Australia remains the world’s top producer of bauxite (which has relatively high aluminium content), iron ore, lithium, rutile, and now the country can add zircon to the list.
The country is already recognised to host the second largest reserves of cobalt, tungsten, and vanadium globally. It also has the third and fourth largest reserves of niobium and manganese ore, respectively.
From aluminium to bauxite, cobalt, iron ore, lithium, manganese, niobium, and zircon Australia is indeed the global leader of producers amongst an array of commodities from A to Z required for the net zero carbon emissions transition.
In its world rankings, Geoscience Australia notes the country is the world’s largest producer of zircon (zirconium) (30%), as well as for bauxite (27%), iron ore (36%), and rutile (26%).
Addressing its growing importance, the global zircon industry is gathering in Istanbul this week (12-14 September) for the Zircon Industry Association AGM and annual conference 2023.
According to Diggings, which lists millions of mining claims across a variety of metals and commodities, there are 109 zircon deposits in Australia with Western Australia (54) having the lion’s share, while Queensland (26), and New South Wales (25) also have the bulk of deposits.
Of these, there are 26 producers in WA, 20 in NSW, and 14 in Queensland, with just a single producer in Tasmania.
Players in the market include Australian Strategic Materials (ASX:ASM), Base Resources (ASX:BSE), Iluka (ASX:ILU), and Rio Tinto (ASX:RIO). PYX Resources (LSE:PYX) is a major global producer of premium zircon and is dual listed on the National Stock Exchange of Australia and on the Main Market of the London Stock Exchange.
PYX’s key deposits, Mandiri and Tisma, are ‘large-scale’, near-surface open pit deposits both located in the alluvium-rich region of Central Kalimantan, Indonesia. The Mandiri deposit has been in production since 2015 and PYX is the second largest zircon producing mining company globally by resources.
In an operational update on 10 August for HY 2023, PYX Resources’ Chairman and Chief Executive Officer Oliver B. Hasler said the outlook for zircon looked extremely positive.
“The company experienced substantial growth in premium zircon sales, with a 34% increase, and a production increase of 33% (for HY 2023). Our diversified global client base has allowed us to manage and minimise risk. This coupled with the quality of our zircon has resulted in consistent growth in sales whilst our exceptional team on site have been instrumental in ensuring maximum efficiency.”
As we enter the second half of the year, we remain optimistic about our strategic plan and the continued rise of mineral sands prices. We remain well positioned to deliver on our goals and benefit from the industry’s strength.”
Resources Minister Madeleine King says Australia in particular is positioned to capitalise on the country’s rich endowment of all the resources needed for decarbonisation but in particular zircon.
Why does it matter?
Zircon and its derivatives have a vast array of applications with the largest market for zircon currently the ceramics industry.
According to the Zircon Industry Association (ZIA), more than half (54%) of zircon produced is used in finely ground form in ceramics, while 14% is used by the foundry industry, and about 11-14% is used in refractory applications.
A growing portion of the zircon mined worldwide is used for the extraction of zirconium and hafnium or their further processing to produce zirconium chemicals. ZIA says there are a number of emerging areas of research and development involving zircon and its derivatives.
“From heavy industrial uses, such as continued advancement in casting and moulding processes, to its increased role in biomedical implants and advanced ceramics, it is clear that zircon’s role in our modern day world has the potential to become even more significant.”
Some of these emerging developments involving zircon and its derivatives include 3D printing, solar cells, paper and plastics, casting and moulding, as well as implants, and fuel cells and batteries.
Research firm IMARC adds that the global zirconium market is witnessing a substantial boost in demand due to its crucial role in the nuclear power industry in particular. Zirconium is a vital component in nuclear fuel rods and cladding, as it possesses excellent corrosion resistance and low neutron absorption properties.
IMARC notes: “These attributes ensure the safe and efficient functioning of nuclear reactors, which are essential for generating clean and sustainable energy. As the global emphasis on clean energy solutions intensifies, the demand for nuclear power is expected to rise, subsequently driving the demand for zirconium.
Additionally, ongoing efforts to enhance nuclear safety standards and the construction of new nuclear power plants in emerging economies contribute to the growth of this market segment.”
Aerospace and automotive applications
Zirconium’s unique properties, such as its high strength-to-weight ratio and excellent corrosion resistance, have made it increasingly relevant in the aerospace and automotive industries.
IMARC adds: “Moreover, the aerospace sector’s growth, driven by an upsurge in air travel and defence spending, creates a robust demand for zirconium alloys. In the automotive industry, zirconium alloys are utilized in critical components, like exhaust systems and catalytic converters, to withstand high temperatures and harsh environmental conditions.
“With both aerospace and automotive sectors undergoing rapid advancements, zirconium’s presence is anticipated to strengthen in these industries, bolstering the global zirconium market“
With both aerospace and automotive sectors undergoing rapid advancements, zirconium’s presence is anticipated to strengthen in these industries, bolstering the global zirconium market.”
In a market update last month, PYX Resources notes that in terms of pricing, premium zircon has experienced a ‘remarkable’ upward trend.
Starting from January 2021 at US$1,400/t, international pricing (as reported by Asian Metal) steadily increased throughout the year, reaching US$1,800/t in the second half of 2021 and US$2,000/t by January 2022.
This positive trajectory continued in the second quarter of 2023, with the price reaching US$2,100/t. Since the third quarter of 2022, the price has remained stable at an impressive US$2,300/t, a 64% increase on 2021 prices, defying the volatility of the market.
PYX says this ‘exceptional’ outcome underscores the imbalanced supply and demand dynamics, and the company’s ability to capitalise on this favourable market situation.
Write to Adam Orlando at Mining.com.au
Images: PYX Resources
