17th Aug 2023 10:47
(Alliance News) - PYX Resources Ltd on Thursday said it has received a licence from the Indonesian government allowing it to export rutile and ilmenite ores, of which it currently has 8.2 kilotonnes ready to ship
The Indonesia-focused zircon producer is now authorised to extract, produce, and export 24 kilotonnes of zircon, 20 kilotonnes of rutile and 50 kilotonnes of ilmenite, alongside extracting and producing other by-products such as silicon dioxide.
The Indonesian Industrial & Trade Development has stipulated minimum grades of over 45% of titanium dioxide for ilmenite ore and over 90% of titanium dioxide for rutile ore.
PYX Resources began rutile production in January 2022 and ilmenite production in June 2022, and has been stockpiling both materials ever since.
It has transported some stock of ilmenite has been transported to the Port of Banjarmasin in South Kalimantan, Indonesia to accelerate the shipping process.
PYX Resources said titanium feedstock production is an industry worth around USD4.5 billion per year.
"We are absolutely thrilled to have received the necessary authorisations and the new licence to export rutile and ilmenite. The board took the decision to start producing and stockpiling ilmenite mid-last year in anticipation of receiving the licence. Rutile and ilmenite are by-products for PYX, which can significantly increase our revenue and margin levels, which is good news for all shareholders," said Chair & Chief Executive Officer Oliver Hasler.
Shares in PYX Resources were up 1.5% to 25.62 pence each in London on Thursday morning.
On Tuesday, PYX Resources said it won approval to extract and process 48,000 tonnes of premium zircon during 2023 from its second deposit, Tisma, in Indonesia.
The company said this marked an "important milestone" in the company's growth as it expands its ability to produce mineral sands from Tisma.
On Thursday last week, PYX Resources reported a "strong" performance in the first half of 2023, with increases in both sales and production.
It said zircon production in the half climbed 33% to 5,700 tonnes from 4,300 tonnes the year prior, while zircon sales rose 34% to 5,200 tonnes from 3,900 tonnes. Average zircon price, however, dropped 30% to USD1,927 per tonne from USD2,749.
Total minerals sands production dropped 26% to 6,800 tonnes from 9,200 tonnes. Total minerals sand sold, however, jumped 34% to 5,200 tonnes from 3,900 tonnes.
PYX Resources said the drop in minerals sands production was due to the decision to focus on the production and sale of premium zircon due to high demand.
PYX Resources expects to release its interim results on or around September 13.
By Greg Rosenvinge, Alliance News reporter
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