TNG Limited (ASX:TNG) announced on 28th March 2019 that the company has filed an application to trademark its first titanium dioxide pigment.
TNG Limited, which is an Australian strategic metals company decided to trademark the pigment as “TNG360” on 22nd March 2019. As per the company, it decided to trademark the product to make TNG’s unique process, products and services easily identifiable in the global market and it also safeguards the product of the company against the intellectual property theft.
As per the company, preventing the uniqueness of the product is an important aspect of running a successful global business.
The producers of titanium dioxide pigment produce it by using ilmenite and rutile which is a traditional method of generating the pigment. However, the company produces its pigments through a low-cost titanomagnetite, which is developed indigenously by using its proprietary TIVAN® (hydrometallurgical processing technology) as a feedstock.
The resources of ilmenite and rutile are limited, and the key producing mines are near to depletion; thus, by using their indigenous technology to produce the titanium dioxide pigment, TNG is positioning itself to generate its own feedstock for the processing, which could give the company a long-term edge. The company appointed a German bank as its debt advisor.
To produce the titanium dioxide pigment from ilmenite, which is an iron-titanium iron oxide mineral, the pigment producers, separates the Fe from the mineral to produce 35-75% of titanium dioxide, which is then further processed by base material sulfate to generate the titanium dioxide pigment.
Production of the same titanium dioxide pigment from high-cost natural rutile is comparatively easy, as the rutile does not contain any residual impurities or other elements, it is a pure titanium oxide mineral, and can be processed easily through chloride processing to generate the required titanium oxide pigments.
TNG Limited produces the titanium dioxide pigment through such traditional methods along with TIVAN®, which acts as a feedstock for new sulfate route and generates the pigments. TNG also mentioned that its TIVAN® feedstock contains fewer residual impurities such as iron and chromium.
As per the company, its trademark TNG360 will highlight the uniqueness of its product as it uses a feedstock with the lowest iron content globally and it will have similar properties along with a similar premium to chloride produced pigment. The chloride produced pigments take synthetic rutile and stag which is generated through Sorel process.
The company also mentioned that the low iron content in the feedstock due to the usage of TIVAN as a feedstock, would minimize the environmental impact which concerns the consumers, as compared to the conventional method of pigments production such as ilmenite and rutile processing.
With its TNG360, TNG Limited aims at the paint and coating market and the company is likely to enhance its portfolio to tap the other potential markets such as plastics, cosmetics and pharma.
During the time of writing this report, the stock of the company closed at A$0.091 (as on 28th March 2019), up by 1.111% as compared to its previous close.
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