Iluka Resources is accelerating work at its Eneabba rare earths refinery in Western Australia, marking a major milestone in Australia’s efforts to build a homegrown critical minerals industry.
In its September quarterly update, Iluka said construction activity at Eneabba has sped up throughout the quarter, with piling activities now complete and concrete placement rates continuing to ramp up.
Several non-process facilities have also been finished, including the high-voltage powerline and gas metering station, while major equipment deliveries to site are underway.
The Eneabba refinery will be Australia’s first fully integrated facility capable of producing separated rare earth oxides, including both light and heavy elements.
Supported by a non-recourse loan through the Federal Government’s Critical Minerals Facility, the project remains on schedule for commissioning in 2027.
Once operational, Eneabba will become one of the few facilities outside China able to produce heavy rare earth oxides such as dysprosium and terbium, key ingredients in high-performance magnets used in electric vehicles, wind turbines and defence technologies.
“This strategic infrastructure asset positions Iluka as a differentiated supplier, with the ability to offer customers the full suite of magnet rare earths, including dysprosium and terbium,” the company said.
“This competitive advantage is underpinned by Iluka’s relatively rich heavy rare earth assemblages in its portfolio of both internal and external feedstock options including the Eneabba stockpile, current operations (Balranald), future projects (Wimmera) and third-party feedstock agreements (such as Northern Minerals).”
Beyond Eneabba, Iluka also reported solid operational performance in its mineral sands business. The company produced 124,000 tonnes of zircon, rutile and synthetic rutile in the September quarter, including 40,000 tonnes of zircon sand and 58,000 tonnes of synthetic rutile. Year-to-date zircon sales reached 202,000 tonnes, five per cent higher than 2024.
To maintain cash discipline in softer market conditions, Iluka will temporarily idle its SR2 synthetic rutile kiln and Cataby mine from December, a move expected to deliver $150 million in net cash cost reductions next year.
Despite weaker pigment and ceramics markets, Iluka said it remains confident in its long-term outlook, with the company stating it is well placed to respond quickly to any improvement in demand conditions.
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