PYX Resources Ltd (LSE:PYX, NSX:PYX), the world's third-largest publicly traded zircon producer, has obtained a licence from the Indonesian government to export rutile and ilmenite ores.
As of June 2023, the company has stockpiled 8,200 tonnes of these minerals, with some of the ilmenite already transported to the Port of Banjarmasin, South Kalimantan, to fast-track shipments.
"We are absolutely thrilled to have received the necessary authorisations and the new licence to export rutile and ilmenite," said chief executive Oliver Hasler.
"The board took the decision to start producing and stockpiling ilmenite mid-last year in anticipation of receiving the licence.
"Rutile and ilmenite are by-products for PYX, which can significantly increase our revenue and margin levels, which is good news for all shareholders."
In conjunction with the IUP-OP licence and the 2023 Working Plan and Budget, the newly acquired permission permits PYX to extract, produce and export 24,000 tonnes of zircon, 20,000 tonnes of rutile and 50,000 tonnes of ilmenite. This also includes the production of other by-products such as silica (SiO2).
The Industrial and Trade Department has set minimum grade requirements for ilmenite at TiO2 ≥ 45% and rutile at TiO2 ≥ 90%. PYX's new export licence, issued by the Investment and One-Integrated Services Department, aligns with these standards.
This move into titanium feedstock, a sector worth approximately US$4.5 billion annually, is expected to bolster PYX's financial position, especially as the company has been covering all costs with its zircon production.