Iluka Raises Zircon Concentrate Production as Tariffs Reshape Demand

Iluka Resource

Iluka raises zircon concentrate production by 118% to 59,900t in January–June. Iluka raises zircon concentrate production to just shy of its 60,000t 2025 target. Iluka raises zircon concentrate production again in July–December with a planned 30,000t, then minimal output in 2026.

Iluka must accelerate zircon sand to hit 165,000t this year. First-half sand output reached 71,800t, below a halfway mark. However, Cataby grades weakened in the period, curbing volumes and raising second-half execution risk.

Tariffs cloud zircon sales, rutile holds steady

Tariff uncertainty now weighs on sales and guidance. US zircon imports face a 10% duty, while South African zircon faces 30% from 1 August. As a result, Iluka withheld detailed third-quarter sales guidance. First-half zircon sales fell 10% to 96,800t, while concentrate sales rose 144% to 61,400t.

Rutile operations proved more stable than zircon. Iluka produced 35,600t of rutile and 113,100t of synthetic rutile in the half. Synthetic rutile rose 19% as the kiln ran at full capacity. Meanwhile, shipments fell on scheduling, not demand, with a ramp expected in July–December. US tariffs exempt rutile, synthetic rutile, and rare earth oxides.

Rare earths pipeline advances: Eneabba, Balranald, Wimmera

Iluka advances its downstream rare earths strategy. Eneabba’s refinery remains slated for 2027, with site works underway and financing pending. Balranald construction has begun, targeting a start in the second half of 2025. Wimmera’s definitive feasibility study progresses, aided by an April pact with RareX for Kenyan feedstock.

Iluka’s mix shifts as market conditions evolve. Concentrate output peaks in 2025 before winding down in 2026. Therefore, delivery now hinges on zircon sand execution and rare earths milestones.

The Metalnomist Commentary

Tariffs are redistributing zircon trade flows rather than crushing demand. Iluka’s near-term hedge is strong synthetic rutile and a progressing rare earths chain. Watch Cataby grade recovery and Eneabba financing, which will determine 2026–2027 earnings quality.