PERTH (miningweekly.com) – Mineral sands producer Iluka said on Thursday that it would further cut back on production during the next quarter, including idling all synthetic rutile production.
During the three months to March, the company produced some 110 900 t of mineral sands, 33.2% lower than that produced in the December quarter and 48.9% lower than the previous corresponding period.
Iluka has been curtailing production as it faces dwindling demand. The miner said further measures to reduce output would be implemented during the June quarter, before the restoration of more normal operating settings as demand recovered and a drawdown of finished inventory occurred.
Zircon production for the three months to March reached 56 100 t, a similar level to that achieved in the December quarter, but markedly lower than the 115 700 t produced in the March 2012 quarter.
Rutile production for the March quarter reached 25 800 t, compared with the 56 700 t produced in the December quarter and the 50 700 t produced in the March quarter of last year.
Synthetic rutile production in the March quarter reached 29 000 t, compared with the 52 700 t produced in the three months to December and the 50 600 t produced in the corresponding period of 2012.
Iluka noted that the company had idled the synthetic rutile kiln 3 in December last year, with kiln 2 being the sole producer of synthetic rutile during the quarter, at a throughput of around 55% of normal capacity.
Kiln 2 would be idled at the end of the second quarter, with Iluka relying on inventory to meet expected near-term market demand.
The company would also look to idle the Tutunup South mine, and complete the idling of the Eneabba operation. Iluka would also idle plant 1 at the Narngulu mineral separation plant from April, with plant 2 use at below the 50% level until demand warrants restoration of normal throughput.
Meanwhile, Iluka noted on Thursday that mineral sands revenue for the quarter was A$139.9-million, which compared with the A$196.3-million achieved over the same period last year, which the company said reflected the lower prices achieved, despite the higher sales volumes.