The market for titanium dioxide has grown over the last 25 years by 3% per annum and is now worth $US8 billion annually. Titanium dioxide is the superior white pigment used in paints, plastics, paper and printing inks. Austpac Resources aims to become the world's largest producer of very high grade feedstock called 'synthetic rutile' for the titanium dioxide industry.

Austpac has superior and proven technology

Austpac's patented ERMS (Enhanced Roasting and Magnetic Separation) process is technologically superior and more efficient than any other technology delivering high grade feedstock for the production of titanium dioxide. A second patented technology, EARS (Enhanced Acid Regeneration System), is an extremely economical and environmentally friendly process for acid regeneration that greatly increases the financial returns from processing operations that consume hydrochloric acid. Together these technologies constitute the ERMS SR Process, which produces the highest grade feedstock in the world at low cost.A further innovation entails new specialised applications of Low Temperature Roasting (LTR) of titaniferous ores, yielding a product suitable for both the chloride and sulfate route processes of pigment production.

Austpac has lodged a patent application covering the development of a reactor for the Continuous Leaching of ilmenite, the CLR Process, to yield high grade synthetic rutile more efficiently than current processes.

The Company is now planning to construct the first commercial ERMS SR plant with an annual production capacity of 30,000 tonnes. This plant will produce the world's highest quality synthetic rutile that will be used as a feedstock to help meet the world's future need for titanium dioxide pigment.

Austpac's LTR roasting technology will be used to upgrade ilmenite from the Ginkgo heavy mineral deposit and other deposits in south-western NSW under a licence agreement with BeMaX Resources N.L. for their Pooncarie Project.

Austpac has adapted its LTR technology to the steel industry. In January 2004, New Zealand Steel Limited completed construction of a 2.5 tph LTR test plant at Glenbrook, New Zealand. The plant treated approximately 1,500 tonnes of heavy mineral concentrate from New Zealand Steel’s Waikato North Head Mine to recover iron minerals for use in the steel plant.

The successful operation of the test plant up to June 2004 has proven that the LTR technology is sound, and can be used commercially by companies that require low temperature roasting for their projects.

Austpac's investors are poised to reap the benefits of these technologies.

The team at Austpac has substantial experience in mineral processing, innovative research and technology development, which has enabled the company to achieve these major technological breakthroughs. The Kooragang Island pilot plant at Newcastle is unique in Australia, allowing Austpac to maintain leadership in ilmenite processing.

This is an exciting period for an innovative Australian company. Austpac's patented processes have huge potential at both global and local levels, and the Company’s staff are researching further applications for the technologies.