JOHANNESBURG (miningweekly.com) – ASX-listed Iluka Resources has approved the development of the Cataby mineral sands deposit in Western Australia, with production expected by June 2019.
This follows the signing of take-or-pay offtake agreements for a minimum of 175 000 t/y of synthetic rutile, or approximately 85% of the production capacity from Iluka’s synthetic rutile kiln 2 (SR2).
Cataby is a large chloride ilmenite deposit located 150 km north of Perth in the Shire of Dandaragan. Ilmenite from the development will underpin the continued production of 200 000 t/y of synthetic rutile from SR2 at Capel, in the south-west of Western Australia.
“Iluka has worked closely with customers to secure offtake agreements for a significant proportion of the synthetic rutile production associated with the Cataby project.
“Entering into these agreements serves to underpin returns from the project and is consistent with Iluka’s disciplined approach to the allocation of capital and our objective to create and deliver shareholder value,” Iluka MD Tom O’Leary said on Wednesday.
He added that the project ensured that Iluka’s customers would have continuity of synthetic rutile supply and that it also delivers significant economic benefits to two separate regions in Western Australia – Dandaragan and Capel.
The construction period – with works estimated to cost between $250-million and $275-million – will employ up to 250 workers at its peak. Once in operation, the project will sustain a workforce of 160 people.
Cataby is expected to produce an average of 370 000 t/y of chloride ilmenite.