Iluka Resources plans to restart mining and concentrating activities later this year at its Jacinth-Ambrosia operation in South Australia, the primary source of zircon for the resources company.
Activities had been suspended in April 2016 for what the company had expected to be an 18-24 month period to allow it to draw down inventories of heavy mineral concentrate amid subdued market demand.
With improved supply and demand fundamentals, the miner (ILU) today said it would restart the operation from December.
Iluka said that at this stage it expects overall zircon production to be about 300,000 tonnes in 2018, and it also expects to draw down zircon inventory over the course of next year.
A restart is expected to cost about $7 million, and about 40 employees and another 60 contractors would be recruited to support the restart.
Also, Iluka said work on its unconventional mining development at Balranald in eastern New South Wales has continued this year, with expenditure this year is expected to be about $9 million. Should testing at the mining operation prove successful, Iluka said a decision would be made on whether to proceed with a final field trial in 2018 at a likely cost of $20m-$25m.
Iluka also said it plans to place its Hamilton mineral separation plant in Victoria on care and maintenance status, resulting in an $150m pre-tax impairment charge in its half-year accounts.
The mineral sands miner will also record redundancy and restructure costs of $14 million in the half-year results, with the plant expected to suspend operations in October 2017.
The company, which reduced or closed a number of exploration activities following a review of its business last year, said all its mineral sands production can be processed at its Western Australian plant near Geraldton.
Perth-based Iluka is the world’s largest producer of zircon, a mineral sand used by the ceramics industry to make household products such as bathroom tiles and kitchenware. It also produces rutile, a mineral used to create the pigments in paints and plastics.
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