Industrial Minerals

Titanium Dioxide – Market Overview

Sierra Rutile Limited produces two titanium-bearing minerals, natural rutile and Ilmenite, which are primarily used as feedstock in the production of titanium dioxide, a white pigment used in the production of paints, paper, plastics and pharmaceuticals. Other important markets for natural rutile include welding; where it is used in both electrodes and flux cored wire applications, and titanium sponge production.

The natural rutile produced by SRL has a TiO2 content over 95% with low levels of impurities, it is considered to be a premium product within the rutile market which in turn is the premium of the titanium feedstock market. Production at SRL currently accounts for around 12% of global natural rutile supply.

The forecast consumption of titanium feedstock is estimated to be 6.5 million tonnes in 2011 increasing to 8.5 million tonnes by 2020 with growth rates expected to continue at a steady 3% per annum. With a limited number of new titanium feedstock projects planned it is predicted that a supply deficit will occur from 2011 and a potential shortfall of 1 million tonnes by 2015 is mooted.

In addition the Company produces zircon concentrate, and has identified the potential for future rare earth production.

SRL’s share of natural rutile market 2009
Numbers are estimated and based on the company’s own figures

SRL’s customers by market sector