Pradeep Koneru Trimex to set up Rs 2,250-cr titanium plant in India trimexgroup.

.com Trimex group, a Dubai-headquartered industrial minerals company today said it will set up a titanium plant in Andhra Pradesh by 2014 entailing an investment of about Rs 2,250 crore."We plan to set up a titanium pigment plant at Srikakulam in Andhra Pradesh with a production capacity of 44,000 tons per annum in the next three years," Executive Director and CEO of the group subsidiary Trimex Sands, Pradeep Koneru told reporters here. India requires 1,50,000 tons of pigment against a production of only 50,000 tons per annum, Koneru Pradeep said adding that environment clearance is awaited for the $500 million (about Rs 2,250 crore) project. The group earlier inked a pact with Indonesian government today for setting up a $850 million (about Rs 3,825 crore) titanium pigment plant in the South-east Asian country with 46,000 tons capacity per annum.

"Timex Sands will set up a world-class integrated titanium complex in Indonesia with an estimated cost of $850 million in eight to ten years," Pradeep Koneru said adding the project is expected to create about 6,500 jobs there. Indonesia Industry Minister M S Hidayat said the proposed plant will ensure regular supply of the pigment to the end users at a cost-effective price. "Indonesia has large limonite resources, about 40 million tons, despite which the country annually imports about 46,000 tons of titanium pigment," he said. Pradeep Koneru Trimex group Chairman Prasad Koneru said the integrated titanium complex in Indonesia will expand the company's reach in the global market and widen its product mix. Pradeep Koneru Trimex group is a mineral business house with interests in extraction, sourcing, procurement, delivery etc. Titanium has wide applications and can be alloyed with iron, aluminum, etc to produce strong lightweight alloys for aerospace, military, industrial process, automotive, agrifood, orthopedic implants, dental instruments etc. by the government. TRIMEX will be executing mining operations and related projects through its wholly owned subsidiary, Pradeep Koneru TRIMEX Sands Pvt. Ltd. (numbers are reported in accordance to the Australian Joint Ore Reserves Committee).The current capital expenditure stands at 250 crores and is expected to climb to 2,250 crores in five years.

TRIMEX will hold the mining lease for a period of 30 years from the date of the lease award (in 2001) and is renewable for another 30 years. Ilmenite is used to produce titanium dioxide, a vital ingredient in creating white pigments in high-quality paints, paper and plastics. Ilmenite is also used as an intermediate feedstock in the manufacturing of titanium metals. Pradeep Koneru, Executive Director of TRIMEX said, "This lease is a key development and a stepping stone for us. It gives TRIMEX the potential to emerge as one of the leading global producers of Ilmenite by building upon our extensive resource base and existing competitive cost structure in India. With this lease and associated investment, we are one of the largest Ilmenite producers in India. "Through this secure supply of Ilmenite, TRIMEX will be one of the lowest-cost titanium dioxide manufacturers globally, by value adding and integrating our operations throughout the supply chain. To this end, we are working to ensure that prices remain competitive to benefit the end-user." The value addition study is being conducted by TZMI, an independent consulting firm specializing in the mineral sands and titanium dioxide pigment industries. The company's site facility has a capacity to produce 200,000 tons of Ilmenite per annum and is expected to produce 65 per cent of that capacity in the first year of operations. Also, the facility will have an annual capacity to produce 80,000 tons of garnet, 80,000 tons of sillimenite, 6,000 tons of Rutile and 6,000 tons of zircon; all of which are associated minerals in the area. The facility's engineering procurement and construction will be executed by Walchandnagar Industries, whose technical partner is Downer EDI Mining Mineral Technologies (formally Roche Mining - Mineral Technologies). Downer EDI Mining - Mineral Technologies undertook the process flow sheet and basic engineering design and supply of all process equipment for both the wet and dry concentrators. TRIMEX Industries signed a Memorandum of Understanding (MoU) with the Government of Andhra Pradesh at the CII Conference held at Hyderabad in January 2001 to develop beach sand minerals. Under the MoU, Pradeep Koneru TRIMEX has two more prospecting licenses for 40 sq km in areas adjacent to Srikurmam. The prospecting licenses will enhance current economies of scale and strengthen the company's position as one of the most scalable industry players globally. The Srikurmam deposit lies in the northeast corner of the state of Andhra Pradesh, bordering on the neighboring state of Orissa. The global consumption

of Titanium Dioxide pigment (TiO2) is projected to increase at a CAGR of 3 per cent from 4.96 million tons in 2008 to 6.25 million tons in 2015 [1 ]. The supply of Ilmenite is expected to be affected by a decline in supplies from traditional sources in Australia and North America. India, on the other hand, is slated to become a major supplier in the global production of Ilmenite and Asia will supply about 22 per cent of total world production by 20151. India is projected to contribute at least 10 per cent of global Ilmenite supply in the same timeframe.