TRIMEX Industries (TRIMEX) today announced that it will commence ilmenite mining operations in the next two months in the Srikurmam district, spanning an area 7.2 sq km of land area. Srikurmam district lies in the northeast of Andhra Pradesh. TRIMEX is the first Indian company to obtain a mining lease from the State Government of Andhra Pradesh. Since 2005, TRIMEX has focused on obtaining necessary environmental clearances. The area has proven reserves of 5.5 million tonnes of ilmenite. About 50 per cent of the land area specified in the mining lease is owned by the government. TRIMEX will be executing mining operations and related projects through its wholly owned subsidiary, TRIMEX Sands Pvt. Ltd. (numbers are reported in accordance to the Australian Joint Ore Reserves Committee). The current capital expenditure stands at 250 crores and is expected to climb to 2,250 crores in five years. TRIMEX will hold the mining lease for a period of 30 years from the date of the lease award (in 2001) and is renewable for another 30 years. Ilmenite is used to produce titanium dioxide, a vital ingredient in creating white pigments in high-quality paints, paper and plastics. Ilmenite is also used as an intermediate feedstock in the manufacturing of titanium metals. Pradeep Koneru, Executive Director of TRIMEX said, “This lease is a key development and a stepping stone for us. It gives TRIMEX the potential to emerge as one of the leading global producers of ilmenite by building upon our extensive resource base and existing competitive cost structure in India. With this lease and associated investment, we are one of the largest ilmenite producers in India. “Through this secure supply of ilmenite, TRIMEX will be one of the lowest-cost titanium dioxide manufacturers globally, by value adding and integrating our operations throughout the supply chain. To this end, we are working to ensure that prices remain competitive to benefit the end-user.” The value addition study is being conducted by TZMI, an independent consulting firm specialising in the mineral sands and titanium dioxide pigment industries. The company’s site facility has a capacity to produce 200,000 tonnes of ilmenite per annum and is expected to produce 65 per cent of that capacity in the first year of operations. Also, the facility will have an annual capacity to produce 80,000 tonnes of garnet, 80,000 tonnes of sillimenite, 6,000 tonnes of rutile and 6,000 tonnes of zircon; all of which are associated minerals in the area. The facility’s engineering procurement and construction will be executed by Walchandnagar Industries, whose technical partner is Downer EDI Mining – Mineral Technologies (formally Roche Mining – Mineral Technologies). Downer EDI Mining – Mineral Technologies undertook the process flowsheet and basic engineering design and supply of all process equipment for both the wet and dry concentrators. TRIMEX Industries signed a Memorandum of Understanding (MoU) with the Government of Andhra Pradesh at the CII Conference held at Hyderabad in January 2001 to develop beach sand minerals. Under the MoU, TRIMEX has two more prospecting licenses for 40 sq km in areas adjacent to Srikurmam. The prospecting licenses will enhance current economies of scale and strengthen the company’s position as one of the most scalable industry players globally. The Srikurmam deposit lies in the northeast corner of the state of Andhra Pradesh, bordering on the neighboring state of Orissa. The deposit lies on the eastern coastal line between 18° 15’ to 18° 20’ north and 84° 0’ to 84° 10’ east on the coastline of Bay of Bengal. The global consumption of Titanium Dioxide pigment (TiO2) is projected to increase at a CAGR of 3 per cent from 4.96 million tonnes in 2008 to 6.25 million tonnes in 2015[1].
The supply of ilmenite is expected to be affected by a decline in supplies from traditional sources in Australia and North America. India, on the other hand, is slated to become a major supplier in the global production of ilmenite and Asia will supply about 22 per cent of total world production by 2015 1. India is projected to contribute at least 10 per cent of global ilmenite supply in the same timeframe.