Mineral Sands Resource Security – Underpinning Market Share in a Global Growth Context

摘要

Globally, it is anticipated that the mineral sands industry will enter a period of short supply. Demandrnfor both titanium dioxide and zircon is forecast to continue increasing, with new projects needed torncome on-stream to fi ll the supply gap.rnVictoria is well placed under this scenario as a source due to the high quality of its mineral assemblage,rnits excellent resource grade and the globally signifi cant size of its mineral sands resources.rnAustralia’s mineral sands rich Murray Basin remains under-developed, especially at its extensivernVictorian margins. Development to date has not progressed adequately for the reasons of technologyrndiffi culty, history of competition with other jurisdictions and the absence of a platform that requiresrndevelopment as a consideration for security of tenure. Victoria’s mineral sands potential is notrnjust about the Murray Basin, in addition, there have been discoveries in the Gippsland Basin andrnprospective sites in the Gippsland Basin remain under-explored.rnKey problems included the lack of available ground for potential developers and the intellectualrnproperty of solutions to technological problems associated with the fi ne grained mineral depositsrnbelonging to a previous developer (with patents now expired).rnAs such, the timing is right to re-visit the potential of the Murray Basin as a site for long-termrndevelopment with high returns based on current and predicted prices.rnIn order to understand why Victoria’s earth resources in general, and mineral sands in particular,rnremain under-explored and undeveloped, the Department of Primary Industries initiated an internalrnreview of its role in encouraging and supporting investment in the earth resources sector.rnAs a result, the Victorian Government has committed to taking action to encourage effective groundrnturnover and acknowledges that a new focus on engagement with industry is needed to bring newrninvestment to the State. The revision of the Mineral Resources (Sustainable Development) Act 1990rnprovides an opportunity for the government to better align its legislative processes with industryrnproject lifecycles and facilitate access to valuable resources that currently remain undeveloped.rnVictoria has a track record in assisting projects reach development stage. Iluka currently has twornoperations in the State in addition to its mineral separation plant that is capable of processing HMCrnfrom its South Australian operations. Iluka is expected to ramp up its Murray Basin Stage 2 operationsrnwith the WRP mine scheduled to come on line in early 2012. Meanwhile, Astron is actively seekingrnpartners for its Donald Mineral Sands project. The project is becoming increasingly attractive givenrnthe recent price hike in zircon; Astron has access to an estimated fi ve to 6 Mt of zircon in its DonaldrnWIM 250 deposit.rnGiven its substantial and valuable mineral sands endowments, the State of Victoria should sensiblyrnbe the centre of future investment in project development. However, as previously mentioned this isrncurrently not the case. The Government is therefore committed to implementing new measures thatrnprotect security of tenure but ensure that genuine companies can access endowments where theyrnhave a clear intent to work those resources.