Titanium Feedstock Producers Comparative Cost Study

Description

“Titanium Feedstock Producers Comparative Cost Study” (FCS) reviews cost versus revenue analysis for producers across the titanium feedstock sector. It is the only study of its kind undertaken annually. The number of operations included varies year-on-year, and in 2022 there were 36 operations reviewed. For the first time, TZMI has estimated greenhouse gas (GHG) emissions for all 36 operations included in the 2022 study.

The study provides:

A detailed explanation of TZMI's methodology employed to maintain consistent comparisons of operating costs across the entire titanium feedstock industry.

Informed discussion about the parameters used for comparing relative competitiveness in the industry.

Updated cost data for the mineral sands industry from information and research garnered during the previous year.

Commentary on the importance of co-product credits in the current market conditions (pig iron and zircon).

Discussion on increasing operating costs, specifically energy and mining costs.

An analysis of the effect of exchange rates on producer performance.

An updated titanium feedstock industry cost curve - an invaluable tool for evaluating both existing operations and measuring the potential of new projects.

EXECUTIVE SUMMARY

METHODOLOGY

TITANIUM FEEDSTOCK MARKET FUNDAMENTALS

Global TiO2 pigment production
Feedstock demand trend
Feedstock consumption by end-use
Feedstock supply trend
Feedstock trades in 2021
feedstock

COST AND PROFITABILITY CURVES

Operations included in 2021 cost study
HMC cost of production
Mineral separation plant costs
Total cash cost of mineral production
Summary cash cost of mineral production
SR and slag producers costs
Ilmenite conversion costs: Slag producers
Ilmenite beneficiation: Western vs Chinese
Ilmenite conversion costs: SR producers
Ilmenite beneficiation: Western vs Indian
Transport costs
Total cash cost of operation
Average cash cost of operation
Net cash costs
Ilmenite

INDUSTRY COST COMPETITIVENESS

Cost competitiveness measures
Normalised net cash costs
Cash margin
Industry weighted R/C ratio
R/C ratio curve
Comparison of R/C ratio curve: 2019 -2021
R/C ratio by producer group
R/C ratio trend
Future industry R/C curve forecast
Long-term weighted average R/C ratio
HMC

FACTORS AFFECTING RESULTS

Factors affecting R/C ratio
Feedstock prices in 2021
Co-product revenue
Labour costs
Power prices
Exchange rates
Decreasing ilmenite conversion costs
Graphite electrode prices
High purity pig iron price increases
TiO2

GREENHOUSE GAS EMISSIONS

Greenhouse gas emissions calculation methodology
Greenhouse gas emissions by producer group
Greenhouse gas emissions by producer
Greenhouse gas emissions by region

KEY PRINCIPLES AND DEFINITIONS

Key principles
Definitions