LONDON, March 27 /PRNewswire/ --

- Roskill Information Services

- The Economics of Fluorspar (10th Edition)

- New Report From Roskill Analyses Worldwide Fluorspar Supply and Demand

Spot prices for acid grade fluorspar, landed in the USA, increased four fold between January 2003 and November 2008 as the market responded to the reduction in supply from China and soaring freight costs. The extent of the availability of Chinese fluorspar has been the main factor affecting fluorspar prices since the mid 1980s. Acidspar prices were low throughout the 1990s as a result of declining world demand coupled with a surge in exports of low price fluorspar from China. Following the introduction of anti-dumping measures in Mexico and Europe and the closure of some mines, the supply/demand balance began to normalise. Further stabilisation of the market occurred at the beginning of the 2000s as China reduced export quotas and introduced export tariffs. Exports of Chinese fluorspar halved between 2002 and 2008.

In the meantime, mine production in the rest of the world had declined in the 1990s in response to low prices and diminishing production of fluorochemicals in the rest of the world. It has taken some time for production to increase elsewhere, but by 2008 Mexican producers had practically doubled their output since 1998 and output had also increased significantly in Mongolia, Russia and Namibia.

The supply situation was also eased by the increasing availability of downstream products from China. Exports of aluminium fluoride, for example, increased from 17,550t in 2003 to over 100,000t in 2008. Exports of hydrofluoric acid also soared between 2003 and 2006 but have levelled off, partly owing to the imposition of a 15% export tax in 2008, which indicates that the government is encouraging the production of added value fluorocarbons. Exports of HFCs to Europe and North America have already started to make an impact.

The diminishing availability of fluorspar from China and strong growth in demand from 2002 to the third quarter of 2008 has led to a number of proposed new mining operations. Of the total identified potential output of 1.4Mtpy it is estimated that about 0.7Mt has attracted significant funding. Possible new producers from new deposits include the Nui Phao Mining Company in Vietnam, Tertiary Minerals in Sweden and Mongolia Minerals. A number of companies are investigating reopening old mines or exploiting deposits adjacent to old workings, and these include Burin Fluorspar in Canada and Hastie Mining in the USA. In China, companies that have previously exploited deposits in Zhejiang are now developing new deposits in Inner Mongolia, Fujian and Jiangxi.

Over the past decade as a whole, demand for fluorspar has grown at just 2.2%py but in the years from 2003 to 2007, growth rates exceeded 4%py as the industry started to recover from the effects of restrictions on the use of some fluorocarbons. Of the 5.5Mt of fluorspar consumed in 2007, an estimated 50% was used in the manufacture of chemicals, 24% in iron and steel and 17% in the manufacture of aluminium. Growth has been associated with production of chemicals and aluminium fluoride, both of which are derived from acidspar. This has led to some tightness in supply of acidspar, as production has grown by 6.6%py since 2002 while consumption has grown by 7.4%py over the same period. Over the four years from 2003, it is likely that stockpiles have been drawn down to contribute to supply.

The market for fluorocarbons is recovering from the impact of phasing out the use of chlorofluorocarbons (CFCs), which are being replaced by fluorocarbons with a lower ozone depleting potential. It is estimated that around 1.8Mt of fluorspar was consumed in 2007 in the manufacture of fluorocarbons for applications such as refrigerants and foam blowing. Replacement fluorocarbons (HCFCs and HFCs) require more fluorspar in their manufacture but this positive factor is increasingly offset by further restrictions on the use of HCFCs and HFCs, as several of the compounds have been identified as exhibiting global warming potential. These further restrictions and the phasing out of CFCs in China and other industrialising countries over the next few years will limit growth to 1%py.

The other main application for fluorochemicals is the manufacture of fluoropolymers and fluoroelastomers for use in materials such as PTFE, PFA, ETFE and PVDF. The main product is PTFE, which is used in insulation of electrical wire and cables as well as in aerospace, coatings and electronics. Demand for fluorspar in the manufacture of fluoropolymers and fluoroelastomers is strong and growth is likely to exceed 5%py, once the global economy recovers.

The addition rates of metspar flux in the steel industry have been declining. Thus, while crude steel output reached record levels in 2007, consumption of metspar fell as old steel mills were replaced and the use of alternative fluxes increased. Demand for metspar in steel will continue to decline.

Demand for fluorspar in the manufacture of aluminium fluoride and synthetic cryolite used in aluminium smelters has grown by 6-7%py from 2000 to 2007. Future growth will be tempered by a decline in unit consumption as smelting technology improves. Other factors that could limit demand for fluorspar, despite continued growth in aluminium production, are the increased use of FSA as a source of fluorine for AlF3 and increased recycling of fluorine units at the smelter.

Over the next five years, prices are likely to stabilise as environmental pressures moderate demand. Although some Chinese fluorspar has been removed from global trade this has been largely offset by increased production in Mongolia and Mexico and by exports of fluorspar derivatives from China. The easing of prices seen at the end of 2008 is likely to continue through 2009.

Table of Contents Page 1 Summary 1 2 Introduction 8 3 Occurrences and reserves of fluorspar 10 3.1 Mineralogy of fluorspar 10 3.2 Occurrences of fluorspar 10 3.3 Resources of fluorspar 11 3.3.1 Fluorite 12 3.3.2 Fluorapatite 13 3.3.3 Other sources of fluorine 14 4 Mining and processing of fluorspar 16 4.1 Fluorspar 16 4.1.1 Grades of Fluorspar 17 4.2 Hydrofluoric acid 18 4.3 Aluminium fluoride 19 4.4 Synthetic cryolite 20 5 World production of fluorspar 21 5.1 Main producers of fluorspar 25 5.2 Outlook for future supply 27 6 Review of fluorspar production and processing by company and country 29 6.1 Afghanistan 29 6.2 Algeria 29 6.3 Argentina 29 6.3.1 Producers of fluorspar in Argentina 30 6.4 Australia 31 6.4.1 Reserves and resources of fluorspar in Australia 31 6.4.2 Mining projects and exploration for fluorspar in Australia 32 6.4.2.1 Minemakers Ltd 32 6.4.2.2 NiPlats 32 6.4.3 Markets for fluorspar in Australia 33 6.5 Belgium 33 6.6 Bolivia 34 6.7 Brazil 34 6.7.1 Reserves and resources of fluorspar in Brazil 35 6.7.2 Producers of fluorspar in Brazil 36 6.7.2.1 Cia Nitro Quimica Brasiliera (CNQB) 37 6.7.2.2 Empresa de Mineracao Tangua Ltda (Emitang) 37 6.7.2.3 Mineracao Nossa Senhora do Carmo Ltda (MNSCL) 37 6.7.3 Previous producers of fluorspar in Brazil 38 6.7.4 Markets for fluorspar in Brazil 38 6.8 Bulgaria 39 6.9 Canada 39 6.9.1 Reserves and resources of fluorspar in Canada 40 6.9.2 Previous production of fluorspar in Canada 40 6.9.3 Markets for fluorspar in Canada 41 6.1 China 42 6.10.1 Reserves and resources of fluorspar in China 43 6.10.2 Producers of fluorspar in China 44 6.10.2.1 China Centralfluor Industries Group Co Ltd (CFIC) 45 6.10.2.2 Zhejiang Dongfeng Fluorspar Group 46 6.10.2.3 Chifeng Tianma Fluorite Industry Development Co Ltd 46 6.10.2.4 Fujian Kings Fluoride Industry Co Ltd 47 6.10.2.5 China Yingpeng Chemical Co Ltd 47 6.10.2.6 Zhejiang Juhua Group 47 6.10.2.7 Xingguo Fluorspar Mines 48 6.10.2.8 Zhejiang Sanmei Chemical Ind Co Ltd 48 6.10.2.9 Hubei Hong'an Fluorspar Mine 48 6.10.2.10 Fujian Shaowu Mineral Co Ltd (SFMH) 48 6.10.2.11 Inner Mongolia Xiangzhen Mining Group Co Ltd (Xiangzhen Mining) 49 6.10.2.12 Jinhua Jingxuan Minerals Industry Co Ltd 49 6.10.2.13 Zhejiang Kaisn Fluorochemical Co., Ltd. 49 6.10.2.14 De'An Yongfei Mineral Industry Co Ltd 50 6.10.3 Trade 50 6.10.4 Markets for fluorspar in China 59 6.10.4.1 Hydrofluoric acid producers in China 60 6.10.4.2 Aluminium fluoride producers in China 62 6.11 Czech Republic 64 6.11.1 Reserves and resources of fluorspar in Czech Republic 64 6.11.2 Previous producers of fluorspar in Czech Republic 64 6.11.3 Markets for fluorspar in Czech Republic 65 6.12 Egypt 65 6.13 France 65 6.13.1 Reserves and resources of fluorspar in France 66 6.13.2 Previous producers of fluorspar in France 66 6.13.3 Markets for fluorspar in France 67 6.14 Germany 68 6.14.1 Reserves and resources of fluorspar in Germany 69 6.14.2 Sachtleben Bergbau GmbH 69 6.14.3 Previous producers of fluorspar in Germany 69 6.14.4 Markets for fluorspar in Germany 70 6.15 Greece 71 6.16 Greenland 71 6.17 India 72 6.17.1 Reserves and resources of fluorspar in India 73 6.17.2 Producers of fluorspar in India 73 6.17.2.1 Gujarat Mineral Development Corp (GMDC) 74 6.17.2.2 Rajasthan State Mines and Minerals Ltd (RSMML) 74 6.17.2.3 Maharashtra State Mining Corporation (MSMC) 74 6.17.3 Markets for fluorspar in India 74 6.18 Iran 76 6.18.1 Reserves and resources of fluorspar in Iran 77 6.18.2 Producers of fluorspar in Iran 77 6.18.2.1 Yazd province 77 6.18.2.2 Mazandaran Province 78 6.18.2.3 Markazi province 78 6.18.2.4 Khorassan province 78 6.18.2.5 Others 79 6.18.3 Markets for fluorspar in Iran 79 6.19 Italy 79 6.19.1 Reserves and resources of fluorspar in Italy 81 6.19.2 Previous producers and processors of fluorspar in Italy 81 6.19.3 Markets for fluorspar in Italy 82 6.2 Japan 83 6.20.1 Markets for fluorspar in Japan 84 6.21 Jordan 88 6.22 Kazakhstan 88 6.23 Kenya 89 6.23.1 Kenya Fluorspar Company 89 6.24 North Korea 91 6.25 South Korea 91 6.26 Kyrgyzstan 92 6.27 Malawi 92 6.28 Mexico 93 6.28.1 Reserves and resources of fluorspar in Mexico 97 6.28.2 Producers of fluorspar in Mexico 97 6.28.2.1 Cia Minera Las Cuevas 98 6.28.2.2 Fluorita de Mexico SA de CV 99 6.28.2.3 Minera Muzquiz SA de CV 99 6.28.2.4 Minerales y Productos Metalurgicos SA (MPM) 99 6.28.2.5 Others 99 6.28.3 Previous producers of fluorspar in Mexico 100 6.28.4 Markets for fluorspar in Mexico 100 6.28.4.1 Mexichem SAB de CV 101 6.28.4.2 Solvay Fluor Mexico SA de CV 101 6.28.4.3 Industrias Quimicas de Mexico 102 6.28.4.4 Quimbasicos 102 6.29 Mongolia 102 6.29.1 Reserves and resources of fluorspar in Mongolia 104 6.29.2 Producers of fluorspar in Mongolia 105 6.29.2.1 Mongolrostsvetmet (Monros) 105 6.29.2.2 Mongolia International Mining Corporation (MIMC) 106 6.3 Morocco 106 6.30.1 Societe Anonyme d'Enterprises Minieres (Samine) 107 6.31 Mozambique 108 6.32 Namibia 109 6.32.1 Reserves and resources of fluorspar in Namibia 109 6.32.2 Okorusu Fluorspar 110 6.33 Netherlands 111 6.34 Nigeria 111 6.35 Norway 111 6.36 Pakistan 112 6.37 Paraguay 112 6.38 Poland 112 6.39 Romania 113 6.4 Russia 113 6.40.1 Reserves and resources of fluorspar in Russia 114 6.40.2 Producers of fluorspar in Russia 115 6.40.2.1 Yaroslavsky GOK 115 6.40.2.2 JSC Zabaikalsky GOK 116 6.40.2.3 FGUP Chitageologorazvedka 116 6.40.2.4 JSC Artel Quartz 116 6.40.2.5 JSC Khoronhoysky GOK 117 6.40.2.6 JSC Kalanguysky PShK 117 6.40.2.7 Suran Cooperative Quartz 117 6.40.3 Markets for fluorspar in Russia 117 6.41 Saudi Arabia 119 6.42 South Africa 119 6.42.1 Reserves and resources of fluorspar in South Africa 121 6.42.2 Producers of fluorspar in South Africa 121 6.42.2.1 Vergenoeg Mining Company (Pty) Ltd (Metorex Ltd) 122 6.42.2.2 South African Land and Exploration Co Ltd (Sallies) 123 6.42.3 Previous producers of fluorspar in South Africa 124 6.42.4 Markets for fluorspar in South Africa 124 6.43 Spain 125 6.43.1 Reserves and resources of fluorspar in Spain 126 6.43.2 Minerales y Productos Derivados SA (Minersa) 126 6.43.3 Previous producers of fluorspar in Spain 127 6.43.4 Markets for fluorspar in Spain 127 6.44 Sweden 128 6.45 Taiwan 128 6.46 Tajikistan 129 6.47 Thailand 130 6.47.1 Reserves and resources of fluorspar in Thailand 130 6.47.2 Mining and processing of fluorspar in Thailand 131 6.47.2.1 Asian Mineral Resources Co Ltd 131 6.47.2.2 Previous producers of fluorspar in Thailand 131 6.48 Tunisia 131 6.49 Trinidad and Tobago 133 6.5 Turkey 134 6.51 Ukraine 134 6.52 United Arab Emirates (UAE) 135 6.53 United Kingdom 136 6.53.1 Reserves and resources of fluorspar in the United Kingdom 136 6.53.2 Glebe Mines Ltd 137 6.53.3 Previous producers of fluorspar in the United Kingdom 137 6.53.3.1 Sherburn Minerals 137 6.53.3.2 Biwater Industries (Clay Cross) Ltd 138 6.53.3.3 Dresser Minerals 138 6.53.4 Markets for fluorspar in the United Kingdom 138 6.54 USA 139 6.54.1 Reserves and resources of fluorspar in the USA 143 6.54.2 Hastie Mining and Trucking 144 6.54.3 Seaforth Mineral and Ore Co 144 6.54.4 Previous producers of fluorspar in the USA 145 6.54.5 Markets for fluorspar in the USA 145 6.55 Uzbekistan 146 6.56 Venezuela 147 6.57 Vietnam 147 6.57.1 Nui Phao Mining Company Ltd (Nuiphaovica) 147 6.58 Zambia 148 6.59 Zimbabwe 148 7 World Consumption of fluorspar 149 8 Applications for fluorspar in the chemical industry 156 8.1 Production of fluorocarbons used in non-feedstock applications 161 8.1.1 The impact of regulatory controls on fluorocarbon production 163 8.1.2 The potential for replacing CFCs with HCFCs and HFCs 171 8.1.3 Applications for non-feedstock fluorocarbons 173 8.1.3.1 Refrigeration 173 8.1.3.2 Blowing agents 175 8.1.3.3 Pharmaceuticals and agrochemicals 175 8.1.3.4 Solvent cleaning 175 8.1.3.5 Fire extinguishers 175 8.1.4 Outlook for fluorspar in the manufacture of non- feedstock fluorocarbons 176 8.2 Fluoropolymers and fluoroelastomers 177 8.2.1 Outlook for fluorspar demand in fluoropolymers and fluoroelastomers 180 8.3 Other fluorochemicals and end-uses 180 8.4 Other applications for chemicals derived from HF 181 8.4.1 Fluoridation of drinking water 181 8.4.2 Uranium manufacture 182 8.4.3 Petroleum alkylation 183 8.4.4 Glass cleaning and etching 184 8.4.5 Fluorine chemicals used in the electronics industry 184 8.4.5.1 Electronic grade hydrofluoric acid 184 8.4.5.2 Germanium tetrafluoride 185 8.4.5.3 Nitrogen trifluoride (NF3) 185 8.4.5.4 Sulphur hexafluoride (SF6) - Dielectrics 186 8.4.5.5 Fluorographite (CF2) 186 8.4.6 Metal processing 187 8.4.6.1 Hydrometallurgical extraction of niobium and tantalum 187 8.4.6.2 Other applications in metal processing 189 8.4.7 Potassium fluoride 189 8.4.8 Detergents 189 8.4.9 Outlook for fluorspar demand in applications for chemicals derived from HF, other than fluorocarbons 189 9 Fluorspar applications in primary aluminium production 191 9.1 Use of fluorine in the aluminium industry 193 9.2 Sources of fluorine additions 195 9.3 Production of primary aluminium 195 9.3.1 Consumption of aluminium 202 9.3.2 Outlook for aluminium production 203 9.4 Factors affecting demand for fluorspar in the aluminium industry 204 9.4.1 Environmental considerations 205 9.5 Outlook for fluorspar demand in primary aluminium production 206 10 Fluorspar applications in iron and steel production 207 10.1 Use of fluorspar in the iron and steel industry 207 10.2 Production of iron and steel 209 10.2.1 Outlook for stainless steel demand 214 10.3 Supply of metspar to the steel industry 215 10.4 Consumption of fluorspar in the iron and steel industry 215 10.5 Outlook for fluorspar end-use in iron and steel production 217 11 Other applications for fluorspar 218 11.1 Cement clinker manufacture 218 11.2 Use of acidspar as a flux or opacifier 219 11.2.1 Enamels 219 11.2.2 Welding rods 220 11.2.3 Glass 220 11.2.4 Fibreglass 220 11.3 Outlook for other applications for acidspar in the form of CaF2 220 12 International trade 221 12.1 Fluorspar 221 12.1.1 Exports 223 12.1.2 Imports 228 12.2 Hydrofluoric acid 232 12.3 Aluminium fluoride 234 13 Prices 240 13.1 Fluorspar 240 13.2 Hydrofluoric Acid 249 13.3 Aluminium fluoride 251 13.4 Fluorosilicic acid 251 http://www.roskill.com/reports/fluorspar

The Economics of Fluorspar (10th Edition 2009) is available at GBP2400 / US $5000 / 4000 Euros from Roskill Information Services Ltd, 27a Leopold Road, London SW19 7BB, England. Email: info@roskill.co.uk http://www.roskill.com/reports/fluorspar

Roskill Information Services Ltd, 27a Leopold Road, London SW19 7BB, England. Tel: +44-20-8944-0066, Fax +44-20-8947-9568, Email: info@roskill.co.uk