Southern Ionics Mining to Support the American Zirconium OxyChloride (ZOC) Business

Transcription

1 Southern Ionics Mining to Support the American Zirconium OxyChloride (ZOC) Business

2 Southern Ionics Business Overview Privately held chemical manufacturer Founded in 1980 by owner - Milton Sundbeck 285 employees Production, Mining & Transportation 15 - R&D 10 - Sales 36 - Corporate

3 Southern Ionics Facilities SII Supply System All Products

4 Alumina Chemical Products West Point, MS Baton Rouge, LA North Calhoun, TN Largest Aluminum Chemical Producer in the United States, with Seven Production Locations Catalysts - Oil Refining TiO 2 Pigment Manufacture Pulp & Paper Applications Water & Wastewater Treatment Baton Rouge, LA South

5 Sulfur Chemical Products SII is the largest Sodium Bisulfite Producer in the Southeastern United States, with Multiple Supply Locations Products Sodium Bisulfite Solution Sodium Sulfite Solution Sodium Thiosulfate Solution Applications Pasadena, TX Williamsport, MD Tuscaloosa, AL Baton Rouge, LA - South De-chlorination Processes Oil Drilling Additive Pulp and Paper Wastewater Treatment

6 Aqua Ammonia Products Southern Ionics is the largest Aqua Ammonia supplier in the US Gulf Coast region, with Multiple Sourcing & Supply Locations Products Aqua-Cat brand high-purity Ammonium Hydroxide Solutions Houston Ammonia Terminal Assays from 10 % to 30% NH 3 Lake Charles, LA Applications Catalyst Manufacture NOx Pollution Abatement Water and Wastewater Treatment Chemical Manufacturing Donaldsonville, LA

7 Zirconium Products Southern Ionics markets crystal and aqueous solutions of zirconium chemical materials. Zirconic brand high-purity crystal salts of zirconium (chloride, sulfate, carbonate, phosphate) Products Aqueous solutions of zirconium salt products Applications Pigment Manufacture Oil Field Use Kidney dialysis Zirconium metal production West Point, MS

8 Zirconium Chemical Products Zirconium Chemical Products Tree Zircon Sand (65% ZrO 2 ) ZOC (35% ZrO 2 ) ZBS (36% ZrO 2 ) ZP HZO ZBC ZOS/ZHS ZrO 2 ZON/ZHN Zrcarboxylates ZrOAc AZC Zr(OH) 4 /HZO SZC

9 Sales Revenue FY2012 By Product By Market Ammonia 8% Sulfur 29% Other 4% Zirconium 6% Alumina 52% Distributors 9% Pigment 12% Pulp & Paper 14% Oil Field 6% Industrial 25% Catalyst 35%

10 Southern Ionics Mining Project Overview Zircon Mining Project Consists of: Wetmill in Charlton County (build stage) Dry Mill in Pierce County (design and bid stage) Wetmill in Brantley County (next year) Products Generated for Sale: Ilmenite Leucoxene Rutile Premium Zircon Standard Zircon Tails

11 Mining Location Map

12 Truck and Shovel Mining

13 Dozer Trap Feeder

14 Floating Wet Mill Design

15 Zero Water Discharge Mines Storm Water Management Ponds

16 Mining Schematic Page 16

17 5-Stage MT Spiral Plant Floating plant Includes feed desliming and tailings dewatering cyclones Employs MT Surge Bin to provide constant density and controlled flow to the spirals New MG12 (12-turn spirals) used for rougher and scavenger duties 5-stage customized spiral circuit to enable desired HM upgrading at high recoveries

18 MT Surge Bin and MG12 Spiral Surge Bin Provides densified spiral feed storage, requiring less volume Allows for precise control of spiral feed density and flow rate MG12 Spiral 12 turn spiral improves metallurgical performance Allows for inherent full tails scavenging Potential for high grade primary concentrate to move 2 to 3 stages further forward in flowsheet

19 Surge Bin Construction

20 Wet Mill Pontoon Construction

21 Wet Mill Construction

22 Mission South Site Works

23 Dry Mill Site (Offerman, GA)

24 Dry Mill Design (Offerman, GA)

25 Timing Mission South Mine commissioning April/May 2014 Offerman Mineral Separation Plant Oct/Nov 2014 Mission North Mine commissioning March 2015

26 MSP Production Tonnages Medium term production Year s.tons HM concentrate s.tons Zircon Product s.tons ilmenite Product 000 s.tons Leucoxene Product 000 s.tons Rutile Product *Projected Minelife in Georgia of 25 years

27 Final Product Specifications Ti TiO2 Fe203 SiO2 Al203 ZrO2 U + TH % % % % % PPM Ilmenite <50 Leucoxene <50 Rutile <50 Zircon TiO2 Fe203 SiO2 Al203 ZrO2 U + TH % % % % % PPM Typical Spec Max min 360 Low TiO2 Spec max min 360 Low Al203 Spec max min 360 Premium Spec max min 360

28 Zirconium Chemical Products Use of Zircon Sand (metric tonnes) Current % Ceramics 790, Zirconia (ZrO2) and Chemicals 250, Refractory 150, Foundry 150, Other 60, ,400, Source: TZ Minerals International, 2011

29 USA ZOC Traditional Sourcing ZOC Zircon Sand Most zircon sand used for chemical production is mined in South Africa and Australia, while the ore is transported and processed in China.

30 Zirconium Chemical Products US Markets Dependent on Chinese ZOC Zirconium Metal Production nuclear fuel rods (Hf-free), various defense applications (ballistics, armored vehicles, etc.), industrial process equipment, medical uses (artificial joints) Automotive catalysts used in state-of-the-art converters require significant amounts of yttria-stablized zirconia ceramics for support due to its high temperature stability Industrial applications, base material for many Zr-containing products used in paints and pigments, catalyst manufacture, leather tanning, photography Oil Field Zirconium materials are used in specific applications for drilling

31 Zirconium Chemical Products World Production of Zirconium OxyChloride (ZOC) (metric tonnes) ZOC Typical appearance Est Production Capacity China 142, ,000 USA 0 0 India 2,500 3,000 S. Africa 3,000 3,000 Ukraine 2,500 2, , ,500

32 Chinese ZOC Consumption Approximately two-thirds ZOC produced in China is consumed internally in the country The remaining one-third is exported to the following countries: USA approx. 22 kmtpa Japan approx. 22 kmtpa Europe approx. 10 kmtpa

33 USA Import Statistics - ZOC China 20,955 19,103 17,571 14,038 22,500 Canada 3,779 3,775 1,900 3,197 2,123 UK India Mexico Brazil Germany Sweden All figures in metric tonnes Southern Ionics Incorporated Page 33