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Highlights
- The Russia and Ukraine conflict has already created chaos in the global commodity market.
- The ongoing crisis between both nations has fuelled already heated prices of mineral sands, which took off last year on long-term supply concerns.
- Current developments could spark interest in ASX-listed mineral sand producers.
The soaring conflict between Russia and Ukraine has already created chaos in the global commodity market, creating supply shortage concerns. However, the impact of the Russia and Ukraine war is not only confined to this, but things are also raising eyebrows in the mineral sands space.
To better understand the issue, let’s first try to understand what mineral sands are.
Geoscience Australia defines mineral sands as old beaches, dunes or river sands that are concentrated with important minerals, including zircon, ilmenite, rutile and monazite. These minerals are relatively dense and heavier than common sand minerals. Mineral sands have a wide range of applications, such as in feedstocks to produce pigments for colourants in paints, paper, and plastics. Likewise, titanium, a type of mineral sand, is used in joint replacement and sunscreen. Zircon is used in ceramic tiles and metal casting.
The ongoing crisis between Russia and Ukraine has fuelled already heated prices of mineral sands, which took off last year on long-term supply concerns.
Ukraine is among the top 10 producers of titanium dioxide. Tensions between both nations have blocked Ukraine's annual output of 470,000 tonnes of titanium dioxide and its associated 94,000 tonnes of zircon, which is often found in the same ore bodies.
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The ongoing supply crisis could spark interest in ASX-listed companies engaged in mineral sand production. Given this backdrop, let's skim through the performance of three ASX-listed mineral sand players and how they are faring.
Iluka Resources Limited
Iluka Resources Limited (ASX:ILU) is one of the major zircon producers based in Australia. The Company believes that it is well positioned to lead amid the current mineral sands industry and market conditions in the near as well as longer term. Shares of the company have jumped around 3.46% in the last one month, and have zoomed 21.54% in the past six months till 29 March 2022.
Why are prices of mineral sand stocks skyrocketing?
Base Resources Limited
Australia-based and Africa-focused Base Resources Limited (ASX:BSE) is a mineral sands producer and developer with a strong track record of project delivery and operational performance. The Company holds and operates established Kwale Operations in Kenya and is engaged in the development of the Toliara Project in Madagascar.
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Source: © Farbentek | Megapixl.com
Shares of BSE have jumped 27.27% in the past six months, with nearly 12.90% gains coming in the last one week alone till 29 March 2022.
Image Resources NL
Image Resources NL (ASX:IMA) is a mineral explorer that contains major land resource sites and a developing mineral sands resource base in Australia’s North Perth Basin. Additionally, the company also holds major mineral projects in the Eucla Basin.
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Shares of the company zoomed by a whopping 45.95% in the last one year, with 5.88% gains coming in the last one month alone till 29 March 2022.
