Iluka Resources (ASX:ILU) Reports 115kt Mineral Sands Sales, US$1,768/t Zircon Contracts and 65% Complete Eneabba Refinery

Sonal Goyal

28 October 2026 01:09 PM AEDT

Iluka Resources (ASX:ILU) Reports 115kt Mineral Sands Sales, US$1,768/t Zircon Contracts and 65% Complete Eneabba Refinery

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Key Highlights

Zircon, rutile and synthetic rutile production was 76kt in the September 2026 quarter, with sales of 115kt.
Zircon sand contracted in the quarter averaged US$1,768/t, US$222/t above contracted Q2 sales.
Mineral Sands net debt fell to $249 million from $273 million at 30 June 2026.
The Eneabba rare earths refinery was 65% complete, with $1,237 million of capital accrued against a $1.7-1.8 billion estimate.

Iluka Resources Limited (ASX:ILU) produced 76kt of zircon, rutile and synthetic rutile in the September 2026 quarter and sold 115kt in the quarter to 30 September. The weighted average realised zircon sand price was US$1,685/t, while mineral sands revenue came to $219 million. Net debt in the Mineral Sands business declined to $249 million from $273 million at 30 June, and the Eneabba rare earths refinery reached 65% completion.

Production, Sales and Revenue

Total production of 76.1kt compared with 58.0kt in the June quarter and 123.8kt a year earlier, when synthetic rutile was still being made. The September quarter output comprised 25.6kt of zircon sand, 29.3kt of zircon-in-concentrate and 21.2kt of rutile. Both synthetic rutile kilns remained idle, as did the Cataby mine. The Jacinth-Ambrosia mine produced 53kt of heavy mineral concentrate and Balranald 24kt, for 101kt in total, and the Narngulu plant processed 79kt from Jacinth-Ambrosia and 6kt from a third party.

Sales of 115kt consisted of 77kt of zircon, split between 47kt of zircon sand and 30kt of zircon-in-concentrate, together with 16kt of synthetic rutile and 22.1kt of rutile including HyTi. Ilmenite sales were 32.9kt. Zircon, rutile and synthetic rutile revenue was $201 million, and total mineral sands revenue of $219 million compared with $286 million in the June quarter and $142 million in the third quarter of 2025. Year to date sales of 342.7kt are 9.3% above the same period of 2025.

Pricing and Market Conditions

The reported zircon sand price of US$1,685/t, in line with guidance, includes some volumes contracted and priced in the second quarter. Volumes contracted in the third quarter averaged US$1,768/t. Fourth quarter contracts carry an average increase of US$80/t, and Iluka expects to report roughly 35kt of zircon sand sales at US$1,825/t, with about 30kt contracted and the remainder delayed from third quarter contracts by shipping. About 30kt of zircon-in-concentrate sales are also anticipated for the fourth quarter.

Synthetic rutile sold at an average US$1,136/t, and year to date sales of 52kt leave 58kt of the 110kt contracted for the year to be delivered in the fourth quarter. Rutile excluding HyTi averaged US$1,246/t. Demand in China for zircon remained subdued while conditions in Europe, India and the United States were more resilient, with customers buying largely on a just-in-time basis. Demand for titanium dioxide pigment stayed soft, and feedstock spot prices have fallen.

Balranald, Eneabba and Development Work

At Balranald, enhancements on one mining rig were completed in October, after which that unit has consistently reached targeted extraction rates, and the same changes are due on the second rig in November. The first 30kt of heavy mineral concentrate from the mine was shipped to Western Australia in September for processing in November.

Capital accrued for the Eneabba refinery reached $1,237 million, with the estimate unchanged at $1.7-1.8 billion. Concrete installation, large tanks and main solvent extraction circuit buildings are complete and all mixer-settlers are in place. Dysprosium and terbium metal were produced to specification during the quarter, and Iluka bought metallisation equipment capable of 200tpa of Dy/Tb metal. Exploration spending was $1.9 million, including 126 drill holes over 2,900 metres at the Typhoon deposit in South Australia. The Wimmera definitive feasibility study, funded at $30 million, is scheduled for Board consideration in the first half of 2027.

Where the Quarter Leaves Iluka

The September quarter combined 115kt of sales with higher contracted zircon prices, a lower net debt balance of $249 million and a refinery build that is 65% finished. Synthetic rutile kilns and the Cataby mine stayed idle, while Balranald continued to ramp up and Jacinth-Ambrosia concentrate fed the Narngulu plant.

FAQs

Q: What were Iluka sales volumes in the September 2026 quarter?

A: Sales of zircon, rutile and synthetic rutile were 115kt, including 77kt of zircon. Ilmenite sales were a further 32.9kt.

Q: What zircon sand price did Iluka realise?

A: The weighted average realised price was US$1,685/t. Volumes contracted in the quarter averaged US$1,768/t.

Q: How far advanced is the Eneabba refinery?

A: Overall completion reached 65% at the end of the quarter. Capital accrued was $1,237 million against an estimate of $1.7-1.8 billion.

Q: What happened to Iluka's net debt?

A: Mineral Sands net debt was $249 million at 30 September 2026, down from $273 million at 30 June.

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