Iluka Resources

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Iluka Resources Limited
Type Public
Traded as ASXILU
Industry Mining
Founded Iluka Resources Limited (ILU) 1998;
Merger of Westralian Sands (WSL) & RGC[1]
Headquarters 140 St Georges Terrace
Perth, Australia
Key people John Pizzey, Chairman
David Robb, Managing Director and CEO
Products ilmenite, zircon, rutile, synthetic rutile)
Revenue Increase$1.07 billion ASD (2012)
Net income Increase$363.2 million ASD (2012)
Employees 1,100[2]
Website www.iluka.com

Iluka Resources is involved in mineral sands exploration, project development, operations and marketing. The company is the major producer of zircon globally and the highest producer of titanium dioxide products of rutile and synthetic rutile. The company mines heavy mineral sands and separates the concentrate into its individual mineral constituents rutile, ilmenite, and zircon. Some of the ilmenite is then processed into synthetic rutile.

Iluka has operations in Western Australia, Victoria, South Australia, and United States (Virginia).

History[edit]

Iluka Resources was formed in July 1998 in a merger between Westralian Sands and the titanium mineral business of RGC (Renison Goldfields Consolidated).[3]

Westralian Sands was established in 1954 but commenced operations in 1959 when it started mining and processing the Yoganup deposit near Capel in Western Australia.

By 1999, the company (now Iluka Resources) sold off or closed many parts of its business including Westlime Limited, Koba Tin, RGC Thalanga Copper, RGC South Capel operation and its share of the Narama Coal mine in New South Wales.[4]

In September 2008 the company signing a multi-million deal with rail freight operator El Zorro to carry containerised mineral sands from Portland in the south-west of Victoria to Melbourne, with Iluka saying rail transport was cheaper than road.[5]

The Managing Director of Iluka, David Robb, saw his remuneration increase by almost 100% to $3 million during 2008 following a better than expected year for the company. Company profits were $61.7 million in 2008, almost three times the size of the forecast amount, this was a result of higher Zircon prices and a devaluation of the Australian dollar.[6]

In March 2009, Iluka announced that it would bring forward the closure of one of the Synthetic Rutile kilns at the Narngulu operations and that 23 jobs would be lost. The move came in response to falling demand as a result of the Global Economic Crisis.[7]

As a result of demand from China, the 2011 net year profit increased fifteen times the 2010 result. The 2011 profilt was reported as $542 million, compared to $36 million in 2010. The companies profit was driven by higher production with 158,000 tonnes of mineral sands.[8]

References[edit]

  1. ^ "Australian Competition and Consumer Commission Website". 2007. Retrieved 2007-06-18. 
  2. ^ "Wright Report - Iluka Resources Limited - Company Profile Snapshot". 2007. Retrieved 2007-06-17. 
  3. ^ "Acted Consultants - Rutile and ilmenite - Australian production". 2008. Retrieved 2008-03-12. 
  4. ^ "Iluka Resources Limited - Our Business". 2007. Retrieved 2008-08-26. 
  5. ^ "Rail freight back on Portland-Maroona line". ABC News. www.abc.net.au. September 3, 2008. Retrieved 2008-09-04. 
  6. ^ "Iluka chief pockets big rise in pay". 2009. Retrieved 2009-04-08. [dead link]
  7. ^ "Iluka hit by kiln closure, lower production". 2009. Retrieved 2009-04-08. [dead link]
  8. ^ "Iluka Resources posts 1400pc profit lift". Sunday Times (Perth, WA: Sunday Times). 23 February 2012. Retrieved 28 May 2012.