Iluka Resources navigated a complex global market in 2024, balancing inflationary pressures and shifting demand while advancing its strategic projects.
Iluka managing director and chief executive officer Tom O’Leary spoke about the company’s ability to maintain operational and pricing discipline in the face of stable-but-evolving conditions across the mineral sands and rare earths markets.
“Stable markets in 2024 enabled Iluka to maintain operational and pricing discipline and achieve sound margins,” O’Leary said.
“In parallel, we further progressed the transition underway in the company’s mineral sands business; and delivered funding certainty for our rare earths diversification.”
Despite macroeconomic challenges, the company achieved higher-than-expected zircon sand sales and reliable synthetic rutile contracts provided stability.
The company made $1.1 billion in mineral sands revenue in 2024, with an earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin of 42 per cent and $90 million in net cash as of December 31.
While persistent inflation in Australia drove up costs, Iluka mitigated some impacts by running its mines at capacity to optimise unit costs and meet strong zircon demand.
Tariffs on Chinese imports in Europe, expected to influence trade flows from early 2025, could offer some tailwinds for Iluka’s customers.
Looking ahead, Iluka is poised to benefit from an anticipated market rebound.
“Several pigment producers are anticipating improved market conditions in 2025, which would in-turn be positive for titanium feedstock demand,” O’Leary said.
“The company has built ilmenite inventory to ensure feedstock is available for a future restart of our swing synthetic rutile asset, SR1, when market conditions warrant.”
Iluka is pushing ahead with its Wimmera project in Victoria. The definitive feasibility study will focus on the WIM100 deposit, one of several “multi-decade” sources of rare earths and zircon that Iluka is looking to develop in western Victoria.
The company continued to make significant progress in its rare earths diversification strategy, with the Balranald mine in New South Wales on track for commissioning in the second half of 2025, promising robust long-term output.
Over a 10-year mine life, Balranald will provide 60,000 tonnes of natural rutile per annum, 50,000 tonnes of high-quality zircon per annum, and concentrate feedstocks to support the production of synthetic rutile and rare earths.
Another recent milestone for Iluka was securing an expanded $1.25 billion non-recourse Federal Government loan for the Eneabba rare earths refinery in Western Australia.
“This strategic partnership represents one of the most significant government investments in a critical minerals project globally,” O’Leary said.
“Iluka’s objective is to deliver sustainable value and we expect our rare earths business to underpin this over several decades.
“With the capital structure for Eneabba now certain, the principal drivers of realising that value are project delivery, operational performance, market development and maturing additional feedstock options to secure longevity.”