Minerals sands miner Iluka Resources has revealed a production drop in its June quarter compared with the equivalent period a year earlier.
The miner said total mineral sands production for the three months to June 30 was 418.2 kilotonnes (kt), down 9.6 per cent from 462.5kt in the prior corresponding period.
But production had increased by 13 per cent relative to the March quarter figure.
The production increase from the previous quarter was due to the initial contribution from Iluka’s two new operations, located in the Murray Basin and the Eucla Basin, and the ramping up of Virginia production, the company said.
In the June quarter zircon production rose 55.1 per cent on the previous corresponding period and rutile production rose 87.8 per cent, but total upgradeable ilmenite production fell 69.2 per cent, while synthetic rutile fell 12.8 per cent.
Rutile is used in paints and ceramics.Iluka said rutile production was down due to the closure of its Western Australia mining operations in 2009 and a lower proportion of ilmenite produced from the Murray Basin operations suitable for sale.
The company said constrained supply of both zircon and high grade titanium dioxide production was expected to exert a significant influence on the market.
Iluka said sales volumes in the first half of 2010 had recovered from the low levels experienced during the first half of 2009, during the fallout from the global economic crisis.
‘‘Demand recovery for zircon in 2010 reflects a rebound in demand in China to pre global economic crisis levels, a recovery in European demand and robust North American demand,’’ Ilulka told the stock exchange.
‘‘Demand for high grade titanium dioxide products (rutile and synthetic rutile) has also recovered,’’ the company said.
It said Zircon sales volumes increased nearly four-fold in the first half of 2010 relative to the first half of 2009.
‘‘Zircon sales year-to-date of 205.4 thousand tonnes exceeded production of 163.2 thousand tonnes, and have led to a drawdown of inventory as well as the sale, in the first half, of the final Western Australian production,’’ the company said.
Sales revenue for the June quarter post hedging was $227.8 million, up 96 per cent on the equivalent period a year earlier.
AAP