Minerals and Products

World production of chromite was estimated at 22.0 million tonnes in 2008, with the majority emanating from South Africa, and a significant portion of the balance coming from Kazakhstan, India, Philippines, Iran and Pakistan. Less than 30% of world chromite ore production is traded internationally as a significant amount remains in South Africa consumed by its domestic Ferro-chrome industry.

The chromite to be produced at the Southern Oregon Minerals Sands project is unique in the world of chromite due to its roundness, very low silica content, performance attributes and superior casting results (high tensile etc.,) and is an ideal foundry sand, much akin to zircon quality. Canada and the United States are net importers of their annual requirements for foundry chromite. Currently, the United States does not have any domestic chromite production suitable for foundry applications.

Chromite sand found a place in the casting industry in the 1960s when it substituted for zircon sand, which was in short supply. Since then, chromite sand has gained recognition as being technically suited to manganese steel and stainless steel casting because it produces a finish similar to that of zircon sand. (depending on quality of Chromite sand). Approximately 3,100 foundries are active in the United States.

Chromite prices are not quoted on metal exchanges. Price is negotiated between buyer and producer and can vary depending on many factors including whether the product is wet or dry, additional beneficiation required typically due to silica and clay content, contract terms, volume, and proximity to the end user. Therefore indicative prices often reported in trade journals should be taken as a rough guide as additional factors can have a material bearing on the ultimate cost.

High-quality, high-value garnet grain principally has been used for such applications as optical lens grinding and plate-glass grinding for more than a century; industrial diamond and fused aluminum oxide are competitors. In recent years, industrial garnet powders have been used for high-quality, scratch-free lapping of semiconductor materials and other metals. Other industrial applications include the manufacture of coated abrasives; hydrocutting; and the finishing of wood, leather, hard rubber, felt, and plastics. Garnet is replacing silica sand in the blast cleaning market. This market displacement is happening because of the health risks associated with the inhalation of airborne crystalline silica dust having curtailed its use in blasting (Harris, 2000).

Total world production of industrial garnet was estimated to be 440,000 tonnes in 2005. The garnet market is competitive; therefore, costs are usually minimized by developing deposits containing garnet and other mineral commodities. The most significant producers outside the United States are Australia, China, and India, all of which have growing markets.

There is general oversupply, with increased producer stocks being reported in India and Australia. Given the excess production capacity and possible future expansions, it is envisaged that overall prices for general industrial garnet will decrease at a rate of 3% to 5% per year until supply and demand come into balance.

The wide price range of industrial garnet is based on the application, quality, quantity purchased, source, and type. There is no exchange or market price available and the price and terms are not published except for indications outlined in some trade journals. A premium quality product (Barton HPX#80) in a 50lb bag could sell upwards of $0.35 cents per lb while a Chinese or Indian lower quality at $0.09 - $0.011.

Foreign Trade

Australia provided almost 37%, China about 35%, and India approximately 28% of industrial garnet imported into the United States for consumption. These countries continue to gain importance as garnet exporters. Excess production capacity combined with supplies that vary in quality, grain size, and mineral type will keep prices down. Garnet producers could benefit from the enforcement of existing regulations and tighter environmental and health controls on abrasive blasting. The implementation of U.S. clean water regulations and the improvement of potable water supplies in developing countries also will benefit garnet suppliers.

During recent years, the garnet industry has encountered higher production costs and tighter profit margins, which has resulted in the loss of noncompetitive producers. Because of the need to keep production costs at a minimum, the most competitive producers are those who produce garnet in combination with one or two other minerals, have reserves that can be mined at a low cost, and have the ability to react rapidly to changes in market demands. These factors all favour the US operations of Industrial Minerals Corporation.
Worldwide industrial garnet demand is expected to grow at a rate of 3% to 5% per year during the next 5 years. Markets for waterjet cutting and blasting media are expected to exhibit the highest growth. With recent worldwide increases in petroleum prices, there has been an increase in petroleum exploration. This exploration increase should provide opportunities for increased use of garnet blasting media for cleaning drill pipe. Increased defense spending in the United States could lead to increased garnet demand, since the aircraft manufacturing and shipbuilding industries use significant amounts for blast cleaning and finishing of metal surfaces.

Recent news on Waterjet industry developments:

European aerospace engineering got a much-welcomed boost recently with the unveiling of a state-of-the-art waterjet machining centre at the University of Nottingham. The technology centre was officially inaugurated on January the 24th, 2007 before a group of sixty stakeholders in the aerospace industry, and is expected to help Europe compete in the global aerospace technology market. The cutting-edge technology centre is the first of its kind in Europe and the first time waterjet machining will be applied to aerospace engineering outside the US. Waterjet is considered unparalleled technology in many respects; not only for its precision, but also for its environmentally friendly characteristics. Waterjets can perform tasks with a simple mixture of water and abrasive materials such as high quality garnet, replacing harmful chemicals that were used in the past. The new €1.6 million centre will give researchers the opportunity to explore novel solutions for aerospace applications. Waterjet technology is on the rise in all engineering fields and holds many advantages over existing technology. The new waterjet technology has six-axis capability able to precisely sculpt three-dimensional objects, a vast improvement over previously available machines which operated in only two-dimensions.

“It’s a method that’s particularly suited to aerospace engineering,” says Professor Ian Pashby, who heads the project. “The metals used within the industry are difficult to cut and machine using other methods. Waterjet technology is very precise and adaptable — it can even be used to cut food.”

The aerospace industry poses many unique engineering challenges requiring creative solutions. One technique specific to aerospace components consists of hollowing out ‘pockets’ within blocks of metal. Until now, this was done through the use of harsh chemicals, posing environmental concerns. The nature of waterjet machining eliminates such environmental dilemmas, potentially giving aerospace an added advantage.

• “Waterjet manufacturing can be and has been used to reduce the cost and environmental impact of producing and refurbishing our components. It is suitable for many commodities in our supply chain as well as processing next generation materials and structures. The machine at The University of Nottingham now allows us and the aerospace industry to research and develop solutions to a range of manufacturing challenges,” says Stephen Burgess, Rolls-Royce Manufacturing Process and Technology Director. Rolls Royce and the University of Nottingham are jointly supporting technical development at the centre.
  
  In Summary, Garnet is not a single mineral, but is the name of a group of six members having different mineralogical compositions but common order of crystallization, hardness, specific gravity etc. In general, they are silicates of aluminium with different proportions of iron, calcium, magnesium, chromium & manganese in the composition giving rise to different varieties.
  
  
• Almandine is the common garnet, also known as Abrasive Garnet because of its hardness and capacity to retain its crystal structure, a major deciding factor in abrasive blasting.
  
  
• Garnet is found in free form associated with a few other heavy minerals and in high concentration in the beach sands. Varying magnetic properties and conductivity enable the separation of various constituent minerals in the beach sands in dry state.

Industrial Uses

• Garnet has no free silica and hence does not cause dust and silicosis in its industrial applications unlike silica sand or quartzite.
  
  
• Garnet is non-toxic, inert and hence environment (eco) friendly.
  
  
• Garnet's unique grain hardness / toughness guarantees efficiency in blasting and reduces the break-down percentage on impact. About 65% of garnet used for abrasive applications (not waterjet cutting) can be recovered and recycled.
  
  
• Almandine garnet (sp.gr. 4.0-4.2) makes 3 or 4 times higher impact than quartz grains (sp.gr. 2.5-2.6) of the same size.
  
  
• Garnet is well suited for abrasive blasting / surface cleaning in fields like shipyards, petrochemical industry, building industry, non-ferrous surfaces etc.
  
  
• Water (Abrasive) jet cutting is more prevalent in North America and Europe where fine grade garnet is injected in a stream of high velocity of water to cut marbles, granites, high strength steel, aero space & automotive glass.
  
  
• Oregon Resources garnet is well suited for fine finishing of products made from wood to metal

Four corporate groups now effectively control about three quarters of the world’s zircon supply: Iluka Resources, Rio Tinto, BHP Billiton and Anglo American.

Historically Europe has long been the principal consumer due mainly to the sizeable Spanish, Italian and Turkish ceramics industries. In recent time the Asian markets have been increasing their demand percentage with supply sourced mainly from South Africa and Australia who produce approximately the same amount of zircon and account for 80% of total supply.

Prices for zircon sand have been rising since 1999. Between January and June of 2003, ceramic grade zircon sand prices have increased by nearly 25% from $370 to $400 per tonne to $450 to $500 per tonne. The Oregon Mineral sands project will be a very minor producer of zircon and current plans are to utilise the zircon produced in the creation of a suite of unique value added options for foundries.

After the chromite product, the principle volume byproduct post processing, is a low quality High Iron/Ilmenite sand. The term “low quality” is not meant to infer that the product does not have a commercial value, only that the chemical and physical characteristics of these minerals are significantly different from the products currently in use by the metalcasting industry. Commercially available black iron oxide, Fe3O4 (magnetite), and red iron oxide, Fe2O3 (Hematite), as well as modified blends of these oxides with other mineral and organic compounds, have been used in the foundry for many years.

These additives are essential for reducing or eliminating casting defects, improving the casting’s finish and reducing casting cleaning time. This product can offer unique performance properties that will benefit the casting industry by replacing or augmenting currently available oxide products.

Currently the University of Northern Iowa is investigating the potential advantages for this product as well as blends with other oxides. In addition the project team is investigating the affect of oxide additive levels on the core sand properties and undertaking evaluations in both iron and steel castings and quantifying the un-bonded expansion for various silica/oxide blends.