EXECUTIVE SUMMARY

INTRODUCTION

METHODOLOGY

FEEDSTOCK SUPPLY MATRIX: 2013

SUPPLY/DEMAND: 2009-2013

APPENDICESAppendix A - Supply by product/consumerAppendix B - Supply by producerAppendix C - Feedstock purchases by pigment producer

TABLE OF CONTENTS

TITANIUM FEEDSTOCK MATRIX 2013Published 2014

TZ MINERALS INTERNATIONAL PTY LTDFor more information contact: +61 8 9359 6000 | marketing@tzmi.com | tzmi.com

The Titanium Feedstock Matrix 2013 is the 12th annual update of TZMI’s analysis of global trade in feedstock products.

TABLESSummary of feedstock trade matrix to top seven pigment producers in 2013Summary of world titanium feedstock production by feedstock type units: 2009 - 2013Summary of world titanium feedstock production by geographical region: 2009 - 2013Supply/demand summary: 2009 - 2013

FIGURESDefinition of supply and demandSupply/demand balance for all titanium feedstocks: 2009 - 2013Consumer stocks: 2009–2013Producer stocks: 2009–2013 plus

+ Significant developments in feedstock supply

+ Summary of major feedstock producers

+ Trade trends for major TiO2 producers

+ Overview of trade in 1H 2014

The Titanium Feedstock Matrix is the only publication in the world that links feedstock producers and end-use purchasers.

SAMPLE OF 2013 EDITION

Summary of 2013

supply/demand balances

Analysis of inventory levels

Estimated supply/demand

balances for 2014

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SUPPLY MATRIX 2012

Global feedstock production by product type is presented in Table 3.2, and by geographical region in Table 3.3, for the period 2008-2012.

Table 3.2: Summary of world titanium feedstock production by feedstock type units: 2008–2012 (‘000 TiO2 units)

Feedstock 2008 2009 2010 2011 2012

ChlorideChloride ilmenite Leucoxene Rutile Upgraded slag Chloride slag Sulfate slag Synthetic rutile

Sub total

SulfateSulfate ilmenite Sulfate slag Chloride fines Sub-total

Total feedstock supply

Percent of total TiO2 units 2008 2009 2010 2011 2012

ChlorideChloride ilmenite Leucoxene Rutile Upgraded slag Chloride slag Sulfate slag Synthetic rutile

Total chloride grade

SulfateSulfate ilmenite Sulfate slag Chloride fines

Total sulfate grade

METHODOLOGY INTRODUCTION CONTENTSSUPPLY MATRIX

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Total Misc Other Other Other OtherProduct/Producer % TiO 2 Production Purchases DuPont Cristal Kronos Huntsman Sachtleben Tronox ISK China India Japan Asia Europe Misc TiMetal Uses SR Aust SR Other SlagChloride Ilmenite

Cristal Mining - NSWCristal Mining - WADoralDuPontIluka - EuclaIluka - MWIluka - VirginiaIRE - QKenmare ResourcesSRLVilnohirsk, UkraineKMMLTotal ('000 tonnes)Total ('000 TiO2 units)

Sulfate IlmeniteBase Resources Beach MineralsChinaSibelco (CRL)Cristal Mining - NSWCristal Mining - WAGMAIluka - MBIRE - MKIRE - ORIrshansky GOKKenmare ResourcesLMSMalaysiaMataraca, BrazilBelridge Enterprises (Goondicum)PetropavlovskTitaniaTrimexVeltaVV Mineral - VV MineralVV Mineral - TGIVietnamOtherTotal ('000 tonnes)Total ('000 TiO2 units)

LeucoxeneCristal Mining - WACristal Mining - NSWDoralDoral 90%DuPontIluka ResourcesTronox AustraliaThailandTotal ('000 tonnes)Total ('000 TiO2 units)

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Appendix A: Summary matrix - supply by product/consumer in 2013‘000 tonnes product

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SUPPLY/DEMAND: 2008-2012

4.0 Supply/demand: 2008–2012

4.1 Supply/demand balancesThe overall market position at the end of 2008 was a small surplus of xx,000 TiO2 units. Following on from the economic slowdown in the last quarter of 2008, demand for titanium feedstock was significantly affected which saw demand falling to unprecedented levels due to combined efforts of reduced consumption and large-scale de-stocking at pigment plants. The overall balance for 2009 was a moderate surplus of xx,000 TiO2 units.

In the period 2009 to 2011, there was a significant difference in the chloride and sulfate market balances. While the chloride-grade feedstock market was held in a moderate surplus position, sulfate-grade feedstocks recorded a substantial deficit estimated at xxx,000 TiO2 units, xxx,000 TiO2 units and xx,000 TiO2 units in 2009, 2010 and 2011 respectively.

The chloride feedstock surplus is predominantly accounted for by chloride ilmenite, specifically inventory build of ‘captive’ synthetic rutile (SR) feed ilmenite that is not normally made available to the open market. The addition of upgradable ilmenite from Iluka’s Eucla Basin operation and the idling of its SR kilns, combined with record production by Doral, resulted in a considerable inventory being built.

High-grade chloride feedstocks were essentially in balance during this period, even with the introduction of RTFT’s new high-grade Rio Tinto chloride slag product. In contrast, sulfate-grade feedstocks displayed significant deficits; due initially to the quicker-than-expected recovery in Chinese pigment demand leading to a high consumption of sulfate ilmenite. Despite supply growing substantially in 2011, with increased sulfate ilmenite production in China and Vietnam plus the ramp-up of Cristal’s (formerly Bemax Resources) Snapper operation in the Murray Basin region to nameplate capacity, the overall sulfate feedstock market remained in deficit.

In 2012, the market dynamics changed considerably as the sector was once again influenced by heavy de-stocking at downstream pigment producers, which resulted in lower demand for feedstocks. TZMI’s analysis indicated a surplus position of close to xxx,000 TiO2 units.

The supply/demand situation for titanium feedstocks during the period 2008-2012 is represented graphically in Figure 4.1 and summarised in Table 4.1.

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'000 TiO2 units

Chloride Sulfate

© TZMI 2013 NOT FOR REPRODUCTION

Source: TZMI database

Figure 4.1: Supply/demand balance for all titanium feedstocks: 2008–2012

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Detail of methodology

used

TOP 7 PIGMENT CONSUMERS • DuPont • Cristal • Kronos • Huntsman • Tronox • Sachtleben • China