Iluka Resources to halt production at Cataby mine and SR2 in Western Australia

Core Viewpoint - Iluka Resources has decided to suspend production at its Cataby mine and Synthetic Rutile Kiln 2 (SR2) due to low demand for mineral sands and downstream products, particularly pigment, amid lower global economic activity [1] Production Suspension Details - The suspension at SR2 will last for approximately six months, while Cataby's suspension could extend to around 12 months [2] - Current inventories of synthetic rutile and chloride ilmenite are sufficient to meet customer needs during the suspension [2] Ongoing Operations - Production at Iluka's Jacinth Ambrosia mine in South Australia continues, and commissioning is underway at the new Balranald mine in New South Wales, with mining set to begin in Q4 2025 [3] Management Perspective - The decision to suspend production is seen as prudent in addressing demand uncertainty and positioning for recovery, reflecting the company's disciplined approach [4] Financial Strategy - The suspension will enable inventory and cash liberation, cost savings, and preservation of balance sheet strength, allowing the company to respond quickly to any improvement in demand [5] Strategic Partnerships - Iluka has entered into a strategic partnership with Lindian Resources to develop the Kangankunde rare earths project in Malawi, which includes a binding loan facility worth $20 million and a 15-year offtake agreement for 90,000 tonnes of rare earth monazite concentrate [5][6]