Highlights

  • Eneabba rare earths refinery reaches 65% physical completion with A$1,237 million spent of a revised budget of A$1.7–1.8 billion; dysprosium and terbium produced to specification.
  • September quarter mineral sands production of 76,100 tonnes of heavy mineral concentrate compares to 123,800 tonnes in the prior corresponding period, reflecting lower-grade ore sources.
  • Zircon reference price holds at US$1,685 per tonne for September quarter; Q4 zircon price announced at US$1,825 per tonne on 1 October.
  • Mineral sands segment net debt A$249 million; Cataby and synthetic rutile kilns idle; Jacinth-Ambrosia and Balranald carry the production load.

Iluka Resources (ASX:ILU) is spending very large sums building the first fully integrated rare earths refinery in Australia while managing a mineral sands business in the middle of a lower-grade ore cycle. The company's September quarter report, released 28 October 2026, covers both threads: construction progress at Eneabba and the reasons why mineral sands output is running well below the prior year.

Eneabba Refinery: Rare Earths Progress

Eneabba is designed to produce separated rare earth oxides — including dysprosium and terbium, both critical for permanent magnets — from a mixed feedstock of mineral sands circuit streams and third-party concentrates. Physical completion reached 65% at the end of September, with A$1,237 million of the A$1.7–1.8 billion capital budget spent. The project team produced dysprosium and terbium to specification during the quarter, described by Iluka as a significant commissioning milestone. The refinery is the first facility in Australia designed for end-to-end rare earths refining outside China.

Mineral Sands: What Happened to Production

Combined mineral sands production was 76,100 tonnes of heavy mineral concentrate for the quarter, compared with 123,800 tonnes in the September quarter of 2025. The decline is largely structural: Cataby in Western Australia is processing lower-grade material and its synthetic rutile kilns are on idle (as is SR2 at the Iluka-operated Synthetic Rutile plant), as the company manages ore stockpile grade. Jacinth-Ambrosia in South Australia produced 53,000 tonnes of heavy mineral concentrate, while Balranald in New South Wales — in its commissioning ramp-up — contributed 24,000 tonnes from 81,000 tonnes of ore at a 34.5% heavy mineral grade. Mineral sands revenue for the quarter was A$219 million.

Zircon Pricing

Zircon reference prices are set quarterly. Iluka's September quarter reference price was US$1,685 per tonne. The October 1 announcement set the Q4 reference price at US$1,825 per tonne — a 8.3% increase — reflecting continued demand from ceramics and construction end-markets. The company sells zircon to approximately 150 customers globally and manages pricing through reference prices, spot sales and contractual arrangements.