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Fourth Quarter Activities Report/Media Release

Document date:  Thu 19 Jul 2001
Published:  Thu 19 Jul 2001 12:36:42
Document No:  198974
Document part:  D
Market Flag:  Y
Classification:  Fourth Quarter Activities Report

SONS OF GWALIA LIMITED                        2001-07-19  ASX-SIGNAL-G

HOMEX - Perth                                                         

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ADVANCED MINERALS OVERVIEW

TANTALUM MARKET

Sons of Gwalia is the largest producer of tantalum in the world with
approximately 75% of the Global Tantalum Reserve Base (source: US
Geological Society, January 2001). The Company currently supplies
approximately 25 per cent of global demand, which will increase to in
excess of 30% following the expansions at the Greenbushes and Wodgina
mines.

The record demand levels for tantalum and other electronic components
that occurred in the December 2000 quarter have eased in 2001 and
inventory levels are being adjusted. It is anticipated that demand
for electronic components, including capacitors, will increase once
market equilibrium has been achieved. The Company's long term, fixed
price, take or pay contracts for the period to December 2005 will
negate any short term weakness in tantalum demand and price, and
underwrite future earnings.

TANTALUM SUPPLY

At present, the Company is pursuing dialogue with all participants in
the tantalum industry to determine future tantalum requirements. In
May 2001 the Company announced that, should the market require, its
Greenbushes and Wodgina mines had the capability to produce
approximately 3 million lbs of tantalum in 2003/04, approximately
700,000 lbs in excess of previously announced production rates. In
order to facilitate the orderly development of the tantalum industry,
and to avoid the supply and pricing issues resulting from the severe
tantalum shortage seen late in 2000, the Company announced that a
further expansion in production capacity to 5 million lbs per annum
could be achieved beyond 2005, should the market require.

ADVANCED MINERALS PRODUCTION

SONS OF GWALIA ADVANCED MINERALS PRODUCTION

OPERATION     UNIT     13 WEEKS  13 WEEKS 13 WEEKS 13 WEEKS   ROLLING
                        ENDING    ENDING   ENDING   ENDING    ANNUAL
                       30.09.00  31.12.00 31.03.01 30.06.01   RESULT

GREENBUSHES TANTALUM
Produced  Lbs Ta(2)O(5) 178,803  199,276  246,088  314,700    938,867
Sold                    146,798  166,020  228,990  382,599    924,407 

WODGINA TANTALUM
Produced  Lbs Ta(2)O(5) 144,767  160,133  148,106  233,491    686,497
Sold                    129,939  158,256  158,611  193,332    640,138

TOTAL TANTALUM PRODUCED 323,570  359,570  394,194  548,191  1,625,364
TOTAL TANTALUM SOLD     276,677  324,276  387,601  575,931  1,564,545 

TIN
Produced  Tonnes            216       182       296      345      925
Sold                        175       266       225      234      899

LITHIUM/SPODUMENE
Produced  Tonnes         23,475    19,222         0   13,673   56,370
Sold                     11,737    34,350    12,211   27,082   85,380

KAOLIN
produced  Tonnes              0         0    12,474
Sold                         80       120       120      120      440
 
KEMERTON SILICA SAND(A)
Produced  Tonnes        109,124    91,689   104,702  122,135  427,650
Sold                     86,088    70,322   110,626  165,103  432,139

MURRAY BASIN JV(A)
Rutile Produced Tonnes        -         -         -    5,900    5,900
Zircon Produced Tonnes        -         -         -    1,300    1,300 

TOTAL HM PRODUCED                                      7,200    7,200

(A) All figures are 100%
            

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