By Rhiannon Hoyle

Iluka Resources, the world's biggest zircon producer, on Wednesday reported a fall in mineral sands production, sales and revenue for 2024 versus the year before. Here are some remarks from the mining company's fourth-quarter report.

On zircon demand:

"As anticipated, the fourth quarter demonstrated seasonal weakness. In China, the ceramic industry gradually scaled back production, with many factories closing for a period and not planning to resume production until post Chinese New Year (celebrations commence Jan. 29, 2025).

The residential property market in China has shown signs of stabilizing. Across other sectors, producers of fused zirconia faced lower demand; refractories and foundries customers remain cautious on their outlook; and ZOC [zirconium oxychloride] producers have reported stable conditions. More broadly, stimulus measures in China are likely to have a positive impact on demand, but uncertainty appears to be dominating sentiment at present."

On zircon prices:

"The 2024 weighted average zircon premium and standard price was 9% lower than 2023. However, Iluka's disciplined marketing approach has limited the decline recorded for the company's products, while balancing the need to meet customers' needs and deliver sales revenue."

On titanium dioxide feedstock:

"The global pigment market experienced a slight downturn in 4Q, as ongoing uncertainty surrounding the conflicts in Ukraine and the Middle East dampened demand in European economies. This also affected feedstock demand and market pricing.

However, the implementation of tariffs on Chinese imports in Europe and other regions is expected to impact trade flows from the first half of 2025, potentially boosting demand for Western pigment producers. Iluka expects this will be a positive dynamic for synthetic rutile demand."

On mining:

"The Jacinth-Ambrosia mine in South Australia produced 64,000 tons of heavy mineral concentrate $(HMC)$, up from 52,000 tons in 3Q, largely due to higher ore treated volumes, ore grade and recovery.

In Western Australia, the Cataby mine produced 128,000 tons of HMC, down from 159,000 tons in 3Q, with lower ore grade being processed. An additional 18,000 tons of HMC was produced from historic stockpiles.

On processing:

"The Narngulu mineral separation plant processed 204,000 tons of HMC in the quarter, a mix of Jacinth-Ambrosia and Cataby material, producing a total of 60,000 tons of zircon and 12,000 tons of rutile.

The SR2 kiln produced 58,000 tons of synthetic rutile. Synthetic rutile produced from SR2 services the circa 200,000 tons per annum of long term contracts Iluka has in place."

On shuttered SR1 kiln:

"In 2024 Iluka built circa 200,000 tons of work in progress $(HMC.AU)$ inventory, predominantly ilmenite-bearing concentrate from Cataby. The SR1 kiln is currently offline and this stock underpins the capability to restart when required.

As part of the cost review undertaken in 4Q 2024, some of the combined SR1/SR2 workforce has been made redundant (to reflect the requirement to operate SR2 only for the time being). As a result, a future restart will require some additional planning with regards to hiring of personnel and maintenance."

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

(END) Dow Jones Newswires

January 21, 2025 19:35 ET (00:35 GMT)

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