Production of zircon, synthetic rutile and rutile, slipped 42% in 2013 when compared to 2012, "consistent with Iluka's preferred approach to a period of low market demand," the company said.
The company shipped the rutile from the Likoni Port facility and the first containers of zircon via the Mombasa Port container facility. "Kwale is profitable even at these currently soft prices. We do believe the tide will turn as the long term fundamentals remain robust, however, I anticipate these low levels to remain for the next couple of quarters," managing director Tim Carstens told IM.
"The feedstock revenue is probably less critical to Image than it would be for other mineral sands operations. Given the unusually high zircon grade in the Boonanarring reserves (24.5% zircon in the HM, or 1.6% in-situ zircon grade) in the first two to three years of operation, zircon and rutile will bring in 75% of the net revenue from the NPB project," managing director Peter Davies told IM.
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