Iluka blows $6m on failed titanium venture

Mineral sands minder Iluka Resources says it has agreed with joint venture partner Vale to end plans to develop a titanium project in Brazil after deeming it unfeasible.

Iluka told the market today it had spent $6 million on exploring the potential titanium mineral-bearing deposit at the Tapira complex since it and iron ore giant Vale entered into joint development and intellectual property agreements in 2014.

Those agreements have now been terminated.

“Due to the complex nature of the deposit, and contained mineral assemblage, a method to produce a market acceptable titanium dioxide feedstock was not identified using currently known conventional or alternative technological routes,” Iluka said in a statement.

“The total Iluka expenditure on the Tapira project has been about $6 million and has been expensed as part of Iluka’s resources development expenditure.”

Iluka shares were 7.1 per cent higher to $6.56 each at the close.