Singapore, January 29th (Argus) - Iluka Resources, an Australian heavy mineral producer, stated that in 2025, the production of zircon sand, rutile, and synthetic rutile exceeded the expected targets. However, macroeconomic uncertainties continue to hamper the industry and development obstacles still exist.
The company's latest quarterly report released today shows that thanks to the optimized processing of tailings, the output of zircon concentrate exceeded expectations in 2025, with the total heavy mineral production reaching approximately 559,100 tons, an increase of 13% compared to 2024.
Although the processing facility for artificial rutile No. 2 (SR2) was suspended from December 1st, the heavy mineral production in the fourth quarter of 2025 (October - December) still reached 154,900 tons, an increase of 14% and a 25% increase compared to the previous quarter. The company pointed out that if market conditions improve in 2026, the SR2 facility may be restarted.
The total output of heavy minerals in 2025 was 474,900 tons, a slight decrease of 0.1% compared to the previous year; the sales volume in the fourth quarter was 161,400 tons, during which the weighted average price of zircon sand declined by 25% compared to the previous period due to the weakening of the price of high-end zircon sand in China.
The company stated that the current price of mineral sands is "unsustainable" and has led some competitors to go into losses, suspend operations, or initiate business restructurings; however, it is expected that after the Lunar New Year, the demand for zircon sand may see a significant rebound.
The Balranald mining area has started mining operations, and the current mining efficiency is good. The production capacity of the Balranald mining area will be gradually increased in the first half of 2026. The company will continue to increase capital investment in the Balranald mining area and the Eneabba rare earth refining plant project, with an expected total capital expenditure of 862 million Australian dollars (equivalent to 609 million US dollars) for the entire year of 2026.
