ID :
210268
Thu, 09/29/2011 - 13:59
Auther :
Shortlink :
https://oananews.org//node/210268
The shortlink copeid
Victoria should become mineral sands miner
SYDNEY (AAP) – 29 SEPT - Victoria could become one of the world's leading miners of mineral sands and increase its relevance as a mining state, a resources conference has been told.
Victoria was not perceived globally as offering much resource exploration potential but that was because it had not sold itself well enough, said Mike Hollitt, an executive director at Victoria's Department of Primary Industries.
Mineral sands, including titanium and zirconium, are booming, with China leading the demand to use it in paints, electronics, nuclear reactors and deodorants.
Mineral sand prices have more than doubled in the last 10 months to $1329 a tonne from $550 for rutile (titanium oxide) and to $2200 a tonne from $1000 for zirconium.
Growth in demand is expected to stay at three per cent a year.
Perception was the problem with Victoria, because the state lacked an iconic mine, like Chile's Escondida Mine, said Mr Hollitt, a former Rio Tinto senior executive.
"You have to have a position in the world, a face in the world and this (poor perception) is not the face we want to have," he told the RIU Melbourne Resources Round-up conference.
"I think we could have done more in the past, we could have done more to explain Victoria's competitive position and potential."
Victoria was the original Australian mining boom state during the 19th century gold rush and still boasts strong natural gas, coal, mineral sands and base metals production.
It's smaller size also helped in terms of getting electricity, rail and oil and gas infrastructure to mines, compared to remote regions such as the Pilbara in Western Australia, Mr Hollitt said.
"We wants these resources (mineral sands) developed ... we've amended our Act to make sure that there are going to be opportunities for people to develop these resources," he said.
Mr Hollitt says mineral sands are rare, with 90 per cent having to be ocean traded, have good margins, with no substitutes and supply is 20 per cent below demand.
Iluka Resources and Astron are operating mines in the Murray Basin in the state's west, with heavy exploration activity and new discoveries occurring in the Otway and Gippsland regions.
Soaring zirconium prices propelled Iluka Resources into the Australian share market's top 50 companies recently after it posted an impressive $36.1 million net profit.
The Victorian Government estimates the mineral sands industry in Victoria could soon be worth $1.5 billion based on a current three billion tonne resource, compared to about $536 million for the state's coal industry.
Victoria was not perceived globally as offering much resource exploration potential but that was because it had not sold itself well enough, said Mike Hollitt, an executive director at Victoria's Department of Primary Industries.
Mineral sands, including titanium and zirconium, are booming, with China leading the demand to use it in paints, electronics, nuclear reactors and deodorants.
Mineral sand prices have more than doubled in the last 10 months to $1329 a tonne from $550 for rutile (titanium oxide) and to $2200 a tonne from $1000 for zirconium.
Growth in demand is expected to stay at three per cent a year.
Perception was the problem with Victoria, because the state lacked an iconic mine, like Chile's Escondida Mine, said Mr Hollitt, a former Rio Tinto senior executive.
"You have to have a position in the world, a face in the world and this (poor perception) is not the face we want to have," he told the RIU Melbourne Resources Round-up conference.
"I think we could have done more in the past, we could have done more to explain Victoria's competitive position and potential."
Victoria was the original Australian mining boom state during the 19th century gold rush and still boasts strong natural gas, coal, mineral sands and base metals production.
It's smaller size also helped in terms of getting electricity, rail and oil and gas infrastructure to mines, compared to remote regions such as the Pilbara in Western Australia, Mr Hollitt said.
"We wants these resources (mineral sands) developed ... we've amended our Act to make sure that there are going to be opportunities for people to develop these resources," he said.
Mr Hollitt says mineral sands are rare, with 90 per cent having to be ocean traded, have good margins, with no substitutes and supply is 20 per cent below demand.
Iluka Resources and Astron are operating mines in the Murray Basin in the state's west, with heavy exploration activity and new discoveries occurring in the Otway and Gippsland regions.
Soaring zirconium prices propelled Iluka Resources into the Australian share market's top 50 companies recently after it posted an impressive $36.1 million net profit.
The Victorian Government estimates the mineral sands industry in Victoria could soon be worth $1.5 billion based on a current three billion tonne resource, compared to about $536 million for the state's coal industry.
