While China remains the most important talc producer in the
world, the balance of exports of talc have dramatically changed
with more talc powder being exported from the country over
lumps: 547,908 tonnes of powder were exported in 2017
compared to 264,613 tonnes in 2006. Comparisons between
2006 and 2017 are shown in Table 1.
That said, increases in the costs of Chinese white talc and
powder in recent years have put it at a competitive
disadvantage especially to Pakistan and Afghanistan, which have
become important suppliers of white talc to world markets.
| Figure 1: Variation of mineralogy of some
talc deposits |
|
| Source: Ian Wilson
|
Geology and origin of talc
Leading producer Imerys Talc classifies talc deposits into
four types based on the rocks from which they are formed:
1. Magnesium carbonate
2. Serpentinite
3. Siliceous or silico-aluminous rocks
4. Magnesium sedimentary deposits
A summary of three of the types with respect to formation
and some locations is shown in Table 2. Magnesium sedimentary
deposits are included for reasons of completeness but generally
are impure - meaning that talc is associated with other
minerals such as magnesium carbonate and other minerals,
therefore a lot of beneficiation will be necessary - so little
is currently mined in significant volumes although the
potential resources are large, particularly in China.
Talc can show variable mineralogy - chlorite, carbonate and
other minerals may be present (see figure 1).
Material mined from some deposits, such as the Finnish
deposits belonging to Mondo Minerals, can be made purer through
beneficiation to remove contaminants. Talc can also vary in
colour, with examples of white, pink, greyish and green types
found across the world.
Talc derived from dolomite and magnesite is generally
macrocrystalline while talc from serpentinite (ultrabasic rock)
is generally microcrystalline.
Global talc production
Table 3 shows estimated talc production for 33 countries in
2016. The USGS estimate for Chinese production in 2016 is 1.8
million tonnes.
Afghanistan was not included in USGS estimates so 400,000
tonnes have been added*, taking overall global talc production
to 6.6m tonnes.
A split of world talc production in 2016 on a regional basis
is shown in Figure 2. Ten countries accounted for 89% of 2016
global production, as shown in Figure 3.
United States
Three companies operated five talc-producing mines in three
US states during 2016 when domestic production of crude talc
fell an estimated 4% year-on-year fall to 660,000 tonnes,
valued at $19.1 million, according to the USGS.
Montana was the largest producing state in volume terms,
followed by Texas and Vermont. Imerys Talc America has
operations in Montana and Vermont, Speciality Minerals in
Montana and American Talc in Texas.
Total sales (domestic and export) of talc by US producers
were an estimated 545,000 tonnes, valued at $97.5 million, a
slight decline from those in 2015. (See figure 6 for market
uses of US imported talc in 2016).
Pakistan accounted for 37% of imports in 2012-15, Canada
27%, China 20%, Japan 5% (including pyrophyllite) and others
11%.
In 2016, talc imports were 385,000 tonnes - 134,750 tonnes
from China, 130,900 tonnes from Pakistan, 100,100 tonnes from
Canada and the rest from other countries (see figure 7)
The USGS reports that more than 75% of imports were used in
cosmetics, paint, and plastics applications based on
high-quality talc, the USGS estimates. Including imported talc,
the US end-use rankings were thought to be (in decreasing order
by tonnage): plastics, ceramics, paint, paper, roofing, rubber,
cosmetics and others.
Imports in 2016 increased by 42% from China and 15% from
Pakistan from 2015. Imports from China were nearly 250% higher
than those in 2014. Canada and Mexico remained primary
destinations for US talc shipments, receiving nearly 70% of
exports.
US talc production increased for three consecutive years
prior to 2016 while apparent consumption has increased for
four consecutive years, USGS talc specialist Daniel Flanagan
reported in January. Still, production and apparent
consumption in 2016 were still about 38% and 19% lower
respectively than in 1995.
Several domestic talc markets have declined over this
roughly 20-year period, with the largest decreases in ceramics
(where talc use fell by an estimated 55%), paint (44%),
cosmetics (43%), and paper (39%) industries.
Ceramic tile and sanitaryware formulations and the
technology for firing ceramic tile changed, reducing the amount
of talc required for the manufacture of some ceramic products.
Many domestic ceramic tile manufacturing plants also closed, a
result of higher tile imports, prompting major domestic
producer Vanderbilt to stop mining talc in 2008.
For paint, the industry shifted its focus to the production
of water-based paint - a product for which talc is not well
suited because it is hydrophobic - from oil-based paint to
reduce volatile emissions. Paper manufacturing decreased from
the 1990s and some talc used for pitch control was replaced by
chemical agents. For cosmetics, manufacturers of body dusting
powders shifted some of their production from talc-based to
corn-starch-based products.
In contrast, sales of domestic talc for plastics rose by an
estimated 85% from 1995 to 2016, primarily the result of
increased use in automotive plastics, although imports from
China, Pakistan and Canada covered a significant share of the
increased demand. The paper industry has traditionally been the
largest consumer of talc worldwide, although plastics are
likely to overtake paper as the predominant end-use within the
next several years because Asian papermakers are making greater
use of talc substitutes - GCC and PCC - and while the use of
talc in automobile plastics increases.
In 2016, US industrial output of paint, coatings and
adhesives increased by 7%. Production of motor vehicles and
parts grew by 5%; housing starts rose by 4%; manufacture of
rubber products increased slightly; and output of paper of
paper and plastics each declined slightly from the previous
year.
If this trend is sustained, consumption of talc could grow
owing to its use in manufacturing catalytic converter bodies
for automobiles (ceramics), automotive body and underhood
components (plastics) and construction products such as
adhesives, caulk, coatings, joint compounds, paint and roofing
products.
Figure 8: Location of main talc deposits of
Nangarhar province,
Afghanistan |
|
| Source: USGS and Ian
Wilson |
Afghanistan and Pakistan
Afghanistan and Pakistan have grown significantly over the
last six years as major suppliers for high-quality talc
markets. In 2016, Pakistan produced an estimated 113,500 tonnes
and Afghanistan 400,000 tonnes or more.
Much of the talc mined in Afghanistan is exported in lumps to
Pakistan, where it is shipped on to the US, Europe, Saudi
Arabia, South America and Asia (including China). Some talc
is processed in Karachi and is exported in containers.
Afghanistan
The main deposits of talc in Afghanistan are located in
Nangarhar province at Khogyani and Sherzad, with other deposits
at Shinwar, Achin and Dih Bala (Figure 8).
One of the highest-quality deposits are in Khogyani, where
talc is found in bands within dolomite (Figure 9) and also
mined underground (Figure 10). Another deposit is in Shinwar,
with talc associated with magnesite. Chemistry, trace element,
mineralogy and brightness details of the Khogyani and Shinwar
talc are shown in Table 4, with both showing low iron and
calcium levels suitable for high-quality polymers and technical
ceramics.
Locals have extracted talc and exported it to Pakistan and
thereafter to other countries, the United States Institute of
Peace (USIP) reported in June.
In Afghanistan, minerals belong to the state and mining
activity can occur with a contract issued on behalf of the
state by the Ministry of Mines and Petroleum (MoMP). Royalties
are negotiated for each contract and are required to pay tax in
accordance with the country’s income tax law. The
MoMP is responsible for monitoring royalty payments whereas
corporate tax is controlled by the Afghanistan Revenue
Department, with export and fees handled by the Ministry of
Commerce and Industry (MoCI).
Many private companies that received licences for talc
extraction extracted more talc that the terms of their
licenses, underpaid the government and made payments to the
Taliban, the USIP reported. Mine operators in Sherzad district
reportedly pay $10 to local officials per ton of talc and $12
to the Taliban. Any private company operating a talc mine needs
to pay "rent" to the Taliban and reportedly in some cases to
ISIS as well.
In response to a Le Monde report that Imerys was receiving
Afghan talc from Nangarhar that was being exported to via
Pakistan, Imerys said in a press release on February 13 last
year that that none of its talc operations are based in
Afghanistan and Pakistan but that it buys ore from external
suppliers to supplement production from its own mines.
Imerys imports talc from Afghanistan and Pakistan through a
single supplier with whom it has developed an exclusive
relationship lasting five years. Imerys’ share of
talc imports from Pakistan (including talc from Afghanistan)
represents less than 1% of its annual talc sales; Imerys
produces 1.5 million tpy.
Concerned about the uncontrolled exploitation of talc and
associated funds going to the Taliban, the Afghan government
declared a blanket ban on the extraction and export of talc in
2015, causing a sudden disruption of supply across the border
and a build-up of talc stocks in Nangarhar.
According to an MoMP official who personally inspects stocks
of talc, about 375,000 tonnes accumulated in Sherzad district
alone. According to the USIP, the stockpile peaked as high as
750,000 tonnes after the ban
Under pressure from downstream purchasers to continue to
supply high-quality Afghan talc, interested parties reportedly
had to pay to arrange a one-time permit to export 100,000
tonnes. Subsequently, foreign and Afghan talc
trader’s reportedly exported talc well in excess
of the permitted amount.
Despite the ban, talc extraction continued in Sherzad,
Khogyani and Achin. Senior officials of the provincial mining
department admit that most of the talc-rich districts of
Nangarhar have come under the influence of the Taliban or ISIS;
both may even have started to engage in direct extraction of
talc in the Sherzad district. In the Achin district, ISIS
reportedly took control of talc and was directly extracting and
selling it to traders.
Amin Karimzai, part of Karimzai Group of Jalalabad, is the
largest talc producer in Afghanistan and owns the majority of
the high-quality talc mining areas in Nangarhar province, with
reported production of 400,000 tonnes in 2013 from
Khogyani.
Amin Karimzai has a joint venture with HZM Marmi e Pietre of
Pakistan to produce, process and distribute the material
overseas. HZM Marmi e Pietre also owns talc mining leases in
Pakistan.
|
Figure 9: White talc with banded
dolomite, Khogyani deposit,
Nangarhar, Afghanistan.
Waqar Mahmood, Capri Corn Minerals,
Pakistan |
|
Figure 10: White talc from underground
mine, Khogyani,
Nangarhar, Afghanistan.
Waqar Mahmood, Capri Corn Minerals,
Pakistan |
Pakistan
Pakistan has deposits of high-grade talc in the Sherwan,
Hazara, Jamrub, Koream Agency, Sefed Kom and Landi Kotalis
areas in the Khyber Pakhtoonkhwa province bordering
Afghanistan.
Production in Pakistan, according to the USGS, was 121,800
tonnes in 2010, 114,100 tonnes in 2011, 110,000 tonnes in 2012,
93,214 tonnes in 2013 and 70,000 tonnes in 2014. Exports of
talc far exceed production - the majority is re-exported
material from Afghanistan (See Table 5).
Capri Corn Minerals, one of Pakistan’s
producers, deals mainly in mainly lump talc (grades: Butter,
A, Rose, B and C). It exported 31,037 tonnes in 2015, 26,166
tonnes in 2016 and 18,813 tonnes in 2017,
Capri Corn has a joint venture with Turkish company
Gülmer Madencilik called Gülmer Capri Corn (Pvt) Ltd
- Gülmer holds 60% and Capri Corn the other 40% - that
produces talc powders at a plant in Karachi. Most of the talc
is supplied from the Khogyani deposit in Nangarhar,
Afghanistan.
The process is a ball mill with aluminium lining and
aluminium balls especially designed for grinding talc. The
plant runs on a two-shift 20 hour day. Output is dependent on
the particle size distribution. For 75µm, output will be
50 tonnes per day and for 20µm output will be 24 tpd. A
view of the processing plant is shown in Figure 11. Technical
data for Gülmer Capri Corn (Pvt) products are shown in
Table 6. The company currently exports to Spain, Poland and
Jordan.
|
|
Figure 11: Gülmer Capri Corn (Pvt)
Ltd plant, Karachi
|
Figure 12: Exports of talc lump and powder
from China,
2006-2017 (metric tonnes) |
|
| Source: Chinese Customs and Professor
Wen Lu, China |
Figure 13: Exports of talc lumps and powder
from China from
2006-2017 (% ) |
|
| Source: Chinese Customs and Professor
Wen Lu, China |
Figure 14: Export fob China price of lump and
powder talc in
2006-2017 ($/tonne) |
|
| Source: Chinese Customs and Professor
Wen Lu, China |
Figure 15. Exports of lump talc to the US,
Japan, Taiwan,
Slovenia and others over 2010-2017 |
|
| Source: Chinese Customs and Professor
Wen Lu, China |
China
Production of talc in China in 2016 was 1.8 million tonnes,
accounting for 27% of global production in 2016. China had held
the leading position in the world market for more than 50 years
until 2010 when white talc exports from Afghanistan and
Pakistan emerged started to increase rapidly.
Exports from Afghanistan and Pakistan rose to 207,000 tonnes
in 2012 and to 502,000 tonnes in 2013 from 29,000 tonnes in
2010. They retreated to 385,000 tonnes in 2014.
During this period, Chinese export quotas, customs duty,
increased labour costs as well as taxes and changes in recent
years raised the costs of exports significantly - Chinese talc
lump prices were higher 20-30% higher than the world market in
2016.
China has since ended its quota system and dropped a 10% tax
on exports.
The proportion of talc lump in Chinese exports has decreased
markedly from 2006 to 2015. After a spike in 2016 - probably
due to difficulties in exports from Pakistan and Afghanistan
because of the ban on mining talc - Chinese talc lump exports
fell again in 2017.
China’s export fob price of lump climbed to
$236 per tonne in 2016 from $121 per tonne in 2006 before
dropping to $211 per tonne in 2017.
China’s main export markets for talc are the
US, Japan and Taiwan (see figure 15).
Detailed figures of tonnage, value and average price
($/tonne) are show in Table 7 for talc lump and Table 8 for
talc powder.
China imported 16,209 tonnes of talc lump in 2017, with
North Korea accounting for 11,760 tonnes and Pakistan 3,724
tonnes of that total.
Imports of talc powder in 2017 were 50, 857 tonnes, of which
10,808 tonnes came from the US, 8,427 tonnes from Pakistan,
7,363 tonnes from South Korea, 7,070 tonnes from the
Netherlands, 6,027 tonnes from Austria, 4,324 tonnes from
France, 1,813 tonnes from Finland and 1,370 tonnes from
Japan.
Acknowledgements: Thanks to Professor Wen Lu (Chengdu,
China), Daniel M. Flanagan, (Talc specialist, USGS), Waqar
Mahmood of Capri Corn Minerals, Pakistan Customs, Liu
Xiangrong (CCCMC, China), Dr Jia Ziuhuang (China), Chinese
Customs, Roskill, Industrial Minerals and others.
*As can be seen from Table 5 Export figures from Pakistan
were high, but much of the talc came from Afghanistan.
So 400,000 tonnes have been included. The USGS
does not include Afghanistan figures. But figures from
Roskill and Pakistan Customs shows the large amounts
exported, with the majority of the talc coming from
Afghanistan.
** Note: Ceramics includes automotive catalytic
converters
Some leading companies
Imerys Talc has mines and processing plants
with combined capacity of 1.5 million tonnes per year. Mines
are situated in the North America, the largest at Yellowstone
(Montana), Argonaut (Vermont) and Penhorwood (Ontario), Three
Springs (Western Australia), Trimouns
(l’Ariège, France), Rabenwald and
Kleinseistritz (Austria), and Rodoretto (Italy). The reserves
reported by Imerys at the end of 2016 were in Americas (59%),
Europe (31%) and Asia (10%).
Mondo Minerals is the world’s
second largest company, with capacity of 780,000 tpy. It has
two deposits at Sotkamo and Vuomos in Finland.
IMI Fabi is an Italian company that
currently supplies high-quality talc products globally. It
has operations in Europe, the Americas and Asia Pacific with
estimated capacity of 400,000 tpy.
In Europe, IMI Fabi has talc deposits in Italy at Valmelenco
(north of Sordio) and at Sa Matta and Su Venosa in Sardinia.
In 2017, IMI-FABI acquired Sibelco’s talc
operations located in Uikhoven, Belgium, now known as IMI
Fabi Uikhoven.
In Asia IMI Fabi has an operation in China - Aihai IMI
Minerals Co Ltd in Haicheng, Liaoning province. This is a
joint venture with Aihai Talc. IMI Fabi Australia Pty Ltd has
a mine and processing plant at Mount Seabrook, Western
Australia. The deposit is a pure and lamellar talc; a new
plant, based on new sorting technologies, will enable
production of more than 100,000 tpy.
IMI Fabi acquired 50% of the Mount Seabrook mine in 1996 and
the remaining 50% in 2011. IMI Fabi has a joint venture with
Omar Associates Pvt Ltd (IMI Omar Ptv Ltd) based in Karachi,
Pakistan for the exploration, processing and export of talc
with some destine for IMI Fabi’s processing
plants in the US and elsewhere. IMI Fabi Asia Sales and
Marketing office is based in Singapore.
In North America, IMI Fabi LLC has two processing plants,
which largely utilize imported talc, at Benwood in West
Virginia and Diana in New York. In 2016 IMI Fabi acquired the
Magnesita talc mine and plant for $55 million.
Magnesita produces around 1.5 million tpy of talc lump from
the Cabeaceiras mine, which has reserves of 11 million
tonnes. The operation produced around 44,000 tpy talc for
filler and other markets generated $14 million in revenue.