Iluka Resources Limited (ASX:ILU) has announced the withdrawal of its sales guidance for synthetic rutile, citing uncertainty stemming from the acquisition of Venator Materials UK Limited’s titanium dioxide (TiO2) manufacturing site by LB Group. Iluka Resources is an Australian-based resources company specialising in mineral sands exploration, project development, and operations. The company is a global leader in the titanium and zircon minerals industry.
The announcement follows LB Group’s disclosure on 16 October 2025 that it had signed an Asset Purchase Agreement with Venator. Completion of the transaction is contingent upon regulatory approvals and customary closing conditions. LB’s statement to the Shenzhen Stock Exchange indicated that the Greatham site is currently idled and may remain so until the acquisition is finalised.
Iluka has a supply agreement with Venator and has already sold and received payment for 11,000 tonnes of synthetic rutile in 2025. An additional 11,000 tonnes has been shipped to Venator, with Iluka retaining title until payment is received. The company is contracted to supply a further 36,000 tonnes to Venator this year, as well as 63,000 tonnes and 35,000 tonnes in 2026 and 2027, respectively, subject to potential adjustments of 5,000 tonnes either way. Iluka has not received notice from Venator regarding its obligations to purchase synthetic rutile due to the sale or idling of its Greatham facility.
Iluka also has take-or-pay contracts with other pigment producers. The company is currently in discussions with its customers regarding their offtake obligations, acknowledging the impact of global economic uncertainty on pigment market demand. Iluka is actively protecting its contractual rights and is exploring options to rebalance customer obligations over 2025 and 2026 with the security of supply of Iluka’s titanium feedstock products in 2026 and beyond.
