[SMM Flash News] Australia's Iluka Resources produced 59,900 mt of zircon concentrate in the first half of this year, up 118% YoY, slightly below the target of 60,000 mt for H1. As zircon concentrate production increased, the company is advancing plans to halt production next year. On July 23, Iluka informed investors that it would produce 30,000 mt of zircon concentrate in H2, but production in 2026 would be minimal. The company needs to increase zircon sand production during H2 to meet the target of 165,000 mt. The company's H1 production was 71,800 mt, up 1.6% YoY, but less than half of the target. The production of zircon sand at the company's Cataby mine in Western Australia was constrained in H1 due to a decline in ore grade.
The company's zircon business is facing challenges related to tariff uncertainties. Currently, a 10% tariff is imposed on zircon exports to the US, while zircon exports from South Africa, which account for 50% of the US market, will face a 30% tariff starting from August 1. The company is preparing for tariff-related outcomes, but due to market uncertainties, it has not provided guidance on zircon sales for Q3. The company's zircon sales in H1 decreased by 10% YoY to 96,800 mt, while its zircon concentrate sales increased by 144% YoY to 61,400 mt.