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PERTH (miningweekly.com) – Mineral sands miner Iluka Resources told shareholders at the company’s annual general meeting that sales in 2014 were likely to exceed production, as well as the sales levels achieved in 2013.
In its quarterly report for the period ended March, Iluka reported an increased production of zircon and rutile, as it anticipated an upturn in demand, with zircon production up 13.6% on the previous quarter and rutile production up 49.5% on the previous quarter.
The miner said on Wednesday that zircon, rutile and synthetic rutile sales were expected to reach over 580 000 t during the full 2014.
However, Iluka chairperson Greg Martin has warned that the company would still face a difficult year.
“I would observe that market conditions into 2014 remain both challenging and difficult to predict. Signs of demand recovery are uneven and, while titanium dioxide markets are showing encouraging signs, the zircon market in 2014 has features of 2013, with only partial demand evident across only some markets.”
He noted that while the company expected improved cash flow generation in 2014, a restoration of broad-based recovery could take further time to materialise.
MD David Robb told shareholders that the company would continue to mine normally at its Jacinth-Ambrosia zircon operation, in South Australia, and at the Murray Basin rutile operations, in Victoria.
Throughput would increase at the two mineral separation plants in Victoria and Western Australia, as demand recovered and current finished goods inventory was drawn down.
Mining was, however, idled at the two Virginia mining operations, reflecting the existence of sufficient ilmenite stock to meet 2014 demand. But, Robb noted that market dynamics could support the restart of a synthetic rutile kiln later this year, or early in 2015.
At the moment, Iluka was not expected to produce any synthetic rutile during 2014.