Canadian Press reports that UK mining group Rio Tinto (London; www.riotinto.com) has abandoned plans to build new TiO₂ facilities in Canada and Madagascar. The group had originally planned to build a USD 4 bn facility in Becancour, Quebec, but now decided to scrap the project amid the on-going decline in global titanium dioxide prices. By contrast, progress reportedly continues to be made on expanding the mining and smelting capacities in Canada, Madagascar, South Africa and Mozambique.

Rio Tinto had first decided to build the plant in Becancour at a time when the price of the white pigment reached a record high in spring 2011. Since then, TiO₂ notations have been on a steady decline – see also Plasteurope.com of 13.07.2012. It is highly likely that the UK group is not the only mining company withdrawing from earlier ambitious plans. Nevertheless, the TiO₂ market remains one of overall uncertainty, as a sudden rise in demand could easily trigger yet another shortage.