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Iluka cashes in on lower exchange rates

16th July 2015

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Mineral sands miner Iluka has reported an increase in sales revenue for the quarter ended June as well as the first half of 2015, on the back of increased production and a lower Australian/US dollar exchange rate.

Mineral sands production during the quarter ended June reached 304 800 t compared with the 167 200 t delivered in the March quarter, as Iluka’s operations recovered from a tough March quarter.

Total zircon, rutile and synthetic rutile production during the half-year reached 277 000 t, compared with the 252 000 t produced in the previous corresponding period, comprising 163 000 t of zircon, 56 000 t of rutile and 57 000 t of synthetic rutile.

Mining in the Murray basin was completed at the Woomack, Rownack and Pirro deposits during March, and Iluka noted that stockpiled heavy mineral concentrate from the three deposits, as well as a proportion of heavy mineral concentrate from the Jacinth-Ambrosia project, in South Australia, continued to be blended into the Hamilton mineral separation plant.

The Jacinth-Ambrosia mine continued at full capacity during the quarter, while mining at the Tutunup South mine, in Western Australia, was also restarted in February as a precursor to the reactivation of the synthetic rutile kiln during March.

Ilmenite produced from the mine was being used as a feed source for synthetic rutile kiln 2, with production from the kiln happening ahead of expectations, which Iluka said reflected higher synthetic rutile kiln feed rates and plant use levels.

Meanwhile, revenue for the quarter reached $234.4-million, up from the $115.2-million reported in the March quarter, while half-year revenue reached $349.6-million.

Revenue per tonne of mineral sand sold increased by 11.3% in the first half of the year, compared with the previous corresponding period, to A$1 130/t, which Iluka said reflected mainly the lower Australian/US dollar exchange rate.

Meanwhile, unit cash costs of production declined by 14% in the first half of 2015, to A$616/t, reflecting the higher production and the completion of mining at Woomack, Rownack and Pirro.

Edited by Creamer Media Reporter

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