Iluka Resources has decided to suspend production at its Cataby mine and Synthetic Rutile Kiln 2 (SR2) in Western Australia, starting from 1 December 2025.
The decision is a response to low demand for mineral sands and their downstream products, particularly pigment, amid lower global economic activity.
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Chloride ilmenite, the principal mineral mined at Cataby, is processed at SR2 to create synthetic rutile, a high-grade titanium dioxide product used mainly in pigment production.
Despite the suspension, Iluka has stated that current inventories of synthetic rutile and chloride ilmenite are sufficient to meet customer needs. The company plans to resume operations at SR2 and Cataby when market conditions improve.
The suspension at SR2 is expected to last for around six months, while Cataby’s suspension could extend to approximately 12 months.
In contrast, production at Iluka’s Jacinth Ambrosia mine in South Australia continues, and commissioning is under way at the new Balranald mine in New South Wales, with mining set to begin in the fourth quarter of 2025.
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By GlobalDataThese mines have a different product mix compared to Cataby.
Iluka Resources managing director and CEO Tom O’Leary said: “Suspending production at Cataby and SR2 is prudent in dealing with the present demand uncertainty in mineral sands and positioning for recovery. It reflects the discipline that is a long-standing feature of Iluka’s approach.
“The suspension will enable inventory and cash liberation, cost savings and the preservation of balance sheet strength. Iluka is well positioned to respond to any improvement in demand conditions and retains the ability to restart Cataby and SR2 quickly when that production is required.”
Furthermore, Iluka has entered into a strategic partnership with Lindian Resources to develop the Kangankunde rare earths project in Malawi.
The agreement includes a binding loan facility worth $20m (A$30.64m) and a 15-year offtake agreement for 90,000 tonnes (t) of rare earth monazite concentrate from Kangankunde, equating to 6,000t annually.
Iluka also retains right of first refusal for the phase two expansion of the project, potentially involving an additional 375,000t of concentrate, or 25,000 tonnes per annum for 15 years.
