Iluka pursuing possible takeover

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Mineral sands miner Iluka has approached the operator of a titanium mine in Mozambique about a possible takeover.

Iluka has confirmed it has approached Kenmare Resources about a potential combination of the companies, which may be implemented through a takeover offer from Iluka.

But it said there is no certainty a deal will be reached between the two companies.

Kenmare is a London listed company which mines titanium minerals and zircon at the Moma Titanium Minerals Mine.

Iluka produces zircon and rutile Australia, minerals which are used in ceramics and paints.

The prices of mineral sands are closely tied to building activity, especially in China.

Iluka shares were up nine cents at $8.39 at 1530 AEST.