Iluka Resources produces minerals critical for the advancement of renewable energy technology

About Iluka Resources Limited

Iluka Resources Limited (Iluka, ASX: ILU, or the Company) is the world’s largest producer of zircon and a major producer of high-grade titanium feedstocks, rutile and synthetic rutile. Iluka has also established a significant position in rare earth elements (rare earths). The Company’s products are used in a variety of applications including technology, construction, medical, lifestyle and industrial uses.

Iluka has projects and operations in Australia and a globally integrated marketing network. Headquartered in Perth, Iluka was formed following the merger of Westralian Sands and RGC Limited in 1998. It holds a 20% stake in Deterra Royalties, the largest ASX-listed resources focused royalty company.

The mineral sands industry products

The two main products of the mineral sands industry produced by Iluka are zircon and titanium dioxide, and titanium-based minerals such as rutile and synthetic rutile.

Zircon is a hard-wearing mineral used mainly to produce ceramic tiles, sanitaryware and tableware, making it a key input for industrial and housing construction. Other specialty applications include nuclear fuel rods, surgical appliances, catalytic fuel converters and air purification systems. However, the high-end technology required to process zircon doesn’t exist in Australia at present. China is the largest importer of zircon material at 50 percent of the global market.

Titanium dioxide is mined as rutile which is used as a whitening pigment in paints, plastics, and paper. The raw mineral is also used in the manufacture of titanium metal which is characterised by its low density and ability to withstand extremes of temperature. It has a variety of uses from golf clubs, and bicycle frames to aeroplane wings, as well as medical implants such as joint replacement hardware.

The critical importance of Zircon and Titanium to energy efficiency

There is a shift in the application of zircon and titanium dioxide in that they are critically important future-facing minerals which are essential to clean energy efficiency and emission controls. Titanium metal is also experiencing strong growth with increasing use in spacecraft, and defence applications such as missiles and for blades and turbine discs in wind turbines.

Overarching the critical importance of these two minerals is a third mineral known as monazite, which is a byproduct of Iluka’s flagship products, zircon and rutile. Monazite contains the rare earth elements neodymium, terbium, dysprosium, and praseodymium. These four rare earth elements are critical components of permanent and high-temperature magnets widely used in electric vehicle motors and wind turbine generators, making them indispensable for clean energy technologies.

So, in addition to their relevance to urbanisation and higher living standards generally, Iluka produces the minerals and rare earth elements that are pivotal for advancing renewable energy and reducing emissions and promoting sustainable technologies. This underscores the economic value-add of Iluka’s Eneabba Rare Earths Refinery to be commissioned in 2026. It is only the third rare earths refinery outside China and the first for Australia, making it both economically and strategically important for Iluka’s shareholders. The refinery will not only process monazite feedstock from Iluka’s own supply sources but from third-party suppliers as well.

This down-stream processing capability of rare earth materials is a significant step for Iluka and is likely to create considerable shareholder value over future decades as the world transitions to clean energy derived from renewable sources.