Iluka Resources has capped off a strong earnings report by approving the development of a mine in NSW and detailed studies on another in Victoria.
The mineral sands miner has approved the $480 million development of the Balranald mine, which is rich in rutile and zircon deposits.
It plans to use a novel, unmanned underground mining technology that it has likened to keyhole surgery.
First production is expected in 2025 after 18 months of development.
Iluka has also committed $30 million for a definitive feasibility study on its Woomera deposit in Victoria.
It has the potential to be a long-term source of both zircon and rare earths such as dysprosium and terbium.
The company said this development was made possible by the parallel construction of its $1.2 billion Eneabba rare earths refinery.
It has awarded a number of contracts for Eneabba, including an EPCM contract to engineering firm Fluor.
Fluor is undertaking front-end engineering and design (FEED) studies, which it expects to complete later this year.
Iluka noted that an ongoing review of Eneabba’s capital costs was being undertaken and it expects to provide an update following completion of the FEED studies.
The project updates were delivered in tandem with a strong earnings report for the year to December 2022.
Net profit after tax was up 61 per cent to $589 million.
This was built on a 16 per cent lift in mineral sands revenue to $1.7 billion and a 45 per cent lift in underlying earnings (EBITDA) to $946 million.
Full year dividend nearly doubled to 45 cents per share.
Managing director Tom O'Leary said 2022 was an extraordinary year for the company, with its diversification into rare earths, exiting Sierra Leone and progressing its Australian mineral sands operations.
Iluka shares dipped fractionally today to $10.63.
