Australian miner Iluka on Tuesday reported a fall in third-quarter output of zircon, rutile and synthetic rutile. Here are some remarks from the company's quarterly review to Sept. 30.
On its Eneabba rare earths project:
"Discussions with government continue in relation to funding arrangements. A broader project update will be issued in H2. Q3 site works activity focused on progressing critical path items at an appropriate level of capital outlay given ongoing nature of funding discussions."
On mineral sands mining operations:
"The Jacinth-Ambrosia mine in South Australia produced 52,000 metric tons of heavy mineral concentrate $(HMC)$, down from 80,000 tons in Q2, due to processing of lower grade ore. Heavy mineral grade over year to date of 3% is in line with the mine plan as outlined in the March quarterly review.
"In Western Australia, the Cataby mine produced 159,000 tons of HMC. Ore treated volumes in Q3 were up 9% from Q2 following the commissioning of the second new mining unit."
On processing operations:
"The Narngulu mineral separation plant primarily processed Jacinth-Ambrosia material, producing a total of 69,000 tons of zircon and 10,000 tons of rutile.
"The SR2 kiln produced 59,000 tons of synthetic rutile. Synthetic rutile produced from SR2 services the circa 200,000 tons per annum of long term take-or-pay contracts Iluka has in place."
On inventory:
"In the year to date to Q3 2024, work in progress $(HMC.AU)$ inventory increased by 193,000 tons, predominantly ilmenite-bearing concentrate from Cataby. This inventory underpins Iluka's capability to restart the SR1 kiln (currently offline) when required."
On China zircon market:
"Chinese demand for ceramics remains subdued, impacting demand for raw materials such as opacifier. The fused zirconia, refractory and foundry markets also showed some softening over the quarter. Zirconium chemicals production remained steady."
On market for titanium dioxide feedstocks:
"The global pigment market remains stable heading into the seasonally slower Northern Hemisphere winter, with pigment producers running at higher operating rates in anticipation of a market turnaround in 2025.
"Titanium pigment producers view several external events as supporting renewed demand growth in 2025, including the final implementation of the EU [European Union] antidumping tariffs on Chinese imports; economic stimulus measures being implemented in China to support additional domestic pigment consumption; and lower interest rates in the U.S. helping to support new and existing home sales."
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
(END) Dow Jones Newswires
October 21, 2024 18:38 ET (22:38 GMT)
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