Iluka Resources is capitalising on a strengthening mineral sands market as the company enjoyed increased production across its operations in the December quarter of 2021 (Q421).
Despite experiencing reduced outputs from its flagship Jacinth-Ambrosia operation in South Australia in Q421, Iluka’s Cataby mine in Western Australia picked up the slack, increasing its heavy mineral concentrate (HMC) production by 7 per cent.
This came amid improved ore treated rates and higher recovery, with approximately 159,000 tonnes of HMC produced compared to 149,000 tonnes from the three months before.
Overall, Iluka produced 218,700 tonnes of zircon/rutile/synthetic rutile for the December quarter, up 9 per cent from the September quarter (Q321), with rutile enjoying a 26 per cent boost from the three months prior.
Iluka earned increased zircon sand prices of between $US120 ($168) and $US170 per tonne for Q421, with the weighted average zircon price for premium and standard sand at $US1590 per tonne. Average rutile prices were up 8.8 per cent to $US1351 per tonne for the quarter.
Despite Iluka’s overall success, the company was not immune to disruptions, with COVID-19 temporarily halting production at Jacinth-Ambrosia as 10 employees contracted the virus.
This contributed to Jacinth-Ambrosia experiencing a 10 per cent drop in HMC production compared to Q321, with Iluka also attributing the reduced production to lower ore treatment volumes.
Iluka’s Eneabba rare earths project – considered the highest-grade rare earths operation globally – delivered monazite concentrate sales of 31,000 tonnes in Q421 in line with the company’s offtake agreement.
This formed part of phase 1 of the Eneabba operations which first commenced in April 2020 and involves the recovery/mining of stockpiled monazite before processing takes place through a small-scale washing plant.
Iluka is also undertaking phase 2 and 3 of the Eneabba project plan which involve an upgrade of the operation’s processing facilities (phase 2) and the completion of a feasibility study for the development of the Eneabba Rare Earths Refinery (ERER) (phase 3).
The company stated that it received two key environmental approvals decisions regarding phase 3 in January.
“The WA Environmental Protection Authority has determined the level of assessment for the project as ‘Not Assessed’; and the Commonwealth Department of Agriculture, Water and the Environment has determined that the project is ‘Not a Controlled Action’,” the company stated.
“These decisions reflect the careful design of phase 3 for minimal environmental impact.”