REG - PYX Resources Ltd. - PYX Starts Production and Sales of Ilmenite

PYX ResourcesAnnouncement

27/06/2022 07:00

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RNS Number : 2575Q  PYX Resources Limited  27 June 2022

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PYX Resources Limited / EPIC: PYX / Market: Standard / Sector: Mining

 

27 June 2022

 

PYX Resources Ltd

("PYX" or the ("Company"))

PYX Starts Production and Sales of Ilmenite

 

HIGHLIGHTS

•             PYX starts producing natural ilmenite from its Mandiri
deposit

•             Ilmenite is used for the production of synthetic rutile
TiO(2) feedstocks

•             TiO(2) feedstock demand is forecasted to exceed supply
and are considered to be critical minerals

•             TiO(2) is sold for end use in pigment, welding and many
other applications

•             PYX expands portfolio of products, which include premium
zircon, rutile, leucoxene and ilmenite

•             PYX increased its installed capacity at its Mineral
Separation Plant to 24ktpa

 

PYX Resources Ltd (PYX or the Company) (NSX: PYX | LSE: PYX), is pleased to
announce that it has started production and sales of ilmenite from its Mandiri
deposit in Central Kalimantan. On 7 December 2020 PYX received the approval
for Production Operation Plan and Budget 2021 from the Energy and Resource
Service Department of the Government of the Province of Central Kalimantan
which included the mining operation, processing, marketing and shipping of
zircon, rutile and ilmenite.

 

During the month of November 2021 PYX increased its production capacity at its
Mineral Separation Plant (MSP) to 24,000 tpa, allocating the new installed
capacity for the production of rutile, leucoxene and ilmenite.

 

Zircon and titanium dioxide minerals - such as rutile and ilmenite - belong to
a group of minerals widely known as 'Heavy Mineral Sands'.

 

Ilmenite, FeTiO(3), is a common mineral in nature. It is a weakly magnetic,
black or steel-gray solid. From a commercial perspective, ilmenite is the
most important ore of titanium. Ilmenite is used to produce synthetic rutile
for feedstocks to produce titanium dioxide (TiO(2)) pigment, which accounts
for around 90% of global titanium feedstock consumption.

 

The Australian Government identified rutile and ilmenite as critical minerals
among 24 metals, non-metals and minerals, that are considered vital for the
economic well-being of the world's major and emerging economies, yet whose
supply may be at risk. (1)

( )

Titanium dioxide is a dark-coloured mineral which, with further processing,
becomes a white, opaque powder. Titanium pigment is by far the largest end use
of titanium feedstocks, accounting for around 90 per cent of demand. Average
annual growth of this segment is broadly in line with global GDP growth.
Titanium metal has experienced stronger growth with increasing use in body and
engine parts for aeronautics, defence applications, biomedical and sporting
goods. Welding flux cord wire is used in ship building and steel construction
applications.

 

Titanium feedstock production represents an approximately US$4.5 billion per
annum industry.

 

Commenting on the start of ilmenite production, PYX's Chairman and Chief
Executive Officer Oliver Hasler, said: "PYX Resources is extremely pleased to
have started the production of ilmenite, which is an important component of
our strategic plan. Together with our premium zircon, rutile and ilmenite we
will better serve our customers around the world and have an important impact
to our profitability".

 

 

*** ENDS ***

 

For more information:

 PYX Resources Limited                                            T: +852 3519 2860

 Oliver B. Hasler, Chairman and Chief Executive Officer           E: ir@pyxresources.com
 VSA Capital Limited (Financial Adviser and Broker)               T: +44 (0)20 3005 5000

 Andrew Raca (Corporate Finance)

 Andrew Monk / David Scriven (Corporate Broking)
 St Brides Partners Ltd (Financial PR)                            E: pyx@stbridespartners.co.uk

 Ana Ribeiro / Isabel de Salis / Oonagh Reidy / Isabelle Morris

 

 

¹ Australian Critical Minerals prospectus 2021

 

 

About PYX Resources

PYX Resources Limited (NSX: PYX | LSE: PYX) is a producer of premium zircon
dual listed on the National Stock Exchange of Australia and on the Main Market
of the London Stock Exchange. PYX's key deposits, Mandiri and Tisma, are
large-scale, near-surface open pit deposits both located in the alluvium-rich
region of Central Kalimantan, Indonesia. PYX, whose Mandiri deposit has been
in production since 2015, is the 2nd largest publicly traded producing mineral
sands company by zircon resources globally. Determined to mine responsibly and
invest in the wider communities where we operate, PYX is committed to fully
developing its Mandiri and Tisma deposits, with the vision to consolidate the
mineral sands resources in Kalimantan and explore and acquire mineral sands
assets in Asia and beyond.

 

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