The company also has a bismuthvanadate yellow plant here,commissioned in 2001.

Although best-known as apigments manufacturer, UPL isprominent in the surfactants sectorand it has a linear alkyl benzenesulfonation plant at Sipcot.

Business Standard, 9 Dec 2008, 11 (136), I.3

Madagascar & South Africa: Rio Tinto– TiO2 feedstock & talc

Rio Tinto, the world’s largest TiO2feedstock producer, has recentlyannounced several keydevelopments. For full-year 2008, thecompany reported a 4.5% increase inits attributable TiO2 slag output from1.458 M tonnes to 1.524 M tonnes.This represents 100% of the outputfrom the wholly-owned Sorel ilmenitesmelter in Canada plus 50% of theoutput from the South African ilmenitesmelter operated by its joint venture,Richards Bay Minerals (RBM).

On 11 December, RBM signedagreements with a “broad-basedblack economic empowermentconsortium” transferring 24% of itsshare capital to a group of localcommunities and “historicallydisadvantaged investors.” A further2% of RBM’s share capital wastransferred to a trust set up for thebenefit of RBM employees. Thismeans that RBM has become fullycompliant with the key provisions ofthe South African Mining IndustryCharter, five years ahead of thedeadline date. Previously, RBM wasjointly owned by Rio Tinto and BHPBilliton on a 50:50 basis. The value ofRio Tinto’s holding in RBM wasassessed at about $900 M inSeptember 2008. For the year to end-December 2007, RBM contributed$325 M to the Rio Tinto group’searnings before interest, tax,depreciation and amortisation(EBITDA). Rio Tinto and BHP Billitonhave agreed to facilitate the funding ofthe equity acquisitions by the newshareholders, meaning that the newshareholders will not need to raisefunds for their equity purchases.

Also, Rio Tinto and BHP Billitonhave agreed to settle their disputeover the way in which the RBM jointventure operates. This dispute hadbeen referred to arbitration. Now, RioTinto has agreed to pay a sum of

money to BHP Billiton out of the futuresales commissions to be paid to RioTinto as RBM’s sales agent. The netpresent value of these salescommissions is assessed at $19 M.Rio Tinto continues to have exclusivemarketing responsibility for all theTiO2 slag, rutile, zircon and pig ironproduced by RBM.

As from the start of this year, RioTinto’s TiO2 feedstock production willbe boosted by a third contributor –QIT Madagascar Minerals (QMM),which opened its mine at Mandena(in southeastern Madagascar) inmid-January 2009. During the firstphase of the project, ilmeniteproduction at Mandena will beramped-up to 750,000 tonnes/y. Allof this ilmenite (containing 60%TiO2) will be shipped to the Sorelsmelter in Quebec for conversion toa new high-grade TiO2 slag(containing 90% TiO2). Work on newport facilities at Ehoala (just south ofFort Dauphin) is nearing completionand the first shipment of ilmeniteshould be loaded at Ehoala,destined for Quebec, in March 2009.

Onwards from November 2007, ithad seemed likely that BHP Billitonwould make a successful takeover bidfor the entire Rio Tinto group. Its initialoffer, valued at the time at $140 bn,was made on the basis of three BHPBilliton shares to be exchanged foreach Rio Tinto share. In earlyFebruary 2008, the offer was raised to3.4 shares for each Rio Tinto share.However, on 25 November 2008, BHPBilliton declared that it had decidednot to pursue this offer. Reprievedfrom takeover, Rio Tinto can nowrefocus on reducing its high level ofdebt, which stood at $38.9 bn at theend of October 2008. In a statementon 10 December, Rio Tinto highlightedits intention to expand the scope ofassets targeted for divestment so asto reduce its net debt to $29 bn by theend of 2009.

The talc business had alreadybeen nominated for divestmenttowards the end of 2007. (See also‘Focus on Pigments’, Mar 2008, 6).But so far apparently no seriouspurchase offers have been received.Luzenac continues to operate as awholly-owned subsidiary within theRio Tinto group, producing talc inAustralia, Austria, Belgium, Canada,France, Italy, Mexico, Spain, the UKand the US. It is by far the largest talc

producer in the world, with productionat 1.163 M tonnes last year, slightlydown on the 1.281 M tonnes recordedfor 2007.

Other assets that might be sold off,if suitable purchasers presentthemselves, include: the US coalbusiness, the packaging businessinherited with Alcan, and the borates,salt and potash assets. Meanwhile,capital expenditure commitments for2009 have been sharply reduced from$9 bn to $4 bn, of which at least one-half is accounted for by sustaining ormaintenance expenditure.

Press Release from: Rio Tinto plc, 5 AldermanburySquare, London, EC2V 7HR, UK, Tel: +44 20 77812000 (25 Nov & 10 Dec & 11 Dec 2008 & 15 Jan2009)

Mexico: Bridgestone – carbon black

Bridgestone (of Japan) recently heldan inauguration ceremony to mark theopening of its new 35,000 tonnes/ycarbon black plant at Altamira. Theplants is operated by a wholly-ownedsubsidiary, Mexico CarbonManufacturing, and it employs 100people. The venture is part ofBridgestone’s strategy to secure goodquality raw materials at a reasonablecost. Bridgestone is already involvedin carbon black manufacturing inJapan and Thailand, as well as havingclose ties with Phillips in India.

Rubber and Plastics News, 17 Nov 2008, 38 (8), 4

UK: Huntsman Pigments – TiO2

Huntsman Pigments (formerly knownas Huntsman Tioxide) will shut downits 40,000 tonnes/y sulfate-route TiO2pigment plant on the PyewipeIndustrial Estate at Grimsby, on thesouthern bank of the Humber Estuary.Pigment production here is scheduledto cease before the end of March2009 and the plant closure will entailthe loss of 200 jobs for full-timeemployees and contractors.Huntsman describes the plant as theoldest and least efficient of its eightTiO2 manufacturing facilities. Theplant was in fact opened in January1949. Its closure is expected to resultin operating cost savings of $28 M/y.

This is part of a group-wideprogramme to cut costs. Altogether,Huntsman plans to reduce thenumber of full-time employees from

6 FEBRUARY 2009

F O C U S O N P I G M E N T S