Iluka’s revenue falls by 13%

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Minerals sands miner Iluka’s production and revenue fell in the first quarter of 2012.

The company said previously advised changes to its mining operations, such as a shutdown for maintenance and a change of location, were responsible for lower production in the three months to the end of March.

Revenue from mineral sands, which are used in paints, electronics, nuclear reactors and deodorants, fell 13.3 per cent to $196.3 million from $226.3 million in the previous corresponding period.

Product prices were higher than in the same period in the previous year, but production levels were lower, Iluka said.

Zircon production in the three months to March of 115,700 tonnes was down 18.4 per cent from the previous corresponding period, while rutile production dropped by 19.5 per cent.

Mineral sands such as zircon and titanium dioxide boomed in 2011, with prices more than doubling, and China leading the demand.

But Iluka said demand for zircon was softer in early 2012, as expected, due to global economic conditions and efforts by the Chinese government to control inflation.

“As Iluka has stated previously, it will take some time for a clear view on overall 2012 zircon demand and the phasing of that demand to emerge,” the company said in a statement.

Demand for titanium dioxide remained strong in the March quarter, Iluka said.

Iluka’s shares closed flat at $17.27.