VICTORIA PARK, WA - TZ Minerals International (TZMI) announced the release of the inaugural edition of the TiO₂ Feedstock Annual Review. Due to the depth of information, growth of each sector and client feedback, TZMI has replaced the well-known Mineral Sands Annual Review with a suite of four reports providing a more comprehensive analysis of the different sectors of the industry. The new reports are the TiO₂ Feedstock Annual Review, Zircon Annual Review, TiO₂ Pigment Annual Review and Titanium Metal Annual Review.

TheTiO₂ Feedstock Annual Review provides a review of 2011, with significant developments in the industry, changes to the supply and demand balance during the year, analysis of trade and pricing data in 2011, a detailed history of the sector, as well as outlook for the sector and the strategic challenges facing the industry and comprehensive profiles on sector participants. Overall, the titanium feedstock market in 2011 experienced significant demand growth for virtually all feedstock types, as downstream customers scrambled to secure supply following a period of low offtake in 2008 and 2009. TiO₂ pigment remained the main demand growth driver for titanium feedstocks, accounting for nearly 90 percent of the global feedstock offtake in 2011.

For the first seven to eight months of 2011, the overall supply/demand fundamentals for the sector were readily described as somewhat robust and underpinned the price forecasts that were made in mid-2011. Prices were seen to be considerably higher than previously forecast, reflecting the changing dynamics within the mineral sands sector.

The emerging trend during the past couple of years has been one of renewed interest in the titanium feedstock sector, given rising prices and increased demand. Following nearly seven years of diminished activity in the sector, investor interest in the feedstock industry has surged.

Declining production from existing producers and a pipeline of new projects that are still in the development stage, mean that the supply situation will remain tight. Investors now see the feedstock industry in a different light, and the potential for upside in the sector has meant that there are a number of new projects that will go some way toward alleviating the current tightness in the market.

A number of significant events and developments took place in the feedstock sector in 2011. Never in TZMI’s history has there been so much activity in one year. There were numerous mergers, partnerships, expansions, planned new capacity and exploration, as well as other developments throughout the TiO₂ value chain that would have an impact on the feedstock sector.

The titanium industry is comprised of key mineral sands products, commonly referred to as titanium feedstocks. These raw materials are used primarily in the production of TiO₂ pigment and in smaller quantities in the production of titanium metal and welding fluxes. The most common mineral sands products are ilmenite, rutile and to a lesser extent leucoxene, plus zircon. Ilmenite mineral sands products can also be upgraded to titanium slag or synthetic rutile.

There are a small number of large mining companies or groups that are involved in the production of titanium feedstocks. This relatively small group is dominated by close relationships between producers (miners) and consumers (predominately pigment producers). In 2011, the industry saw the first major partnerships announced, as producers and consumers made strategic moves toward vertical integration and to ensure security of supply.

Orders for TiO₂ Feedstock Annual Review 2012 are now being taken by TZMI. For more information, visit www.tzmi.com.