Mineral sands miner Iluka Resources announced today further increases in the selling prices of its products, with rutile and synthethic rutile expected to see a marked increase for the first half of 2012.
The weighted average price for rutile is expected to increase by 80 to 85 per cent from the approximately $1,340 per tonne average in the second half of 2011. For synthetic rutile, prices are expected to increase by 85 to 90 per cent from its approximately second-half 2012 average of $1,075 per tonne.
The company, which has operations in Western Australia as well as in other states in Australia, said it is in agreement regarding the prices and volumes with its major titanium dioxide customers.
Rutile is a naturally-occurring mineral consisting mainly of titanium dioxide, used to produce titanium dioxide pigment. Synthetic rutile is produced by extracting the iron from ileminte, and thereby increasing its level of titanium dioxide.
Iluka said the price increases reflect the company’s product approach, the state of the market and competition.
The new prices are effective from January 1, 2012.
Iluka shares opened on the ASX at $16.80 today, and are currently trading at $16.68, 11:23 WST.