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PPG, Mining Company to Partner on TiO2

Wednesday, April 4, 2012

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PPG Industries has formed a “technical collaboration” with a Canadian mining company to produce a new titanium dioxide pigment for paints and coatings.

The agreement between the world’s second-largest paint and coatings company and Montreal-based Argex Mining Inc. will “utilize PPG’s existing technology and know-how relating to the manufacture of titanium dioxide,” the companies said in a statement.

 Argex Mining

 Argex Mining

Until recently a mining exploration company, Argex has become a producer of titanium dioxide, iron and other commodities. The company says it can produce “high-purity TiO2 directly from its 100% owned deposit.”

Argex will produce the product, which will “be compatible with various end-use applications for PPG,” the companies said.

Terms were not disclosed.

Stabilizing Supply

“PPG and Argex plan to combine efforts with the goal of developing a titanium dioxide product that can meet conventional standards for interior and exterior paint applications,” said Charles F. Kahle II, PPG chief technology officer and vice president, research and development, coatings.

“This strategic initiative offers PPG the opportunity to leverage our expertise and secure an enhanced supply of this critical raw material. Volatile pricing for titanium dioxide continues to be an important issue for the company.”

Roy Bonnell, Argex president and CEO, said, “PPG’s decision to collaborate closely with Argex as both a technical and commercial partner is a further validation of our process and the suitability of the Argex TiO2 pigment for commercial use. PPG’s involvement will assist Argex greatly in our stated goal to advance rapidly to production.”

Exclusive Agreement

The agreement provides for the negotiation of a purchase and supply agreement between Argex and PPG, based on the successful development of the treatment technologies. “Both companies have agreed to certain terms of mutual exclusivity during the negotiation period,” the statement said without elaboration.

 Ti Insight LLC
Argex Mining announced last summer that the price of high-quality Titanium Dioxide (TiO2) pigment would top $6,000 per metric ton in 2015 for all global sales regions—far more than the $4,800 per metric ton forecast a year earlier.

PPG previously manufactured titanium dioxide using the chloride process at its chemical plant in Natrium, WV, and sold the pigment for coatings and other applications.

Titanium dioxide is a raw material widely used in the paint and coatings industry as pigment for its hiding, durability and whiteness characteristics.

Until recently a mining exploration company, Argex has become a near-term producer of titanium dioxide, iron and other commodities. The company says it can produce “high-purity TiO2 directly from its 100% owned deposit.”

   

Tagged categories: Partnerships; Pigments; PPG; Raw materials; TiO2; Titanium dioxide

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