Iluka says zircon prices to keep rising

Nov. 7, 2010 - Mineral sands miner Iluka Resources says a worldwide shortage of zircon means its higher price will be sustained.
"Iluka believes the global market is in deficit," the company said in a statement.
"A step-change in zircon prices could be required to meet global demand (based on a four per cent demand growth scenario between 2010 and 2015)."
Iluka also said it expected to hold low inventories of zircon stock at the end of 2010 but was moving to increase production.
It would evaluate options in 2011 to achieve a substantial acceleration of mining, with a view to implementation in 2012.
The company said it could increase the reserve base at its Jacinth-Ambrosia operation in South Australia's Eucla Basin by refining its approach to mining the ore body.
A modest capital expenditure would be required to remove some of the bottlenecks for production at the operation.
Iluka achieved three zircon price increases this year amounting to a jump of about 30 per cent.
Zircon is used mainly in the ceramics industry for floor and wall tiles, with demand being driven by urbanisation in China and other developing economies.