MINERAL SANDS
Sands shining brighter Mineral sands are a hot topic in the Australian mining industry, with several mining companies advancing projects amid a growing demand for the commodities, writes Anthony Fensom. Cyclone holds an estimated 6 per cent of global zircon supply.
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onstrained supply and the world’s post-pandemic recovery have boosted the outlook for Australia’s mineral sands miners. With “critical minerals” such as zircon in demand, the industry is ramping up expansion plans, despite some regulatory roadblocks. On November 24, the Victorian Government shocked the industry with its announcement blocking Kalbar Operations’ proposed Fingerboards mineral sands mine in East Gippsland. Amid organised community opposition, Victorian Planning Minister Richard Wynne ruled against the project, describing it as posing a “significant risk to the environment and valuable horticulture industry”. However, on January 11, ABC News reported that the federal agriculture department was reviewing the rejected
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application under Commonwealth law, with Kalbar stating it was “already addressing the recommendations for the next phase of approvals”. The potential blocking of the project has highlighted the obstacles to further supply growth, not only in Australia but also internationally. In a November 10 presentation, major producer Iluka Resources noted the challenges facing the industry, including the COVID-19 pandemic, logistics, climate change, escalating sovereign risks, declining grades at existing mines and the delay of new projects. The company’s presentation to a TZMI conference also noted the “decreasing supply of low uranium and thorium zircon”, with China’s strict enforcement of radiation limits also impacting supply.
While more than 95 per cent of current zircon supply contains less than 500 parts per million (ppm) uranium and thorium, less than half of potential new projects meet this criteria. “Absent a processing solution to remove these impurities, the zircon is ineligible for sale into the ceramics market,” Iluka’s Matthew Blackwell, speaking at the TZMI conference, says. However, Iluka reported increased zircon prices in the third quarter of 2021, with a weighted average received price of $US1487 ($2079) per tonne. This compared to the $US1311 per tonne received during the prior year’s corresponding quarter. “Overall, the ceramics industry is experiencing sustained growth in sales. However, profitability is being challenged by increasing costs throughout
