Visions - Fall 2007 - (Page 11)

Milling equipment (left) and office (below) at the fluorspar facility in Mexico. The North American fluorspar market is worth approximately $250 million and accounts for 25% of the world’s fluorspar trade. restrictions, have had to look elsewhere to meet their demand for fluorochemicals. SCOA will focus on the North American market in the first phase of the project, and gradually expand shipments to the Japanese and European market in the second phase. Trial Begins in 2008; Commercial Production Anticipated for 2009 The North American fluorspar market is worth approximately $250 million and accounts for 25% of the global fluorspar trade. DuPont and Honeywell are responsible for 55% of this markets, ALCAN and ALCOA both contribute 15%, and steel mills add an additional 5%. For SCOA, even a trial with a major buyer results in very large volume. In 2002-2005, Chinese fluorspar accounted for 63% of U.S. fluorspar imports, followed by Mexico (16%), South Africa (16%), and Mongolia (4%). Domestic U.S. fluorspar production is essentially non-existent, with the only supply coming from the National Defense Stockpile. A negligible amount of byproduct calcium fluoride was recovered from industrial waste streams, according to the U.S. Geological Survey, but data for exact quantities was not available, resulting in a “net import reliance” of 100% according to the USGS. A North American-based fluorspar operation is the logical relief for the current market condition.An additional advantage to a North American-based fluorspar operation includes the ability to ship small amounts of the mineral by rail (versus Chinese fluorochemicals, which can only arrive by freight in large inventory). “In industrial minerals, logistics separates one brand from another,” said Koh Akiyama.“The cost and convenience to the customer can make all the difference.” SCOA has a well-developed logistics network within North America and can easily ship various fluorspar amounts quickly. Combined with SCOA’s good reputation amongst the chemical giants of U.S. industry, the long-term viability of the SCOA/CMV partnership is likely to be assured. The current instability of the Chinese fluorspar market will help SCOA build its Mexican fluorspar operation into a thriving, healthy, North American mining resource. For more information, contact Koh Akiyama at koh.akiyama@sumitomocorp.com. Sumitomo Corporation of America 11

Table of Contents Feed for the Digital Edition of Visions - Fall 2007

Visions - Fall 2007 Contents CANTEX State of the Art Plant Key to Southwestern Market SCOA Steel & Non-Ferrous Group Enters Wind Energy Market Perennial Power Holdings Continues Policy Of Expertise In Marketplace SCOA Finances New Fluorspar Mine in Mexico SC Rail Leasing America, Inc. Acquires Southern Illinois Railcar Company and its Affiliate Ohio Ag Terminals LLC New Sumitomo Subsidiary Summit VetPharm Enters Booming Animal Healthcare Market

Visions - Fall 2007

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