By Rhiannon Hoyle

Iluka Resources, the word's biggest zircon producer, on Wednesday reported a fall in mineral sands output and sales for 2024, and a rise in costs.

The Australia-based miner said it expects production of its key mineral sands products to steady in 2025, but that costs would likely rise again.

Iluka said it produced 496,200 metric tons of zircon, rutile and synthetic rutile last year, down 22% on a year earlier but above earlier guidance of 455,000 tons. Sales of those mineral sands fell by 3.8% year over year, to 475,200 tons.

The miner expects to produce about 495,000 tons in 2025.

Iluka reported an increase in its unit cash costs of production last year, to 1,290 Australian dollars (US$810) a ton. That was 25% higher than in 2023 but below guidance, reflecting slightly higher finished goods output and cost-reduction initiatives, the miner said.

It estimated unit costs around A$1,370 a ton in 2025.

The increase in costs versus 2024 will mostly reflect an extra cost for producing heavy mineral concentrate from its Balranald operation in the second half of the year. "There are no finished goods produced in 2025 from Balranald, resulting in a distortion to the unit cash costs of production metric," Iluka said.

The miner said it undertook a review of its cost base in the final quarter of 2024. It found roughly 130 jobs that could be cut across operations and support functions, which is expected to save about A$20 million this year, it said.

Iluka accounts for roughly 30% of global production of zircon, used by the ceramics industry to make household products such as bathroom tiles and kitchenware. It is also a significant producer of high-grade titanium dioxide feedstock, used in paints and plastics, accounting for roughly 20% of global supply.

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

(END) Dow Jones Newswires

January 21, 2025 17:30 ET (22:30 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.