Iluka Resources has released its 2025 half-year results, noting that global uncertainty and shifting trade patterns continue to provide a challenging outlook.
The company said mineral sands conditions have been subdued, and the rare earths industry was still rapidly evolving.
Iluka reported mineral sands revenue of $558 million, down eight per cent on last year, and an earnings interest, tax, depreciation and amortisation (EBITDA) margin of 39 per cent. Its net profit after tax (NPAT) was $92 million. Net debt (excluding non-recourse debt) was $164 million, and capital investment was $402 million.
Global conditions affecting results have included the imposition of US tariffs on zircon; the closure of pigment plants in Europe and China; India enacting anti-dumping duties on Chinese titanium dioxide imports; and production curtailments in Indonesia.
Iluka Resources managing director Tom O’Leary said the company was taking a disciplined approach and positioning itself for recovery.
“Our first half production was strong, complemented by zircon-in-concentrate volumes, which we prioritised given market conditions,” O’Leary said.
“Combined with cost initiatives implemented in 2024, this enabled the company to preserve margins despite pricing pressure.”
He said investment was continuing in substantial new capital developments such as the rutile-rich Balranald project, an important source of critical minerals for Iluka over the next decade.
“Progress on the Balranald project has been pleasing ahead of its commissioning this half,” O’Leary said. “Mining rigs are in place, stope development is advancing, and concentrator modules are being connected.”
Representing a capital investment of $480 million, Balranald is expected to deliver approximately 250 jobs during construction and approximately 270 jobs during operation, including contractors. Mining is expected to commence in the fourth quarter of this year.
O’Leary said rare earths export controls implemented by China in April have led to a heightened emphasis on the need to diversify supply.
That was followed by the US Government’s recognition that higher prices for separated rare earth oxides are essential to building a sustainable supply chain for Western nations.
O’Leary said Iluka was factoring these considerations into its planning.
“These developments are consistent with the approach Iluka has taken to building our rare earth business over many years, particularly the recognition of the need for independent pricing mechanisms that are not linked to the Asian Metals Index,” he said.
Iluka recently signed a binding agreement with Lindian Resources for the long-term supply of rare earth concentrate, supporting development of its Eneabba rare earths refinery in Western Australia.
“The Eneabba refinery is scheduled for commissioning in 2027 and will produce separated light and heavy rare earth oxides, with the latter a key point of differentiation over other sources of Western world supply,” O’Leary said.
Once operational, it will be Australia’s first fully integrated rare earths refinery, capable of producing separated light and heavy rare earth oxides.
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