Kwinana-based titanium production joint venture Tiwest participants Tronox WA Ltd and Yalgoo Minerals Ltd will increase the plant's annual production by 10,000 tonnes, costing up to $58.1million, the companies announced today.
Kwinana-based titanium production joint venture Tiwest participants Tronox WA Ltd and Yalgoo Minerals Ltd will increase the plant's annual production by 10,000 tonnes, costing up to $58.1million, the companies announced today.
The full text of a company announcement is pasted below
Tiwest Joint Venture partners, Tronox Incorporated (NYSE: TRX, TRX.B) subsidiary, Tronox Western Australia Pty Ltd (50% interest), and South African-based Exxaro Resources Limited (JSE Limited: EXX) subsidiary, Yalgoo Minerals Pty Ltd (50% interest), today announced plans to increase annual production capacity at the Tiwest titanium dioxide pigment plant in Kwinana, Western Australia.
Engineering studies have commenced at the site, and the regulatory approval process is under way.
The Kwinana plant, with a current annual capacity of 110000 tonnes, produces chloride process titanium dioxide (TiO2) pigment using Tronox's proprietary technology and marketed under the Tronox brand.
The brownfield expansion will increase the plant's annual capacity by 40000 to 50000 tonnes. The companies estimate the expansion will cost in the range of US$35 million to US$45 million. The additional capacity is expected to come on line in 2009.
The additional capacity will allow Tronox to meet TiO2 demands in the rapidly growing Asia-Pacific region, which is projected to be the world's largest pigment consuming region by 2010.
This increase in demand is driven primarily by China's explosive growth and increasing demands for quality of life products that contain TiO2.
"This new capacity will allow us to capture growth opportunities in the Asia-Pacific market, while meeting the needs of existing customers in this region," said Tom Adams, Tronox chairman and chief executive officer.
"Tiwest, the world's largest fully integrated titanium dioxide project, is one of our most cost-effective operations, which is directly attributable to our talented Tiwest employees. I commend them for their continued contributions to our success."
"The Tiwest development will further strengthen Exxaro's prominent position in the global mineral sands industry," said Dr Con Fauconnier, Exxaro's chief executive officer.
"It complements the ramp-up under way at our South African east coast KZN Sands operation and aligns well with Exxaro's acquisition, subject to Exxaro shareholder approval and certain regulatory approvals, to acquire the Namakwa Sands business on South Africa's West Coast from Anglo American plc. These combined developments will position Exxaro strategically as one of the world's largest suppliers of titanium dioxide feed and zircon."
"We value the co-operative relationship that has developed between Tronox and Exxaro since 1995 and are pleased to be able to continue this mutually beneficial relationship with a leading pigment producer," added Dr Fauconnier.
