China's Zirconium Industry: Review and Forecast

China's zirconium industry is keeping apace with developments in the national economy.Over the past decade,China's national economy has maintained a growth rate of 9%,resulting in a comprehensive change of fortune for the zirconium industry.The zirconium industry covers the prospecting of zirconium resources,the mining and dressing of zircon,the manufacturing of products containing zirconium,the smelting of zirconium (hafnium),as well as the processing of zirconium (hafnium).What follows is a brief introduction of the zirconium industry below.

1.Significant increase in zirconium resources

A decade ago,China had limited basic reserves of zirconite (calculated by Zr02,the same below),but these have soared in recent years.According to statistics on zirconium resources released in 2007,China only ranked 7 in the world for total reserves.

China announced its zirconite reserves reached 681,200 tons,and that basic reserves totaled 5.93 million tons in 2008.However,according to statistics of the Hainan Mining Association,Hainan alone holds 1.886 million tons in zirconium reserves,while China has a total of 6.388 million tons.

2.Expanding the zircon sand mining and dressing industries

Prior to 2001,the industrial scale of mining and ore dressing was very limited in China,with annual output of zircon sand at less than 20,000 tons.Today,large- and medium-sized sophisticated equipment including comprehensive dredges and electromagnetic separators,as well as advanced processes,are being used in mining and ore dressing.Despite the unfavorable conditions of Hainan,the maximum annual output stands at 80,000 tons and will approach 200,000 tons if tailings processing capacity and output are taken into account.

3.Consumption of imported zircon sand in China exceeds Europe's

China's rapid economic development has stimulated demand for zirconium products and zircon sand across the board.Imports of zircon sand to China has been increasing annually,with the consumption of imported zircon sand exceeding Europe's and ranking no.1 worldwide.

4.Rapid development in zirconium silicate industry

A decade ago,China's annual output of zirconium silicate stood at less than 100,000 tons,but today,China has exceeded European nations including Italy and Spain in terms of annual output of ceramics,becoming the no.1 globally in terms of production and export of ceramics and consumption of zirconium silicate.China boasts approximately 50 zirconium silicate manufacturers,including more than 10 with a production capacity of above 10,000 tons.Moreover,electromagnetic ore dressing techniques and dry processing have become widely used in China.

5.Sharp increase in production,sales and export volumes of “chemical zirconium”

In China,products including zirconium oxychloride and re-processed zirconium dioxide,zirconium carbonate and zirconium sulfate are generally called “chemical zirconium”.A decade ago,China's production capacity of zirconium oxychloride was less than 100,000 tons,with the "two-acid and two-alkali process”used in production.Today,China's production capacity of zirconium oxychloride has reached 200,000 tons,with output and exports volume of the main three chemical products of zirconium oxychloride increasing dramatically.Furthermore,new processes,technologies and equipment have been successively adopted during production.Jiangsu Xinxing were pioneers in the adoption of a "one acid and one alkali process”,developed by the General Research Institute for Nonferrous Metals and Shanghai University.Processes for the production of high-activity zirconium carbonate,high-purity zirconia and zirconium basic sulfate in addition to the recycling of "three wastes" have also been successfully developed.Exports of zirconium carbonate have also risen sharply.

6.Innovative growth of zirconium smelting industry

In the last 10 years,the main achievement of China's zirconium industry has been innovation and breakthrough in the smelting of nuclear-grade zirconium sponge.This is,first of all,attributable to new technology developed by the General Research Institute for Nonferrous Metals,which has made pivotal contributions to China's zirconium industry in this area;Jinzhou Iron Alloy Company has not only realized the industrialization of zirconium production,but has also provided zirconium smelting companies including Baisheng, Hongfa,Huashen,Jincheng,Kingan and Orient Zirconic with technical talent and personnel.State Nuclear Wec Zirconium and Hafnium Co.,Ltd.(SNWZH) introduced advanced MlBK separation technology and nuclear-grade zirconium sponge technology from Westinghouse and has started its own production line with an annual capacity of 2,000 tons of nuclear-grade zirconium,expected to open at the end of 2011 and achieve large-scale production for China's zirconium sponge industry.Orient Zirconic has purchased Baisheng Zirconium at a cost of RMB 120 million,while Jiangxi Kingan's pilot industrialized project of nuclear-grade zirconium has entered the construction phase.Jincheng Zirconium has also produced nucleargrade zirconium sponges.Further to this,the rapid development of the chemical industry(especially glacial acetic acid) has also promoted manufacturing of industrial zirconium sponge.These achievements establish a firm foundation for China's nuclear power industry.

7.Major development in zirconium processing

Currently,China is capable of producing 1,600,000-meters in nuclear-grade zirconium tubing and approximately 100 tons of various zirconium products,thus laying a firm foundation for the manufacturing of nuclear material and major chemical projects.The Northwest Zirconium Tube Factory,rebuilt in 2001,has become a leading zirconium tube factory with advanced technology and equipment including Westinghouse,AREVA,Siemens and Sandvik and others worldwide.The company has imported complete technology including heavy water reactors for Dayawan,Ling'ao and Qinshan (Phase III) projects as well as zirconium for Jiangsu Tianwan Nuclear Power Station from zirconium tube factories in France,Canada and Russia.This enables it to supply zirconium to various nuclear power stations worldwide.With a production capacity of 600,000-meter zirconium alloy tubes and a world-class production line,Shanghai Gaotai has supplied Qinshan Nuclear Power Station with CANDU heavy water reactor nuclear fuel bushing.

Benefiting from the boom in the chemicals industry,China's zirconium market has continued to see positive growth.In recent years,China has consumed approximately 500 tons of zirconium (zirconium with hafnium) annually for civil engineering use.Meanwhile,as a result of high-speed development in the electronics industry and elsewhere,demand for highpurity zirconium (purity＞99.9%) also remainsbrisk.China’s economy will continue to see steady growth over the next decade and its urbanization will not only drive development in the real estate industry and elsewhere,but will also expand the economy (including the zirconium industry) forward by flourishing domestic demand.

(1) The most high profile and far-reaching sector of the zirconium industry is likely to be nuclear-grade zirconium smelting and processing.China has adjusted its energy policy and plans to build approximately seven 1,000,000-KW nuclear power stations annually between 2010 and 2020,with demand for nuclear-grade zirconium also increasing,which is expected to provide opportunities for the development of zirconium products,especially nuclear-grade zirconium.Along with the completion,resumption and achievement of the designed capacity for production lines including SNWZH,Orient Zirconic,Jiangxi Kingan and Jinzhou Iron Alloy Company,and a significant increase in the processing capacity of Northwest Zirconium and Shanghai Gaotai,China will be capable of producing approximately 4,000 tons of nucleargrade zirconium sponge annually; furthermore,supported by special funding for major national projects,Baoti and Northwest Zirconium will be able to manufacture nuclear-grade zirconium that meets construction requirements of new third generation nuclear power stations in China,thus achieving independence and a large-scale of industrialization for the zirconium smelting and processing industry.Between 2010 and 2020,it is possible that China might overtake the United States of America and rank no.1 in terms of zirconium smelting capacity,becoming a major global player in smelting and processing.

In 2007,China introduced the AP1000 thirdgeneration large-scale pressurized water reactor nuclear power station and AP1000 nucleargrade zirconium manufacturing technology from Westinghouse Corporation,combining this technology with domestic know-how on nuclear-grade zirconium to build its first complete production line of nuclear-grade zirconium.It has enabled the integration of zirconium sponge,zirconium smelting and fabricated operations,meaning that China's zirconium industry has enjoyed independence from the nuclear system for a long time.

On 9 November 2009,the National Energy Administration established the National Energy Center for Research and Development of Nuclear-Grade Zirconium (hereinafter referred to as the Center),one of the first 16 engineering,R&D and test centers for energy technology established by the National Energy Administration.The Center will consolidate existing zirconium resources in China in a concerted manner and attempt breakthroughs as soon as possible by relying on special funding for major projects.

To date,the Center has completed research on the ZIRLOTM alloy 300KG ingot and its hot processing,tubing and plating,and has essentially mastered the processing performance of the alloy.It also has conducted investigations into homemade new zirconium alloys with independent intellectual property,collected binary-phase diagrams of elements including Zr,Sn,Fe,Cr,Bi,Cu,Mo and Mn, and has completed patent inquiries and adjustments for zirconium alloy.These achievements have established a firm foundation for research and development in the area of new homemade zirconium alloy which would enjoy independent intellectual property.

(2) Significant increase in zirconium output

Following the completion of the high-end compound zirconia production line including the 6000-ton project of Orient Zirconic,the purification of car exhausts,the significant growth in sensor and structural ceramics,and the consumption of zirconium carbonate and zirconium sulfate shaft,zirconium oxychloride output is expected to reach approximately 250,000 tons,exceeding the 179,000 tons in 2007.

(3) There is strong demand in the zirconium silicate industry.According to statistics re-leased in August 2010,China has a population of 600 million in urban areas,with an urbanization growth rate of 46.6% and annual population growth of 0.95%.China's strategic transformation of urbanization will drive a new round of development for China's zirconium silicate industry,with the annual output of zirconium silicate reaching up to 500,000 tons over the next few years.

(4) Zircon sand for zirconium-related refractory materials,casting and panel glass bulb is expected to grow steadily.China is a big producer of steel,nonferrous metals,glass,computers and televisions.With the exception of electric-melting zirconium for which precise statistics are available,according to TZMl's analysis,domestic consumption of zircon sand stand at 80,000 tons,10% -12% of the above industries.

(5) The consumption and import of zircon sand will increase sharply.Driven by growth in output and consumption of downstream products in the zirconium industry,China's import and consumption volume of zircon sand will grow dramatically.Building materials,ceramics,metallurgic and zircon sand manufacturers at home and overseas forecast that China will import more than 600,000 tons of zircon sand over the next few years,and domestic supplies will reach approximately 100,000 tons.Amongst imported zirconium sand for processing,tailings will exceed 200,000 tons.

6) As a major driving force,technological innovation will greatly improve China's zirconium industry.Currently,projects involving zirconium and hafnium smelting,zirconium and hafnium processing as well as new materials,processes and equipment for zirconium and hafnium have emerged or will obtain government support.

According to the 12th Five-Year Plan for the zirconium industry,the market will be further expanded,involving the intensification of marketing promotion,an increased demand for zirconium in the fields of chemical industry,steel and aerospace,further improved production and processing technology for zirconium tubes,bars,plates and wires for civil engineering,further improved acceptance rates and reduced costs,a new focus on treatment of the three waste products during zirconium production,and an attempt to reduce pollution and realize the comprehensive utilization of waste and clean production.

Using imported technology from the nucleargrade zirconium industry,there will be moves to speed up construction of industrialized research platforms,accelerate independent research and the production of nuclear-grade zirconium,create domestic brands of nucleargrade zirconium,and develop state-level zirconium alloys for nuclear use complete with independent intellectual property.

Taking advantage of nuclear-grade zirconium sponge,research will be commissioned on the purification methods of zirconium sponge and the processing of plates and wires so as to meet the relevant targets.

By 2015,the goal is to set up an entire nucleargrade zirconium industry and innovation platform,consolidate domestic research resources,build a research team mainly consisting of midcareer and senior technical talent,and establish an entire nuclear-grade zirconium quality and detection system.The system also seeks to realize the independent and steady production of ZIRLOTM alloys,reach annual capacity targets of 2000 tons of zirconium sponge,ingots and blanks,80 tons of strips,120 tons of pipes and bars and build national nuclear-grade zirconium R&D center,as well as build a nucleargrade zirconium production line for plate-type component,and complete engineering research on new types of zirconium-niobium alloys.Furthermore,work will be done to create domestic zirconium alloys with independent intellectual property capable of operating under pile radiation testing conditions,further develop zirconium and high-purity zirconium for civil engineering,improve the standard of the relevant technology and reduce cost,reach an ad-

vanced international level for the treatment of the “three wastes” and achieve clean production.