What direction are industrial minerals

heading?

Simon Moores, Deputy Editor

Industrial Minerals

UK

A view from the end markets

Construction/car manufacturing Primary: metals (steel), cement, glass consumption Secondary: paints, plastics, ceramics

Fertiliser An emerging industrial giant

New energy Electric cars Solar power Wind Power

Construction & cars

Primary markets Steel – 70% refractory consumption = 20 main minerals Cement – high bulk, low value Glass - an array of filler minerals, similar to ceramics

Secondary markets Plastics – filler minerals, speciality minerals Paints – filler minerals, pigments

Ceramics – filler minerals, speciality minerals

Activity dries up

Construction

Cars 2007: 55m. Units 2009: 52m. Units 2010: 51-53m. Units

Impact 1: Destocking Whatever happens downstream is accentuated upstream

Impact 2: Sales fall, production falls

Austria, Europe (Refractory manufacturer)

33% H1 2009

27.5% H1 2009

Brazil, South America (Refractory manufacturer)

Refractories

Impact 2: Sales fall, production falls

Filler minerals – kaolin, wollastonite

Wollastonite

USA, North America

Demand Market

40% Cars

(June 2009)

Kaolin

Brazil, South America

53.3% Paper (Q1 2009)

Impact 2: Sales fall, production falls

Pigment…

Titanium dioxide (TiO2 - an industrial guide)

USA, North America

8% Cars

Demand Market (H1 2009)

12% Construction

Emerging directions: Fertiliser

New Energy: electric vehicles (EV)

Lithium-ion batteries What is lithium

New Energy: Lithium

New Energy: Lithium/EV

INSERT LITHIUM DEMAND PREDICTIONS

New Energy: Lithium/EV

New Energy: Lithium/EV

New Energy: Lithium/EV

Opportunities for Europe…

No production of lithium in Europe 1 developer at present – Keliber (Nordic Mining),

Finland Europe will have one of the biggest markets for

lithium