Iluka gives
Cataby project the green light
Mineral sands miner Iluka
Resources has approved development of its Cataby project in Western Australia
after confirming offtake agreements for majority of its synthetic rutile
production.
Iluka has secured ‘take-or-pay’ offtake agreements for 85 per
cent of production from its Synthetic Rutile kiln 2 operation at Capel in WA
for at least four years.
The Cataby project, a large chloride ilmenite deposit 150km
north of Perth, will support the ongoing production of 200,000 tonnes
of synthetic rutile from Capel.
Iluka expects Cataby to cost up to $275 million to build. It
will require a construction workforce of 250 people and 160 full-time employees
once it is operational.
The Perth-based miner plans to launch production at Cataby
during the second quarter of 2019 following an 18-month construction period.
Tom O’Leary, Iluka’s managing director, said the company worked
closely with customers to secure offtake agreements for a significant
proportion of the synthetic rutile production associated with the Cataby
project.
“The project ensures that our customers will have continuity of
synthetic rutile supply; and also delivers significant economic benefits to two
separate regions in Western Australia – Dandaragan and Capel,” O’Leary said.
“The construction period – with works to cost between $250
million to $275 million – will employ up to 250 workers at its peak. Once in
operation, the project will sustain a workforce of approximately 160 people.
“Pre-execute contracts have been awarded and tendering for the
balance of construction contracts is well advanced.”
Iluka has forecast Cataby to produce an average of 370,000
tonnes of chloride ilmenite a year over an 8.5-year mine life. Cataby will also
produce an average of 50,000 tonnes of zircon and 30,000 tonnes of rutile a
year.
The operation’s mine life has the potential to be extended by
another four years by accessing an additional 40 million tonnes of ore in its
reserve.
Iluka has already obtained environmental approvals for Cataby,
completed detailed engineering, established a project team, and procured long
lead items.
