Pyx Resources Limited's (PYX.NSX) Fourth Price Adjustment for Premium Zircon
Sydney, Australia, Sep 16, 2021 - (ABN Newswire) - PYX Resources Limited (NSX:PYX), a leading international premium zircon producer, has announced that it will introduce its fourth price increase this year for its premium zircon. The new price, which takes effect immediately, will rise by US$555 to US$2,305 per tonne.
Since the beginning of 2021, the Company has increased its prices by a total of US$910 per tonne over 4 separate price increases.
This latest price increase comes in the wake of recent news about the closure of Rio Tinto's Richards Bay Minerals operation in South Africa due to security concerns and increasing demand out of China and the rest of the world. As a result, global supply of premium zircon has come under increased pressure, prompting the price increase.
PYX has already enacted three price increases this year, in March, May and June. These were driven by demand from China as its economy rebounded from COVID-19, supply issues from South Africa and low inventory levels in China, which left a void for premium zircon in the market.
The Company is the second-largest zircon producing mining company globally in terms of JORCcompliant zircon resources, following its acquisition of the Tisma mineral sands deposit in Central Kalimantan Province, Indonesia, in mid-February 2021, and demand for PYX's premium zircon remains high. The product stands in stark comparison to other zircon available in the market. Due to its low AI2O3 content and uranium + thorium content below 450ppm, PYX's premium zircon is ideal for creating fused zirconia and other high tech products, where standard zircon cannot be used.
PYX's Chairman and Chief Executive Officer, Oliver Hasler, said: "Recent news about the closure of all mining and smelting activities at Rio Tinto's Richards Bay Minerals operations have introduced further tightness into global supplies of premium zircon, prompting the price increase. Our customers have a preference for our superior product, and we will focus on ensuring supply continues to meet global demand."
Premium zircon is in increased demand for high tech applications, such as Yttria Stabilized Zirconia (YSZ) for the electrolyte material for solid oxide fuel cells, playing a key role in the move to renewable energies. Zircon supports low carbon electricity as a result of the unique properties of zirconiumbased alloys, which make them ideal for use in nuclear reactors generating low carbon electricity.
Zirconium compounds play a critical role in catalytic converters, helping to reduce emissions. Zircon has a very low environmental impact when produced and has a lower environmental impact than competing products in several key measures, including 16% lower Global Warming Potential (GWP) when compared to alumina.
About Pyx Resources Limited:
PYX Resources Limited (NSX:PYX) is a global producer of premium zircon listed on the National Stock Exchange of Australia. The Company's flagship asset is the Mandiri mineral sands deposit, located in the alluvium sediment rich region of Central Kalimantan, Indonesia. Boasting the world's 5th largest producing deposit of zircon, PYX is a large-scale, near-surface open pit operation in production since 2015 and with exploration to date validating the presence of additional Valuable Heavy Minerals such as rutile, ilmenite among others within its mineral sands.
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Pyx Resources Limited
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