The mining and beneficiation plant of the “Velta” Company is the only novel project in the world which is readNov 16, 2011
9-11 November 2011 the 5th International Congress “Asia in Focus” was held in Hong Kong where the titanium market leaders from the whole world stated the tumultuous development of the titanium industry and increase in the use of the raw materials. The Congress was attended by the producers of raw materials (Rio Tinto, Illuka), pigments, titanium sponge, as well as consumers of the ultimate products (Du Pont, Cristal Global), and experts of financial branches (Goldman Sachs, RBC Capital Markets).
The organizer of the Congress – the Australian independent consulting company TZMI, gave its regular annual evaluation of the situation on the market of titanium-containing raw materials, zircon and pigments. According to the Company head Philip Murphy the depletion of the currently mined large-scale deposits would be seen within the nearest 2-3 years.
In this regard, the increase in the costs of the products can be observed even today. The average price estimation of ilmenite in 2012 will range between 280 and 350 USD per ton. For comparison: in the first quarter of 2011 the price was about 110-130 USD per ton. The exhaustion of the existing deposits activated the development of new deposits.
At the conference a special section for new projects was arranged where 9 companies were represented which are at different development stages of new deposits of ilmenite, rutile and zircon. In this Section the “Velta” Company was presented by its general director Andriy Brods’kiy.
According to the conclusions drawn from the presentations of all the new projects “Velta” turned to be the only company which will start supplying ilmenite as early as in 2012. As for other projects, in order to start production and delivery of the raw material they will need anywhere from 3 to 10 years at the least.
We’d like to remind that the “Velta” Company began constructing the mining and beneficiation plant at the beginning of 2011 and schedules to start production in December of the same year.
“Velta” has chosen a very fortunate moment for entering the world market as currently there is an acute lack of the raw material there, and the Company’s output of 240 thousand mt of ilmenite in 2012 will allow us to occupy a decent niche on this market. It should be noted that we have no intention to stop at this: we plan further advance of the Company through vertical integration” – said A. Brods’kiy.
The Congress also revealed a trend of integration between the titanium dioxide producers and the suppliers of the raw materials. For example, one of the largest and most influential companies among the pigment producers – Cristal Global – announced its intention to build a new plant for producing chloride slag before 2013. The company announced that it would be one of the most environmentally friendly enterprises in the world.