Iluka quarterly production falls
Iluka Resources Limited (ILU) reported a 23.7% drop in mineral sands production to 370,200 tonnes compared to the previous corresponding period. However, the company said the demand for high value mineral sands products recovered in Iluka’s main geographical markets in the March quarter of 2010.
Iluka said zircon, rutile and synthetic rutile production were 31.8%, 23.4% and 1.5% higher than the preceding December quarter respectively.
Compared to the pcp rutile production was 36.4% higher, while zircon and synthetic rutile production were 38.9% and 37.8% lower.
The March 2009 quarter was before Iluka took steps to curtail production, while the company said lower synthetic rutile production reflects Iluka’s decisions to idle two of its synthetic rutile kilns over the period.
”After successfully adjusting supply in 2009 to better match lower short term demand in the context of the global economic crisis, Iluka has met increased demand by increasing production, where practicable, and by supplying from inventory,” Iluka said.
“Iluka’s current tight supply position in zircon and high grade titanium dioxide reflects both strong demand recovery and a slightly slower than expected ramp up of Murray Basin rutile production.”
As at 1114 AEST, Iluka shares were down 7c to $4.80.
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