Iluka Resources

Iluka Resources Limited
Public
Traded as ASX: ILU
Industry Mining
Founded Iluka Resources Limited (ILU) 1998;
Merger of Westralian Sands (WSL) & RGC[1]
Headquarters 140 St Georges Terrace
Perth, Australia
Key people
 Greg Martin
(Chairman)
David Robb
(Managing Director)
Doug Warden
(Chief Financial Officer and Head of Strategy and Planning)
Steve Wickham
(Chief Operating Officer, Mineral Sands)
Matthew Blackwell
(Head of Marketing, Mineral Sands)
Alan Tate
(Head of Alliances, New Ventures and Royalties)
Cameron Wilson
(Chief Legal Counsel and Head of Corporate Acquisitions)
[2]
Products ilmenite, zircon, rutile, synthetic rutile)
Revenue Increase$950.8 million AUD (2015)[3]
Increase$53.5 million AUD (2015)[4]
Number of employees
 1,100[5]
Website www.iluka.com

Iluka Resources is in the business of mineral sands exploration, project development, operations and marketing. Iluka is the largest global producer of zircon globally and the highest producer of titanium dioxide products of rutile and synthetic rutile. Iluka mines heavy mineral sands and separates the concentrate into its individual mineral constituents rutile, ilmenite, and zircon. Some of the ilmenite is then processed into synthetic rutile.

Iluka has operations in Western Australia, Victoria, South Australia, and United States (Virginia).


History

Iluka Resources was formed in July 1998 in a merger between Westralian Sands and the titanium mineral business of RGC (Renison Goldfields Consolidated).[6]

Westralian Sands was established in 1954 but commenced operations in 1959 when it started mining and processing the Yoganup deposit near Capel in Western Australia.

By 1999, the company (now Iluka Resources) sold off or closed many parts of its business including Westlime Limited, Koba Tin, RGC Thalanga Copper, RGC South Capel operation and its share of the Narama Coal mine in New South Wales.[7]

In September 2008 the company signing a multi-million deal with rail freight operator El Zorro to carry containerised mineral sands from Portland in the south-west of Victoria to Melbourne, with Iluka saying rail transport was cheaper than road.[8]

David Robb was appointed Managing Director and CEO of Iluka Resources Limited on 18 October 2006. He is an Executive Director of the Iluka Board. David Robb worked in the downstream oil industry with BP in Australia, the UK, the USA and Asia. He joined Wesfarmers in Perth in 1995 and was appointed General Manager, Business Development for the Wesfarmers Group in 1996 and subsequently as Managing Director of Wesfarmers Energy in 1999. In 2004 he was appointed an Executive Director of Wesfarmers Limited, a role he relinquished in 2006 on joining Iluka. He is also currently a Director of the Centre for Independent Studies; Chair of the Faculty of Engineering, Computing and Mathematics at the University of Western Australia; and a Director of the Melbourne Football Club. Other previous roles include Chairman of Consolidated Rutile Limited and Deputy Chair of Methodist Ladies College, Perth.[9]

Company profits were $61.7 million in 2008, almost three times the size of the forecast amount, this was a result of higher Zircon prices and a devaluation of the Australian dollar.[10]

In March 2009, Iluka announced that it would bring forward the closure of one of the Synthetic Rutile kilns at the Narngulu operations and that 23 jobs would be lost. The move came in response to falling demand as a result of the Global Economic Crisis.[11]

As a result of demand from China, the 2011 net year profit increased fifteen times the 2010 result. The 2011 profit was reported as $542 million, compared to $36 million in 2010. The companies profit was driven by higher production with 158,000 tonnes of mineral sands.[12]

Effective from December 18, 2013, Greg Martin assumed the role of Chairman of the Board of Iluka Resources Ltd. Greg Martin has previous had over 30 years’ experience in the energy, utility and infrastructure sectors, having spent 25 years with the Australian Gas Light Company Ltd (AGL), including five years as CEO and Managing Director.[13] Greg Martin is currently Chairman of Prostar Investments (Australia) Pty Ltd, and a non-executive Director of Santos Ltd, Energy Developments Limited and the industry-funded Australian Energy Market Operator. [14]

Iluka established an initial 18.3 per cent interest in the UK technology company, Metalysis Ltd, which is seeking to commercialise technology to convert metals into powder, including titanium powder. Iluka increased its interest to approximately 28 per cent in 2016 with additional investment.[15] Iluka also commenced work in 2014 with Vale S.A in relation to the potential commercialisation of a large titanium ore body, with rare earth elements, in Minas Gerais State, Brazil. Iluka conducts international exploration, including for selected non mineral sands opportunities, mainly on its Australian tenements.[16]

The 2015 full-year profit was $53.5 million which was up from a $62.5 million loss in the previous corresponding period. The minieral sands sales increased 1.9% to $950.8 million up from $932.8 million in the previous year. [17] The dividen was 19c a share (full franked) and increased the annual payout to 25c a share. [18]

References

  1. ↑ "Australian Competition and Consumer Commission Website". 2007. Retrieved 2007-06-18.
  2. ↑ "Reuters Company Profile - Iluka Resources Ltd - Key People". 2016. Retrieved 2016-02-15.
  3. ↑ "Iluka cautious after return to profit". 2016. Retrieved 2016-04-14.
  4. ↑ "Iluka cautious after return to profit". 2016. Retrieved 2016-04-14.
  5. ↑ "Wright Report - Iluka Resources Limited - Company Profile Snapshot". 2007. Retrieved 2007-06-17.
  6. ↑ "Acted Consultants - Rutile and ilmenite - Australian production". 2008. Retrieved 2008-03-12.
  7. ↑ "Iluka Resources Limited - Our Business". 2007. Retrieved 2008-08-26.
  8. ↑ "Rail freight back on Portland-Maroona line". ABC News. www.abc.net.au. September 3, 2008. Retrieved 2008-09-04.
  9. ↑ "Reuters Company Profile - Iluka Resources Ltd - Key People". 2016. Retrieved 2016-02-15.
  10. ↑ "Iluka chief pockets big rise in pay". 2009. Archived from the original on April 21, 2009. Retrieved 2009-04-08.
  11. ↑ "Iluka hit by kiln closure, lower production". 2009. Archived from the original on April 21, 2009. Retrieved 2009-04-08.
  12. ↑ "Iluka Resources posts 1400pc profit lift". Sunday Times (Perth, WA: Sunday Times). 23 February 2012. Retrieved 28 May 2012.
  13. ↑ "Reuters Company Profile - Iluka Resources Ltd - Key People". 2016. Retrieved 2016-02-15.
  14. ↑ "Reuters Company Profile - Iluka Resources Ltd - Key People". 2016. Retrieved 2016-02-15.
  15. ↑ "Iluka-backed UK tech company poised for IPO". 2014. Retrieved 2016-03-10.
  16. ↑ "Iluka-backed UK tech company poised for IPO". 2014. Retrieved 2016-03-10.
  17. ↑ "Iluka mines healthy profits". 2016. Retrieved 2016-04-14.
  18. ↑ "Iluka rewards investors with raised dividend". 2016. Retrieved 2016-04-14.
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