PERTH (miningweekly.com) – Mineral sands miner Iluka has reported a solid quarter of production during the three months to September, with sales for both zircon and rutile products increasing.
Total zircon, rutile and synthetic rutile production in the September quarter reached 135 000 t, which was on par with production in the previous quarter.
Zircon production in the three months to September declined slightly from 42 100 t to 32 100 t, while rutile production increased from 34 800 t to 47 900 t. Synthetic rutile production declined slightly from 58 300 t to 55 300 t.
Zircon sales for the quarter increased from 53 400 t to 63 200 t, while rutile sales were also up from the 27 500 t sold in the June quarter to 33 800 t. Synthetic rutile sales for the quarter declined from 37 500 t to 12 000 t, which Iluka said reflected a contractual dispute and reduced offtake by synthetic rutile customers.
Zircon prices remained relatively stable in the quarter under review, with the weighted average zircon price in the quarter reaching $1 311/t, down 3% from the first half of 2020.
Sales revenue for the September quarter declined from the A$224.4-million reported at the end of the June quarter to A$210.2-million.
Iluka shareholders are expected to vote on the demerger of the company’s royalty business Deterra Royalties, on October 16.
The directors of Iluka have unanimously recommended that shareholders vote in favour of the proposed demerger, which would result in two independent ASX-listed companies.
Iluka would retain its portfolio of mineral sands projects, while Deterra would become the largest independent royalty company listed on the ASX, with royalties held over BHP-operated Mining Areas C, in the Pilbara, as its cornerstone asset.