, Australia
Transition challenges & pathways for industrial minerals in the energy-intensive industry ecosystem: EU policy initiatives
Vincent Basuyau, Policy Officer, Energy Intensive Industries & Raw Materials, European Commission, Belgium
Sustainable mining & development of industrial minerals for a decarbonised economy
Darren Wilson, CEO, LKAB Industrial Minerals, UK
Sustainable development as a global supplier of industrial minerals
Leah Wilson, VP Sustainability, Imerys, France
The role of geoscience data in meeting industrial minerals ESG targets
James Edwards, Senior Project Geologist, Seequent, UK

Full details here

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

US demand tight | International growth | Frac sand surge | Barite India & Nigeria

The oilfield market for industrial minerals – such as barite, bentonite, silica sand, calcium carbonate, graphite, and bauxite – used in a range of applications including drilling fluids, stimulation, and well cementing – appears to be entering a period of strong demand.

As leading US oilfield service companies report on very healthy financials for Q1 2022, their market forecasts chime together in anticipating an upbeat performance for the rest of 2022 and beyond regarding drilling activity and thus oilfield mineral demand.

In North America, market tightness is reported across all service segments. In Q1 2022, the average US rig count increased 14% sequentially, and is up 62% year-on-year.

The vast majority of currently active rigs are in the Permian Basin, but other areas are also seeing increased focus.

All the latest trends and developments in oilfield mineral supply and demand will be covered at IMFORMED’s upcoming Oilfield Minerals & Markets Forum 2022, Houston, 23-25 May – see link for full details.

FULL DETAILS HERE

Confirmed speakers

Oilfield market outlook: where’s it heading?
Uday Turaga, CEO, ADI Analytics LLC, USA

The Biden Administration’s view on oil and mining: a reality check
Chris Greissing, President, Industrial Minerals Association – North America, USA

The minerals supply chain from an oilfield service company perspective
Schlumberger Ltd, USA

Oilfield Barite: The definition of Insanity
Albert Wilson, COO, CIMBAR Performance Minerals, USA

Barite global overview
John Newcaster, Principal, IMPACT Minerals, USA

Barite supply developments in China & Mexico
Liao Ying, General Manager, Baribright International Inc., China

Morocco barite developments & outlook
Youssef Laghzali, Sales Manager, Broychim, Morocco

US frac sand market trends & forecast
Joseph Triepke, Founder & Principal Research Analyst, Infill Thinking LLC, USA

New source of high grade bauxite ceramic proppants
John Karson, VP Sales & Marketing, First Bauxite LLC, USA

Leonardite and its use in the oilfield market
Hugh Parker, Sales Manager, Leonardite Products LLC

North American logistics for oilfield minerals
Richard Dodd, President, RDC Logistics, USA

A global shipping storm: Covid and its ramifications
Jesper Hoppe, Managing Director & Sebastian Syran, Chartering Manager, Viking Shipping Company AS, Norway

PLUS Roundtable Breakout: Barite | Logistics | Proppants | Due Diligence & Valuation | Processing

DUC wells, security, rising prices drive market growth

Several influencing factors have ensured a buoyant oilfield market for minerals in the short to medium term.

Not least, is that in the US many wells in recent years remain drilled but uncompleted (DUC), ie. they were drilled but not brought into production before the COVID-19 shut down, thus allowing production initially to be increased while rigs sat largely idle.

Olivier Le Peuch, CEO, Schlumberger, points towards elevated commodity prices tightening supply conditions to continue owing to capital discipline, consistent OPEC policy implementation, and supply dislocation from Russia – all accelerating short-cycle investment in North America.

In the international market short-cycle investments are set to accelerate with the seasonal rebound in Q2 2022, and more strongly in H2 2022, led by the Middle East and key international offshore basins.

Also, energy security as a growing priority is expected to drive further capacity expansion and support additional long-cycle development projects, exploration activity, and brownfield rejuvenation programs.

Schlumberger sees the second half of the year shaping up to be particularly strong, primarily by the international markets, led by the Middle East and key offshore basins.

Offshore activity is already growing sequentially and visibly year-on-year, and is expected to benefit from secular growth in both shallow and deep water environments as the acceleration of infill drilling and tieback developments combine with a resurgence of exploration drilling during the summer, and with an acceleration of long-cycle development projects ahead of 2023.

“We are seeing operators preparing, planning and being ready for accelerating their gas supply to the world market, internationally and in North America as well. I think this is touching all aspects of exploration, development, and production of gas. Unconventional gas internationally in the Middle East, particularly, is getting significant support for regional consumption.” said Le Peuch.

It is widely accepted that North American oil and gas will be critical in the coming years. Chris Wright, CEO, Liberty Oilfield Services Inc. commented: “Tight oil and natural gas markets, coupled with geopolitical tensions in many key oil and gas producing regions, have all eyes on North American supply. North America is well-positioned to be the largest provider of incremental oil and gas supplies to power the global economy and frankly enabled the modern world.”

Halliburton reported on strong growth in Latin America and the Middle East/Asia offsetting the winter weather impacts in Europe. In North America, group revenue grew 37% year-on-year with the acceleration of both drilling and completions activity.

Jeff Miller, CEO, Halliburton said: “We expect oil and gas demand will grow over the near and medium-term, driven by economic expansion, energy security concerns and population growth. Current oil supply tightness and commodity price levels strengthen my confidence in the accelerating multiyear upcycle and very busy years ahead for Halliburton.

Most investments will be directed primarily towards short-cycle activity in the near and medium-term, development over exploration, shale, rather than deep water.”

Halliburton also expects international activity to gain momentum in the second quarter, led by the Middle East and Latin America, and further accelerate in the second half of the year.

While it is generally recognised that in the long term fossil fuels’ contribution to the world’s total energy demand will decline, oil and gas will still represent an estimated 30-50% share in 2050 (compared to 65% in 2019) according to the BP Energy Outlook published in March 2022 (see chart).

Frac sand supply tightens

Halliburton reported that hydraulic fracturing activity surged in March 2022 after winter weather and supply chain disruptions occurred earlier in the quarter.

“Halliburton’s hydraulic fracturing fleet remains sold out and the overall market appears all but sold out for the second half of the year. The market today presents several positive elements, previously absent in North America, and they give me confidence in the continued strength of this market over the coming years.” said CEO Jeff Miller

Tight sand supply has resulted in Halliburton sourcing frac sand from Wisconsin when local mines were down in the Permian.

Primary Vision has estimated that the US oilfield market will end April at around 285-290 active frac spreads, with another 10 expected to be added in May.

Other indicators include the number of oil and gas drilling permits issued by the Texas Railroad Commission, which reached an all-time high of >1,100 in March, with the Permian Basin reportedly seeing over 900 horizontal drilling permits.

The uptick in frac activity is also evidenced by Union Pacific reporting its frac sand and downhole piping railcar volumes are rising.

Leading frac sand producer US Silica (USS) reported continuing positive market conditions and expects to deliver “an even stronger financial quarter with great results in Q2”.

USS’s frac sand and logistics businesses remained effectively sold out in Q1 owing to strong well completion demand, particularly in West Texas, and expect the same for Q2 with a 10% increase in sequential tonnes produced from operational efficiency gains. Like Halliburton, USS supplemented local sand capacity with Northern white sand to assist customers.

Bryan Shinn, CEO, USS said: “We’re going to continue to see strong demand over the next several quarters, so that will help keep the market tight. Overall, 2022 is setting up to be a very promising year…strong customer demand and constructive commodity prices should continue to support higher pricing and improved margins for sand proppant.”

On frac sand prices, Shinn explained that USS was trying to be “very sustainable” in its pricing and profitability: “While we could go out and sell sand for $50 or $60 a ton on the spot market, our preference is to go to our existing customers and perhaps renegotiate the entire contract, get it extended, and instead of selling some number of tons to them at $50 or $60, I’d rather just raise their price to $30 or $35 for the next three or four years. Basically to us, it’s the same margin but it gives them the ability to have more sustainable prices.”

Liberty Oilfield Services, the second largest US fracking services company, warned that demand for fracking services will outpace availability, but adding that it has no plans to build new frac fleets. Courtesy Liberty Oilfield Services

However, it will not be all plain sailing. Challenging issues constraining supply remain, such as labour at the mine sites across the Permian, trucking, and rail logistics.

Liberty Oilfield Services, the second largest US fracking services company, warned that demand for fracking services will outpace availability, but adding that it has no plans to build new frac fleets.

In 2020, Liberty enhanced its services by acquiring Schlumberger’s hydraulic fracturing business OneStim, which included two large frac sand mines in the Permian Basin, and also bought PropX with wet sand handling and delivery solutions.

The company reported frac sand supply tightness in southern oil and gas basins, including the Permian, Eagle Ford, and Haynesville.

Chris Wright, CEO, Liberty said: “While many E&Ps directly source sand, we’re seeing a reversal of that trend as no E&P can hope to match the scale and sophistication of Liberty’s supply chain. Available frac capacity is nearing full utilisation and demand has increased.”

Wright reminded that seven years of underinvestment in oil and gas production capacity has been accompanied by an even more dramatic drought in investment in new frac fleet capacity. The brief 2017 to 2019 upcycle involved redeploying fleets built earlier in the decade, with relatively modest new fleet construction.

According to Wright, much of that older equipment has now been scrapped. “The emerging cycle is likely to last longer and be characterized by a much slower and more modest rise in active frac fleets.” said Wright.

New proppant capacity supply

On US frac sand supply, some additional capacity is expected onstream in 2022 involving some 15 plants with a combined total of 15m tpa frac sand, all in-basin.

These include: in the Haynesville (Performance Proppants, Cyber Square); Permian (Hi-Crush, Nomad Proppants, ProFrac); Eagle Ford (Live Oak Silica Sands); Marcellus (Antero); and Bakken (Asgard Hazen).

Regarding US ceramic proppant supply, which although taking very much a drop in volume demand from its heady peak a decade ago, is nevertheless still required, and will see a new supplier of intermediate, high strength, and ultra high-strength proppant grades in the form of a rejuvenated US Ceramics LLC (USC).

USC, formed in 2019 out of Imerys’ former Oilfield Solutions division, has two ceramic proppant plants in Wrens (250,000 tpa proppant capacity) and Andersonville, Georgia (100,000 tpa), each hosting rotary kilns, producing kaolin-based lightweight ceramic proppants.

USC has just been acquired by First Bauxite LLC, developer and producer of high quality non-metallurgical bauxite at Bonasika, Guyana.

The move allows USC to expand its product lines to a full portfolio of ceramic proppants, from its original lightweight grades, using kaolin, to now include intermediate and high strength, and a patented Ultra High Strength Proppant, all produced with FBX’s high grade bauxite.

Indian barite tender yields higher prices

After silica sand used as a proppant in hydraulic fracturing, barite is the largest volume industrial mineral used in oilfield drilling, consumed as a weighting agent in drilling fluids.

China is the world’s largest barite producer (an estimated 2.8m tonnes produced in 2021, according to the USGS), followed by India (1.6m), and Morocco (1.1m), which together account for 75% of world supply. Most barite (85-90%) is used in oilfield drilling.

India’s barite supply is dominated by state government-owned APMDC production from its Mangampet mine in Andhra Pradesh, which claimed production of 2.7m tonnes in 2021/22.

In 2021, the USA imported 1.7m tonnes of barite. Since 2017, US barite import sources have been China, 41%; India, 28%; Morocco, 14%; Mexico, 13%; and other, 4%.

India’s barite supply sector is dominated by state government-owned production from Andhra Pradesh, which claimed production of 2.7m tonnes in 2021/22.

Andhra Pradesh Mineral Development Corp. (APMDC) pushed back to late April 2022 its annual tender for barite sales to processors and exporters, partly because one company still had 200,000 tonnes outstanding from its 2021 tender.

On 22 April, APMDC announced a record revenue from its auction of A (4.25 SG), B (4.10 SG), C and D grades for 2022.

1m tonnes of A Grade was sold at INR6,691(US$87.5)/tonne, an increase of US$27/t from 2021; 3m tonnes of B grade sold for INR5,225(US$68.3/t), up by US$24.5/t; 2m tonnes of C+D grades also received increased prices.

APMDC Vice Chairman and Managing Director VG Venkata Reddy was reported as notifying that the prices will be in force for three years, and maybe increased after reviewing prices in the international market.

Nigeria kickstarts barite production

In an effort to wean itself off imports of barite for its oil and gas drilling industry, Nigeria has reformed and upgraded its domestic barite supply sector.

In Nigeria, barite deposits – hosting an estimated total reserve of almost 23m tonnes of 4.2 SG grade – are mainly located in the south and east of the country, with limited mining activities and facing major challenges (see map for details).

In 2020, trade statistics revealed that Nigeria had imported 4,646 tonnes of barite, almost equally sourced from China and Morocco, at a value of nearly US$2m.

Prior to 2020, the only notable large volume imports occurred in 2014 (7,093 tonnes, mostly from China), 2012 (13,678 tonnes, India, USA, UK), 2003 (9,850 tonnes, USA), and 2002 (17,264 tonnes, Morocco, Spain).

However, in July 2020, Minister of Mines and Steel Development, Olamilekan Adegbite, announced that Nigeria would ban the importation of barite to help the country save on foreign exchange.

For some years now, Nigeria has made several attempts to upgrade its domestic barite production to a higher standard and on a commercial scale to meet market demand. Barite is among seven strategic minerals designated for top priority development by the Nigerian government.

Last year seemed to witness a strong drive by the Ministry of Mines & Steel Development to bring this mineral development initiative to fruition at long last.

On 28 October 2021, Adegbite officially launched the “Made in Nigeria Barite” project, with 12 processing companies apparently receiving approval to participate in the scheme.

Earlier in 2021, the Nigerian Content Development and Monitoring Board (NCDMB) approved four firms for the supply of barite: Nishan Industries Ltd, Port Harcourt, Rivers State; Delta Prospectors Ltd, Lafia, Nasarawa State; Ana Industries Ltd, Port Harcourt, Rivers State; and Baker Hughes Co. Ltd, Onne, Port, Rivers State.

This scheme includes an “Open Market Place Portal”, which is intended to connect all stakeholders along the barite value chain to a hub that allows for easy coordination, stocking, effective costing and seamless sale of barite while the Ministry would assume the role of coordinating the entire process.

Central to the project has been development of the “Barite Cluster Processing Plant” at Ugaga, Yala in Cross River state. Located close to barite deposits, raw barite is to be processed in Ugaga to API standard, and then transported 400km to Port Harcourt for sales and export.

The plant is to be operated on behalf of the government by “experienced and knowledgeable experts”.

On 1 April 2022, the Nigerian Government was reported as stating that the country had attained self-sufficiency in barite production, and would no longer need to import the mineral from October this year.

Most recently, Adegbite said that with the ministry’s recent achievement in local barite production which, reportedly, has now met API specifications, Nigeria will soon start exporting barite to African countries.

Ghana and South Africa have been mentioned as potential export markets for Nigerian barite.

Don’t miss out, secure your knowledge of the latest trends and outlook for the oilfield minerals market, network with the leading players at

FULL DETAILS HERE

US Ceramics assets add processing & logistics capabilities for refractory, proppant, & flame retardant markets

Emerging non-metallurgical bauxite producer, First Bauxite LLC (FBX), which is exploiting the Bonasika high purity gibbsitic bauxite deposit in Guyana, has greatly reinforced and expanded its production potential by acquiring ceramic proppant producer US Ceramics LLC (USC).

Title image Bauxite to Burn: First Bauxite’s 340,000 tpa raw bauxite mine at Bonasika, Guyana (main image), achieved sales of 240,000 tonnes in 2021, its first full year of operation. The acquisition of US Ceramics and its calcination plants (inset: Wrens, GA plant), now enables availability of calcined bauxite grades. Courtesy FBX.

The significance of the acquisition is that it now provides FBX with its own calcination facilities, to enable supply of calcined refractory grades to the US market.

The acquisition includes USC’s two manufacturing facilities located in Wrens (250,000 tpa proppant capacity) and Andersonville, Georgia (100,000 tpa), each hosting rotary kilns.

Until now, FBX, which started bulk shipments from its 340,000 tpa capacity high purity (63% Al2O3) raw bauxite mine in mid-2020, had been limited to selling raw washed and sized ore, or calcining it through third party plants in the USA, and through ARCIRESA, Spain (see Guyana bauxite newcomer starts bulk shipments).

USC, now a wholly-owned subsidiary of FBX (in turn owned by Resource Capital Funds, Denver), produces lightweight ceramic proppants, based on regional kaolin feedstock raw material, which are used in hydraulic fracturing (fracking) operations in the oil and gas industry.

USC’s 250,000 tpa proppant plant Wrens, GA, showing silos and rotary kiln; its two gas-fired rotary kilns are used to calcine kaolin to produce lightweight ceramic proppants (inset); they will now be employed to make, in addition, higher strength proppants using Guyanese bauxite, as well as sintered refractory bauxite grades. Courtesy FBX.

The move also allows USC to expand its product lines to a full portfolio of ceramic proppants, from its original lightweight grades, using kaolin, to now include intermediate and high strength, and a patented Ultra High Strength Proppant, all produced with FBX’s high grade bauxite.

Thibault Van Stratum, Executive Chairman of FBX, said: “The acquisition will also permit USC to step into other market segments such as refractories, flame retardants and chemicals that can utilise the special characteristics of the low impurity FBX bauxite. The access to cheap and clean natural gas as energy source is critical to remain competitive and to avoid contaminants in some applications.”

Certainly, with world trade of commercially developed sources of refractory grade bauxite limited to just China (bauxite-rich provinces of Shanxi, Guizhou, and Henan) with its ongoing supply problems, and the Linden, Guyana operations also owned by China (through Bosai Minerals Group), the long-awaited emergence of FBX as an alternative source has been welcomed by the world’s refractories industry.

John Karson, Vice President of Sales and Marketing, FBX commented: “The processing capabilities of the two plants will open the door for a replacement of Chinese-produced bauxite at a time when there are major issues with consistency of supply from China. Guyana was a leading producer of non-met bauxite until the mid-1980s, when lower quality and cheaper priced Chinese bauxite flooded the global market. Now the tide is turning.”

Other players are also sensing the opportunity, such as Bautek Minerais Industriais Ltda in Brazil, which has made significant investments to launch itself as a new force for global non-metallurgical bauxite and refractory clay markets (see New dawn for Brazilian bauxite).

In March 2022, Bautek started up its first 36,000 tpa rotary kiln to double capacity with two further kilns planned end-2022/2023, with a combined capacity of 140,000 tpa calcined bauxite.

Catch the latest developments in refractory bauxite products and supply at the

XI European Congress of Refractory Raw Materials, Machinery & Installation
Barcelona, 11-12 May 2022

Speakers including:

Fired Bauxite Aggregate: A European innovative sintered aggregate alternative to BFA for refractory applications
Fernando Lopez, Managing Director, ARCIRESA, Spain
A new source of high grade Brazilian bauxite and a wide range of aluminous aggregates
Marcio Lario, Business Development, Bautek Minerais Industrias Ltda, Brazil
AMR Andalusite: From financially distressed to world class company
Reinhardt van Rooyen, Sales and Marketing Executive, ARM Andalusite, South Africa
Picobello andalusite: a potential new source
Isti de Ujfalussy, President, Picobello Andalucita SL, Spain

Full Programme & Details Here

FBX hits overdrive…finally

It’s been a while coming, certainly this author first heard of the Bonasika discovery and potential back in the mid-2000s. But, as they say, all good things come to those that are patient.

FBX’s journey has taken them through several management teams and business plans, and like many others, it was initially lured to the ceramic proppant market bonanza around 2012 (more on that later), before returning to what most in the refractory industry have long-considered Guyana non-met. bauxite best at, ie. producing refractory grades.

2019 marked an intense uptick in investment in Guyana, development and progress for FBX with construction of the Bonasika mine, washing plant and shipping wharf completed by the first half of 2020.

Sales levels reached 240,000 tonnes in 2021, the first full year of operation, and resulted in sustainable cash flow generation. The operation, run by wholly-owned subsidiary Guyana Mining Co. (GINMIN), is envisaged to be at full capacity, 340,000 tpa, for 2022.

As well as refractories and proppants, FBX is targeting the abrasive, calcium aluminate cement, BFA-feed, welding, water treatment, slag modification, EBT sands, and flame retardant markets.

While FBX’s strategy is global, it remains fully committed to add significant capital investment and improvements to its Guyana operation in the next three years, including several downstream processes (including one or more kilns) to capture more value addition in country. The prospect of access to natural gas in the coming years will further increase the potential for high quality products being manufactured competitively in Guyana.

Incidentally, the oil and gas industry in Guyana is growing rapidly, which will improve the country’s infrastructure prospects, such as plans for two new deep-water ports, which, while driven by the oilfield surge, will assist FBX’s export potential.

FBX commenced bulk shipments from Bonasika in mid-2020, seen here loading at the new wharf near Georgetown, and showing FBX distribution routes to date, larger tonnages are transloaded in Trinidad; exports into Savannah, NOLA or the Gulf of Mexico are envisaged to supply nearly all the USA’s refractory needs. The planned new US$300m deep-water ‘Port of Vreed-en-Hoop’ (bottom right), at the foreshore, Plantation Best on the west bank of the Demerara River, near Georgetown, will assist FBX’s export potential. Courtesy FBX; Jan De Nul Group.

Ceramic proppants full circle – the Imerys connection

Now, back to that ceramic proppant market boom about a decade ago: well, if it wasn’t for that then US Ceramics would not have existed, and FBX would have been seeking calcination capabilities elsewhere.

Hydraulic fracturing using proppants (frac sand and ceramic proppants, the latter using kaolin or bauxite-based feedstock raw material) to develop shale gas resources in North America started to take off in the mid-2000s.

Although not a new concept (pioneered in Oklahoma in 1949, and advanced in the 1980s), the recent surge was driven by demand for cheap energy, but crucially, in combination with advances in horizontal drilling and hydraulic fracturing technology, and mineral proppant development, which enabled exploitation of vast hitherto unattainable unconventional gas (and oil) resources.

By 2010 the market was booming with the “shale gale”, still rising in 2012-13 with estimates at that time of US proppant demand growth to 2015 at 9% for frac sand and 12% for ceramic proppants (>80-90bn lbs total combined proppants market).

The well-established US ceramic proppant producers Carbo Ceramics (kaolin and bauxite-based) and Saint-Gobain (bauxite-based) expanded their facilities and were later joined by a plethora of mostly smaller-scale developers/start-ups using kaolin, bauxite and other raw materials (including fly ash, refractory clays, serpentinite – latter grades exported from Russia to North America by Fores).

In August 2012, Texas-based PyraMax Ceramics LLC started construction of a new state-of-the-art, ceramic proppant facility comprising two production lines at Wrens, Georgia, production capacity of 500m lbs/year or 250,000 tpa (2x 125,000 tpa lines).

By then, Paris-based world industrial minerals group Imerys, hosting supply facilities of pretty much most major oilfield minerals across its extensive portfolio (excepting barite and frac sand), started to set up an Imerys Oilfield Solutions division.

The group had up to then conducted some limited ceramic proppant development at its Domodossola facility, Italy, through Treibacher Schliefmittel SpA (rod-shaped proppants based on bauxite).

But in 2012, Imerys invested around US$100m in its Mulcoa Plant 5 (“Gemini”), at the C-E Minerals site at Andersonville, Georgia, to produce kaolin-based proppants, capacity around 100,000 tpa.

This was followed in April 2013, by the acquisition of PyraMax Ceramics by Imerys for US$235m. In July 2013, the Wrens plant started commissioning.

Alas, Imerys (and others) had joined the proppant party too late; by 2015 the market had crashed with rising costs, lowering oil prices, falling drilling activity, and a crucial move by E&P companies to swamp fracking operations with the much cheaper frac sand supply on offer by then. US ceramic proppant producers had also been hampered by large volumes of imported lower quality but cheap Chinese ceramic proppants.

While ceramic proppants are far superior in performance compared to frac sand, they are expensive (by some 4-6x); that said, they remain in (much reduced) demand for important specific fracking applications, eg. in deep high temperature, high pressure wells.

The upshot was tough times and 2015-16 saw widespread capacity reduction, idling, closing, or divesting of most of the ceramic proppant plants across the USA, with many having to embark on diversification strategies, eg. Carbo Ceramics, having filed for Ch.11 and taken over by Wilks Brothers LLC, now into foundry, grinding media (for full review of market changes see Proppants: Carbo Ceramics idles US & China plants in 18% capacity cut; Ceramic proppant outlook: trying to build a market on sand).

Imerys Oilfield Solutions’ Andersonville and Wrens plants were idled in 2015. Following this, Imerys eventually decided to exit the business in 2018, and in 2019 “relinquished control of its Oilfield Solutions division.” Imerys recorded an impairment loss of €155.5m “primarily in the Oilfield Solutions division” in its 2019 Annual Report.

A leveraged management buyout in 2019 created US Ceramics LLC as the plants’ operating company, based in Denver, in which Imerys held a minority stake.

So, after the proppant market fall out, enter FBX looking for suitable calcining facilities within reach of Guyana. FBX has now eventually settled on US Ceramics’ assets, described as “the last and largest opportunity to put a hand on some of the most efficient mineral processing & calcining assets.”

Catch the latest trends and outlook for the proppants market at

Oilfield Minerals & Markets Forum 2022
Houston, 23-25 May 2022

Speakers including

New source of high grade bauxite ceramic proppants
John Karson, VP Sales & Marketing, First Bauxite LLC, USA
US frac sand market trends & forecast
Joseph Triepke, Partner, Lium Research, USA

Full Programme & Details Here

Outlook: prospects bright

The USC buy now provides FBX with key capabilities, in particular, calcination facilities to supply the US refractory market’s requirements for sintered bauxite from 88-93% alumina with low impurities, but also to utilise USC’s processing and logistics assets and know-how.

Other FBX product development progressing includes High Friction Surface Treatments (HFST) for highway safety.

Karson also commented: “On flame retardants: milling our raw bauxite will fill supply constraints of ATH for construction, carpet backing, plastics and polymers, and electric cabling. Other customers are finding many more uses for such high grade bauxite in the production of foundry sand replacement beads, coatings, zeolites and other proprietary uses.”

The Russian invasion of Ukraine has stimulated interest in oil and gas production in non-Russian areas from the Gulf of Mexico to the North Sea, Middle East, Africa, India and the domestics plays in the USA. So, a revival in ceramic proppant demand to some degree is on the cards in North America.

Meanwhile, on refractories market outlook Karson commented: “The Chinese dominance of refractory minerals is over; the CAGR of refractories is skewed heavily toward non-Chinese sourcing. The supply of raw materials and some finished goods is at its tightest in many years, suppliers have raised prices in related product lines by 25% as availability is low; we are anticipating a strong outlook in the post-Covid era.”

Usually all good things must come to an end, although there’s one man in the minerals business whose “good thing” continues to last, even after decades longer than most others in the industry.

On 15 May 2022, Bernhard Krüger, these days a Member of the Supervisory Board at Cofermin Group, celebrates a magnificent 60 years in the business of ores and minerals trading and distribution. In particular chromite, for which he has long been respected and regarded as the guru.

Title Image Bernhard today at the Cofermin head office, Essen; (inset) climbing on the Tsitsikamma Trail by the Indian Ocean, South Africa, 2005, on one of his many mountaineering exploits.

Many in the industry will have first met Bernhard during his 38 years at the Essen-based multi-national raw materials trading group Frank & Schulte GmbH (F&S).

This was immediately followed by a new era for Bernhard, at Cofermin, established in 2000, which he co-founded with former F&S managers Ralf Ossen, Dr. Pawel Golak and Tim Geldmacher.

As anyone who knows him, Bernhard works hard and seeks adventure in his free time – especially through his hiking and mountaineering exploits well into his mature years.

Outside work he has been involved in leadership committees of his Protestant congregation and a public hospital, and founded and headed a youth group in the German Alpine Club Essen.

Keepin’ on rockin’ (open pit magnetite/ilmenite mine of Titania AS, Hauge i Dalane, Norway, 2013)

New era, new approach to “trading”

So Cofermin emerged from the ashes of F&S (which in its final, somewhat diminished incarnation was a division of Stinnes AG). In its heyday during the 1980s and 1990s, F&S was one of the world’s dominant raw material trading groups until its demise in 1999.

But F&S was not the only casualty of those times, it marked the end of an era for the large, multi-national mineral trading houses, as mineral trading transformed into a much more streamlined, sophisticated, and multi-service provider business.

Cofermin, driven by Bernhard and other ex-F&S experts in marketing and distribution, processing and trading of ores and minerals, swiftly carved a niche for itself in the new day and age of trading and distribution.

Driving forward with Cofermin (Essen HQ, 2019; Courtesy Ralf Grothe, www.zeit-licht.de)

One aspect that stood out clearly with Cofermin from the start was its people and their personal touch to the business. The company motto is “We give raw materials a personality”, and Bernhard has been instrumental in providing his brand of energetic, welcoming, and knowledgeable personality to the minerals world.

In 2021, its 21st year, Cofermin implemented a major change of senior management, which may be described as more of a transition. Certainly a changing of the guard.

The founding partners of the award-winning international speciality raw materials marketing and distribution group made way for a new generation of senior management to take the group forward for at least another two decades or more of success.

From the 1 January 2021, Bernhard and the other founding partners of Cofermin (Ralf Ossen, Dr. Pawel Golak, and Tim Geldmacher) moved onto the Group’s newly established Supervisory Board (for more information and a review of the company, see: Cofermin evolves: talkin’ ’bout a new generation).

“Times are ‘a changin”

The period 1962-2022 witnessed some momentous changes in the world, and Bernhard recalls a few that stood out for him during his career:

And the last words to Bernhard…

Over the last 60 years: which do you consider the main gamechangers that have shaped the chromite/minerals world in your view?

Globalisation of the business especially, enabled by faster communication and development of China into a global player.

Separation of UG 2 chrome ore from platinum mining residues for ferrochrome and chrome oxide production. As a result, Cofermin contributed towards the development of the separation of foundry chromium sand between South African producers and European foundry customers.

A further exciting and innovative aspect was the joint project with Cofermin’s Scandinavian partners to develop magnetite as a by-product from ilmenite production for the wet separation of coal and, more recently, of metal residues.

Which do you see as the greatest challenges to the business in the future?

A distributor always needs flexibility, has to continue to improve established products, always be on the lookout for new applications.

The greatest challenge is the reality of global warming and its consequences.

And some of your more memorable “fun” events over your career?

Many years ago at the Canton Fair: as usual, we were drinking too much mao-tai. I jumped on a table and sang “Ännchen von Tharau”, an old German folk song. My partners followed on the table with a Chinese song and we became long-lasting business friends.

With the next large shipment of magnesite, from our aforementioned Chinese partners, a stone-carved statue arrived in Rotterdam! It’s located still today in front of my house.

During my first visit to a Norwegian mine in the late 1960s I was surprised: all alcoholic beverages had been stored in a strong bank-safe to keep them save until our visit- simply unbelievable!

What do you value the most in this business?

For sure my friendships – travelling, visiting and hiking with them, thinking about new products or markets.

And my colleagues and my closest team – they have been with me for years and sometimes decades and are an important contribution to my career.

Finally, to a young newcomer entering the chromite (mineral) trading business, what would your advice be?

Academic degrees and thinking in terms of simply maximising profit are not enough to ensure a satisfying professional life. Just like in our private lives, it is also a matter of respectful relationships and trustful cooperation – also called empathy.

Cofermin will be presenting at this year’s MagForum 2022, Noordwijk (Amsterdam), 7-9 June.

Changing times require a new approach to magnesia sourcing & trading

Andreas Pabst, Managing Director, Cofermin

 

 

 

Sally Wulf, Marketing Manager, IMagine, Germany

 

 

FULL DETAILS HERE

Leading industrial minerals distributor Cofermin Group has strengthened its magnesia offering amid its expanding mineral portfolio by establishing a new division to specifically focus on magnesia material supply and markets.

The new arm, called IMagine, was launched in July 2021, and will focus not just on refractory grade magnesias, but across the whole spectrum of magnesia raw materials (eg. caustic calcined, sulphate, hydroxide, synthetic) and non-refractory markets, often referred to as “industrial” or “speciality” markets, ranging from animal feed, fertiliser, environment, cement, fillers, flame retardants, to various speciality applications.

Title image Blue Sky Thinking: as part of its portfolio of diverse magnesia sourcing, IMagine has recently signed a strategic alliance with emerging speciality high purity magnesia producer EcoMag Ltd, Australia; shown here is EcoMag’s site for its new 80,000 tpa plant at Karratha, Western Australia, expected on stream late 2023. Courtesy EcoMag.

Beside the traditional strong China business IMagine is also very much active in and evaluating magnesia sources outside China, which, as exemplified by previous reports by IMFORMED and the ongoing inconsistency in supply availability from China, is a strategically smart move at present and no doubt welcomed by the market.

IMagine is just the latest step in Cofermin’s strategic objective as it continues to evolve to meet new market demand (for more details see Cofermin evolves: talkin’ ’bout a new generation and M!NERALS now one of Europe’s largest industrial mineral suppliers).

Hear first hand from Andreas Pabst, Managing Director, Cofermin Group & Sally Wulf, Sales & Marketing Manager, IMagine as they present on
“Changing times require a new approach to magnesia sourcing & trading”
at MagForum 2022, Noordwijk (Amsterdam), 7-9 June

IMagine’s evolution & role explained

IMFORMED caught up with Sally Wulf, Sales & Marketing Manager (left), to provide some background and colour to the new Cofermin division:

1. What was the rationale behind the formation of IMagine? And why join and become part of COFERMIN Group?

The Cofermin Group has built up successful activities in magnesia raw materials in the refractories industry over the years. However, as magnesia is much more than the refractories sector, there was the possibility and potential here to expand the current business and stand it on its own feet.

Cofermin’s willingness and interest in pursuing this initiative fitted in with our plans to embark on a new adventure in a modern company with open-minded experts. The company philosophy of concentrating expert knowledge in individual companies allows a focus on the multitude of qualities and applications.

Working in a corporate environment characterised by flat hierarchies, short decision-making processes and a hands-on mentality is simply encouraging. The company has recognised that economic success is largely linked to people.

The resulting motivation is lived and experienced daily in the Cofermin Group. In addition, with the group’s extensive experience in the world of raw materials, this offers a platform that guarantees IMagine a high level of support and synergies to our daily business. Personally, I feel that this is expressed in the free way of working and the common understanding of all players achieving the group’s goals.

2. What is IMagine’s key focus?

As you can see on our homepage, our primary focus is on magnesium. This mineral comes in an unbelievable range of different varieties. All magnesia-based raw materials, both of natural and synthetic origin, differ not only in production and procurement, but also in the applications, each of which demand that their own requirements are met.

This becomes even more exciting when you can use these different qualities to generate special blends for specific applications. Generally, our business is based on technical skills and customised solutions.

We look forward to contributing our knowledge in this area and working with customers on new solutions or optimising existing processes by adapting products.

3. What is the typical annual volume you plan to handle?

Our business is not characterised by high volumes – incidentally this also applies for Cofermin Group in general. Generally, volumes are determined by the demands that the market and the customers place on us, and since we focus a lot on niches…

Traditionally, the bigger volumes are handled more in the natural raw materials; in the synthetic ones, rather smaller units are traded. In general, our business is based on technical sales and customer-oriented solutions, which also take place in market niches. After our positive start in 2021, we expect to move about 20-30,000 tonnes this year.

4. What are the main products that you handle and their sources?

In addition to our personal network, we also benefit greatly from Cofermin’s groundwork in the field of magnesia raw materials in the past – although we bring a new level of understanding and expertise to the table when it comes to distribution, marketing and sales of magnesia.

Today, we can already supply our customers in large part with the sources available worldwide. Besides the classic qualities of natural magnesias from China, we also deal in specialities from South America and Turkey, for example. But products from Europe, the Middle East and North America are also part of the current and future portfolio.

Additionally, we are very pleased to be able to represent a very exceptional magnesia quality on an exclusive basis in Europe and other countries, from emerging speciality magnesia producer EcoMag Ltd in Australia.

In particular, EcoMag’s product purity, as well as the low carbon footprint strategy, are special features which will open up many new opportunities in the market and which give EcoMag and IMagine competitive advantages in very specialised niche applications.

High purity magnesia sourced from Australia – EcoMag

In April 2022, IMagine and EcoMag Ltd, of Australia, signed a conditional letter of intent “as an important step towards a full strategic alliance between the two companies”.

EcoMag was established in 2015 to produce a range of speciality chemicals derived from high purity magnesium, such as 99% pure hydrated magnesium carbonate, and high purity magnesium oxides for high value speciality markets such as food and cosmetics.

These are sourced using a proprietary magnesium precipitation process to harvest waste streams from sea-salt and potash producers, and other brine sources; targeted sources to date include the Beyondie sulphate of potash project (Kalium Lakes); Dampier Salt (Rio Tinto (68%; Marubeni Corp. (22%); Sojitz (10%); and Shark Bay Salt (Mitsui & Co.).

Over the last few years, EcoMag has been developing, refining and demonstrating this process, first at laboratory scale, then at larger scale via operation of pilot plants in South Korea and in Australia at Dampier, Western Australia, adjacent to Australia’s largest solar salt operation (“EcoMag synthetic magnesia products” was presented by Dr Tam Tran, Chief Technology Officer, EcoMag at MagForum 2019 Bilbao – see Magnesia market meets in Bilbao).

On 8 April 2022, EcoMag was awarded a A$2m grant by the government to help fund construction of its 80,000 tpa commercial scale plant at Karratha, Western Australia.

Tony Crimmins, CEO, EcoMag Ltd (right) commented to IMFORMED on the IMagine tie-up:

“Europe and especially Germany is the main user of the high purity magnesium that we produce and therefore it is logical that we deal with a German distributor. Sales will be in the UK/EU where IMagine is well-placed to serve.

It is a straight distributor agreement for Europe, UK, China and Turkey. IMagine has the customer contacts and is delighted that we have a low CO2 footprint which is becoming more important when clients purchase mineral commodities.

We have building and infrastructure on site in Karratha, Western Australia (see title image top), and ordering equipment and gathering management to finalise construction on-site.

We will be manufacturing by the end of 2023. There is a lot of interest in our products and how they are made. The company has all its approvals from Government and other symbiotic industries nearby.”

5. What are the key attributes of IMagine?

Our customers can rely on our expertise in magnesia raw materials. IMagine, our related agents and Cofermin all together have decades of experience in procurement and in how to deliver economically sensible solutions in the expected quality.

For us, success is defined by a satisfied supplier AND customer. We are happy to engage in new and further developments with our partners and to work out joint solutions for issues relevant to raw materials.

This of course also includes certifications beyond ISO 9001-2015, such as feed certifications according to QS. And when our business requires further standards in the future, we will address this and obtain them accordingly.

Reliability, expertise, solution-oriented thinking, are just some of the qualities which distinguish us, particularly in the field of magnesia.

Our globally diversified sourcing helps us especially in times of crisis like today. We can successfully counter or smoothen out many turbulences in logistics, failures, postponements and shortages of goods with flexibility and by using the full range of our available sources and principals to the advantage of our clients. And of course we secure the products’ availability by using our local stocks to satisfy our customers’ requirements.

6. How has the Covid-19 pandemic & the Russia/Ukraine conflict impacted the business?

Of course, Covid-19 has also affected our business, as we started operations during the pandemic. Travel has been replaced by video-conferencing and the logistical challenges created by the global shortages in raw materials and transport naturally affect us.

But Covid-19 is not over. At the moment, for example, what keeps us busy are the slowdowns in supply chains owing to shipping route and port congestions, in addition to the associated difficulties and the severe production restrictions generated by the Covid control measures in China.

It remains to be seen how the conflict currently taking place between Ukraine and Russia will affect the magnesia raw materials sector.

Besides the soaring energy costs worldwide, which affect all producers, materials from the region are often used in Europe. Here it is important to keep a close eye on developments. We think that the market-related distortions will continue for a long time. We must be prepared for this.

7. Any other macro trends you think will have an impact, whether good or bad, on IMagine’s business and strategy going forward?

We believe that the topic of CO2-reduction, resource-saving production and recycling will concern us more and more in the world of raw materials.

Here we work with our international partners on solutions that also include the issue of sustainability, for example in the form of secondary raw materials or in the already mentioned partnership with technology leaders like EcoMag

There are many ideas that we are pursuing and believe that creativity and reliability lead to interesting approaches worth pursuing. And in this, IMagine fits in well with the wider Cofermin Group, as Cofermin already has long experience in working with various recycling raw materials and finding applications as well as establishing relevant marketing and distribution.

8. What are your objectives?

IMagine has had a strong start. We are proud that we have already been able to implement much of what we set out to do.

More exciting, however, is the future that we want to shape. We are continuing this path with the same means that have brought us to this point today. Our goal is to make a stable contribution to the supply of European magnesia consumers. Cofermin is an indispensable partner for many industries. For the magnesia raw materials, it is important to reach this status too.

We enjoy our daily work within the Cofermin Group and this is also our motto for our business friends. Besides the hard facts, such as price, quality and reliability, we are very much a people-based business.

Only together can things be moved. We believe in this in our daily dealings with our business partners and customers. IMagine, what comes next…

Hear first hand from Andreas Pabst, Managing Director, Cofermin Group & Sally Wulf, Sales & Marketing Manager, IMagine as they present on

“Changing times require a new approach to magnesia sourcing & trading”

at MagForum 2022, Noordwijk (Amsterdam), 7-9 June

FULL DETAILS HERE

If you enjoyed reading this article…

Like the idea of an objective, well-written and researched article about your company or products?

Perhaps you are pursuing new markets, launching new products and innovations, or just need some profile as you recharge or emerge onto the market?

Let IMFORMED’s experience in writing and reach in markets assist your business going forward.

Please feel free to discuss ideas, options, needs.

Contact: Mike O’Driscoll, Director, IMFORMED
mike@imformed.com
T: +44 (0)1372 450 652; M: +44 (0)7985 986255

Review of Fluorine Forum 2021 ONLINE

The global fluorine raw materials supply chain is undergoing a period of some challenge.

In addition to the widespread disruption caused by the pandemic and ongoing logistical issues, compounded by the Russia-Ukraine conflict, the fluorspar market is witnessing increased demand from traditional and fast evolving sectors, especially in Li-ion batteries and electronics, but at the same time is hampered by drawbacks in production capacity.

Title Image Green Pastures for Fluorspar: Fluorspar demand is expected to soar for lithium ion battery and electronic applications; pictured here is the polymetallic Nui Phao operation of Masan High-Tech Materials, in north-west Vietnam, a leading global integrated supplier of high-tech advanced materials including fluorspar; in 2021 tungsten production hit a record high at Nui Phao; the site will host a visit for delegates from IMFORMED’s Fluorine Forum 2022, held in Hanoi, 11-14 October 2022. Courtesy Masan High-Tech Materials.

Recent newcomer Canada Fluorspar Inc. which has been ramping up production capacity since 2019, entered interim receivership in February 2022, halted production, and is seeking a new owner by July 2022.

Koura Global (formerly Mexichem) the world’s largest producer of fluorspar, in March 2022 declared force majeure against some of its supply contracts owing to safety concerns involving “geological issues” in a section of its Las Cuevas mine in Mexico.

While in December 2021, Samine in Morocco closed its fluorspar mine, which had been declining in output for some years.
Chinese supply, at one time dominating the world, remains in decline while its domestic market demand continues to grow, and seeks external supply sources.

However, new sources of supply are starting to emerge: from Mongolia, the USA, and via processing fluorosilicic acid (FSA) yielded from phosphate production.

Some of the above topics were brought to light towards to the end of last year when IMFORMED organised Fluorspar Fluorine 2021 ONLINE, bringing together a virtual meeting of the key players in the fluorine supply and demand business, to listen to leading experts highlight trends and developments shaping the market outlook.

We now review these presentations as we lead up towards finally meeting in person again for the first time since 2019, and finding out where the market is trending at Fluorine Forum 2022, Hanoi, 11-13 October 2022 – with a visit to the Nui Phao operation of Masan High-Tech Materials on Friday 14 October 2022 – full details here (Early Bird Rate Ends 17 June 2022!).

Come and join us in Hanoi to find out the latest in fluorine supply and demand, and visit a state of the art fluorspar operation first hand

CALL FOR PAPERS | SPONSORSHIP/EXHIBIT OPPORTUNITIES

EARLY BIRD RATE ENDS 17 JUNE 2022

Full Details Here

What delegates thought about Fluorine Forum 2021 ONLINE:

Thank you for the web conference on Fluorspar last Wednesday. I think it was very professionally held. Good job.
Fernando Arevalo, Commercial Director, Minersa Group, Spain

Thanks for running a great conference.
Mark Cooksey, CEO, ALCORE, Australia

Congratulations on Fluorine Forum 2021! It really was professionally done. From my perspective, it was a great success
Bob Syvret, Principal/Owner, Fluorine Chemistry and Technology LLC, USA

Good conference today, thank you
Anna Carson, Director, Britannia Refined Metals, UK

Free Fluorine Forum 2021 ONLINE Summary Slide Deck Download here

Reducing AlF3 import reliance for aluminium smelting
Dr Mark Cooksey, CEO, ALCORE Ltd, Australia

Owing to limited developed fluorspar resources, Australia is the largest aluminium producing region in the world without local AlF3 supply.
Cooksey reminded that Australian aluminium smelters are 100% reliant on imports of aluminium fluoride (AlF3) and that supply disruptions could lead to the end of aluminium smelting in Australia.

AlF3 is essential for aluminium smelting, because it is part of the electrolyte (‘bath’) that is the solvent for alumina. The bath is a Na-Al-F compound and must be maintained at a target composition to maximise efficiency.

Alcore, a start-up company is developing a new process for producing aluminium fluoride from waste materials to reduce Australian import reliance.

A first Alcore plant is planned for Bell Bay industrial area in northern Tasmania, with an initial capacity 10,000 tpa AlF3 to supply about 35% of Australia/NZ demand.

This could expand to 30,000-60,000 tpy, subject to demand, low-cost feedstock sources, and/or additional locations.
Initial production can use alumina trihydrate for good returns and lower risk, and bauxite and dross show promise as lower-cost feedstocks to substantially increase profitability.

UPDATE: highlights since October 2021

• Phase 3 2021-22: Commenced pilot plant programme 10g/hr bath, NSW
• Rigorous scale-up to reduce technical risk
• Phase 4 2022-24: First AlF3 plant planned for Bell Bay, Tasmania, near existing hydro-powered aluminium smelter. Planned production 1,300 tpa AlF3 stage 1; 20,000 tpa AlF3 stage 2.
• Potential for plants in other major aluminium smelting regions
• Potential expansion into other markets, including fluorine chemicals

Steel production outlook in a world of low carbon
James F. King, Steel Industry Consultant, UK

King noted major changes in the industry’s structure since 2000: Chinese producers were 7 of the top 10 companies in 2020 (only 1 in 2000); world production more than doubled between 2000 and 2020, and so did the size of companies, but the share of the top 10 was little changed.

On world production, after the global financial crisis in 2009, there was rapid growth to 2015, led by China. This is continuing. Steel production is forecast to grow in line with GDP to 2030, then more slowly than GDP to 2050.

Regarding market demand, the major industrial countries (USA, Japan, Germany and other countries of Europe) are showing declining consumption per unit of GDP. China, South Korea, India and Vietnam are showing increasing consumption of steel as industrialisation spreads.

Metallurgical-grade fluorspar (metspar) is used primarily as a fluxing agent by the steel industry. King estimated that in 2019 2.86m tonnes fluorspar was used in steel.

Specific metspar consumption per tonne steel varies according to the type of steel produced. King’s estimate of the specific consumption per tonne in 2020 was:

EAF steel, incl. stainless 1.8kg/t
Stainless steel 15.3kg/t
BOF steel 0.9kg/t
Other steel 2.6kg/t
Total crude steel 1.5kg/t

The impact on the consumption of metspar of the forecast trends in steel will be:

Negative: consumption of metspar per tonne is forecast to continue to fall for each type of steel, partly because the industry may seek alternative materials that do not contain fluorine for environmental reasons and partly because of a perceived shortage of metspar.

Positive: growth of EAF steel at the expense of BOF steel.

Negative: increased use of DRI for EAF steel seems to reduce the need for metspar

Positive: growth of stainless steel as a share of total steel

On balance, the prospects in the base case forecasts are for a slow increase in the consumption of metspar in the long term from the level of 2020.

If the steel industry makes a radical change to reduce CO2:

Positive: a higher share of EAF steel, with faster growth of metspar consumption.

European HFC refrigerants market and F-gas alternatives
Barbara Gschrey, General Manager, Öko-Recherche, Germany

In her presentation, Gschrey covered the EU HFC market and quota mechanism, market impacts, and F-gas alternatives.

The timetable for reducing the EU’s HFC consumption was explained, targeting a reduction of 79% from 2015 to 2030.

The EU quota quantity stipulates the allowed HFC quantities to be placed on the EU market each year, measured in tonnes of CO2e – “GWP-weighted process”, ie. the higher the GWP of the HFC, the higher the quota required. This is applicable to all producers and importers placing 100 tonnes CO2e or more of HFCs (virgin gases in bulk) on the market in a calendar year.

Exemptions include: imports for destruction, feedstock use, exports, military use, semiconductor industry, metered dose inhalers (as of 2018), recycled and reclaimed HFCs, HFOs, natural refrigerants (ammonia, CO2, hydrocarbons).

Looking forward, Gschrey emphasised that the EU HFC phase-down opens up export opportunities for new technologies based on low-GWP refrigerants; new technologies can lay the ground for complying with future F-gas restrictions.

There has been strong market reaction to the phase-down since 2017, with price increases for conventional HFC refrigerants but also for low-GWP blends containing HFCs, plus some HFC shortages.

Fluorocarbon products as critical enablers in the production of semiconductor materials and IC devices
Dr Robert Syvret, Chief Scientist, Electronic Fluorocarbons LLC, USA

Syvret took the audience through the importance of semiconductor materials, key process steps used in building an IC device using fluorocarbon compounds, and fluorocarbon products for today’s electronics applications.

The main drivers of the semiconductor boom were outlined, and was the fabrication of an IC/Chip which involves a complicated sequence of key processing steps repeated over and over hundreds of times (>500).

Fluorine compounds play a prominent role in all steps, including:

• Reactive Ion Etching (RIE) – high reactivity of fluorine radical species
• Deposition precursors – fluorine provides volatility for CVD processes
• Plasma chamber cleaning – reactivity of fluorine radical species
• Fluoropolymer materials – inertness of fluoropolymer materials

Extensive new research and development is ongoing to provide new fluorocarbon gas etchants that provide more efficient etching with less environmental impact, eg. Atomic Layer Etching (ALE) and new fluorocarbon gas compositions with different heteroatoms (eg. S).

Hydrofluoric acid and downstream market outlook
Samantha Wietlisbach, Director Minerals Research, S&P Global, Switzerland

Wietlisbach provided an overview of the HF market, with a focus on fluorocarbons and fluoropolymers, and some direct applications of HF in light vehicles and electromobility, metal pickling, and electronics. Comment was also made on the changes in corporate vertical integration of the supply chain since 2020.

Fluorspar trade was discussed, with Mongolia, Mexico, South Africa, Vietnam and Canada being the major world exporters in recent years, and USA, South Korea and Japan the major world importers. South Korea was forecast to be the largest global importer of HF in 2021.

China leads the world in HF capacity, production and consumption, two new plants opened since 2020; 25-30% of HF production is traded. New capacity has emerged from Arkema, USA, but this was sourced from phosphoric acid by-product FSA.

The outlook for HF growth is expected to be about around 3-4% AAGR globally, with fluorocarbons remaining the major end use. For fluoropolymers globally 4% AAGR for PVDF, and about 3% for others, automotive the main industry market. For HF direct uses, the China market is by far the largest market, with metal pickling the largest use for electronic grades in China.

Supply chain resilience in the Acidspar-HF-Lithium Ion Battery chain
Kerry Satterthwaite, Director Business Intelligence, Koura Global (formerly Division Manager Strategic Minerals, Roskill), UK

Following an outline of the importance of graphite to the lithium ion battery supply chain, Satterthwaite explained why fluoropolymers also hold a significant niche role in this market.

The sharp reduction in the availability of Chinese fluorspar has precipitated some interesting structural changes in the market. China is by far the largest consumer of both acidspar and metspar, and declining domestic supply has led to soaring imports, particularly of metspar from neighbouring Mongolia. China is now importing significant quantities of acidspar (but not HF) from Mexico.

Strong growth in the electronics sector for HF is expected to be eclipsed by spectacular growth from lithium ion battery electrolyte salts, which is anticipated to grow to represent the third largest HF market. The battery market will also drive very strong growth in the use of HF in natural graphite purification (though graphite processors outside China are evolving non-HF processing methods).

Roskill’s baseline 2021 outlook for lithium ion battery demand expected the total market for lithium ion batteries to reach 2,368 GWh by 2030 growing at an average rate of 26.3% per annum (slightly below that of the last decade as the industry matures).

Lost Sheep Mine: High grade source supplying the US market
James Walker, Chief Executive Officer, Ares Strategic Mining, Canada

Walker started by reminding that the USA has classified fluorspar as both a strategic and critical metal, and the country is reliant on imports with no domestic mine production.

US aluminium and steel producers, refrigeration manufacturers, and cement producers, import all their required fluorspar from Mexico and Vietnam.

Ares Strategic Mining’s acquired fluorspar claims in Utah are to be fast tracked through the US mining permitting process and the developing Lost Sheep project is envisaged to produce fluorspar at a lower cost than any imported fluorspar.

Ares has a consolidated 2,100 acre land package covering the entire Spor Mountain District, near Delta, Utah, with technical studies confirming grades at Lost Sheep averaging approximately 75% CaF2, higher than grades from Mexico and Vietnam.

The company has achieved 99.9% CaF2 grades; a 93% CaF2 product with 92% recovery. High grade metspar and acidspar products all meet high industry standards.

There is potential to directly ship metspar with no further processing from Lost Sheep, and to expand the operation to produce 5,000 tpm acidspar within months of re-starting the metspar operation.

Walker also highlighted another 4,800ha fluorspar property Ares is working on 200km north-west of Fort Nelson, north British Columbia, where it owns 100% of mineral claims.

UPDATE: highlights since October 2021

• shipped all infrastructure for Lumps Plant to USA, where it will be integrated with recently arrived three-storey Lumps Plant at Delta site, Utah.
• Ares’ strategic partner in Asia, the Mujim Group, has committed to provide labour and expertise for the installation and optimisation of the plant.
• Completed exploration project which has identified >160 drill targets
• Signed agreement to develop the Campbell Croster Fluorspar Project, Kentucky

Fluorspar mining trends & outlook post-Covid
Peter Robinson, Chairman, Fluorsid British Fluorspar, UK

An overview of the growth and activities of Fluorsid was presented first, highlighting the commitment of the group to integration of the production cycle from mining raw material, chemical processing and marketing.

Robinson also underlined Fluorsid’s growth in fluorspar mining activities to improve security of supply and cost of mined raw material going forward.

During the pandemic, Fluorsid British Fluorspar (FLUORSID BFL) maintained continuing mining and mineral processing operations to ensure continuity of raw material supply to its chemical plants; a core fluorspar production of 25,000 tpa was maintained using ore mined from the underground mine at Milldam.

The pandemic provided the opportunity to undertake underground mine development to prepare for optimising post-pandemic production, including preparation of plans for modernising sustainable mining practice within the mine.

During the pandemic, Fluorsid British Fluorspar maintained a core 25,000 tpa fluorspar production at its underground Milldam mine, and mineral processing at its Cavendish Mill, in Derbyshire, UK. Courtesy Fluorsid.

FLUORSID BFL is developing plans to increase production from the UK operation to 50,000 tpa to meet the expected increased demand of good quality fluorspar from sustainable European mines.

Robinson anticipated that post-pandemic demand is set to increase and exceed previous demand with strong recovery in traditional fluorochemical demand, new applications for fluorspar products in EVs, and reduced internal supply within China which is seeking Western sources of supply.

Robinson considered that there was a need for more fluorspar production capacity, noting that it takes about eight years to explore, plan, and develop a new fluorspar mining operation, and that there are no new planned fluorspar mines likely to come into production over the next two to three years.

The future for fluorspar mining should see increased processing of tailings and use of small, flexible, and potentially mobile modular processing plants to exploit complex small fluorspar resources.

Thank you and hope to see you in Hanoi in October!

Fluorine Forum 2021 ONLINE was a most stimulating day of discussion, albeit virtual.

Under these challenging conditions for home and business at this time, we are indebted to the support and participation of our partners, speakers, and delegates for making Fluorine Forum 2021 ONLINE such 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.

Since March this year we have been delighted to return to in-person events in 2022.

Therefore, we very much look forward to meeting you again, hopefully in person next time, at Fluorine Forum 2022, Hanoi, 11-14 October 2022.

CALL FOR PAPERS | SPONSORSHIP/EXHIBIT OPPORTUNITIES

EARLY BIRD RATE ENDS 17 JUNE 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

Free Fluorine Forum 2021 ONLINE Summary Slide Deck Download here

Missed attending the Forum? A full PDF set of presentations plus access to live recording available for purchase.
Please contact Ismene Clarke T: +44 (0)7905 771 494 ismene@imformed.com

Last year we reported on the latest stage of evolution of global mineral distributor Cofermin Group, as it entered a new era of management in January 2021.

In this latest follow-up article we focus on the management and role of Cofermin’s chemicals division.

Title Image Chemical “sourcerers”: Pictured here is fluorspar, shipped from source to market, one of the backbone chemical raw materials of Cofermin Chemicals since 2008, which has achieved “substantial growth in recent years.”

Established in 2008, the formation of Cofermin Chemicals was an important step in the group’s growth and diversification strategy.
Andreas Pabst, Managing Director, Cofermin Group, explained: “We found the right people who knew the ins and outs of the chemical business, which is very different to that of dealing in minerals.

That’s how Uli Grunow joined the Cofermin Group, now shareholder and managing director. And we recently managed to also strengthen Cofermin Chemicals’ setup by recruiting Derk Proff as director and newest shareholder in our set-up.”

From the 1 January 2021 all four founding partners of Cofermin (Ralf Ossen, Dr. Pawel Golak, Bernhard Krüger and Tim Geldmacher) moved onto the Group’s newly established Supervisory Board.

Their managerial responsibilities and duties have been transferred to their successors, the new management team comprising: Bettina Bohnen (Commercial & Risk Management, HR and Organisation), Michael Neeb (Operations, Sales and IT), Andreas Pabst (Strategy, Business Development and Marketing), as managing directors, and Jens Massenberg, as the Group’s Chief Financial Officer (Finance, Controlling and Compliance).

For details and more on the Cofermin Group please see earlier articles:

Cofermin evolves: talkin’ ’bout a new generation
M!NERALS now one of Europe’s largest industrial mineral suppliers
Bernhard Krüger, “King of Chromite”, celebrates his 60th work-anniversary at the sharp end
“Beyond Commodities”: Successful start for Cofermin’s new magnesia arm IMagine

IMFORMED interviewed Cofermin Chemicals on its role & outlook

What was the rationale behind the formation of Cofermin Chemicals in 2008?

In the past, all four senior founding partners worked at Frank & Schulte, and at that time the distribution of chemical products belonged to Brenntag, as both companies were part of the Stinnes-Group.

After the foundation of Cofermin Rohstoffe in 2000, the senior partners saw a chance of increasing the range of products by entering the chemical business as well. This was the time, when the so called “Senior Professional Recruiting System” was started by hiring well-experienced seniors for a particular business field, in this case chemical specialities.

With Ulrich Grunow they found an expert in the market of refractories, glass, and ceramic chemical raw materials, working for more than 30 years in this field already. Ulrich became a shareholder of the newly formed Cofermin Chemicals and the business started in 2008.

Do you have any physical assets, such as processing/storage etc.?

For logistics/warehouses we are working with external partners in Rotterdam, Hamburg and Duisburg.

For our production of Casein-based products we are running with a site in the south of Germany, and for the production on flame retardants we operate a site in Hamburg.

What are your key business sectors?

• Chromium oxide, lithium and cobalt salts and other specialities, such as borates for the refractory, glass and ceramic industries.
• Corrosion inhibitors for yellow metals.
• Calcium formate and acid Casein for the construction industry
• Silver salts for the galvanisation
• Fluorine-based products such as cryolite and fluorspar for the metallurgy and foundry industries.

What is the typical annual volume of total chemical products handled?

12,000 tpa globally

Can you identify any key trends among the supply of these primary chemicals?

Fluorine, lithium, boric acid, cobalt and chrome chemical raw materials have been the backbone of our business since 2008 and achieved substantial growth during the last few years – even during COVID-19 in 2020 until today.

Since Cofermin Chemicals is acting much more as an exclusive extended sales network for our principals than as a classical trader, the general shortage of many chemical products were less of a problem owing to close co-operation with our principals.

There is a specific division for Nutrition? When was this established and why?

In 2021 we gained the GMP+ and IFS broker certification, which allowed us to start with the distribution and marketing of Food & Feed additives in Europe. This will allow us to widen our product portfolio and continue to generate growth.

Have you seen any significant change in the practice of sourcing and supplying chemicals to markets in recent years (Covid-19 aside)?

The global shortage of products, and extremely difficult supply chain management with regard to sea and inland transportation costs.

How has the Covid-19 pandemic impacted the business?

As a result of the difficult economic situation for many of our clients in the traditional industries of refractories, glass and ceramics, many clients are asking for extended payment terms to improve their financial situation.

However, meanwhile, the situation of heavy price increases and cost-price inflation forces us to often even shorten payment terms in order to simply secure product availability from many sources.

If you enjoyed reading this article…

Like the idea of an objective, well-written and researched article about your company or products?

Perhaps you are pursuing new markets, launching new products and innovations, or just need some profile as you recharge or emerge onto the market?

Let IMFORMED’s experience in writing and reach in markets assist your business going forward.

Please feel free to discuss ideas, options, needs.

Contact: Mike O’Driscoll, Director, IMFORMED
mike@imformed.com
T: +44 (0)1372 450 652; M: +44 (0)7985 986255

Testing times sustain market turmoil, but outlook positive

2020-21 was all about coping with COVID-19 and responding to the pandemic’s ramifications and the subsequent recovering market demand. While 2021-22 has seen a continuation of this trend, also thrown into the mix has been the tragic Russia-Ukraine conflict which has compounded the situation further.

In short, the industrial minerals industry is experiencing another period of intense challenge faced with shortages in supply availability combined with ongoing logistical issues.

Title image Green mining in Greece Grecian Magnesite operates fully integrated mining operations in Greece and Turkey with production capacity of 200,000 tpa CCM and DBM; pictured here is its plant complex at Halkidiki, north-east Greece; in response to market demand the company has recently developed a new green underground mine at Koutzi, Evia, and launched a new dunite-based product for refractory and other markets. Courtesy Grecian Magnesite

But, on the positive side, demand remains strong, and growth markets, particularly for “critical raw materials” appear to be soaring, while prospects for industrial mineral development are receiving a boost. All the latter of course, are tempered by the increasing development and adoption of environmental technology and protocols in decarbonisation and energy conservation.

IMFORMED is once again both honoured and delighted to be invited to write the introduction to Mining Engineering’s annual review of industrial minerals in its July 2022 issue.

 

 

 

Bill Gleason, Editor, ME writes: “Mike O’Driscoll, director and cofounder of IMFORMED Industrial Mineral Forums and Research provides a great overview of the sector, writing in part, ‘the industrial minerals industry is experiencing another period of intense challenge, faced with shortages in supply availability combined with ongoing logistical issues. But on the positive side, demand remains strong and growth markets, particularly for critical raw minerals, appear to be soaring.’ ”

Russia-Ukraine War: ceramic clay impact

At the time of writing we are on Day 110 since Russia invaded Ukraine with sadly still no end in sight. As a result, industrial mineral supply chains and markets in Europe continue facing widespread disruption and uncertainty.

A significant knock-on effect has been severe disruption to an already stressed logistics sector across Europe and beyond, experiencing increasing shipping prices.

The ramifications of the conflict have impacted several important industrial mineral markets. The country hosts a range of important industrial mineral resources and has long been an important consumer of minerals for its refractories, steel, glass, cement and ceramics manufacturing (for more details see in-depth report: Industrial mineral supply disruption: Ukraine crisis).

The stand-out minerals which are produced and exported in volume are kaolin (particularly the important ceramic ball clays of the Donbas region), the titanium minerals ilmenite and rutile, and zircon – one of Europe’s few sources of these minerals.

There is also noteworthy production of fused alumina, silicon carbide (centred in Zaporizhzhia), graphite (Zavallya), and kyanite (by-product of titanium-mineral mining at Vilnohirsk) – these minerals are of great interest to the refractories market, and for graphite, also the emerging lithium-ion battery market, though their export volumes have been at small to moderate scale.

Of all the minerals produced in Ukraine, it is the ceramic clay supply sector which is going to have the most severe impact on European (and perhaps other) consumers.

VESCO is Ukraine’s largest ceramic ball clay producer, which under normal circumstances has some 900,000 tonnes of clay grades available; VESCO sold 2.4m tonnes of clay in 2020, exporting about 84% to 18 countries. The largest consumers were ceramic tile manufacturers in Spain, accounting for >26%; this market sector, dependent on these white-firing clays, is now urgently assessing alternative options. Courtesy VESCO

Ukraine is one of the world’s leading suppliers of high quality ceramic clays, also called ball clays. The majority of deposits (some 360m tonnes of kaolinite resources) are concentrated in the Donbas region, near Donetsk, eastern Ukraine. These clays are highly suitable for porcelain tile production as they exhibit high plasticity, high whiteness, and low water absorption after firing.

Some of Europe’s leading ceramic mineral supply groups have established operating subsidiaries in the Ukrainian clay sector, such as Sibelco, Imerys, AKW.

Although USGS data indicates kaolin production in Ukraine to be 1.6m tonnes, the country’s ball clay production has been reported at levels of 4m tpa.

Indeed, almost 5m tonnes of ball clay was exported by Ukraine in 2019, ranking as the world no.1 accounting for 81% of all such exports.
The main export destinations, mostly through the port of Mariupol, but also via Olbia and Mykolaiv ports, are the dominant ceramic tile producing centres of Spain and Italy, and also Poland and Turkey.

Clearly, and of critical concern for the tile market, ceramic tile manufacturers in these countries have now had their supply of unique ball clay terminated for the foreseeable future.

In Spain for example, recent years saw ceramic tile manufacturing transition from mostly red tile bodies, using domestic clays, to white tile bodies, significantly depending on imported white-firing ball clays mainly from Ukraine (70% of requirements).

With Ukraine clay stocks in EU tile plants anticipated to run out in June, the market is scrambling to find alternative clay sources.

And just a footnote: just two days before the 24 February 2022 Russian invasion, the USGS released its updated (from 2018) “2022 US Critical Minerals List”. Potash was one of the industrial minerals removed from the list. Almost 40% of world potash production originates from Russia (20%) and Belarus (17%) – thus many consumers in Europe, MENA and elsewhere are now impacted by supply constraints.

Interestingly, potash also does not make the EU’s latest Critical Raw Materials List.

This simply underlines the important caveat advised by Dr Steven M. Fortier, Director, USGS National Minerals Information Center: “Mineral criticality is not static, but changes over time.”

China: ongoing supply disruption

While the COVID-19 pandemic may have eased in parts of the world, China remains affected, mainly owing to the government zero-tolerance policy which enforces immediate lockdowns in response to any rise in cases.

Unsurprisingly, this has led to widespread disruption in mineral production and exports to world markets owing to continuing intermittent mine, plant, and port lockdowns.

In addition, now in the second year of China’s 14th Five-Year Plan (2021-2025), President Xi Jinping’s anti-pollution drive moves on unabated, with ongoing resource conservation, environmental controls to meet government goals, resulting in mine/plant inspections, disruptions, and temporary and permanent shutdowns.

The now annual Oct-March Winter Shutdown is a major disruption to all energy-intensive operations, eg. all mineral processing, calcination, and fusion.

For example, during January-mid-March 2022, plants within 600km of Beijing were required to close, forcing mineral processors at the important export port of Tianjin to work only at night, and no production, just bagging.

Congestion and interruption to activities at Chinese ports has had a significant impact on mineral export flows from China; (left) refractory mineral exports being loaded; (right) port congestion in the Shanghai/Ningbo area 2 June 2022; on 28 April 2022 Windward stated “24.3% of all container vessels waiting outside ports globally are waiting outside China ports.” Courtesy: Refmin; Marine Traffic

The upshot of the above is that Chinese mineral output and export flow has been interrupted as ports have been incredibly congested, and at time of writing were just starting to open up.

The suspension of port activities has also led to poor loading management (causing delays at Western discharge ports), unsuitable vessels, and extended voyage times of 140+ days. In April 2022, it was reported that 24.3% of all container vessels waiting outside ports globally were waiting outside China ports.

There is no doubt that China will remain an important force in industrial mineral supply to world markets, and its domestic mining sector is busy reforming and modernising with green mining and upgrading plants with new processing technology.

But maybe we are seeing the end game for easy low cost Chinese mineral supply. The adverse factors of the last few years is shaping a future likely to see more of a balanced consumption of minerals between China and non-China sources, as global mineral consumers and traders finally appreciate the risks associated with having all their supply eggs in the one China supply basket.

Mineral development boom

So, a positive consequence of the China situation has been the lease of life it has given to industrial mineral project developers outside China, especially those minerals for which China was normally dominant in supply.

In the magnesia market, world leader RHI Magnesita has committed to expanding investment and operations in Brazil, as well as creating a dolomite production hub in Europe. Other players in Brazil, IBAR Nordeste and Magnesium do Brasil are also looking to recoup market share with expansions, while Grecian Magnesite has opened a new underground mine.

Non-metallurgical bauxite supply, almost monopolised by China, is now seeing two new sources come on-stream: First Bauxite LLC, Guyana (strengthened by its recent acquisition of US Ceramics providing calcination plants; for details see First Bauxite acquires US calcination plants) and Bautek Minerais Industriais Ltda, Brazil (for details see New dawn for Brazilian bauxite).

The planned mine and plant footprint for Bautek Minerais Industriais Ltda: (top right) Bautek’s bauxite is sourced from TGM’s high grade bauxite deposit at Barro Alto, Goiás hosting 200m tonnes of proved reserves grading >55% Al2O3, expected to increase output from 300,000 tonnes in 2021 to 600,000 tonnes in 2023; (bottom right) in March 2022 Bautek started its first new 36,000 tpa rotary kiln, two further kilns planned end-2022/2023, with combined capacity of 140,000 tpa. Courtesy Bautek

Graphite demand is clearly being driven by the EV lithium ion battery evolution, but again, consumers are wanting to look outside China and finding a lot of action especially in eastern Africa and Madagascar, but also Australia, Asia, Scandinavia, and the Americas.

With its investment in Bissett Creek, ON, and recent acquisition of Imerys graphite operations of Lac des Iles, Quebec and Okanjande, Namibia, Northern Graphite could be on course to be North America’s leading graphite producer and the world’s third largest producer outside China.

The future is looking good for industrial mineral development and in general consuming markets are buoyant.

The real challenges will be in trying to maintain logistic supply lines at reasonable rates for at least another year of turmoil in the shipping market, tactfully educating customers as to the prevailing supply situation, as well as developing and employing, as economically as possible, new (and ultimately perhaps legally required in not too distant future) carbon emission reduction, “green” mining, and recycling practices for a sustainable future.

Keep up to date with the latest industrial mineral developments

China Refractory Minerals Forum 2022 ONLINE 14 September

Fluorine Forum 2022, Hanoi, 11-14 October

Salt Forum 2022, Hamburg, 15-17 November 

CLICK ON ABOVE FOR DETAILS

CRM reality check, sustainability & recycling | EIG 2022 Review

IMFORMED was honoured to speak on recycling industrial minerals at last week’s 22nd Extractive Industry Geology Conference, hosted by the Camborne School of Mines at the University of Exeter.

Some 170 delegates from across the UK’s minerals industry attended this well-established event enjoying the sunshine, a range of topical presentations, and primarily relishing the first opportunity for many to reconnect in person after two years or so.

Title Image Breakin’ Rocks in the Hot Sun: in this case, the ball clay operations of Sibelco UK at its Preston Manor mine, near Newton Abbott, Devon, south-west UK, host to one of the EIG 2022 Field Trips – more pictures below.

Critical raw materials (CRM) and the UK’s role in their future supply featured strongly in this year’s programme, not least owing to the proximity to Cornwall’s emerging lithium developments.

The Ansel Dunham Memorial Lecture was presented by Dr Karen Hanghøj, Director, British Geological Survey (BGS): “Critical Mineral Resources for the Energy Transition”.

In a lively, good humoured, and impassioned talk, Hanghøj emphasised the importance of CRM and their imperative role in transition to a green economy, underlining the need for their sustainable and responsible sourcing in the future.

CRM Reality Check: The Ansel Dunham Memorial Lecture was presented by Dr Karen Hanghøj, Director, BGS (right), who was preceded by Prof. Robin Shail, Assoc. Prof. of Geology, CSM (left), talking on the geology of south-west England.

Central to her talk was highlighting the main barriers to increasing CRM development and production, which include a concerning disconnect in understanding between criticality and large scale investments.

This regrettably fosters political and public resistance to CRM development which is seen as a negative environmental impact. Poor understanding of timescales of extractive projects and complexity of environmental impact contribute to this issue.

Hanghøj urged that a significant shift in both public opinion and investor appetite is required, and the minerals industry must up its game to engender public awareness and an increasing transparency regarding sourcing of CRM, to enable relevant policy actions and successful development to come to fruition in good time.

With this in mind, Hanghøj announced the recent launch of the UK’s first Critical Minerals Intelligence Centre (CMIC), aimed to help build a more resilient economy by collecting and analysing information on the supply of CRM.

Officially launched by UK Industry Minister Lee Rowley on 4 July, the CMIC will be hosted by the BGS at Keyworth, and provide policymakers with up-to-date data and analysis on supply, demand, and market dynamics. This data will then be used to develop evidence-based policies aimed at developing more robust critical mineral supply chains to the UK.

Work is already underway, and as its first major milestone, the CMIC has just published: Study on future UK demand and supply of lithium, nickel, cobalt, manganese and graphite for electric vehicle batteries.

Wonderful to meet up with old friends at the EIG 2022, especially glass raw materials guru Alan Reynolds, widely respected consultant in analysis, testing, of glass raw materials, refractories & similar materials.

Recycling the way forward

Sustainability and recycling were also key topics cropping up all over the programme, although the only paper specific to recycling was presented by Mike O’Driscoll, Director, IMFORMED “Waste Deep in Opportunities: Trends in Recycling Industrial Minerals”.

In a new era of mineral exploration, sourcing, and development for industrial minerals, recycling will be of paramount importance.

As recent and ongoing issues and events prompt mineral consumers and traders to undergo a widespread mineral sourcing strategy rethink, an acceleration in mineral recycling is already emerging.

O’Driscoll highlighted the main drivers, latest trends and developments with examples, and concluded with a review of the challenges and opportunities in this evolving sector of the industrial supply chain.

For a FREE download of Mike O’Driscoll’s presentation “Waste Deep in Opportunities: Trends in Recycling Industrial Minerals” please click here.

As ever, the EIG served up an excellent choice of field trips: under the expert guidance of Sibelco UK’s Chrisha Calunod, Operational Geologist (bottom right picture, centre), and Gordon Witte, Chief Geologist Central & Eastern Europe (same picture, left), IMFORMED visited the company’s extensive ball clay operations at Preston Manor, Devon; some 1m tpa ball clay and kaolin across 60 grades is produced, with 90% being exported via nearby Teignmouth, and more recently Avonmouth, mostly for ceramics markets.

As well as a presentation (“Unearthing the Future- an Update on the Hemerdon Tungsten Mine” by Ross Facey, Managing Director, Aggregates West), Tungsten West hosted a visit after the conference to its Hemerdon Tungsten Mine; shown here on the visit is Clive Mitchell, Industrial Minerals Geologist, BGS, who presented an excellent talk on “Graphite Resources in Africa: Carbon for Decarbonisation.” Courtesy Clive Mitchell

IMFORMED is also organising a visit to the world class tungsten-bismuth-fluorspar operation of Masan High Tech Materials at Nui Phao, Vietnam as part of its upcoming Fluorine Forum 2022, Hanoi, 11-13 October 2022 – details here.

AND SAVE THE DATE!!!

IMFORMED was delighted and honoured to have its Refractory Raw Material World Sources Map® reproduced in the feature articles section of the August 2022 issue of the American Ceramic Society Bulletin (map details here).

The section focused on mineral supply for the ceramics and glass industry, including critical mineral supply chains and refractory raw materials.

Also featured was an interesting interview with Luis Bittencourt, Chief Technology Officer, RHI Magnesita. Luis is also President of ALAFAR, which is holding its 42nd ALAFAR Congress in Foz do Iguaçu, Brazil, 7-12 November – which as well as a stimulating programme, includes a visit to the famous Iguazu Falls.

Mike O’Driscoll, Director, IMFORMED has been invited as a Keynote Speaker and will be presenting “Testing times as new era of mineral supply dawns: Global refractory mineral supply trends & outlook”

Other recent refractory mineral presentations by Mike O’Driscoll are now available for FREE DOWNLOAD:

The Heat is On: Refractory raw material supply outlook
XI European Congress of Refractory Raw Materials, Machinery & Installation, Barcelona, 11-12 May 2022, co-organised by ANFRE & IMFORMED

Riding the Tiger: Refractory raw material supply outlook
UNITECR 2022, Chicago, 15-18 March 2022

Please click here to access free download

China’s refractory minerals: latest developments & outlook

Meanwhile, we have our upcoming China Refractory Minerals Forum 2022 ONLINE, Wednesday 14 September.

See which companies are attending here.

Programme starts at 10:00 BST, and we have an excellent panel of speakers:

China refractories outlook
Dr Richard Flook, Managing Director, Mosman Resources, Australia
Current status & outlook for Chinese magnesia production & exports
Hellen Du, Sales Manager, Fupeng International Group Ltd, China
Graphite trading trends in transition
Jack Gao, Managing Director, Refmin China Co. Ltd, China
India’s refractory market future & the influence of Chinese raw material supply
Parmod Sagar, Managing Director & CEO, RHI Magnesita India Ltd, India
Sustainability in the refractory market
Chen Feng, Sales Director, Imerys China Refractory Producers, China
Shipping market outlook from China
Eddie Boo Koh, Regional General Manager – Greater China Area, Access World, Singapore
Reliance on China: is it strategically advisable? Knowns & Unknowns
James Devlin, Managing Director, China Mineral Processing Sales Europe, UK

Following the presentations will be our ROUNDTABLE BREAKOUT SESSION for informal networking and discussion, as well as private messaging.

Spaces still available | Full details & registration here

IMFORMED will also be attending the ICR-International Colloquium on Refractories, Aachen, 28-29 Sept. – please drop by our stand for a chat, we would be delighted to meet you.

Fluorspar market awaits outcome as it readies to meet at Fluorine Forum 2022

Canada’s beleaguered newcomer to the global fluorspar supply sector, Canada Fluorspar Inc. (CFI), is awaiting news, potentially by mid-October 2022, of a positive outcome to end its period of interim receivership and closure since February 2022.

On 30 August, Newfoundland’s Supreme Court granted an extension to finalise the purchase with investors who plan to restart the operation, reported local news agencies.

Title image Digging out of a hole: The fluorspar mine at St Lawrence, Newfoundland, having only recently emerged into a grateful market was closed in February, and is now hoping for a new owner and potential restart in October. Courtesy CFI

All parties, and apparently there was much international interest in acquiring the facility, are expected to return to court in late September to seek formal approval of the sale, which must be completed by 17 October.

It was reported that Phil Clarke of Grant Thornton, who is acting as monitor for the sales process, which is being carried out under the Companies’ Creditors Arrangement Act, said: “My understanding is the intent of the successful bidder is to reopen the mine.”

The successful bidder out of “multiple bids” was selected on 18 August.

The court process had freed up C$6.5m to maintain the operation while the company and creditors worked on a restructuring plan and search for new investors.

All but a few of the 250 employees have been laid off, and CFI owes almost C$128m to some 250 organisations. CFI’s former owner, private equity firm Golden Gate Capital, withdrew monetary assistance in February 2022.

Canada Fluorspar Inc.’s new marine terminal at Blue Beach in St. Lawrence Harbour received its first vessel, FWN Paula, in late July 2021 for fluorspar loading; the 17 metre draft now permits larger vessels for export markets. Courtesy CFI

The mine at St Lawrence, Burin Peninsula, Newfoundland, has had a chequered history of development and production. It was reactivated in 2017 following almost 40 years of exploration and attempts to restart operations since the mine closed in 1978 (for history and details see Fluorspar revival in Newfoundland).

However, it then experienced several setbacks, including stalled construction and mine expansion, processing issues, and a new docking terminal, compounded by the Covid-19 pandemic from 2020.

July 2021 witnessed somewhat of a false dawn for the operation when CFI celebrated its first fluorspar shipment from the new marine terminal at Blue Beach in St. Lawrence Harbour, with its 17-metre draft permitting use of larger vessels for export markets.

According to the company, the St Lawrence Fluorspar Project resource exceeds 22m tonnes of fluorspar, and has a mine life of approximately 30 years.

CFI has invested just over US$400m in the operation, which has a production capacity of around 180,000 tpa acidspar.

Emerging fluorspar source in Utah

A few years ago, CFI was ahead of the pack of emerging new fluorspar producers. New and alternative sources of fluorspar remain in demand by the market following several years of production capacity loss through closing operations worldwide – most recently Samine’s El Hammam underground fluorspar mine in Morocco in December 2021.

Consumers also had some concern earlier in the year from the world’s leading fluorspar producer, Koura Global, Mexico. Production levels at the company’s Las Cuevas Mine in San Luis Potosi, Mexico, were reduced owing to safety issues affecting an access ramp and Koura subsequently declared force majeure for its H1 2022 supply contracts.

A major factor has also been the transformation of the Chinese fluorspar industry, for many years the world’s leading supplier of acidspar and metspar grades.

In recent years China has seen a dramatic decline in domestic fluorspar ore quality and operating mines, while at the same time its domestic market (fluorochemicals, and more recently Li-ion batteries) has increased consumption. The upshot being that China is now a net importer of fluorspar.

Therefore, fluorspar consumers are following the fate of CFI with great interest (see Fluorine growth in batteries & semiconductors | Supply tightens).

They will also be closely following the progress of Ares Strategic Mining Inc.’s fluorspar mine and plant development at Delta, Utah, potentially to become the USA’s sole fluorspar producer.

Ares is developing the Lost Sheep Fluorspar Project, owning 5,982 acres hosting 353 claims, including mine permits, located in the Spor Mountain area (a former fluorspar mining district), Juab county, Utah, approximately 214 km south-west of Salt Lake City (for details see Fluorspar supply sources emerge).

In January 2022, Ares completed a generative drill target programme which yielded 160 fluorspar exploration targets for testing in the coming years, including fluorspar pipe clusters “which indicate strong open pit potential”. Courtesy Ares Mining

Technical studies confirm grades at Lost Sheep averaging approximately 75% CaF2, higher than grades from Mexico and Vietnam.

In July 2022, the company received plant equipment and materials for construction of its planned 3-storey metspar plant in co-operation with its strategic partner, Mujim Group of China (itself a fluorspar processor in China, Laos, and Thailand).

On 18 August Ares announced the approval of US$4.92m financing from the US Dept. of Agriculture under its Business and Industry Guaranteed Loan Program (initiated to promote rural development).

Elsewhere, Ares is evaluating a 4,800ha fluorspar property 200km north-west of Fort Nelson, north British Columbia, where it owns 100% of mineral claims; and has signed an agreement to develop the Campbell Croster Fluorspar Project, Kentucky.

At present, the USA’s total fluorspar market requirement is all imported, and in 2018 the US government classified fluorspar as a Critical Mineral, “deemed critical to US national security and the economy”.

According to the USGS, US fluorspar imports in the first quarter of 2022 were 114,000 tonnes (91% acidspar; 9% metspar). The leading sources of acidspar imports were Mexico (60%), Vietnam (22%), and South Africa (17%); Mexico accounted for almost all the metspar. Total US fluorspar imports for 2021 were estimated at 470,000 tonnes.

Fluorspar market to gather in Hanoi, October 2022

The latest developments on all of the above, plus trends and outlook for fluorspar supply and demand are to be presented and discussed at IMFORMED’s upcoming Fluorine Forum 2022, 11-13 October, at the Pan Pacific Hanoi, followed by a Field Trip to the Nui Phao operation of Masan High-Tech Materials on 14 October (full details here).

The conference will be essential to all those active or with an interest in the fluorine mineral supply chain, from exploring, developing and mining fluorspar sources and alternative F sources, through logistics and processing, to end use applications and market demand trends.

Over 100 attendees already registered – see here.

The Forum starts with a Welcome Reception, sponsored by Masan High-Tech Materials at the beautiful UNESCO World Heritage Site the Imperial Citadel of Thăng Long, a complex of historic imperial buildings located in the centre of Hanoi. It was first constructed in 1011 under the reign of Emperor Lý Thái Tổ of Lý dynasty.

Confirmed speakers

Acidspar market: the view from Vietnam
William Parry-Jones, Head of Sales & Marketing Vietnam/Tungsten Raw Materials, Masan High-Tech Resources Corp., Vietnam
Global fluorspar supply: what is changing in the industry?
Euston Witbooi, Research Analyst, Project Blue, South Africa
Sustainable mining at the world’s largest developed fluorspar source
Wiekus Coetzer, Global Head of Mining, Koura Global, Mexico
Pakistan: Fluorspar and Gateway to Critical Minerals
Shahid Hamid Jafri, CEO, Perfect Associates Ltd, Pakistan
The role of make-up water, gangue mineralogy & electrokinetic potential in fluorite flotation
Johan Brits, Project Executive, SepFluor Ltd, South Africa
New European source of fluorspar with by-product lithium
Peter Robinson, Managing Director, Land Regeneration Management, UK
Fluorochemicals trends & outlook
John D. Zielinski, Executive Buyer, Chemours, USA
Impact of e-mobility on fluorspar demand
Oliver Rhode, CEO, XENOPS Chemicals GmbH & Co. KG, Germany
The role of fluorine in battery systems: Beyond electrolytes
Chris Potgieter, Director, BFluor Chemicals (Pty) Ltd, South Africa
Hydrofluoric acid: fundamental precursor for organic & inorganic fluorochemicals review & outlook
Samantha Wietlisbach, Director Minerals Research and Analysis, S&P Global Commodity Insights, Switzerland
Comparison of LBD and HBD aluminium fluoride in aluminium smelting
Hanna Sjoberg, CEO, Alufluor AB, Sweden
Diversification opportunities offered by BCT technologies: FSA to HF, HF to AlF3, HF to LiF/LiPF6
Emre Sen, Sales Manager-Fluorine Technologies, Buss ChemTech AG, Switzerland

Don’t miss out, Book now!

Registration and Full Details

New sources of salt are being developed to meet the rising demand for salt worldwide. Some 330m tonnes of salt is consumed globally, with the primary markets being the chloralkali and deicing sectors.

The Asia-Pacific region is seeing significant market demand growth estimated at 35% over the next decade. However, the region has been beset by shortages in salt supply this year and has bolstered prospects for a raft of salt projects in Western Australia (see below).

Title Image Sun, sea & salt in the Pilbara: The salt ponds of Shark Bay Salt Pty Ltd, owned by Mitsui & Co. Ltd, which operates two solar salt mines at Shark Bay and Onslow, Western Australia, producing about 4m tpa. Inset: Salt harvesting at one of Dampier Salt’s operations; the Rio Tinto (68%) subsidiary exports >5m tpa from mines at Dampier, Onslow, and Port Hedland. At least three other solar salt projects are looking to come to fruition in the Pilbara. Courtesy Todd Kennedy, Mitsui & Co.; Rio Tinto.

In spite of its relatively low value (rock and solar salt ranges US$50-120/t) salt trade is significant with around 50m tpa exported by >50 countries, although just over 40% is accounted for by India, Chile, and Mexico (see chart).

Logistics and market proximity to consuming markets are of paramount importance in the salt industry, hence the intense interest in development of a new rock salt source in Newfoundland for the eastern US/Canada markets reliant on imports, and Western Australian projects to serve Asia-Pacific markets (see below).

IMFORMED is launching a new conference to provide an international networking and knowledge sharing hub for this industry to discuss the latest trends and developments in salt supply and demand: Salt Forum 2022, Grand Elysée Hamburg, 15-17 November 2022.

The Forum will also incorporate a Salt Industry Training Seminar on Tuesday 15 November, supervised by world renown salt specialist Vladimir Sedivy, President, Salt Partners Ltd.

Confirmed Speakers & Full Details here

EARLY BIRD ENDS SOON – BOOK NOW!

Asian salt shortages: India output down | Philippines short

Not helping has been the decline in output from India this year, the world’s largest salt exporter and third leading producer at around 30m tpa salt (see chart) which will impact consumers in the Middle East and Asia.

India salt supply is expected to drop by 30% in 2022, owing to an extended monsoon season which has delayed onset of the solar salt harvest season in Gujarat, the country’s largest salt-producing state responsible for almost 90% of domestic production.

Flooded salt pans in Thoothukudi district, Tamil Nadu, India’s second largest producing area, which has reduced annual production by 50%. Courtesy N. Rajesh, The Hindu

Thoothukudi district in Tamil Nadu state, south India, the second largest salt producing region at 2.5m tpa, has also been affected by untimely rains that have caused stagnation of rainwater in the salt pans.

The annual strong westerly summer wind which substantially increases salt production in Thoothukudi was absent this year. Intermittent rains in July and August compounded the problem to the extent that salt production has been halved, to 1.25m tonnes for 2022.

Consequently, salt prices in India have reportedly more than doubled from around US$12.5/t to US$25-38/t.

In the Philippines, a row has erupted within the government regarding the funding and development of much needed domestic salt production, claimed as neglected.

About 90% of domestic demand (around 600,000 tpa) must be met with imports. The country is in the world’s top 20 importers of salt. During 2017-2022, annual imports of salt to the Philippines ranged 500,000-700,000 tpa.

Newfoundland mine project targets import-reliant N. American deicing market

Atlas Salt Inc. is active in two salt projects on western Newfoundland: mainly its 100%-owned Great Atlantic Salt Project, and the Fischell’s Brook salt dome.

The Great Atlantic Salt Project, located at the Bay St George Sub-Basin, is at feasibility stage, and features what is claimed as the shallowest salt deposit in North America currently being developed for mining.

Atlas states “This planned state-of-the-art ‘Salt Factory’ would be a ‘disrupter’, the first new underground salt mine in North America in more than 20 years”.

Certainly, amid the prevailing climate of (somewhat belated) government initiatives to fast-track development of domestic raw material supply chains to ease net import reliance, this project could serve the domestic salt sector well.

Located near a deep water port, Great Atlantic is strategically positioned to serve the important eastern North America road salt market which relies on significant volumes of overseas imports to meet annual demand.

According to Atlas, North America faces an annual road salt production shortfall of 7-10m tonnes, which is at present met by imports from Chile and North Africa.

In 2021, salt imports into the USA included some 5m tonnes from Chile and 1.4m tonnes from Egypt, the countries accounting for 30% and 11% of US salt imports during 2017-20, respectively (see chart). Morocco also exports salt for deicing to north-east USA.

The homogeneous deposit hosts a NI-43-101 independently verified Inferred Resource of 908m tonnes grading 96.9% salt using a 95% NaCl cut-off grade. Resource modelling indicates a “tremendous continuity” of the salt resource with an average gross thickness of 200 metres.

Distance to the top of the salt formation varies from 190-400 metres, making Great Atlantic the shallowest deposit of all rock salt deposits in North America.

Atlas Salt envisions an environmentally friendly, low-cost operation, producing an initial 2m tpa (subject to BFS), using the latest technologies in underground salt mining.

Under evaluation is an inclined ramp as opposed to vertical shaft access, subject to final geotechnical assessments. Simple physical processing – mine, crush, screen and load – is expected.

Meanwhile, to unlock the value of its Fischell’s Brook Salt Dome, and the concept of a “Clean Energy Hub” along the prolific Bay St. George Basin, Atlas is in the process of completing a “spinout” that will involve a share distribution to Atlas shareholders.

Don’t miss…

Patrick Laracy, CEO Atlas Salt, Canada

“The North American salt market”

Saddam Elsharef, President, Saddam Minerals Co.,

“Egypt on Rising global demand for Egyptian deicing salt”

 Book Now!

Australian solar salt players eye expanding Asia-Pacific market

Over the next decade, salt demand from East Asian markets such as China, Japan, South Korea, and Taiwan is expected to increase significantly, and outstrip current supply sources in the region.

The Asian salt market has been estimated at 160m tpa salt (US$6.5bn), and is expected to see a major increase by some 35% to >50m tpa over the next ten years.

There are several projects in Australia looking to take advantage of this opportunity, clustered around the north-east coast of Western Australia (the Pilbara), and near existing salt producers (see map).

Leichhardt’s Eramurra Solar Salt Project, 55km west of Karratha near Cape Preston, Western Australia is aiming at production of 4.2m tpa of high grade chemical salt, targeted to Asia-Pacific chemical markets starting in 2027.

An advanced scoping study was completed in Q3 2021, and exploration licences have been granted and preliminary field test work completed, while BFS target completion is anticipated in April 2023.

Leichhardt awarded a multimillion-dollar contract to BG&E Resources to undertake a BFS into development of the Eramurra Solar Salt Project. Courtesy Leichhardt.

In 2023, a four-month construction of salt ponds is planned. The ponds will receive seawater and build up salt reserves ready for harvest in 2025. This process is expected to take 18 months. The company “has a very positive outlook” to its first salt shipment projected for 2027.

Leichhardt, based in Perth, anticipates developing a new multi-user, multi-commodity port at Cape Preston East with the support of the Northern Australia Infrastructure Facility (NAIF). Currently, the export infrastructure is planned to include a 1,500 metre trestle jetty and use a trans-shipping model of loading for ocean-going vessels offshore.

BCI Minerals Ltd, also based in Perth, is developing the Mardie Salt & Potash Project, a potential Tier 1 solar evaporation operation located on the West Pilbara coast, Western Australia.

Mardie has been designed to produce 5.35m tpa of high purity salt (>99.5% NaCl) and 140,000 tpa of sulphate of potash (SOP; >52% K2O) using seawater and a production process driven mainly by solar and wind energy.

The facility will comprise 9 evaporation ponds, 42 salt and 20 SOP crystallisers, a salt wash plant, and the SOP process plant.

A Final Investment Decision (FID) on the project was made in October 2021 and main construction commenced in Q1 2022. Installation of six pumps with 3,000 L/s seawater capacity is scheduled for Q3 2022 and their commissioning anticipated in December 2022.

Salt plant construction is planned for 2023-24, with the first salt shipment now envisaged for H2 2025 (initially hoped to be end-2024) after having to implement project design adjustments to improve its long-term resilience to extreme weather events.

Mardie is planning to become the first major salt project developed in Australia in two decades and the only Australian operation to produce commercially saleable salt and SOP. It will be the largest salt operation in Australia, and with potential expansion could become one of the largest solar salt operations globally. Courtesy BCI Minerals

The project is to build and use its own export terminal to ship salt to key Asian markets, utilising a 12,000 tonne self-propelled transhipment vessel to reach vessels up to 160kt anchored 28km offshore.

BCI has already signed MoUs with “well over a dozen” potential Asian customers which it hopes will translate to offtake agreements. Mardie’s salt output is targeted at China (35%), Japan (15%), S. Korea (10%), Taiwan (10%), with rest to South East Asia customers.

BCI’s other assets include shareholdings in Agrimin Ltd (15%; developing the Mackay Potash Project, Western Australia) and Highfield Resources Ltd (7.23%; developing the Muga Potash Mine, Spain, with potentially 500,000 tpa salt as by-product; mine construction commenced late June 2022, production envisaged late 2024).

Salt industry experts Salt Partners Ltd, Switzerland, were awarded the contract to supply the proprietary HYDROSAL® salt purification technology for the salt wash plant at the Mardie Salt Project.

As part of Salt Forum 2022, Vladimir Sedivy, President, Salt Partners, will be conducting a Salt Industry Training Seminar on Tuesday 15 November as well as presenting “Solar salt for the chlor-alkali market” at the Forum.

The Seminar will provide a comprehensive and professional introduction and overview of the salt industry. All key topics will be covered but interested participants are invited to request specific aspects to be included.

Full Details Here

In 2016, K+S Salt Australia started the planning process for the Ashburton Salt Project: the construction of a 4.5m tpa solar salt facility near Onslow, Western Australia, with a view to serving Asian markets.

K+S Salt Australia is currently working with BG&E Resources on the final feasibility study for the project and working through approvals.

In December 2021 an Environmental Scoping Document was approved, which included an increase in the nominal annual salt production capacity for the Ashburton Salt Project from 4.5m tpa to 4.7m tpa.

However, despite being Europe’s leading salt producer (9m tpa production capacity), in November 2021 K+S announced that it would “place its strategic focus on its core business with potash and magnesium products.” In 2020, K+S sold its Americas salt business for US$3.2bn to Kissner (Stone Canyon – now the largest salt producer in the world with production capacity of >29m tpa). Where this leaves the future of the Ashburton Salt Project remains to be seen.

CONFIRMED SPEAKERS*

Salt market trends & outlook
Stefan Schlag, Salt Market Information, Switzerland
Solar salt for the chlor-alkali market
Vladimir Sedivy, President, Salt Partners Ltd, Switzerland
Growth market insight & developments
Euston Witbooi, Research Analyst, Project Blue, South Africa
North American salt market
Patrick Laracy, CEO, Atlas Salt Inc., Canada
Rising global demand for Egyptian deicing salt
Saddam Elsharef, President, Saddam Minerals Co., Egypt
Automation roadmap of salt handling in ports & terminals
Alexander Koschinsky, Sr. Consultant, HPC Hamburg Port Consulting & Bernd Mann, CEO, iSam AG, Germany
Salt recovery from oil drilling fluids
Kerstin Hirsch, Business Development Manager, SEP Salt & Evaporation Plants Ltd, Switzerland
Turkish lake salt production and markets
Ahmet Solak, Key Account Manager, Koyuncu Salt, Turkey
Salt processing developments
Titan Salt, Netherlands
Developments in fossil fuel free drying of salt using low temperature fluidized bed technology
Maarten Holtkamp, Sales Director, TEMA Process BV, Netherlands

* subject to change

FULL DETAILS

EARLY BIRD RATES END SOON

REGISTER ONLINE HERE, or

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

Since its restructuring and new management announced in January 2021, we have been reporting on the evolution of Essen-based global mineral distributor Cofermin Group.

In this latest follow-up article we focus on the management and role of Cofermin’s chromite division, Cofermin Chrome, established in 2015.

Title Image Chromite Horizons: One of South Africa’s leading sources of speciality grade chromite is Tharisa Minerals’ shallow open pit mine situated on the Western Limb of the Bushveld Igneous Complex near Rustenburg, North West province. In 2021 Tharisa mined 5.38m tonnes of chromite ore (up 8.2% on 2020) which yielded a total of 1.5m tonnes chrome concentrates (up 12%), with speciality grades (chemical, foundry) making up 24.2% at 364,600 tonnes. Courtesy Tharisa

The Cofermin Group handles a wide range of industrial minerals used in many different end user markets. Certain of these minerals provide more of a challenge in sourcing and trading than others, and chromite definitely falls into this category.

Chromite, or “chrome” ore, as the traded ore is commercially termed, is one of those industrial minerals which has a relatively limited range of uses, but nevertheless is an essential ingredient for important primary manufacturing sectors: ferroalloys and steel, foundry sands, refractories, and chemicals (see Chromite Capsule below).

These mineral consuming markets are also served by other Cofermin mineral products, so there is a good synergy here for the group.

However, another important characteristic of chromite is that, despite a clearly global consumer market, the choice of worldwide commercially developed chromite sources is extremely limited.

Therefore, with availability and prices highly influenced by end use market performances as well as the prevailing production capacity (among other impacting factors such as logistics), the chromite market is especially challenging.

At the helm of Cofermin Chrome, Managing Directors: Tim Scholten (left) and Michael Neeb (right).

But all this is nothing that recently appointed Managing Director Tim Scholten and his team at Cofermin Chrome cannot handle.

Indeed, they are also able to draw on the experience of “King of Chromite” Cofermin veteran, Bernhard Krüger, who celebrated his 60th work-anniversary in May this year (see Bernhard Krüger, “King of Chromite”, celebrates his 60th work-anniversary at the sharp end).

Tim Scholten joined Cofermin as Head of Sales for Cofermin Chrome in September 2020, after working as raw materials trader at a large corporation for several years.

Somewhat in keeping with the chromite market, the period during which he started at Cofermin was highly turbulent as the Covid-19 pandemic was moving towards one of its high points.

Since then matters have not become that much more relaxed, rather the opposite. In April this year Tim was promoted to the position of Managing Director.

From the 1 January 2021 all four founding partners of Cofermin (Ralf Ossen, Dr. Pawel Golak, Bernhard Krüger and Tim Geldmacher) moved onto the Group’s newly established Supervisory Board.

Their managerial responsibilities and duties have been transferred to their successors, the new management team comprising: Bettina Bohnen (Commercial & Risk Management, HR and Organisation), Michael Neeb (Operations, Sales and IT), Andreas Pabst (Strategy, Business Development and Marketing), as managing directors, and Jens Massenberg, as the Group’s Chief Financial Officer (Finance, Controlling and Compliance).

For details and more on the Cofermin Group please see earlier articles:
Cofermin evolves: talkin’ ’bout a new generation
M!NERALS now one of Europe’s largest industrial mineral suppliers
Bernhard Krüger, “King of Chromite”, celebrates his 60th work-anniversary at the sharp end
“Beyond Commodities”: Successful start for Cofermin’s new magnesia arm IMagine
Cofermin has the right “chemistry”

IMFORMED interviewed Tim Scholten at Cofermin Chrome on its role & outlook

What was the rationale behind the formation of Cofermin Chrome in 2015?
We decided to consolidate various chrome sourcing, distribution and strategic marketing activities in the Group into one entity.

Do you have any physical assets, such as processing/storage etc.?
We work with dedicated partners, both in Europe and abroad to dry, dedust and re-bag as per individual customer requirements.

What are your key business activities? Any recent developments/plans?
Sale of Chromite sand and other chrome related products such as lumpy and concentrate. Due to the changing environment since the beginning of the pandemic we have to adapt to new developments and changes quickly (logistics etc.).

What is the typical annual volume and value of chrome products handled?
When looking at our entire portfolio, sourcing from various countries and considering all the different grades and qualities we deal with, then we typically distribute >50,000 tpa.

What are the main chrome products that you handle, main sources, and their key markets (type & geography)?
Several types of chromite sand, mainly from South Africa. Furthermore we have also been sourcing lumpy chrome from Pakistan and concentrates, eg. from Zimbabwe, Pakistan, Turkey for quite sometime now.

Chromite sand is mainly supplied into the foundry and refractory industry and lumpy as well as concentrates are supplied into the metallurgy, refractory and chemical industry.

What are the key market drivers of the business? How do they influence supply/demand factors?
Demand from the foundry and refractory industry and especially demand from China.

Strong demand from China pulls availability out of the market and tends to drive prices up in markets outside of China.

What are the main influencing factors and challenges for the chrome business right now, and how has/is Cofermin responding to them?
Since the beginning of the pandemic, supply chains have been interrupted and logistics from South Africa have become much more difficult.

That changes the business model in that you have to plan much more ahead. Current times are very dynamic and parameters can change from day to day.

Due to the changes in the market, the logistics and supply situation, we have adapted our stock management which better enables us to meet our customers’ demands.

How do you see the near and medium term outlook for the chrome market?
The current situation is unprecedented, and anyone who is trying to sell you predictions can unfortunately not be taken seriously at this stage – the situation is so fluid.

At this point we emphasise short-term flexibility to be able to respond to changes. Unlike many large corporates in our industry who are busy doing their budget planning for 2023, we have consciously delayed this process for the time being due to the opaqueness of the global geo-political and geo-economic situation.

Chromite Capsule

The availability of chromite (or chrome ore) for non-metallurgical uses is in essence hostage to the fortunes of the ferrochrome and stainless steel industries.

These are the two primary drivers of chromite demand, being the intermediate product and end product, respectively, consuming some 96% of chromite production, and mainly metallurgical grade chromite (40-42% Cr2O3).

Ferrochrome, as High Charge FeCr and Charge Cr, is consumed in steelmaking: 78% stainless steel, 18% alloyed steels. About 0.4% is consumed in chrome metal production.

The remaining 4% or so of world chromite production is composed of higher grade chromite (45-47% Cr2O3), the so-called “special grades”, consumed by three main non-metallurgical markets: chemical, 1.9%, foundry, 1.5%, and refractories, 0.2%.

The largest non-metallurgical market, chemicals, maybe further sub-divided into: leather tanning, 32%, plating, 32%, pigments, 32%, chrome metal, 20%, and wood treatment, 9%.

South Africa is the world’s dominant producer and exporter of chromite, and its large resources of chromite are located in the western and predominantly in the eastern limbs of the Bushveld Igneous Complex (BIC).

The country hosts 70% of the world’s total chromite reserves, which total 7,600 million tonnes. Chromite is mined primarily from the UG2, MG and LG chromite seams.

Other (non-met. grade) chromite sources include: Oman, Pakistan, Philippines, Zimbabwe.

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