Titan in Madagascar will produce Australian-Chinese joint venture
Resources «Ranobe» titanium deposits on the island of Madagascar will develop the Australian-Chinese joint venture, is planning to create two powerful market player — the company from China «Sichuan Lomon Titanium Industry Co Ltd» (SLTIC) and their colleagues from Western Australia — the corporation «World Titanium Resources «(WTR). «Joining forces will enable our companies to adjust in the field» Ranobe «extraction of minerals in the annual volume of about 88 thousand tons of rutile-zircon concentrate and approximately 800 thousand tons of ilmenite concentrate," — commented on his plans the managers of the future joint venture.
The preliminary agreement recently signed by the parties, indicates that the company SLTIC (which will take over the financing of the project) will enjoy preferential conditions to buy ilmenite concentrate produced at «Ranobe». «Our interest in the project — the possibility to dispose of most of the titanium raw materials, produced from the mine (we claim to 80% of ilmenite concentrate to be produced from the ores of this deposit). share price of the company will be determined by the market value of ilmenite (with a bonus of 5% of the current average prices of raw materials at the time of delivery) «- voiced by the benefits of cooperation with the Chinese corporation in the WTR.
Despite the fact that now the cost of ilmenite concentrate stability is threatened, titanium project partners are confident that the decision to invest in the mine «Ranobe» — a deliberate and timely step. «Current price of titanium raw material today — about $ 300 per ton," — quoted the head of their own experts «World Titanium Resources» — Bruce Griffin. «We will also be beneficial to implement the project, even if its price in the global market will fall to the level of 150 USD per 1000 kilograms," — says a representative of the Australian Management Corporation.