Extender/Fillers: The Economics Of The Producer-Consumer Interface

The economics of the producer-consumer interface - the route from mine to market - impact much more severely on specialty industrial minerals, extender/fillers that have to be sold, than on commodity industrial minerals that are basically supplied. Working capital costs for inventories and accounts receivable, fixed capital costs for storage/ warehousing/distribution, and sales and marketing costs all make the extender/filler producer much more of a marketer than a miner. The future survival of an extender/filler producer will primarily depend on the skill he has in the economics of the interface.