Oregon Resources Corp.
Not many mineral mining companies are in a position to have too many capital improvement projects going on at the same time. However, while other mining firms struggle to stay in business, Oregon Resources Corp. (ORC) is expanding its operations to increase production to meet the demand for its chromite, garnet hi-iron ilmenite and zircon products.
“Our problem is a good problem to have,” COO Dan Smith says.
ORC is developing the Southern Oregon Mineral Sands project in Coos County. This project consists of approximately 2,600 acres of terraced mineral sands properties near Coos Bay in southwestern Oregon.
The company says all aspects of processing the extracted material will be undertaken on company-owned property in Bunker Hill near Coos Bay. The main plant to be constructed is designed to be highly efficient and scalable with the ability to process from 500,000 to 1.2 million tons of material.
ORC entered this marketplace in 1989 when it began the first stage of exploration of the deposit. Since then, the company says management has partnered with the local community to drive economic growth and build infrastructure, as well. ORC boasts that the project offers benefits to the community through the creation of stable living wage jobs.
Product Variety
Smith says its markets are divided roughly equally between the chromite foundry markets in North America, Europe and Asia.
The company’s entire supply of zircon will be shipped to HA International in Oregon, Ill. This specialty foundry coatings company is a subsidiary of German firm Huttenes Albertus and is the exclusive North American distributor for the company’s unique chromite foundry sand which is branded as SpheriChrome. The Germany-based Possehl Erzkontor Gmbh handles sales and distribution of SpheriChrome in Europe.
The garnet product will be shipped to Western Garnet International in Idaho. From here, Smith says the product will be distributed throughout the West Coast, East Coast and possibly to European markets.
Ramping Up
Smith says the company ramped up production on the Oregon Mineral Sands project about three years ago. The company began designs on a new production plant while obtaining the necessary permits for construction, and as of spring 2010, the project has all permits in place.
The reasons for the increase in demand for ORC’s products, according to Smith, are global demand and the unique properties of ORC’s chromite.
Along with garnet, zircon and chromite, ORC produces hi iron ilmenite, which is a cost-effective alternative to other minerals typically used in foundry applications.
Smith explains that ORC tested the properties of its chromite for foundry use at the University of Northern Iowa, which is a nationally recognized leader in foundry research. Not only is ORC’s chromite less expensive than zircon – $450 vs. $1,400 per ton, according to Smith – but it also performed better than alternative commodities.
All of ORC’s hi-iron ilmenite product will be shipped to IGC in Milwaukee, which will market the product as a value-add for the creation of foundries.
Efficiently Wet
One of ORC’s capital projects is the construction of an additional wet rougher plant in the field. While the up-front cost of building such a plant is between $2 million and $3 million, Smith explains that it will save ORC a considerable amount in freight by not having to truck all the mined ore. Instead, it will just send the heavy mineral concentrate to a far-off facility for treatment.
The material will be transported by covered truck to a processing plant near Coos Bay, where it will be separated in a two-step process. The first stage of the process will use water separation methods to separate the dense minerals from non-dense sand.
Flocculants are the only chemicals used in the process – these are similar to the types used by municipal potable water suppliers.
The second step of the process will employ electrostatic and magnetic separation methods to separate the mineral suite into individual industrial products, the company says.
From there, the minerals will be packaged and shipped via ship, barge, truck or train to local, international and U.S. markets, Smith says.
This plant also is unique because it will greatly decrease the amount of water normally required for this process.
Smith explains that wet plants like this typically consume 600 to 700 gallons of water per minute. However, the company’s plant only will require 30 to 50 gallons per minute.
“That way, we’re using as much rain water as we can and not as much city water by completing the wet process out in the field,” he adds.
Growth on the Horizon
Although ORC currently is focused on developing its operations in Oregon, management has its eyes set on the future, as well.
This includes seeking additional properties in North America and Australia to mine periphery products.
“We’d like to grow the company substantially to industrial minerals and rare earths,” Smith says. “We’ll be focused on products to provide material to the foundry markets.”