Mar. 7, 2011 - Sand mining and mineral processing company, Richards Bay Minerals, forecast that markets will remain bullish for the next few years thanks to a strong demand from China.
During a guided tour of operations in Richards Bay, on the North Coast of kwaZulu-Natal last week, chief financial officer Bruce Beath said the current market conditions were "exciting", compared to three years ago.
"Three years ago we never sold any of our minerals to China, last year we sold 170 000 tons of zircon to China. Zircon demand was down in the European market due to the recession, now we see China taking up the demand." Beath said indications were that production would start in 2016 at the expanded Zulti South operation.
"We expect to mine up until 2043, we are currently busy with a prefeasibility study. We are going to mine zircon, rutile and ilmenite at the plant."
The construction of a R1.2 billion tailings treatment plant for reprocessing stockpiled tailings is nearly complete.
In 30 years, the company had stockpiled about 16 million tons of tailings from the mineral separation plant.
The plant will treat 2.2 million tons of tailings per year, of which 1.5 million tons will be reclaimed from the stockpiles.
"The treatment plant is the cheapest method of reprocessing. We have started the commissioning of the plant and expect it to be treating 300 000 tons of minerals by April, and over the years, technology will enable us to do better," Beath said.
Following the conclusion of a black economic empowerment deal in December 2009, a consortium consisting investors and four communities, acquired a 24 percent stake.
The company owners are now Rio Tinto (37 percent), BHP Billiton (37 percent), Blue Horizon Investments (24 percent) and RMB permanent employees (2 percent).
Beath forecast that the price of zircon would increase from $800 (R5 507) to $1 000 per ton. With 800 hectares of mining footprint, the company makes a R6bn annual turn over.
Richards Bay Minerals is a global producer of titania slag, high purity pig iron, rutile, and zircon, comprises Richards Bay Mining which mines the nearby coastal dunes, and Richards Bay Titanium which smelts ilmenite to produce titanium dioxide feedstock and pig iron.
A total of 95 percent of Richards Bay Minerals' 1.9 million tons of output is exported.
A method called dredge mining is used to extract and separate minerals ilmenite, rutile and zircon (about 5 percent in volumes) from the sand dunes at the Zulti North and Zulti South operations.
While production at Zulti North was expected to continue until 2030, the company wanted to beef up production at its Zulti South operation where expansion of the project was under way. The company has applied for more prospecting licences at Zulti North and Zulti South - Dineo Matomela.
During a guided tour of operations in Richards Bay, on the North Coast of kwaZulu-Natal last week, chief financial officer Bruce Beath said the current market conditions were "exciting", compared to three years ago.
"Three years ago we never sold any of our minerals to China, last year we sold 170 000 tons of zircon to China. Zircon demand was down in the European market due to the recession, now we see China taking up the demand." Beath said indications were that production would start in 2016 at the expanded Zulti South operation.
"We expect to mine up until 2043, we are currently busy with a prefeasibility study. We are going to mine zircon, rutile and ilmenite at the plant."
The construction of a R1.2 billion tailings treatment plant for reprocessing stockpiled tailings is nearly complete.
In 30 years, the company had stockpiled about 16 million tons of tailings from the mineral separation plant.
The plant will treat 2.2 million tons of tailings per year, of which 1.5 million tons will be reclaimed from the stockpiles.
"The treatment plant is the cheapest method of reprocessing. We have started the commissioning of the plant and expect it to be treating 300 000 tons of minerals by April, and over the years, technology will enable us to do better," Beath said.
Following the conclusion of a black economic empowerment deal in December 2009, a consortium consisting investors and four communities, acquired a 24 percent stake.
The company owners are now Rio Tinto (37 percent), BHP Billiton (37 percent), Blue Horizon Investments (24 percent) and RMB permanent employees (2 percent).
Beath forecast that the price of zircon would increase from $800 (R5 507) to $1 000 per ton. With 800 hectares of mining footprint, the company makes a R6bn annual turn over.
Richards Bay Minerals is a global producer of titania slag, high purity pig iron, rutile, and zircon, comprises Richards Bay Mining which mines the nearby coastal dunes, and Richards Bay Titanium which smelts ilmenite to produce titanium dioxide feedstock and pig iron.
A total of 95 percent of Richards Bay Minerals' 1.9 million tons of output is exported.
A method called dredge mining is used to extract and separate minerals ilmenite, rutile and zircon (about 5 percent in volumes) from the sand dunes at the Zulti North and Zulti South operations.
While production at Zulti North was expected to continue until 2030, the company wanted to beef up production at its Zulti South operation where expansion of the project was under way. The company has applied for more prospecting licences at Zulti North and Zulti South - Dineo Matomela.
