Iluka Resources delivered an increase in zircon sand production during the December 2024 quarter, among other operational highlights.
The rare earths producer’s overall production for the period was 129,000 tonnes (t), including 45,000t of zircon sand, 15,000t zircon-in-concentrate (ZIC) and 58,000t of synthetic rutile.
Iluka sold 136,000t of zircon/rutile/synthetic during the quarter, bringing the company’s 2024 total sales to 496,000t, a result exceeding Iluka’s guidance of 455,000t. Iluka credited the achievement to increased ZIC production and a strong synthetic rutile kiln performance.
“The Jacinth-Ambrosia mine in South Australia produced 64,000t of heavy mineral concentrate (HMC), up from 52,000t in the third quarter (Q3), largely due to higher ore treated volumes, ore grade and recovery,” Iluka said.
“In Western Australia, the Cataby mine produced 128,000t of HMC, down from 159,000t in Q3, with lower ore grade being processed. An additional 18,000t of HMC was produced from historic stockpiles.
“The Narngulu mineral separation plant (in WA) processed 204,000t of HMC in the quarter, a mix of Jacinth-Ambrosia and Cataby material, producing a total of 60,000t of zircon (including ZIC) and 12,000t of rutile.”
In December 2024, the Federal Government agreed to contribute an additional $400 million to Iluka to aid the delivering of the Eneabba rare earths refinery in WA.
The project will be Australia’s first fully integrated refinery for separated rare earth oxides production.
“Site activity in Q4 encompassed detailed earthworks – including laydown, process site and waste dam preparation – and various non-process infrastructure upgrades, including high voltage powerlines and office building upgrades,” Iluka said.
“Tendering and awarding of equipment, fabrication and site works contract packages continues, including the award of significant shop fabricated tanks, evaporators and mixer settlers and release of the structural, mechanical, piping, electrical and instrumentation construction tenders.”
Iluka’s minerals sands business generated $252 million of operating cash flow in 2024, with a working capital build of approximately $225 million.
As of December 31 2024, Iluka’s mineral sands business has a net cash balance of $90 million and the rare earths business $205 million.
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