Iluka expects production to rise sharply from 2011

April 9th, 2010
Mineral sands miner Iluka expects to almost double its zircon and rutile production by 2011, as it brings on line two new projects, the Australian company reported on Thursday.
Zircon production would increase by 90% and rutile output by 97%, compared with production figures from 2009, mostly as a result of production from the Jacinth-Ambrosia project, in South Australia and the Murray Basin project, in Victoria.
In a business report, Iluka stated that between 80% and 90% of its entire zircon and rutile production would come from the two projects, between 2011 and 2013.
Iluka expected a total production of around one-million tons of zircon and rutile between 2011 and 2013. This was compared with total output of 795 000 t in 2009, and a forecasted 940 000 t in 2010.
The Jacinth-Ambrosia project had an estimated resource of 9.5-million tons of heavy mineral concentrate, and production of 300 000 t/y of zircon was planned to start during the first half of this year. The project had an estimated life-of-mine of ten years.
The Murray Basin stage 2 project is expected to have a five-year mine life, with the overall Murray Basin operations expected to have a mine life until at least 2023.
Iluka said that the two projects also offered additional zircon and synthetic rutile capacity, if demand and market pricing warrant.
The company noted the tightening of supply conditions emerging in zircon and high-grade titanium dioxide, and its inducement analysis suggests prices would need to increase significantly to induce new supply.
Further, Iluka s high-grade titanium dioxide cap and collar price arrangements predominantly cease at end of 2010, which left the company with a potentially unconstrained pricing environment, in the short-term, for high-grade titanium dioxide for first time in over a decade.