interesting about aluka cut zircon production

Does this affext ALK at all??


http://www.theaustralian.com.au/business/mining-energy/iluka-to-cut-zircon-production-levels/story-e6frg9df-1226349981395


Iluka to cut zircon production levels

'AUSTRALIAN mineral sands producer Iluka Resources today said that it would reduce planned zircon output this year due to continued global economic uncertainty, a move that will mean lower sales of the commodity and a rise in production costs.

The Perth-based company expects to produce around 430,000 tonnes of zircon, less than the 500,000t it forecast in February and a further drop from the 601,000t it produced last year, it said in a statement. Sales of zircon for the year are expected to total around 400,000t, rather than the 450,000t previously forecast.

The company did not change its guidance for production and sales of titanium dioxide.

Iluka is the world's largest zircon producer, and holds about a third of global market share. It is one of the biggest producers of titanium dioxide minerals. Zircon has a number of applications, including in ceramics. Titanium dioxide is predominantly used to produce pigments.

Iluka had previously cautioned that demand for zircon was likely to be soft for the first quarter 2012, and maybe for the second. It said that sales volumes improved in April following a weak first quarter, but large eurozone countries facing austerity measures have shown increasing weakness even as the US and China showed signs of improved economic traction.

The adjustment to zircon output will be achieved mainly through mining lower grade ore at Iluka's Jacinth-Ambrosia operation in South Australia and processing less zircon-rich concentrate at its Narngulu and Hamilton mineral separation plants, Iluka said.

Lower zircon output is expected to raise unit cash costs for production to roughly $700 a tonne of zircon, rutile and synthetic rutile, from previous guidance of about $650/t. But Iluka said forecast revenue per tonne will still mean a material increase in margins over 2011'.