Iluka freezes pay, cuts mine production

Apr. 14, 2010
MINERAL sands miner Iluka Resources has frozen executive pay and placed one of its West Australian mines on care and maintenance as it heads towards a first-half loss because of lower demand for its product.
In its 2009 annual report, Iluka chairman Bob Every said the company's net loss of $108.6 million reflected a ''disappointingly poor set of financial results''.
Dr Every said Iluka's performance was largely due to a surprising 54 per cent drop in zircon sales. Iluka is the world's biggest producer of zircon and the second-biggest producer of titanium dioxide.
''Iluka's board will also retain its fee structure at 2009 levels,'' he said.
Demand would start improving this year but this would not become evident until at least next year.
Iluka also said declining ore grades at its Eneabba mine in Western Australia had reduced its viability, so the company would start idling production in June with a loss of 40 jobs.
Iluka remained committed to the Jacinth-Ambrosia project in South Australia and the Murray Basin stage 2 project, in New South Wales and Victoria.
Iluka shares on Monday hit a year high of $5.04.
The lift allayed concerns that the company might be a takeover target for various state-owned Chinese groups.
The shares yesterday dropped 20 , or 4 per cent, to $4.78.