Iluka Resources to Resume Operations at Eneabba

By Joel ScanlonJul 27 2011

Iluka Resources is to resume mining operations at its Eneabba project located in the Mid West of Western Australia. The project was halted in 2010 due to low grades of ore and lower margins. Mining is likely to resume by end of the year at the project. The company will also restart its synthetic rutile kiln 3 for a commercial campaign.

David Robb the managing director of the company said that the resumption of mining activities at Eneabba represents an example of Iluka’s ability to respond to supply constrained high grade titanium dioxide and zircon markets. The reactivation of mining operations reflects strong demand for titanium and zircon products.

Restarting that mining project will cost the company $35 million. The higher demand for titanium dioxide and zircon products has made it viable for the company to restart the mine. There has been no mining activity on the site since mid 2010. Iluka first began mining zircon and rutile at Eneabba in 1975 before adding operations at Gingin in 2005.

Mr Robb said that despite the fact the mining and concentrating activities will display a higher cash cost per tonne than Iluka’s existing mining and concentrating operations in the Murray Basin and at Jacinth-Ambrosia, the investment returns are very attractive.