Zircon price will keep on recover in 2018
----Interview with Eddy Wu
CEO
WIM Resource Pty Limited
- WIM Resource Pty Ltd (WIM) is a privately ownedheavy mineral sands resource development company, with three projects located along the southern edge of the Murray Basin, Victoria,Australia.
- Asian Metal: Thanks for accepting our interview. Could you please introduce WIM projects?
- Mr Eddy Wu: WIM Resource Pty Ltd is an Australian company focusing on developing mineral sands projects in Victoria, Australia. The company’s flagship project is Avonbank Zircon/Rare Earth/Ilmenite project. Avonbank is a world class project in terms of Zircon and Rare Earth production volume and mine life.
- Asian Metal: Can you share the key operational metrics and characteristics of the Avonbank project with us?
- Mr Eddy Wu: Avonbank has a JORC Resource of 490 million tonnes of average 4% heavy mineral. The resource will support a mining operation at 1500 t/h ore processing for over 30 years. Based on the mine schedule, it will produce over 450,000t of heavy mineral concentrate per year, which will be processed in mineral separation plant in China and produce 75,000-100,000t Zircon, 8,000-12,000t of Rare Earth Concentrate and 210,000t Ilmenite per year.
- Asian Metal: Could you give a general description of your finished products and their detailed indicators?
- Mr Eddy Wu: Based on the current Pre-Feasibility Study results, the final products of Avonbank project are very high in quality. For example, the final Zircon product has over 66.5% ZrO2, the RE concentrate has over 55.9% REO and the Ilmenite product has over 59% TiO2 content. We’ve recently finished the Ti Slag and Synthetic Rutile test works, which proved the quality of the Slag and SR are satisfiable according to the industry standard.
- Asian Metal: What’s the latest development for Avonbank project? And what are the following work plans in the coming years?
- Mr Eddy Wu: We are at the final stage of the Pre-Feasibility Study now. Based on the 21t bulk sample we’ve taken from the field, we were able to test the mineralogy, geotechnical, metallurgical features of the orebody, and obtain the key figures, such as recovery rates in each stage, to underpin the processing flowsheet design and the economy analysis. We’ve also done some innovative test works with the world’s first-class laboratories and organizations to test the quality of the productions and explore the best solutions for the downstream usage. We are expected to start a higher level Definitive Feasibility Study (DFS) since early 2018 and kick-off the environmental approval (EES) application process. We are aiming to finish the BFS and EES work in the next two years, so that we can start the construction of the mine and start the first production in 3-4 years.
- Asian Metal: What do you think are the main advantages and challenges for Avonbank Project?
- Mr Eddy Wu: The main advantages of Avonbank project are: large resource, high zircon/RE content, low strip ratio (low mining costs), great infrastructure (low CAPEX), high zircon and RE quality. The main challenge would be the non-traditional fine grain size of the mineral, which might cost extra processing costs and some innovative downstream applications.
- Asian Metal: Would you like to give us a brief introduction on major Australian mining activities based on your rich knowledge and experience?
- Mr Eddy Wu: World’s mining industry is in a recovery stage since late 2016. Although mineral sands is not a major sector in the mining world, Australia is supplying over half of the world’s zircon. Based on the analysis of our team, we estimate that the zircon supply in the next 2-3 years will experience significant reduction, due to the lower grade of the existing mines and the lack of new operations. Chinese investments haven’t been very successful in the last 10 years as a new comer, but have experienced a steep learning curve. We are expected to see a even tighter relationship between Australia and China in resource world.
- Asian Metal: We have learnt that Iluka would keep Australian zircon sand prices stable in Q1 2018, while Tronox would increase prices by USD125/t at least. What is your opinion on the price trend in 2018?
- MrEddy Wu: At the end of the day, zircon price will be based on supply and demand. As forecasted by Iluka, a short supply of zircon will be seen shortly. Due to the decreased in-situ grade and the increased strip ratio for major zirconium projects, the cost of production is expectedto increase. My personal view is that the zircon price will keep on recover in2018.
