Mineral Sands

Content maintained by Yanis Miezitis

• Mineral Sands
• Resources
• Accessible EDR
• JORC Reserves
• Exploration
• Production
• World Ranking
• Industry Developments

The principal components of mineral sands are rutile (TiO₂), ilmenite (FeTiO₃), zircon (ZrSiO₄) and monazite ([Ce,La,Th]PO₄). Rutile and ilmenite are used dominantly in the production of titanium dioxide pigment. Less than 4% of total titanium mineral production, typically rutile, is used in making titanium sponge metal. Zircon is used as an opacifier for glazes on ceramic tiles, in refractories and for the foundry industry. Recently there has been some interest in monazite as a source of thorium for possible use in thorium nuclear reactors for electricity generation.

Economic Demonstrated Resources (EDR) of ilmenite decreased by 4.1% to 212.3 million tonnes (Mt) in 2008, down from 221.3 Mt in 2007. About 58% of Australia's EDR of ilmenite is in Western Australia (WA) and 20% is in Queensland (Qld) with the remainder in Victoria (Vic), 11.5%, New South Wales (NSW), 7.5% and South Australia (SA), 2.9%.

EDR of rutile, which includes some leucoxene in WA, decreased by 0.9% from 23.1 Mt in 2007 to 22.9 Mt in 2008. Victoria has the largest share of Australia's rutile EDR with 33.2% followed by Qld (25.3%), NSW (19.7%), WA (18.8%) and SA (3.1%).

EDR of zircon increased slightly from 39.0 Mt in 2007 to 39.2 Mt in 2008 with WA (32.2%), Vic (23.4%) and Qld (20.9%) accounting for most of Australia's zircon EDR. The balance is SA (13.8%) and NSW (9.4%).

Australia's Subeconomic Demonstrated Resources of ilmenite, rutile and zircon in 2008 amounted to 23.8 Mt of ilmenite, which was a reduction of 32.5% on 2007, 6.6 Mt of rutile, a decrease of 32% on the previous year, and 10 Mt of zircon, a decrease of 32.4% on 2007.

Inferred Resources of ilmenite decreased by 3.8% in 2008 to 123.2 Mt. Victoria has the largest proportion of inferred ilmenite resources with 45.5% of the Australian total followed by NSW (25%), WA (12.9%) and Qld (11.9%).

Inferred Resources of rutile increased to 32.1 Mt from 31 Mt in 2007. Victoria has the largest share of Australia's inferred rutile resources with 50.2% of the Australian total followed by NSW (35.2%), Qld (5.9%), SA (5.6%) and WA (3.3%).

Inferred Resources of zircon increased to 36.5 Mt from 35.7 Mt in 2007. Victoria is the main holder of zircon Inferred Resources with 59.5% of the Australian total, followed by NSW (20%), WA (8.8%) and Qld (7.4%).

A significant portion of mineral sands EDR is in areas quarantined from mining because they are largely incorporated in national parks. Geoscience Australia estimates that around 17% of ilmenite, 25% of rutile and 21% of zircon EDR is unavailable for mining. Deposits in this category include Moreton Island, Bribie Island and Fraser Island, the Cooloola sand mass, the Byfield sand mass and the Shoalwater Bay area, in Qld and the Yuraygir, Bundjalung, Hat Head and Myall Lakes National Parks in NSW.

Approximately 24% of ilmenite, 30% rutile and 31% zircon of accessible EDR (AEDR) comprise JORC Code Reserves. The remaining AEDR represents resources assessed by Geoscience Australia from the Measured and Indicated categories of industry reported mineral resources as defined under the JORC Code and other classification systems used by companies not listed on the Australian Stock Exchange.

At the rate of production in 2008, Australia's AEDR of ilmenite, rutile and zircon is sufficient for an average of 86 years for ilmenite, 53 for rutile and 56 for zircon. However, resources in the JORC Code Reserves categories are adequate for only 21 years for ilmenite, 16 for rutile, and 18 for zircon.

According to quarterly Australian Bureau of Statistics (ABS) figures, expenditure on exploration for mineral sands in 2008 increased marginally to $37.5 million compared with $36.5 million in 2007.

In 2008, Australia produced 2.042 Mt of ilmenite, 325 000 tonnes of rutile, 158 000 tonnes of leucoxene and 550 000 tonnes of zircon compared with 2.042 Mt of ilmenite, 312 000 t of rutile, 170 000 t of leucoxene and 601 000 t of zircon in 2007. About 1.018 Mt of ilmenite was exported during 2008 while rutile (439 000 tonnes) and zircon (655 000 tonnes) exceeded the level of production for the two commodities. The ilmenite not exported was upgraded to synthetic rutile containing about 92-94% TiO₂. In 2008, Australia produced 511 000 tonnes of synthetic rutile compared with 726 000 tonnes in 2007.

According to Geoscience Australia and the United States Geological Survey (USGS) data, Australia has the world's largest EDR of rutile and zircon with 50%, and 47%, respectively and has the second largest share of the world's ilmenite with 17%, behind China, which has 30%. Other major country rankings include India (13%), Brazil (10%) and South Africa (10%) for ilmenite; South Africa (18%) and India (16%) for rutile; and South Africa (25%) and Ukraine (7%) for zircon.

In 2008, world production of ilmenite remained steady at 10.4 Mt, rutile increased marginally to 624 000 tonnes, and zircon increased by 36% to 1.75 Mt. Australia is the largest producer of rutile with about 52% of the world production followed by South Africa with 19% and Sierra Leone with 15%. Australia is the second largest producer of ilmenite also with 19.7% after South Africa with 20% and is the second largest producer of zircon with 32% after South Africa at 37%.

Companies which produced heavy mineral sands during 2008 were Iluka Resources Ltd, Bemax Resources Ltd, TiWest joint venture and Doral Mineral Sands Pty Ltd, all in WA and Consolidated Rutile Ltd in Qld. Iluka and Bemax also produced heavy minerals in the Murray Basin in Vic and NSW respectively while production continued from the recently commissioned Mindarie heavy minerals project, held by Australian Zircon NL, in SA. However, mining activities were terminated at the Goondicum alluvial/eluvial deposit near Monto in Qld and at Matilda Mineral's Andranangoo deposit on the Tiwi Islands off the Northern Territory (NT).

Iluka Resources Ltd heavy mineral sand operations in WA are located in two regions.

The mid-west region north of Perth comprises the main mines of Eneabba (two wet concentrators, five mining units) and Gingin (wet concentrator, one mining unit). The company's Narngulu facility at Geraldton, includes mineral separation, zircon finishing and synthetic rutile plants as well as port operations and storage facilities at Geraldton. Iluka plans to use the Narngulu plant to process heavy mineral concentrates from the development of its Jacinth-Ambrosia deposits in the Eucla Basin in SA.

In its other area of mining activities south west of Perth, Iluka is realigning its production facilities to concentrate on zircon and high grade titanium dioxide products with less emphasis on lower grade material such as sulphate ilmenite. In accordance with its market policy, Iluka is restructuring its WA operations to focus on synthetic rutile high grade ilmenite feed. It has decided also to cease mining operations at Wagerup and Waroona where the remaining production output is mainly lower value sulphate ilmenite. Mining was completed at Wagerup in January 2009 and the only mining operation in south west WA, at Waroona is planned to close by October 2009. Mining was also closed at Cloverdale. Iluka will consider commencement of mining operations at its Tutunup South deposit in 2010.

The production of heavy mineral sand commodities in 2008 from Iluka's mining and processing activities in WA amounted to 73 837 tonnes rutile, 467 222 tonnes synthetic rutile, 988 155 tonnes ilmenite, 10 629 tonnes of HiTi (mixture of rutile and leucoxene) and 188 003 tonnes zircon.

Because of weaker demand for its products, Iluka decided to idle two of its four synthetic rutile plants (SR1 in the south-west and SR4 in mid-west), one of the two concentrators at Eneabba in mid-west and one of its mineral processing plants in south-west WA.

Iluka Resources Ltd's Douglas project in Vic is based on the resources of three main deposits, Bondi Main, Bondi West and Bondi East. The infrastructure includes a single mining unit plant, a wet concentrator plant and a mineral separation plant located at Hamilton to produce the final specification rutile and zircon. The Hamilton mineral separation plant was shut down for capacity upgrade for the anticipated additional feedstock from the Murray stage 2 development at Kulwin. Production from the Douglas mine in 2008 totalled 66 261 tonnes rutile, 5847 tonnes leucoxene and 112 728 tonnes zircon.

In addition to the Douglas project, the company has a group of deposits at Ouyen in north west Vic, with two thirds of the company's heavy mineral resources in Murray Basin at Kulwin, Woornack, Rownack, Rainlover, and Pirro along with another group at Euston in NSW named Castaway, Kerribee, Earl, Dispersion and Koolaman. The commissioning of the mining project at Kulwin commenced in August 2009.

In the Eucla Basin in SA, Iluka holds the Jacinth-Ambrosia and Gulliver's deposits and has a joint venture agreement with Adelaide Resources Ltd over the Tripitaka deposit. The construction of the Jacinth-Ambrosia project was 80% complete in August 2009 and the first production of heavy mineral concentrate (HMC) could be as early as December 2009. The company anticipates processing the Jacinth-Ambrosia HMC at its Narngulu and Hamilton mineral separation plants while the ilmenite feed may be sent to the mid-west or south-west kilns.

Continuing exploration by the company in 2008 also led to the discoveries of heavy mineral deposits, including the Endeavour deposit in the NSW portion of Murray Basin.

To the end of 2008, Consolidated Rutile Ltd's operations at the Yarraman and Enterprise mines on North Stradbroke Island produced 74 030 tonnes rutile, 52 644 tonnes zircon and 202 021 tonnes ilmenite. The company reported a decreased ore throughput of 8% compared to 2007 achieving 50.7 Mt from both mine sites. The company announced on 13 May 2009 that it will move from the current two mine operation to a single mine operation when mining at Yarraman mine is completed in 2013. Consolidated Rutile Ltd was taken over by Unimin Australia Ltd in mid 2009.

Exxaro Resources Ltd has a 100% shareholding in Australia Sands which has as a principal asset 50% ownership in the TiWest Joint Venture with Tronox Incorporated. Tiwest operates an integrated titanium dioxide project in WA incorporating a dredging and dry-mining heavy mineral sands operation at Cooljarloo, dry separation and synthetic rutile plants at Chandala and a titanium dioxide pigment plant at Kwinana. Production in 2008 was approximately 348 000 tonnes of ilmenite, 58 000 tonnes of zircon, 26 000 tonnes of rutile, 32 000 tonnes of leucoxene, 226 000 tonnes of synthetic rutile and 86 000 tonnes of TiO₂ pigment. Exxaro reported in its 2008 annual report that the Dongara feasibility study is under way and will be completed by 2009, but production is not planned to start before 2011. The Dongara deposit has the resources to provide feedstock to the Chandala mineral separation plant for six years. Exxaro is also funding a $100 million Tiwest Kwinana pigment expansion project for an additional 40 kilotonne per annum (ktpa) production with a commissioning target during the first quarter of 2010.

The heavy mineral resources/reserves controlled by Bemax are located in old shorelines in two provinces - the Murray Basin of Vic and NSW, and the south west region of WA.

Bemax Resources Ltd (a controlled entity of Cristal Australia Pty Ltd) reported that its total resource in the Murray Basin increased from 2944 Mt at 2.9% heavy minerals or 86.5 Mt of contained heavy mineral at 31 October 2007 to 3185 Mt at 3.0% heavy minerals (94.4 Mt of contained heavy mineral) at 31 October 2008. The increase has occurred with the discovery of the Snapper South, Phoenix and Benbow deposits in NSW and with the extension of the Mercury deposit in Vic. These deposits increased the resource base by 8.5 Mt of contained heavy mineral. The mining at Ginkgo has decreased the resource by 600 000 tonnes of contained heavy minerals.

Bemax's operations in the Murray Basin include the Ginkgo mine and the Broken Hill mineral separation plant. During 2008, the company continued with the development of the Snapper deposit which is about 10 kilometres (km) from the Ginkgo mine and by mid-2009 the excavation of the start up mining pit and construction of tailings storage area were completed at the Snapper deposit.

Bemax's Ginkgo production in 2008 totalled 191 134 tonnes ilmenite, 114 406 tonnes other titanium minerals, 71 285 tonnes rutile and 52 585 tonnes zircon.
 
Bemax's heavy mineral sand mining in south west region of WA continued at Gwindinup, about 30 km south of the company's mineral separation plant at Bunbury. The Gwindinup deposits have a mine life of more than nine years and the nearby Happy Valley deposits are being progressed through environmental assessment and public consultation processes and will further extend the mine life of the project. Heavy mineral production from Bemax's operations in the region amounted to 147 881 tonnes of sulphate and secondary ilmenite and leucoxene, and 13 985 tonnes zircon.

Australian Zircon NL reported that its Mindarie zircon mine in the western Murray Basin, 148 km east-north-east of Adelaide, SA, produced 8573 tonnes of ilmenite, 3020 tonnes of rutile and 5959 tonnes of zircon in 2008. During the first half of 2009 the company was in the process of conducting modifications to its mobile slurry unit and the concentrator plant in order to improve the heavy mineral concentrate grades and recoveries.

Australian Zircon NL also is earning an 80% participating interest in its WIM 150 joint venture with Austpac Resources NL. Australian Zircon reported that stage one of a bankable feasibility study has been commenced on the WIM 150 deposit. Previous test work has shown that conventional feed preparation techniques will successfully recover 85 to 90% of raw feed zircon to an acceptable grade heavy mineral concentrate.

In 2008, Austpac Resources NL completed the construction of stages 1 and 2 of a 3000 tonne per annum (tpa) Enhanced Roasting and Magnetic Separation Synthetic Rutile (ERMS SR) synrutile demonstration plant on its site on Koogarang Island near Newcastle in NSW. The purpose of the plant is to produce samples of high grade synrutile and iron pellets from various ilmenite deposits for market assessment. Stage 1 is the ilmenite roasting section of the plant while stage 2 comprises ilmenite leaching/synrutile production and acid regeneration sections of the plant. Austpac secured samples of ilmenite from Consolidated Rutile Ltd North Stradbroke mine in Qld, from Bemax's Ginkgo mine in NSW and from BHP Billiton's Corridor Sands deposit in Mozambique. By late October 2008, Austpac reported that its plant produced very high grade synrutile (plus 97% TiO₂). BHP Billiton acquired a licence to use the ERMS SR process on its Corridor Sands heavy mineral deposit in Mozambique. The process was successful also in producing high grade synrutile from ilmenite samples from the Murray Basin deposits. Austpac plans to commercialise the ERMS SR technology by building a 60 000tpa synrutile plant in eastern Australia, subject to the completion of a bankable feasibility study.

Monto Minerals Ltd encountered mining problems with its Goondicum industrial minerals operation (ilmenite, feldspar, apatite and titanomagnetite) where mining commenced in October 2007. The Goondicum plant was unable to maintain adequate and consistent feed supply, and, following the appointment of Administrators in 2008, independent engineers were engaged to provide capital estimates for rectification and expansion of the plant to final phase capacity. In order to raise capital for reconstruction of the plant, creditors of Monto Minerals approved a recapitalisation proposal at a meeting on 11 June 2009, and a new prospectus was lodged with the Australian Securities and Investments Commission (ASIC) in September 2009.

Gunson Resources Ltd has commenced mine design definition study on its Coburn heavy mineral sand deposits in WA. In April 2008, Gunson reported that the total JORC compliant Indicated and Measured Resources at Coburn increased to 728 Mt averaging 1.2% heavy minerals.

Image Resources Ltd continued extensive exploration activities in their tenement areas in the north Perth Basin. In May 2008, Image Resources reported Indicated and Inferred Resources for seven deposits totalling 206 Mt averaging 2.4% heavy minerals containing 6.4 Mt of heavy minerals. A scoping study to assess the potential economics of these resources was completed in December 2008 which identified that a stand alone dredging operation was the best option with a best case net present value (NPV) of $87M (internal rate of return (IRR) 105%) plus addition value in processing ilmenite to synthetic rutile. During the first half of 2009 Image reported it had identified unexpectedly high grades of zircon in its Atlas deposit (18% to 21% of the heavy mineral fraction). Image also reported it had located heavy mineral concentrations at its Serpentine Lakes tenements situated along strike from Diatreme Resources Ltd's zircon-rich Cyclone heavy mineral deposit in the section of Eucla Basin in south east WA.

Astron Ltd's Donald project in the Murray Basin in Vic comprises the Donald (WIM 250) and Jackson (WIM 200) heavy mineral sand deposits. In January 2006, the company reported a total Indicated and Inferred Resource of 693 Mt with a heavy mineral content of 5.1%. Contained within this resource is an Indicated and Inferred Resource of 477 Mt at 1.1% zircon, 1.8% ilmenite, 0.3% rutile and 1.1% leucoxene. The project is planned to be a 7.5 million tonne per annum (Mtpa) mining operation, producing 500 000 tpa of heavy mineral concentrate for export to China. On 17 March 2009 DMS Pty Ltd, a wholly owned subsidiary of Astron Ltd, reported that it had received provisional Australian Government approval under the Environment Protection and Biodiversity Conservation Act (EPBC) to commence mining the Donald heavy mineral sands deposit. The company continued to work towards obtaining final government approvals to allow it to apply for a mining license and submit work plans.

In September 2009, Diatreme Resources Ltd reported an updated resource for the Cyclone heavy mineral sand deposit amounting to 98.4 Mt at 2.88% heavy minerals, containing 2.8 Mt heavy minerals. The new resource is classified as Measured 11.5 Mt at 3.44% heavy minerals, Indicated 84.4 Mt at 2.82% heavy minerals and only a minor amount of Inferred 2.5 Mt at 2.38% heavy minerals.

In October 2008, Matilda Minerals Ltd, the previous owner of the Tiwi Islands mineral sands mine in the NT, went into voluntary administration and placed its mining operations under care and maintenance. In February 2009 the Tiwi Island mineral sand assets were purchased by Stirling Resources Ltd. The Tiwi Island mineral deposits are now held by Matilda Zircon Ltd (formerly Olympic Resources Ltd) with Stirling Resources holding an 82% interest in Matilda Zircon.