Base Resources and the market for pigments

1st May 2018 | Base Resources

Mineral sands producer Base Resources (LON:BSE) mines and distributes illmenite and rutile, forms of titanium dioxide, mainly used in the production of pigments. They also produce zircon, which is largely used in ceramics. The business operates a mine in Kenya, near the south-east coast in Kwale – an operation which generated A$115m revenue and net profits of A$21.5m in the 6 months to December 2017.

In January the group acquired the Toliara Sands Project, a large illmenite resource in Madagascar with a large, high grade Mineral Resource of 857 million tonnes at 6.2% heavy mineral, with 612 million tonnes in the Measured and Indicated categories at 6.7% heavy mineral.

CEO Tim Carstens has indicated that with his teams expertise and the straightforwrd natur of the mineralogy, the Toliara Sands Project should be in production in mid-2021.

The market for titanium dioxide is broadly linked to global GDP growth, as it is ubiquitous in everyday life, used to colour products in food, sunscreen and paints. Until two years ago there was significant oversupply of both titanium dioxide and zircon. Demand has now caught up, which is causing prices to rise.

We filmed Tim Carstens who gave us a great overview of his business, as well as the market for illmenite, rutile and zircon, available below:



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