Singapore, April 22 (Argus) - Australian heavy mineral producer Iluka Resources has shut down related assets due to an earlier warning that market prices were "weak and unsustainable". Its zircon and rutile production for the January-March period in 2026 decreased by nearly two-thirds compared to the previous year.
According to the company's latest quarterly report released on April 22, the company's heavy mineral production in the first quarter was 47,600 tons, a significant decline from 130,700 tons in the same period last year.
The company stated that its Cataby mine and two artificial rutile kilns have been shut down. The mine's heavy mineral concentrate output for the entire year of 2026 is expected to be zero, and the restart of the kilns will depend on "market conditions".
The zircon concentrate production of the Jacinth-Ambrosia mine in South Australia in the first quarter was 60,000 tons, lower than 66,000 tons in the same period last year.
The continuous low prices of ore products have led some producers to incur losses, which have affected production and driven industry restructuring.
The company said that there is a tight supply of sulfur in China, which further imposes dual pressures of supply and cost on sulfuric acid-based titanium dioxide producers, pushing up the price of titanium dioxide and suppressing its output. The company added that the affected Chinese market may benefit Western chlorate-based titanium dioxide producers in the medium term, thereby supporting their raw material purchasing demand.
The total sales volume of the company's zircon sand, zircon, rutile and artificial rutile in this quarter was approximately 70,000 tons, a 40% decrease compared to the previous year. Macroeconomic uncertainty has also suppressed customers' purchasing behavior. However, the company stated that the weighted average price of zircon sand was $1,491 per ton, which was basically the same as the previous quarter.
