Iluka’s Jacinth-Ambrosia ahead of schedule
November 19, 2009
Iluka Resources Limited (ILU) said its Jacinth-Ambrosia project has completed first production of heavy mineral concentrate ahead of schedule. The company said capital expenditure is expected to be less than $390 million, compared with an approved budget of $420 million.
Iluka said completion of the project brings into production a long life, globally significant, zircon rich mineral sands mine and, in combination with the completion of the Murray Basin Stage 2 project in Victoria, sees the conclusion of Iluka’s current major project execution and capital expenditure programme.
Managing director, David Robb, said the achievement significantly reduces risks associated with both project execution and balance sheet capacity for the company.
“At the same time, completion of both projects consolidates Iluka’s position as not only a major supplier of titanium dioxide feedstocks internationally but also as the principal supplier of zircon, the medium term demand characteristics for both of which are positive, especially in developing and urbanising economies,” Mr Robb said.
The company said the unique characteristic of the South Australian project is its combination of size and high zircon assemblage, with the deposits together having a combined zircon assemblage of 50%.
Iluka expects the project to produce approximately 2.8 million tonnes of zircon, 350 thousand tonnes of rutile and 1.5 million tonnes of ilmenite over its ten-year plus economic life.
As at 1437 AEDT, Iluka shares were unchanged at $3.40.
Iluka said completion of the project brings into production a long life, globally significant, zircon rich mineral sands mine and, in combination with the completion of the Murray Basin Stage 2 project in Victoria, sees the conclusion of Iluka’s current major project execution and capital expenditure programme.
Managing director, David Robb, said the achievement significantly reduces risks associated with both project execution and balance sheet capacity for the company.
“At the same time, completion of both projects consolidates Iluka’s position as not only a major supplier of titanium dioxide feedstocks internationally but also as the principal supplier of zircon, the medium term demand characteristics for both of which are positive, especially in developing and urbanising economies,” Mr Robb said.
The company said the unique characteristic of the South Australian project is its combination of size and high zircon assemblage, with the deposits together having a combined zircon assemblage of 50%.
Iluka expects the project to produce approximately 2.8 million tonnes of zircon, 350 thousand tonnes of rutile and 1.5 million tonnes of ilmenite over its ten-year plus economic life.
As at 1437 AEDT, Iluka shares were unchanged at $3.40.
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