Big picture - Why invest in Sierra Rutile Ltd
Sierra Rutile Ltd Snapshot
Together improving our future Sierra Rutile and Iluka Resources (Iluka) are pleased to announce that the merger between the two companies was finalised on 8 December 2016. The merger represents an exciting phase of development for Sierra Rutile and for Iluka.
The combination of the experience and skills of Sierra Rutile employees and Iluka's operational and technical experience gained across multiple ore bodies and processing facilities over many years, will enhance the operational performance of Sierra Rutile for the benefit of all stakeholders.
Sierra Rutile will operate as a wholly owned subsidiary of Iluka Resources.
Iluka is involved in mineral sands exploration, project development, oeprations, marketing and rehabilitation. Iluka and its predecessors have over 60 years industry experience. The company is the world's largest producer of zircon and a major producer of the high-grade titanium dioxide products rutile and synthetic rutile. Iluka is listed on the Australian Securities Exchange, with a market capitalisation of approximately A$2.5 billion. It is headquartered in Perth, Western Australia.
Iluka has operations in the Murray Basin (Victoria), EucIa Basin (South Australia), Perth Basin (Western Australia), the United States (Virginia, idled 2015) and Sierra Leone (acquired 2016). The company also has an iron ore royalty assoicated with BHP Billiton's Pilbara Mining Area C deposits. Through its sales and marketing network.
Iluka supplies over 50 products to more than 250 direct customers, with sales in more than 40 countries. Iluka has significant, industry technical expertise, including metallurgical, mining and processing capabilities. The company explores internationally for mineral sands and is currently conducting exploration activities in Australia, Sri Lanka, Kazakhstan, South America and in Africa.
Strategy & Business Model
World class depositSierra Rutile owns the world’s only large, high-grade, producing primary rutile mine:Largest primary rutile mine in the worldJORC-compliant mineral resource of excess of 895 million tonnesMeasured and indicated resource of 757 million tonnes.
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Sierra Rutile's products
Rutile – Pigment feedstock
Sierra Rutile’s primary product is rutile, a raw form of titanium dioxide (TiO2). Rutile is one of a number (TiO2) feedstock used in the production of white pigment, itself used in the (global) manufacture of paint, plastics and paper.
Other feedstocks for the pigment industry include ilmenite, synthetic rutile, leucoxene and titanium slag. Different feedstocks are processed by either the chloride or the sulphate process.
TiO2 pigment is preferred due to its attractive characteristics of high brightness and opacity, which far surpass any substitutes.
Rutile is the premium (TiO2) feedstock:
- The chloride pigment process is favoured for its more efficient, cleaner and lower cost process. Only a limited number of feedstocks can be used in the chloride process
- The highest quality pigments grades can only be produced using the chloride process
- All other chloride process feedstocks need upgrading before they can be used in the chlorination process
- This means use of lower-quality feedstocks involves significant additional energy, processing, waste and raw material costs.
Rutile – Titanium metal and welding applications
- In addition to pigment, an increasing volume of rutile is consumed in the titanium metal and welding industries. Both these applications require a feedstock with the highest content of TiO2 possible, of which rutile, with TiO2, grades of over 95%, is the highest.
- Furthermore, for these precision applications, minimizing impurities is essential.
- Sierra Rutile’s product is both high-grade and very low in impurities.
- Demand for both titanium metal and high-end welding flux is increasing considerably due to the manufacturing demands of modern aircraft, ships and defence industries.
By-products – Ilmenite and zircon
Sierra Rutile also produces by-product ilmenite and zircon from its primary rutile production. Ilmenite is used as a lower-grade feedstock in pigment manufacture while zircon is used in the global ceramics industry.
Rob Hattingh – Chief Executive Officer
Rob joined Sierra Rutile in December 2016 from Iluka Resources where he held the position of General Manager Innovation, Sustainability and Technology. Rob has more than 25 years’ experience in the mineral sand industry in a number of roles. He was Principal Environmental Scientist at Richards Bay Minerals in South Africa and worked in senior roles at Exxaro Resources (now Tronox) where he was responsible for technical disciplines for a number of years. In 2008 Rob joined Iluka Resources in Perth where he held management roles in the fields of hydrogeology, metallurgy, sustainability and business development. He holds a MSc in Geochemistry from Stellenbosch University.
Shane Tilka – Chief Operating Officer
Shane Tilka joined Sierra Rutile in December 2016 from Iluka Resources. He has previously held roles at Iluka of General Manager USA Operations, Jacinth Ambrosia Mine Manager in South Australia, and Eneabba Production Manager and Narngulu Operations Manager in Western Australia. Shane is a mining professional who has studied at the Western Australian School of Mines and also has a Bachelor of Commerce from Edith Cowan University.
Derek Folmer - Chief Marketing Officer
Mr Folmer joined Sierra Rutile from Rio Tinto, where he held the position of General Manager – Rutile & Zircon, responsible for gobal sales of rutile and zircon produced by Richards Bay Mining and QIT Madagascar Minerals. Prior to this he held various sales and marketing management positions within Rio Tinto focusing on titanium dioxide feedstocks.Mr Folmer has a strong track record of developing and implementing global marketing strategies and has substantial experience and knowledge of key markets in North America, Europe and Asia, particularly in China.
SIERRA RUTILE LIMITED