August 16, 2016

Zirconium Marketing and Sales Agreement Signed for DZP

DUBBO ZIRCONIA PROJECT (DZP) – zirconium, hafnium, niobium, yttrium, rare earth elements

  • AZL has signed an exclusive worldwide marketing, sales and distribution agreement with Minchem Ltd for all zirconium materials produced by the DZP. Minchem is a technical ceramics marketing and manufacturing business that has been involved in zirconium chemicals and zirconium dioxide (ZrO2 or zirconia) products for over 40 years.
  • Minchem is based in England and has a global reach in the zirconium industry.
  • The initial term of the agreement is for five years from commencement of DZP production, with an option to extend for a further five years by mutual agreement.
  • The DZP plans to produce over 16,000 tpa of zirconium products (100% ZrO2 basis) and includes zirconium dioxide, specialty zirconium chemicals and value added zirconium products.
  • At full capacity, the DZP zirconium revenue is estimated to be US$100 -120 million, which equates to about 30 – 32% of total project revenue at current spot prices for the Project’s output.
  • The agreement with Minchem provides AZL with an experienced partner to market DZP zirconium products directly to key end users in all major markets. It will also assist in the creation of higher value zirconium products which have been identified and are under active development.
  • The zirconium chemicals market consumes about 21% of annual zircon production and is the fastest growing segment of zircon consumption.
  • With a forecast compound annual growth rate of ~5%, the zirconium chemicals market is anticipated to reach 190,000 tpa by 2020, and 240,000 tpa by 2025, worth in excess of US$1.5B per annum.