Au Naturel - Sovereign Metals’ natural rutile could significantly reduce global titanium industry CO2 emissions

Sovereign Metals Limited is a client of Caldera House

Is zero carbon titanium on the cards?

Reducing carbon footprints, decreasing energy consumption and moving towards renewable energy and waste minimisation is the goal for not only Sovereign Metals (ASX: SVM) but the majority of industry players today. Studies show that ASX-listed Sovereign Metals’ natural rutile could potentially contribute to all of the above by eliminating significant global titanium industry CO2 emissions by displacing and substantially reducing the use of carbon-intensive upgraded alternatives employed in the downstream process of pigment production. Sovereign Metals’ state that up to 2.8 tonnes CO2 eq for each tonne of natural rutile utilised could be saved if the alternative process of upgrading/beneficiation of ilmenite, which uses smelting and chemical processes to produce high-grade titanium feedstocks, is avoided.

The fact it’s even called ‘natural rutile’ screams green, and it is this natural by-product of mineral sands- when extracted in a form ready for production- is emphatically preferred by producers. Rutile is considered a scarce commodity with no known primary rutile deposits having been discovered in the last decade. As a result, market demand favours this resource and due to its current rarity, natural rutile only makes up 26% of the market, with upgraded alternatives involving energy intensive downstream processes, contributing to the other 74%. Cue Sovereign Metals and its discovery of large Kasiya and Nsaru deposits in Malawi, South East Africa, which could potentially fill the void for a major source of global supply of premium natural rutile, and with it, the opportunity to remove significant CO2 emissions created by upgraded alternatives.

Here, substantial environmental benefits are possible and the fact that Sovereign has established an ESG Advisory Committee to ensure and integrate sustainability best practices, confirms its foresight in both its resource and responsibility. Chair of the ESG Advisory Committee, Ben Stoikovich confirmed that “we now have validation of the potential importance of Sovereign’s natural rutile to responsible investors and titanium industry companies needing to lower their carbon footprint”. As the cleanest, most pure natural mineral form of titanium dioxide, SVM’s deposits could help quench the thirst for both an environmentally friendly and superior titanium feedstock. By eliminating the energy and carbon intensive processes of the ‘upgrading’ step in the downstream process, the road to pigment production is on track to be far more efficient with the added (and necessary) bonus of being environmentally effective.

Caldera House Pty Ltd holds an equity position in Sovereign Metals Limited