TiWest's Australian TiO2 sites still operating

13 June 2008 20:06  [Source: ICIS news]

HOUSTON (ICIS news)--Tronox will continue to operate its TiWest titanium dioxide (TiO2) joint venture (jv) in western Australia despite a force majeure declaration from its natural-gas supplier on 3 June, the US pigment maker said on Friday.

A short-term natural-gas supply arrangement enabled the 50/50 Tronox-Yalgoo Minerals jv to maintain production after an explosion and fire at Apache Energy's offshore Varanus Island natural gas pipeline facility.

How long the company is able to operate its facilities there, however, is contingent upon its ability to acquire natural gas and electricity, according to a Tronox statement.

The Varanus gas hub is located on Australia’s northwest shelf, about 60 miles off the Australian coast, and supplies about 30-40% of the region's gas needs.

Natural gas supply could remain disrupted for as long as four months, Apache officials said, though partial restoration of one of the damaged pipelines could be completed in about two months.

TiWest's facilities in the region include its Cooljarloo mineral sands mine, the Chandala synthetic rutile plant and its 110,000 tonnes/year Kwinana titanium dioxide pigment plant. 

Tronox has joined other US TiO2 producers seeking contract price increases of 5 cents/lb ($110/tonne, €72/tonne) for 15 June or 1 July, the first such efforts since a push for 6 cents/lb in January by all major producers.

Several suppliers have also announced surcharges designed to offset escalating energy, freight and raw materials costs.

A total of 17 cents/lb in US price initiatives has been proposed by sellers since July 2007, but none has succeeded, except 2-3 cents/lb gained from the smaller plastics-compounding segment of TiO2 consumers.

US contract prices for TiO2 have remained flat for most of the past 12 months at 98-108 cents/lb FD (free delivered), according to global chemical market intelligence service ICIS pricing 

Other US TiO2 producers include Cristal Global, DuPont, Huntsman and Kronos.

($1 = €0.65)

For more on Tronox facilities  visit ICIS plants and projects
For more on TiO2, visit ICIS chemical intelligence
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By: Larry Terry
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