Tungsten, Fluorspar: Masan Resources posts net revenue increase of 52% in 2016

Posted by Dimpal on February 14, 2017

Roskill view: Improved production efficiencies led to increases in output of 31% for fluorspar and 62% for tungsten between the first and second halves of 2016 at Masan Resources’ Nui Phao polymetallic mine in Vietnam. Tungsten concentrate output rose 24% y-on-y to 6,357t (contained WO3), compared to 5,123t in 2015. Fluorspar output was not reported but was probably in line with full capacity of 200,000tpy acidspar.

The company posted net revenues of VND 4,049Bn (US$178.6M) in 2016, representing a 52% y-on-y increase, while EBITDA rose 66% y-on-y. Masan said that its products remained fully sold and noted that over 90% of planned production in 2016 was delivered into long-term offtake agreements with prices linked to benchmarked quotations.

Tungsten output from the mine is sent to Masan’s 51% owned subsidiary, Nui Phao – H.C Starck Tungsten Chemicals Manufacturing, which began operations in 2015. Capacity of the plant is 6,500tpy WO3 and the facility can produce ammonium paratungstate (APT), tungsten blue oxide and tungsten yellow oxide.

Prices for the main tungsten intermediate APT were in a range of US$180-215/metric tonne unit (mtu) throughout 2016, with little incentive to increase from this level as supply exceeded demand. The company noted that a potential increase in oil and gas drilling activity was being touted by some market commentators as a catalyst for APT price increases in the coming months.

However, Roskill notes that the US cemented carbide market is the one most strongly tied to the oil and gas sector. One unknown for the global market is if the USA will also reduce oil output, in line with OPEC members, particularly from shale oil drillers which have been less affected by lower oil prices than expected.

Roskill’s Tungsten: Global Industry, Markets and Outlook report was published in January 2017. Click here to download the brochure or sample pages or access further information.

To discuss the tungsten market with Roskill, contact Jessica Roberts: jessica@roskill.com

Roskill’s Fluorspar: Global Industry, Markets and Outlook report will be published in Q2 2017.

To discuss the fluorspar market with Roskill, contact Kerry Satterthwaite: kerry@roskill.com