Minerals

Industrial Minerals

Hanam Canada has invested in several industrial mineral suppliers in Canada and is actively seeking participants to expand these investments. Hanam has a excellent data base of industrial mineral properties and suppliers in BC. We have provided consulting services to several existing producers and some developing prospects. We have provided marketing services to several government departments for many industrial minerals produced in British Columbia that have the potential to be exported to the United States and Asia. We have also evaluated several prospects for imports including terminal and marketing distribution arrangements.

Market Overview

More than seven million tonnes per year of industrial minerals are produced in British Columbia to make cement, lime, printing paper, building stones, wallboard, and chemicals. Their sales value is over $ 600 million per year. The leading producers are: Lehigh, Lafarge, Graymont, and Electra. About 90 other smaller companies contribute their diverse technical and marketing expertise to this vibrant business sector.

Limestone used to make cement and lime is by far the most significant industrial mineral produced in BC. The three cement plants in BC produce 2.2 million t/y. These cement plants located in Richmond, Delta, and Kamloops, are the foundation of BC’s construction industry. Thirteen companies produce a 1.9 million t/y of lime mainly for the paper industry.

Graymont Western Canada Inc.,Cache Creek, B.C.

	Cement- The largest industrial mineral business is cement manufacturing. About 2/3 of cement consumption occurs in the six months between May and October and customers traditionally purchase cement from local sources. About 73% of cement is shipped to ready mix concrete plants, 12% to concrete product manufacturers, 8% to contractors, and 4% to building material dealers. In the US 28% of cement is imported but unlike Seattle, San Francisco, Los Angeles and San Diego, Vancouver does not have an import terminal.
	Gypsum- About 75% of gypsum is used for wallboard, 12% for cement manufacturing, and 12% in agriculture and industrial processes.
	Building stone- Exports are attracting many new small business entrants.

Product	Companies	Sales Value $ million/year
Cement, lime, limestone & dolomite	24	457
Gypsum & wallboard	4	71
Glass, silica, and clay	14	44
Granite, marble, slate & pumice	39	39
Magnesite & magnetite & barite	9	11
	90	622

Clay is used to make paper at Port Alberni and Powell River, bricks at Abbotsford, and absorbents, such as kitty litter, at Kamloops. Gypsum is mined in southeast BC for Alberta and imported from Mexico for wallboard plants in New Westminster and Surrey. Several types of silica are produced in BC, including diatomite and zeolite, used in filtering gases and water. A fast growing activity is the quarrying, cutting and upgrading of granite and marble for high value construction products. These businesses are small, dynamic, and highly customer focused.

Hanam Canada Corporation