PERTH (miningweekly.com) – Mineral sands miner Iluka on Friday warned shareholders that synthetic rutile sales under its existing take-or-pay contracts for 2020 were unlikely to meet the targeted 175 000 t.
The ASX-listed company noted that in the year to date, only 78 000 t of synthetic rutile had been sold under these contracts.
The miner has issued a notice of default to one of its customers for failing to take or pay for 20 000 t of synthetic rutile, which had been scheduled for shipment in May. While the customer has issued a notice referring to a range of matters, Iluka was disputing the validity of the notice and would continue to "negotiate an appropriate commercial outcome", the company said.
Furthermore, a second customer has also notified the company that it could potentially be entitled to take less than its contracted amount of synthetic rutile for a period of at least three months.
These issues are likely to impact a 12 000 t shipment in September, Iluka said.