Demand for mineral sands increasing, Iluka says

April 22, 2010
Iluka Resources says demand for high value mineral sands increased in the first quarter in its key markets.
The company said after curtailing production during the global financial crisis to better match short term demand, it had now again increased output.
Production of zircon, used primarily in ceramics, was up 31.8 per cent on the previous three months, but 38.9 per cent down on the corresponding period a year ago, before cuts associated with the GFC.
Shares in Iluka were down 7 cents at $4.80.
Rutile production was 23.4 per cent higher in the March quarter compared to the December quarter, and 36.4 per cent higher than the corresponding period of 2009.
Synthetic rutile production rose 1.5 per cent from the previous quarterly figure, but fell 37.8 per cent on the equivalent period a year earlier.
Rutile goes into making titanium dioxide pigments for paints and is also used by the aerospace industry.
After hedging, total sales revenue for the March quarter was $154.4 million, 33 per cent lower than the previous three months but up 289.5 per cent compared to the same period of 2009.
Iluka said sales were below budget for the quarter.
"This is a timing difference which has already, in large part, been made up in the second quarter," the company said.
"Iluka expects sales to remain constrained by production for the remainder of 2010 and into 2011," it said.
It said zircon demand across all its main markets had rebounded strongly.
"Zircon sales in the first quarter of 2010 were higher than in the directly comparable first quarter of 2008 and only marginally lower than the fourth quarter of 2009.
It said the stronger that budgeted start to the year reflected a number of uncontracted bulk shipments, especially to Europe, as demand recovered from the lows of 2009.
It also reflected an improvement of sales into North America and continued strong demand in China, the company said.