Industrial Minerals


Projects in the Pipeline: New supply could end industry bottleneck

August 2012

by John Ollett

The minerals rutile and ilmenite, and to a lesser extent leucoxene, are key feedstock minerals used to make the white pigment titanium dioxide (TiO2) which has dominated headlines in recent months. Pigment prices have rocketed to reach as high as $4,000/tonne (CIF US) in July 2012 from an average of $2,630/tonne just two years previously.

Keywords: titanium dioxide, rutile, ilmenite, leucoxene, feedstocks, Iluka Resources, Richards Bay Minerals, Rio Tinto, Exxaro, Tronox

The minerals rutile and ilmenite, and to a lesser extent leucoxene, are key feedstock minerals used to make the white pigment titanium dioxide (TiO2) which has dominated headlines in recent months. Pigment prices have rocketed to reach as high as $4,000/tonne (CIF US) in July 2012 from an average of $2,630/tonne just two years previously.

The main reason for this price hike is the short supply of the feedstock minerals, on which the pigment industry depends. As a result, a number of new projects are springing up around the world as the exploration for new deposits continues.

Traditional major producers are also investing in expanding existing facilities as well as green and brownfield deposits, which will help them address the supply shortfall.Changing face of the industryHistorically, feedstock production has been dominated by Rio Tinto, Iluka Resources and Exxaro Resources, but this is beginning to change. New...