Iluka Resources Reduces Heavy Mineral Production in 2024 Amid Global Economic Slowdown

Iluka Resources

Iluka Resources, an Australian mining company, has reported a 22% decline in its combined output of zircon, rutile, and synthetic rutile for 2024. The company produced 496,200 tons of heavy minerals, a drop from the previous year despite an increase in production during the October-December quarter. Several factors contributed to this decrease, including slowdowns in construction, particularly in the United States, and a weakening demand for pigments. These market conditions led to reduced demand for Iluka’s key products in both the zircon and rutile markets.

Declining Demand in Key Markets Contributes to Reduced Output

Zircon production saw the most significant drop, falling by 31% to 277,200 tons, primarily due to reduced demand from Chinese and U.S. ceramics manufacturers. Additionally, seasonal weaknesses in the European ceramics market further impacted production levels. During the fourth quarter, zircon output also decreased by 29% despite a slight overall increase in heavy mineral production.

Synthetic rutile production similarly faced a downturn, with a 19% decrease in overall output to 211,200 tons. This reduction followed a slower construction sector in the U.S., which dampened pigment demand. Although production picked up in the fourth quarter, especially for synthetic rutile, Iluka had to pause operations at two Western Australia rutile plants in October 2023 due to weak demand and scheduled maintenance.

Outlook for 2025: A Modest Production Forecast Amid Uncertainty

Looking ahead to 2025, Iluka has set a cautious output guidance of 495,000 tons of heavy minerals, lower than 2024’s production figures. This forecast includes 270,000 tons of rutile and synthetic rutile and 225,000 tons of zircon. The company attributes this conservative projection to ongoing global economic uncertainties and slower-than-expected recovery in demand from key markets.

Despite these challenges, Iluka remains hopeful that changes in global trade, particularly increased tariffs on Chinese imports to Europe, could drive higher demand for rutile among Western pigment producers in the coming year.