CEH Report

Table of Contents

Abstract

Although twenty countries have the ability to produce significant quantities of fluorspar, the majority of the world’s fluorspar production has become concentrated in China, which accounted for 49% of world production in 2008. The next-largest producers— Mexico, Western Europe, Mongolia and South Africa—together contributed an additional 42% of world production in 2008. The majority of fluorspar is consumed in the production of hydrofluoric acid, followed by use for aluminum smelting and steel manufacturing.

Most of China’s fluorspar production is generated by about nineteen enterprises. In the past ten years China has increasingly added value to acid-spar (acid-grade fluorspar) through the production of downstream products such as hydrofluoric acid, fluorocarbons and fluoropolymers rather than exporting the mineral.

The world’s largest fluorspar-producing company is Mexichem Fluor, at Salitrera, San Luis Potosí, Mexico. Mexichem accounts for about 75% of Mexico’s active fluorspar production capacity, equal to about 11% of the current world supply of fluorspar. Fluorspar is one of the leading economic minerals in Mongolia and the industry is targeted for further investment and development, following the fading influence of Russia. South Africa’s fluorspar reserves are the largest in the world; however, its fluorspar is produced by only two companies at two mines.

Hydrofluoric acid is the most important chemical derived from fluorspar. In 2008, hydrofluoric acid consumption rose in the United States, but fell significantly in Western Europe and Japan compared with 2004. Greater production of more fluorine-intensive alternatives to CFCs (chlorofluorocarbons) is responsible for the increase in hydrofluoric acid consumption in the United States, while Kyoto Protocol–motivated reductions in fluorocarbon consumption and production have caused declines in hydrofluoric acid consumption in Western Europe and Japan.

The following pie charts show world consumption of fluorspar and hydrofluoric acid.

International global warming concerns as reflected in the Kyoto Protocol will also limit fluorocarbon production and consumption. While the United States has signed (but not ratified) the Kyoto Protocol, this agreement came into force on February 16, 2005. Three of the six major regulated greenhouse gases include HFCs, FCs (also known as perfluorocarbons) and sulfur hexafluoride. This agreement curtails U.S. exports of fluorocarbons that have global warming potential to many significant U.S. trading partners, such as the European Union and Japan, that are reducing greenhouse gas emissions.

The national governments of EU countries and the European Parliament established a more aggressive phaseout of HCFCs than the United States. HCFCs were banned in new refrigeration equipment after July 1, 2002, and after 2010 virgin HCFCs may not be used in existing equipment.

Like the European Union, Japan has ratified the Montreal and Kyoto Protocols and is pursuing a more aggressive schedule than the United States to limit and ban the use of HCFCs, HFCs and FCs. Japanese refrigerator manufacturers have responded to consumer desires and the Kyoto Protocol by manufacturing fluorocarbon-free appliances.

Other important fluorine compounds include fluosilicic acid (also known as hydrofluosilicic acid), silicofluoride salts and cryolite. Aluminum fluoride and cryolite are used in aluminum manufacturing. The majority of fluosilicic acid is used for water fluoridation, aluminum production and silicofluoride salt production. Silicofluoride salts are used primarily in water fluoridation and in laundry detergents. While the markets for these fluorine compounds are mature, global demand has been strongly influenced by developments in China, particularly China's recent growth in production of downstream fluorine compounds such as aluminum fluoride, hydrofluoric acid, fluorocarbons and fluoropolymers. While overall growth in world consumption of fluorspar and fluorine compounds is expected to be moderate, China will have a significant impact on fluorspar and inorganic fluorine compounds supply and demand over the next five years.