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By David Winning
SYDNEY–Iluka Resources said it will pause some production of synthetic rutile for four months as an uncertain global economic outlook weighs on commodities demand.
Iluka said the SR1 operation will be offline between the end of September and the end of January, coinciding with planned maintenance at another operation known as SR2. Doing so would save the company some 4.0 million Australian dollars (US$2.6 million) in external costs, said Managing Director Tom O’Leary.
“We have a proven ability to respond to market conditions,” O’Leary said. “Restarted in December 2022, SR1 is unique in the mineral sands industry as a premium swing production asset for high grade titanium feedstocks.”
News of the suspension was provided alongside a A$203.8 million net profit for the six months through June, down 44% on year. The company said it made an earnings before interest, tax, depreciation and amortization margin of 50% in the half-year period.
Directors of the company declared an interim dividend of 3 Australian cents per share.
“Iluka delivered increased prices and strong margins in the first half against a backdrop of evolving market dynamics,” said O’Leary. “Global macroeconomic uncertainty is leading to more subdued levels of demand for mineral commodities, including Iluka’s products, relative to the immediate years post Covid-19.”
Write to David Winning at [email protected]
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