Australian heavy mineral producer Iluka Resources will pause production at its Cataby mine — a mostly rutile hub — and nearby synthetic rutile kiln in Western Australia on 1 December, over weak pigment demand.
The company will pause production at its 225,000 t/yr Synthetic Rutile Kiln 2 (SR2) for six months and halt mining at Cataby for one year, it told investors today. But Iluka can quickly bring both sites back on line if rutile demand rises.
The company also plans to maintain production at its 350,000 t/yr Jacinth Ambrosia zircon mine in South Australia. It will also continue commissioning work at the developing Balranald mine, which is set to open in the second half of 2025.
Iluka plans to mine an average of 200,000 t/yr of synthetic rutile, 50,000 t/yr of zircon, and 30,000 t/yr of rutile at Cataby over the site's life.
Zircon is widely used to make ceramics, while rutile — a titanium dioxide mineral — is used to produce pigments.
High interest rates, macroeconomic uncertainty, and geopolitical issues are impacting pigment demand, Iluka said in late August. Pigment demand remained subdued in early September because of real estate market weakness.
Iluka is not the only heavy mineral producer facing challenges. Some zirconium-titanium producers in China halted production in mid-July, partly because of rutile and zircon pricing challenges.
US titanium dioxide pigment producer Troxon also shut a 90,000 t/yr titanium dioxide plant in March. The company partly made the decision in response to ongoing competition from Chinese producers.
