Iluka Resources Limited (ASX:ILU), a global critical minerals company, has released its quarterly review for the period ending 30 September 2025. Iluka is a global critical minerals company with expertise in mineral sands, rare earths and synthetic rutile production. Key features of the report include zircon, rutile, and synthetic rutile (Z/R/SR) production of 124kt in Q3 2025, comprising 40kt of zircon sand, 13kt of zircon-in-concentrate (ZIC), and 58kt of synthetic rutile. Zircon sales for the quarter totalled 44kt, with a weighted average zircon sand price of US$1,615 per tonne, consistent with previous guidance. Year-to-date zircon sales reached 202kt, up 5% from 2024.
Iluka sold 10kt of synthetic rutile during the third quarter. However, due to uncertainty detailed in a separate ASX release today, sales guidance for synthetic rutile has been withdrawn. Commissioning of the Balranald project remains on schedule for Q4 2025, with all mining equipment assembled and tested, and four stopes developed for underground mining. Construction of the process plant and supporting infrastructure is nearing completion.
Site works at the Eneabba rare earths refinery accelerated during Q3, with concrete placement rates increasing. Piling activities are complete, along with several non-process facilities, the HV powerline, and the gas metering station. As of 30 September 2025, Iluka’s net debt stood at $256 million for the mineral sands business and $447 million non-recourse net debt for the rare earths business.
Iluka has suspended production at the SR2 processing facility and Cataby mine from 1 December for approximately 6 and 12 months respectively, dependent on market conditions. This decision aims to increase operating cash generation through cost savings and converting inventory to cash, resulting in an expected net cash cost reduction of $150 million in 2026.
