Fluorspar 101, September 2012, Simon Moores, Industrial Minerals Data

Fluorspar 101, September 2012, Simon Moores, Industrial Minerals Data

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  Fluorspar 101: Industry perspectivefrom mine to market Simon Moores Manager, Industrial Minerals Data, London, UK Simon Moores, [email protected], @sdmoores, October 2012
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  Simon Moores, [email protected],@sdmoores, October 2012 Industry snapshot: fluorspar 2011 production: 6.3m. tonnes 2012 production (est): 6.0m. tonnes 60% 40% Fluorspar output in 2012 Acidspar Metspar Top Producers in 2011 1. China 3.5m. tpa 2. Mexico 1.2m. tpa 3. South Africa 270,000 tpa 4. Spain 140,000 tpa 5. Kenya 117,000 tpa China production dominance 58%
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  Simon Moores, [email protected],@sdmoores, October 2012 Why is fluorspar mined? • Use to produce one of the most widespread industrial chemicals, hydrofluoric acid • Mined for fluorine content (F) • Found in the ground as calcium fluoride (CaF2) • Two major grades are produced globally: • Acidspar • Metspar • Fluorspar demand driven by: • Fluorocarbon demand >> Consumer driven goods >> fridges, freezers, aircon • Steel production • Aluminium fluoride production
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  Simon Moores, [email protected],@sdmoores, October 2012 How is fluorspar produced? 1. Mining 2. Crushing, mechanical/hand separation To Market as Metspar (<85% CaF2) 3. Flotation 4. Dewatering = Filtercake (wet/dry) To Market as Acidspar (>85% CaF2) Source: Industrial Minerals Data
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  Simon Moores, [email protected],@sdmoores, October 2012 Acidspar • Also called Acid grade fluorspar • 97% CaF2 content • Fluorspar used to make hydrofluoric (HF) acid • HF acid used to make fluorocarbons & Aluminium fluoride
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  Simon Moores, [email protected],@sdmoores, October 2012 Metspar • Also called Metallurgical grade fluorspar • 70-85% CaF2 content • Used as a flux in steelmaking, ceramics, iron and steel casting • Used in pebble form
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  Simon Moores, [email protected],@sdmoores, October 2012 Fluorspar production - all grades Top Producers in 2011 1. China 3.5m. tpa 2. Mexico 1.2m. tpa 3. South Africa 270,000 tpa 4. Spain 140,000 tpa 5. Kenya 117,000 tpa Total output 2011: 6.3m. tonnes
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  Simon Moores, [email protected],@sdmoores, October 2012 The Fluorspar Value Chain Source: SRI Consulting, adapted by Industrial Minerals
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  Simon Moores, [email protected],@sdmoores, October 2012 Fluorspar, China
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  Simon Moores, [email protected],@sdmoores, October 2012 Fluorspar, China
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  Simon Moores, [email protected],@sdmoores, October 2012 Acidspar storage
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  Simon Moores, [email protected],@sdmoores, October 2012 Mexichem – Minas Las Cuevas, Mexico
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  Simon Moores, [email protected],@sdmoores, October 2012 End markets 53% 29% 10.00% 8.00% HF Acid Production Steel-making Aluminium Production Others Source: Ray Will, Fluorspar Conference 2011
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  Simon Moores, [email protected],@sdmoores, October 2012 Trends: China – fluorspar production • Increasing dominance of fluorspar production (2006 = 51%, 2011 = 58%) • Since 2004 government measures to reduce exports, not met by production elsewhere • Mining quota – 10.5m. tonnes fluorspar ore limit up to 2010 • Resource taxes • = Control
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  Simon Moores, [email protected],@sdmoores, October 2012 Trends: China – fluorspar consumption • Tables have turned • China dominates the higher value end of the fluorochemical product chain • Fluorochemical production increasing domestically • HCFC-22 up 100% 2002 to 2008
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  Simon Moores, [email protected],@sdmoores, October 2012 Trends: USA & Canada • No domestic supply • 100% import dependant on all fluorspar grades • USA is 2nd largest consumer of fluorspar in fluorocarbons after China • North America’s biggest industrial companies rely on fluorspar directly or indirectly • Relies on Mexico has primary source
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  Simon Moores, [email protected],@sdmoores, October 2012 Trends: Critical Status v Graphite
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  Simon Moores, [email protected],@sdmoores, October 2012 Trends: Critical Status context • EU ranks Fluorspar as higher risk: • Graphite • Lithium • Cobalt • Vanadium • Molybdenum • Tantalum • Copper • Zinc • Titanium Source: EU, Industrial Minerals Research, Natural Graphite Report 2012
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  Simon Moores, [email protected],@sdmoores, October 2012 Trends: New Supply highlights* • Canada: Canada Fluorspar Inc, Freeport Resources Inc, Prima Fluorspar, Newfoundland Fluorspar Exploration • South Africa: SA Fluorite Pty Ltd, Sephaku Fluoride Ltd, • Mongolia: Mongolrostsvetmet LLC • Germany: New mine started in 2012 • Sweden: Tertiary Minerals Plc • Mozambique: Globe Metals & Mining** • Vietnam: Masan Resources** *Does not include expansions of active operations ** Fluorspar by-product
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  Simon Moores, [email protected],@sdmoores, October 2012 Prices: Acidgrade, 97% CaF2, Wet Filtercake, CIF, Netherlands • 225% price rise between 2005-2012 Source: Industrial Minerals Data, indmin.com
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  Simon Moores, [email protected],@sdmoores, October 2012 Industrial Minerals Data - new Fluorspar – Online prices database and analysis – launch Q1 2012 Graphite – Online prices database and analysis – launch Q1 2012 • Detailed Global Prices (Export & Domestic) • Access via an interactive online database • Mineral specific analysis • Global Team
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  Simon Moores, [email protected],@sdmoores, October 2012 More on fluorspar… Industrial Minerals Insight Fluorspar Market Tracker > www.indmin.com/fluorspar
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  Simon Moores, [email protected],@sdmoores, October 2012 Industrial Minerals Research Natural Graphite Report 2012 Launched October 2012 Click here for more information or email [email protected]