FIMI Request Ministry of Mines to takeup the issue with DAE to ensure adequate supply of Ilmenite to Indian TiO2 producers

Now the only Ilmenite Producer in India is IREL Government Company. But they are not ready to supply the required quantity of Ilmenite to the Indian Titanium Producers. When the matter was taken up to FIMI, the Secretary General wrote letter to Additional Secretary, Ministry of Mines to take up the issue with DAE to ensure adequate supply of Ilmenite to Indian TiO2 producers.

“Make in India”  Scheme not supported by Government Agencies. The problem faced by Indian Titanium Producers is explained our e-mail dated 30.10.2025 send to FIMI and FIMI’s Secretary General letter to Ministry of Mines is given below.

Introduction

Our associate company V.V. Titanium Pigments Private Limited, are one of India’s established manufacturers of Titanium Dioxide (TiO₂) pigment, serving both domestic and international markets. Our TiO₂ products are used as key raw materials in paint, plastic, rubber, and paper industries.

Our manufacturing facility is located in Thoothukudi, Tamil Nadu, and we are an ISO 9001, ISO 14001, and ISO 45001 certified company, in continuous operation for over 30 years.

Importance of Ilmenite and Its Applications

Ilmenite (FeTiO₃) is the principal raw material used in the production of Titanium Dioxide pigment, an inert, bright white compound known for its opacity, brightness, and UV resistance. TiO₂ is an indispensable ingredient in:

* Paints and coatings

* Plastics and rubber

* Paper and textiles

* Sunscreens and cosmetics

Global Occurrence of Ilmenite

India  (Kerala, TamilNadu, Odisha, Andhra Pradesh)

Australia , South Africa , Norway, Canada, China, Mozambique, Ukraine, Brazil, USA, Srilanka

Collectively, these countries constitute the majority of global Ilmenite and titanium mineral supply.

Present Situation in India

VV Titanium Pvt Ltd has historically procured Ilmenite from both public sector and private sector suppliers within India including from our own mine up to 2013. However, following the Government of India’s policy changes and restrictions on private beach sand mining operations, all private producers have ceased operations.  Consequently, M/s. IREL (India) Limited has remained the sole domestic supplier.

While we appreciate IREL’s efforts in maintaining production, the company’s focus on exports has significantly constrained the availability of Ilmenite for domestic TiO₂ manufacturers like us. Despite continuous follow-up, we are being allotted material primarily from IREL’s Odisha unit, rather than from their Tamil Nadu (Manavalakurichi) unit, which is geographically closer to our plant and offers substantial logistical advantages.

Additionally, the pricing policy of IREL is not conducive to local value addition. The domestic price can be fixed taking into consideration of the freight cost from Odisha (approximately 1,700 km away from our Plant) as it escalates our input costs significantly and impacting our competitiveness.

Critical Mineral Reference

As per the Mines and Minerals (Development and Regulation) Act (MMDR Act), Ilmenite is classified as a Critical and Strategic Mineral (Sl. No. 21, Part D of the First Schedule).

Ilmenite is the raw material for producing TiO2 Pigments.

Ilmenite Demand and Projections

 

Year                                     Requirement (in MT) for our factory

2024–25 / 2025–26               4,000 – 5,000 MT per Month

By 2030                                      8,000 – 10,000 MT per Month

Supply Sources and Import Dependence

From 2011 to 2013, our unit procured Ilmenite from our own mining leases and other public and private suppliers within Tamil Nadu. Post the 2013 after stoppage of private mining in Tamilnadu, domestic availability sharply declined, forcing us to import Ilmenite ore at significantly higher cost, rendering operations economically unviable.

We thereafter approached M/s. IREL (India) Ltd to ensure consistent domestic supply. As their Manavalakurichi (Tamil Nadu) unit was temporarily non-operational, we were registered with the Indian Bureau of Mines (IBM) and obtained a Trading License in Odisha to procure Ilmenite from IREL’s Odisha facility.

Although the Manavalakurichi unit has since resumed operations, its Ilmenite quality does not meet our production requirements, and the cost structure remains similar to Odisha’s supply (excluding freight advantage).

Currently,  supply from IREL (Odisha) does not meet full demand, compelling us to resort to limited imports at high prices — an unsustainable situation for long-term operations.

1. a)   Difficulties in Import of Ilmenite:

 

1. Substantial Capital Investment Requirement

The import of Ilmenite in bulk quantities (approximately 10,000 MT) necessitates a significant capital outlay. The costs associated with ocean freight, port handling, customs clearance, and bulk cargo management collectively result in a high initial investment burden.

2. Regulatory and Licensing Challenges

The import process involves multiple regulatory approvals, licensing requirements, and compliance with import policies. These formalities can significantly delay the receipt of material, thereby affecting the continuity of production.

3. Risk of Material Loss During Port Handling and Storage

Due to the absence of dedicated covered storage facilities for Ilmenite at the port, the material remains exposed to environmental factors such as rainfall, humidity, and wind. This increases the likelihood of material loss, contamination, or quality degradation during interim storage and handling.

4. Increased Logistical and Transportation Expenses

Additional costs are incurred for the inland transportation of Ilmenite from the port to the manufacturing facility. These expenses, along with port handling and demurrage charges (if any), contribute to a higher landed cost of the material.

Request for Government Support

Given the circumstances, we earnestly request the Government’s intervention to:

1. Allot sufficient quantity of Ilmenite to domestic TiO₂ manufacturing units at reasonable and/or concessional price and may offer discounts according to the distance from the IREL’s facility and the end users’ facility.
2. Give first priority in Ilmenite allocation to Indian value added industries over export obligations, aligning with the “Make in India” initiative and the Government’s objective of mineral security.
3. Otherwise, considering to permit our own mining lease which has valid environmental clearance and all other statutory approvals,  under strict environmental and regulatory conditions, thereby ensuring sustainable supply while protecting ecological interests.
4. Rationalize IREL’s pricing and distribution policy to support value-added domestic industries.  A “Special Discounts” can be considered for the supply of Ilmenite to the customers who has to incur higher freight charges due to long distance (like ours – around 1700 KM away from the Odisha facility) in transportation from the IREL’s facility.

By implementing these measures, domestic TiO₂ manufacturers can:

 

1. a)   Supply quality TiO₂ competitively to both Indian and global markets.

 

1. b)   Reduce TiO₂ imports, conserving significant foreign exchange.

 

1. c)   Generate employment in mining, processing, and downstream sectors.

 

1. d)   Strengthen India’s position as a self-reliant producer of critical minerals.

Conclusion

Ilmenite is the backbone of India’s Titanium Dioxide industry and a key component of the nation’s critical mineral ecosystem. To sustain and enhance domestic value addition, it is essential that Indian TiO₂ manufacturers are ensured priority access to Ilmenite at fair, stable, and locally competitive prices.

We sincerely request the concerned authorities to kindly consider our grievance and take favourable action to ensure the sustainable operation of domestic TiO₂ pigment units, thereby contributing to India’s industrial growth, export competitiveness, and mineral security.

Thanking you,

Yours faithfully,

VAIKUNDARAJAN

VV Group

Note : Our above said mail was forwarded by FIMI to take up the issue with Department of Atomic Energy. If Government agencies also support, then only “MAKE IN INDIA” scheme will become success.