PYX Resources Ltd (LSE:PYX, NSX:PYX) said it increased the price of its premium zircon by 34%, its fifth consecutive increase since January 2021, amid strong global demand for the mineral.
It lifted its premium zircon price to US$3,100 per tonne with immediate effect, representing a 135% spike since the start of 2021.
Buoyant demand was driven by the increasing use of zircon in technology-based applications, including renewable energy technologies, while worldwide supply shortages continue in South Africa and inventories remain low in China, it said.
"We are committed to supplying premium zircon products to our customers and to contribute to the fight for a zero-carbon future in which zircon is essential,” said chairman and chief executive Oliver Hasler. “This latest price increase marks the fifth in just over 12-months, which reflects the positive market dynamics underlying premium zircon.”
“Furthermore, it validates our continued investment focused on advancing ambitious expansion plans at our flagship Mandiri deposit and bringing Tisma into production to maximise the potential of our rich heavy mineral sands resource base totalling 263.5 Mt."
The company is the world's second-largest publicly listed zircon producer by zircon resources.
The ongoing supply shortage is expected for the foreseeable future as is strong demand, particularly from China, it said.
Aside from its traditional use in ceramics, zircon and its derivatives (zirconia and zirconium) are also used in catalytic converters, fuel cells, fibre optics and nuclear power generation.