Iluka Resources has completed 65 per cent of construction at its Eneabba rare earths refinery in Western Australia, with capital expenditure reaching $1.237 billion as the company progresses towards producing separated rare earth oxides.
The refinery’s capital estimate remains $1.7–1.8 billion, according to Iluka’s September 2026 quarterly report, which also detailed progress in commissioning its Balranald mineral sands operation and rising contracted zircon prices.
At Eneabba, major equipment placement and assembly, concrete installation, pipe rack module erection, large tanks and the main solvent extraction circuit buildings are complete. Structural, mechanical, piping, electrical and instrumentation work is continuing.
The project is being developed through a strategic partnership between Iluka and the Australian Government, supported by a non-recourse loan under the Critical Minerals Facility administered by Export Finance Australia.
Iluka said its Eneabba refinery will produce separated magnet rare earth oxides, including neodymium, praseodymium, dysprosium and terbium.
During the quarter, the company also produced dysprosium and terbium metal to specification as part of its feasibility work into extending its rare earths value chain beyond oxides. Iluka has purchased metallisation equipment to support potential commercial-scale production capacity of 200 tonnes per annum of dysprosium and terbium metal.
Meanwhile, the ramp-up of operations at Balranald in New South Wales is progressing, with ore extraction rates and recoveries remaining a focus.
Enhancements to one mining rig were completed in October, after which it consistently achieved targeted extraction rates. The improvements will be applied to a second rig in November, while fourth-quarter activities will focus on improving the consistency of recovered ore grade.
Iluka shipped the first 30,000 tonnes of heavy mineral concentrate from Balranald to Western Australia in September, with processing scheduled for November.
Across its mineral sands operations, Iluka produced 76,000 tonnes of zircon, rutile and synthetic rutile during the quarter, while sales totalled 115,000 tonnes. Both synthetic rutile kilns remained idle, with any restart subject to market conditions.
The company reported a weighted average realised zircon sand price of US$1685 per tonne for the quarter. However, the average price for volumes contracted during the quarter was US$1768 per tonne, up US$222 per tonne from contracted second-quarter sales.
Iluka expects to report a zircon sand price of US$1825 per tonne in the December quarter, with fourth-quarter contracts incorporating an average price increase of US$80 per tonne
The company’s mineral sands net debt stood at $249 million at September 30, down from $273 million at the end of June.