Eramet, a global producer of alloying metals, mainly nickel and manganese, and high-performance special steels, has entered into definitive agreements with Mineral Deposits, an Australia-based mining company to form a joint venture in the mineral sands sector.
It is a 50-50 JV, which will integrate Mineral Deposits’ Grande Cote Mineral Sands project with Eramet Titanium & Iron (ETI).
The new entity is expected to have an attractive growth though there will be supply deficits in the zircon and titanium dioxide markets in the medium and short term and the low replacement threat of these two products. Zircon is used to produce foundry parts, refractory materials, zirconia, chemicals and ceramics. Similarly, titanium dioxide (TiO2) is used in the production of pigments and titanium metals.
ETI operates the Tyssedal manufacturing plant in Norway that produces titanium dioxide slag for pigment applications. The plant has a capacity to produce about 210 Ktpa of TiO2 slag and 115Ktpa of high purity pig iron per year. Pig iron is a significant co-product used in ductile iron foundries for manufacturing wind turbine components.
The Grande Cote Mineral Sands property is expected to produce about 575 Ktpa of ilmenite and 85 Ktpa of zircon per year. The construction of the project will start soon and the production is anticipated to begin in late 2013. The JV will combine the development expertise of Mineral Deposits and Eramet's capability in metallurgy, mining, R&D, marketing and logistics.