Formal approval for extension of Kwinana titanium dioxide pigment plant

29/11/95

Formal approval has been given by Resources Development Minister Colin Barnett for titanium dioxide pigment producer Tiwest to extend its pigment production plant at Kwinana.

Mr Barnett said the approval for the $30 million expansion, from 64,000 tonnes per annum to 80,000 tonnes, had come at a time when there were signs of a strong and sustained growth in world demand for titanium dioxide.

"The improved outlook is a welcome boost for local producers, who have the ability to supply about four per cent of the world's titanium dioxide capacity," he said.

"This project is another prime example of value-adding to our resources, with the production of pigment increasing almost 20-fold the value of the original product."

(Average world price for ilmenite is $90 p/tonne, compared with pigment at $2,500 p/tonne)

Pigment is the premier material used in the paint, paper, paper coatings and plastics industries because of its unique reflectivity and 'hiding' power.

Mr Barnett said demand for this material closely reflected the general health of the economy.

"In good times, the construction industry booms and business confidence grows so people make decisions to upgrade their cars and household appliances or to redecorate their homes," he said.

"All these things require paint or plastic components and the demand for and price of pigment reflect this trend."

The Tiwest Joint Venture partners include Ticor Resources and US Kerr McGee Chemical Corporation. The partners instituted Australia's first minerals-to-pigment project in 1988, based on titanium mineral deposits at Cooljarloo, with processing plants at Chandala and Kwinana.

Mr Barnett said the Western Australian industry was set to expand further with the development of BHP's Titanium Minerals mine at Beenup near Augusta, RGC's decision to return to full production at Eneabba and Westralian Sands' go-ahead for a second synthetic rutile kiln at North Capel.

WA's other pigment producer, SCM Chemicals of Australind, earlier this year announced it was conducting studies for a possible $250 million expansion of its Kemerton plant.

Titanium minerals production in WA is worth about $411 million annually, but with the value of titanium dioxide pigment added, it is closer to $750 million.

The Minister said the approval was given following an extensive Consultative Environmental Review (CER) process carried out by the Environmental Protection Authority and the setting of environmental conditions last month.

Media contact: Carolyn Vicars 222 9699