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Green light for Iluka's $39m Waroona project

Iluka Resources Ltd is to go ahead with the $39 million development of its Waroona mineral sands mining operation in the South West of Western Australia.
The Waroona project is one of a number of new mineral sands projects planned in WA to provide feedstock into existing production facilities so as to provide sales volumes, especially of ilmenite and synthetic rutile, to global customers.
The $39 million capital expenditure for Waroona comprises stripping of overburden, a significant proportion for the upgrading and relocation of a wet concentrator plant (which will be used subsequently in other mine developments), infrastructure and project management costs.
Waroona contains a proven reserve of 8.4 million tonnes of ore at a heavy mineral (HM) grade of 10.2%
It is principally an ilmenite deposit, with a proportion suitable as feedstock to synthetic rutile (SR) kilns and the remainder suitable for sale as ilmenite.
The Waroona ore body is located near the township of Waroona, approximately 80 kilometres from Iluka's North Capel Operations, south of Perth.
Waroona will supply feedstock into the Capel operations and is expected to commence production in the first quarter of 2007, subject to government environmental approvals.
Over its estimated three year life, Waroona is forecast to produce approximately 32k tonnes of zircon, 25k tonnes of HyTi, 190k tonnes of sulphate ilmenite and 215K tonnes of synthetic rutile.

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