Sydney, July 28th (Argus) - Australian heavy mineral producer Iluka Resources saw a year-on-year decline in zircon sand production for the 4-6 months period, but the company's use of inventory to boost sales drove up its output.
The company's three production units, including the Yashins-Ambrosia mine in South Australia with an annual capacity of 350,000 tons, the Balranald mine in New South Wales with an annual capacity of 500,000 tons, and the Narn Gool Mineral Sorting Plant in Western Australia, combined zircon sand production decreased by 30% to 26,000 tons. The company stated on July 28th that zircon sand production for this quarter increased by 145% compared to the previous quarter.
The company said that due to a longer-than-expected commissioning and production ramp-up period, the Balranald mine has not yet reached full production capacity. Therefore, the company lowered its target for total heavy mineral production in 2026, which was originally set at 265,000 tons; however, no new target range was announced in the 4-6 month report. As of the time of publication, the company has not responded to a request for comment.
Previously, zircon sand prices dropped to a five-year low of $1,625 per ton in February and March, and then the market recovered. Taking advantage of this market situation, the company used its inventory, resulting in a 43% increase in zircon sand sales.
Titanium dioxide (raw material for titanium white powder)
Zircon sand production for this quarter decreased by 21% year-on-year. The company did not produce synthetic zircon sand this quarter. Due to weak demand and low prices, the company shut down the Catabi mine in Western Australia with an annual capacity of 280,000 tons and the 2nd synthetic zircon sand rotary kiln with an annual capacity of 225,000 tons in December last year.
Meanwhile, relying on inventory sales, zircon sand sales increased by 123% year-on-year to 12,000 tons; synthetic zircon sand sales remained unchanged at 37,000 tons.
Rare earth business
The Ineaba Rare Earth Refining Plant project, with an annual capacity of 23,000 tons, is approaching 60% of its overall construction progress. The total budget is 1.8 billion Australian dollars, and as of now, 1.1 billion Australian dollars (equivalent to 770 million US dollars) have been invested. The company expects this refinery to come online in the middle of 2027.
This refinery can process heavy and light rare earths and its products are used in permanent magnet materials, covering neodymium, praseodymium, dysprosium, and terbium.
