Iluka Resources
Encyclopedia
Iluka Resources is a mining
company
involved in the mining and processing
of titanium
based and zircon
products. The company mines heavy mineral sands
and separates the concentrate into its individual mineral constituents rutile
, ilmenite
, leucoxene
and zircon
. Some of the ilmenite is then processed into synthetic rutile.
Iluka has operations in Western Australia
(Narngulu
, Eneabba
and Capel
), Victoria
(Mildura
), Queensland
and United States
(Virginia
).
In 2006 Iluka Resources was the largest supplier of zircon
to the world market with a market share of 35% and was the second largest supplier of Titanium Dioxide and maintained a 20% share in the supply of Titanium Dioxide
to the world market.
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.
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.
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 profit
s 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.
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.
Mining
Mining is the extraction of valuable minerals or other geological materials from the earth, from an ore body, vein or seam. The term also includes the removal of soil. Materials recovered by mining include base metals, precious metals, iron, uranium, coal, diamonds, limestone, oil shale, rock...
company
Company
A company is a form of business organization. It is an association or collection of individual real persons and/or other companies, who each provide some form of capital. This group has a common purpose or focus and an aim of gaining profits. This collection, group or association of persons can be...
involved in the mining and processing
Industrial process
Industrial processes are procedures involving chemical or mechanical steps to aid in the manufacture of an item or items, usually carried out on a very large scale. Industrial processes are the key components of heavy industry....
of titanium
Titanium
Titanium is a chemical element with the symbol Ti and atomic number 22. It has a low density and is a strong, lustrous, corrosion-resistant transition metal with a silver color....
based and zircon
Zircon
Zircon is a mineral belonging to the group of nesosilicates. Its chemical name is zirconium silicate and its corresponding chemical formula is ZrSiO4. A common empirical formula showing some of the range of substitution in zircon is 1–x4x–y...
products. The company mines heavy mineral sands
Heavy mineral sands ore deposits
Heavy mineral sands are a class of ore deposit which is an important source of zirconium, titanium, thorium, tungsten, rare earth elements, the industrial minerals diamond, sapphire, garnet, and occasionally precious metals or gemstones....
and separates the concentrate into its individual mineral constituents rutile
Rutile
Rutile is a mineral composed primarily of titanium dioxide, TiO2.Rutile is the most common natural form of TiO2. Two rarer polymorphs of TiO2 are known:...
, ilmenite
Ilmenite
Ilmenite is a weakly magnetic titanium-iron oxide mineral which is iron-black or steel-gray. It is a crystalline iron titanium oxide . It crystallizes in the trigonal system, and it has the same crystal structure as corundum and hematite....
, leucoxene
Leucoxene
Leucoxene is a fine granular alteration product of titanium minerals. It varies in color from yellow to brown.It consists mainly of rutile or anatase...
and zircon
Zircon
Zircon is a mineral belonging to the group of nesosilicates. Its chemical name is zirconium silicate and its corresponding chemical formula is ZrSiO4. A common empirical formula showing some of the range of substitution in zircon is 1–x4x–y...
. Some of the ilmenite is then processed into synthetic rutile.
Iluka has operations in Western Australia
Western Australia
Western Australia is a state of Australia, occupying the entire western third of the Australian continent. It is bounded by the Indian Ocean to the north and west, the Great Australian Bight and Indian Ocean to the south, the Northern Territory to the north-east and South Australia to the south-east...
(Narngulu
Narngulu, Western Australia
Narngulu is an outer suburb of the Western Australian city of Geraldton, and is for the most part an industrial area.-History:In the 1890s the town was known as Mullewa Junction as it was where the Cue railway line met the Midland railway line, and the name was gazetted in 1903...
, Eneabba
Eneabba, Western Australia
Eneabba is a town on the Brand Highway located 278 km north of Perth, Western Australia.The area is famous for its spectacular display of wildflowers in the spring. It is also home to the Iluka Resources mineral sands facility....
and Capel
Capel, Western Australia
Capel is a town in the South West region of Western Australia, located 212 kilometres south of Perth and midway between Bunbury and Busselton....
), Victoria
Victoria (Australia)
Victoria is the second most populous state in Australia. Geographically the smallest mainland state, Victoria is bordered by New South Wales, South Australia, and Tasmania on Boundary Islet to the north, west and south respectively....
(Mildura
Mildura, Victoria
Mildura is a regional city in northwestern Victoria, Australia and seat of the Rural City of Mildura local government area. It is located in the Sunraysia region, and is on the banks of the Murray River. The current population is estimated at just over 30,000.Mildura is a major agricultural centre...
), Queensland
Queensland
Queensland is a state of Australia, occupying the north-eastern section of the mainland continent. It is bordered by the Northern Territory, South Australia and New South Wales to the west, south-west and south respectively. To the east, Queensland is bordered by the Coral Sea and Pacific Ocean...
and United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
(Virginia
Virginia
The Commonwealth of Virginia , is a U.S. state on the Atlantic Coast of the Southern United States. Virginia is nicknamed the "Old Dominion" and sometimes the "Mother of Presidents" after the eight U.S. presidents born there...
).
In 2006 Iluka Resources was the largest supplier of zircon
Zircon
Zircon is a mineral belonging to the group of nesosilicates. Its chemical name is zirconium silicate and its corresponding chemical formula is ZrSiO4. A common empirical formula showing some of the range of substitution in zircon is 1–x4x–y...
to the world market with a market share of 35% and was the second largest supplier of Titanium Dioxide and maintained a 20% share in the supply of Titanium Dioxide
Titanium
Titanium is a chemical element with the symbol Ti and atomic number 22. It has a low density and is a strong, lustrous, corrosion-resistant transition metal with a silver color....
to the world market.
History
Iluka Resources was formed in July 1998 in a merger between Westralian Sands and the titanium mineral business of RGC (Renison Goldfields Consolidated).Westralian Sands was established in 1954 but commenced operations in 1959 when it started mining and processing the Yoganup deposit near Capel
Capel, Western Australia
Capel is a town in the South West region of Western Australia, located 212 kilometres south of Perth and midway between Bunbury and Busselton....
in Western Australia
Western Australia
Western Australia is a state of Australia, occupying the entire western third of the Australian continent. It is bounded by the Indian Ocean to the north and west, the Great Australian Bight and Indian Ocean to the south, the Northern Territory to the north-east and South Australia to the south-east...
.
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.
In September 2008 the company signing a multi-million deal with rail freight operator El Zorro
El Zorro (railway)
El Zorro is a railway operator based in Victoria, Australia. It is a private company that was founded in 1999, based in Spotswood, and named by director Ray Evans who has a taste for things Spanish. . The company has three shareholders: director Ray Evans, business manager Geoff Tighe, and Lisa...
to carry containerised mineral sands from Portland
Portland, Victoria
The city of Portland is the oldest European settlement in what is now the state of Victoria, Australia. It is the main urban centre of the Shire of Glenelg. It is located on Portland Bay.-History:...
in the south-west of Victoria to Melbourne
Melbourne
Melbourne is the capital and most populous city in the state of Victoria, and the second most populous city in Australia. The Melbourne City Centre is the hub of the greater metropolitan area and the Census statistical division—of which "Melbourne" is the common name. As of June 2009, the greater...
, with Iluka saying rail transport was cheaper than road.
The Managing Director of Iluka, David Robb, saw his remuneration
Remuneration
Remuneration is the total compensation that an employee receives in exchange for the service they perform for their employer. Typically, this consists of monetary rewards, also referred to as wage or salary...
increase by almost 100% to $3 million during 2008 following a better than expected year for the company. Company profit
Profit (accounting)
In accounting, profit can be considered to be the difference between the purchase price and the costs of bringing to market whatever it is that is accounted as an enterprise in terms of the component costs of delivered goods and/or services and any operating or other expenses.-Definition:There are...
s were $61.7 million in 2008, almost three times the size of the forecast amount, this was a result of higher Zircon
Zircon
Zircon is a mineral belonging to the group of nesosilicates. Its chemical name is zirconium silicate and its corresponding chemical formula is ZrSiO4. A common empirical formula showing some of the range of substitution in zircon is 1–x4x–y...
prices and a devaluation of the Australian dollar.
In March 2009, Iluka announced that it would bring forward the closure of one of the Synthetic Rutile
Rutile
Rutile is a mineral composed primarily of titanium dioxide, TiO2.Rutile is the most common natural form of TiO2. Two rarer polymorphs of TiO2 are known:...
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.