Green Markets

EWN Publishing

Iluka to close seven of 14 mines, rebuild in Eucla Basin, SA: concerns on zircon market, rising Aus dollar

Posted by gmarkets on 5 October, 2007

Embattled mineral sands miner Iluka Resources decided on early closure as part of a sweeping review through which it will rebuild itself around its zircon-rich discoveries in South Australia’s Eucla Basin, reported The Australian Financial Review (24/8/2007).

Profit up on 2006: Iluka would close seven of the project’s 14 mines, two of four concentrators and the smaller two synthetic rutile kilns. The review results coincided with Iluka’s announcement of a $42 million profit for the first half, up from the $32.2 million return in the corresponding half of 2006. The result was based on higher prices offset by a strong Australian dollar and a shipping delay over 25,000 tonnes of product at the port of Geraldton. Goldman Sachs JBWere analyst Ian Preston said management was sending out the correct messages but concerns about the zircon market continued.

Sensitive to dollar: “The issue we’re grappling with is the extent to which Iluka can increase production and grow market share (already mid-30 per cent) in a relatively small … market without negatively impacting price.” The half-year result again highlighted Iluka’s sensitivity to the rising Australian dollar.

The Australian Financial Review, 24/8/2007

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: