Iluka Resources shares plunge on production suspension announcement
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The news: Rare earths producer Iluka Resources saw its share price plunge after announcing it will suspend mineral sands production from its Cataby mine and Synthetic Rutile Kiln 2 (SR2) in Western Australia on 1 December 2025.
The numbers: At 10:54am AEST, Iluka shares had slipped 11% to $5.76.
Cataby production activities is expected to be suspended for about 12 months while SR2 production activity is expected to be suspended for about 6 months.
The context: The production suspension decision has been taken due to “subdued demand for mineral sands and their associated downstream products, particularly pigment” according to the company.
The principal material mined at Cataby is chloride ilmenite. This is processed into synthetic rutile, a high grade titanium product mainly used as an input to pigment production at SR2. Iluka assured the market that it has sufficient inventories to meet existing customer requirements.
There are no production changes at Iluka’s Jacinth Ambrosia mine in South Australia and commissioning of the Balranald mine in New South Wales continues. The mines have a different product mix to Cataby and SR2.
Mining at Balranald scheduled to commence in the fourth quarter of 2025.
What they said: “The suspension will enable inventory and cash liberation, cost savings and the preservation of balance sheet strength,” Iluka managing director Tom O’Leary said.
“Iluke is well positioned to respond to any improvement in demand conditions and retains the ability to restart Cataby and SR2 quickly when that production is required.”
The source: ASX
