Key Highlights

  • Combined zircon, rutile and synthetic rutile production was 76.1 thousand tonnes, up from 58.0 thousand tonnes in the June quarter but below 123.8 thousand tonnes a year earlier.
  • Mineral sands revenue was A$219 million for the quarter and net debt fell to A$249 million from A$273 million.
  • The Eneabba rare earths refinery is 65 per cent complete, with the capital estimate remaining at A$1.7 billion to A$1.8 billion.

Iluka Resources Limited (ASX:ILU) said in its quarterly review to 30 September 2026 that combined zircon, rutile and synthetic rutile production was 76.1 thousand tonnes, up from 58.0 thousand tonnes in the June quarter but below the 123.8 thousand tonnes produced in the third quarter of 2025. Year-to-date production of 181.7 thousand tonnes was 55.0 per cent lower than a year earlier, the company said.

Production and sales

Iluka reported zircon sand production of 25.6 thousand tonnes, zircon in concentrate of 29.3 thousand tonnes and rutile of 21.2 thousand tonnes. It produced no synthetic rutile because both kilns at Cataby remain idle. Sales were higher than production, with total zircon, rutile and synthetic rutile sales of 115.2 thousand tonnes comprising 47.5 thousand tonnes of zircon sand, 29.6 thousand tonnes of zircon in concentrate, 22.1 thousand tonnes of rutile and 16.0 thousand tonnes of synthetic rutile.

Year-to-date synthetic rutile sales were 52.5 thousand tonnes. Iluka said full-year contracted volume is 110 thousand tonnes, so it expects about 58 thousand tonnes to be sold in the fourth quarter.

Revenue, costs and prices

Mineral sands revenue was A$219 million for the quarter and A$651 million year to date. Unit revenue was A$1,722 per tonne for the quarter and A$1,713 year to date, while year-to-date unit cost of goods sold was A$1,311 per tonne, a figure that excludes net realisable value adjustments. Mineral Sands net debt fell to A$249 million at 30 September from A$273 million at 30 June.

The company reported a realised zircon sand price of US$1,685 per tonne free on board in the quarter, while volumes contracted in the quarter averaged US$1,768. For the fourth quarter it expects a zircon sand price of US$1,825 per tonne, reflecting contracts with an average increase of US$80 per tonne. Synthetic rutile was realised at US$1,136 per tonne and rutile, excluding the lower-value HyTi product, at US$1,246.

Fourth-quarter outlook

Iluka said it expects zircon sand sales of about 35 thousand tonnes in the fourth quarter, of which about 30 thousand tonnes is contracted and the remainder has been delayed by shipping. It also expects zircon in concentrate sales of about 30 thousand tonnes. These are company expectations rather than results, and the review carries the usual caution that forward-looking statements involve significant risks and uncertainties.

Projects and rare earths

At the Eneabba rare earths refinery in Western Australia, Iluka said construction is 65 per cent complete, with A$1,237 million of capital expenditure accrued to 30 September. The capital estimate remains A$1.7 billion to A$1.8 billion. In rare earth metallisation, the company said dysprosium and terbium metal has been produced to specification and that equipment has been purchased for 200 tonnes a year of dysprosium and terbium metal capacity. The light rare earth workstream continues.

At Balranald in South Australia, ramp-up is progressing: one mining rig has reached targeted extraction rates and the same enhancements will be applied to the second rig in November. At Wimmera in Victoria, the definitive feasibility study is continuing, with board consideration scheduled for the first half of 2027. At Typhoon in South Australia, the feasibility study is due for completion in the first quarter of 2027, and a mining lease application is targeted for the fourth quarter of 2026.

Definitions to note

Iluka recognises zircon in concentrate production on sale, and its sales include small amounts of lower-grade zircon processed by third parties. Rutile figures include HyTi, a lower-value product with 70 to 90 per cent titanium dioxide content, compared with about 95 per cent for standard rutile.