Industrial Minerals ù Opportunities and Making Money in AusAsia

This paper provides an expanded definition of industrial minerals that challenges the way we look at exploration, development and the understanding of mineral industry structure and profitability. Included in industrial minerals are bulk commodities such as iron ore and coal alongside the more traditional industrial minerals such as salt, soda ash, silica sand and clay. The profitability of industrial minerals is reviewed from a producerÆs perspective and shown in many instances to be significantly higher than for precious and base metal industries. The key drivers of profitability are examined along with some highly profitable industrial mineral industries such as borate, potash, chromite and natural soda ash. Demand for industrial minerals in Australia and Asia is reviewed, with a focus on supply bottlenecks and the opportunity this represents for investment by Australian companies. The establishment of new price benchmarks is considered and the possibility of new export grades for industrial mineral products. Investment opportunities in industrial mineral projects are outlined, including some exploration concepts in Australia and Asia. Industrial mineral project evaluation methods are discussed and the challenge issued to companies (exploration, production and finance) to become a part of the profitable action in the world of industrial minerals.