Steve Wickham, Iluka’s General Manager of Australian Operations suggested that there were signs of improved demand for zircon from China and the USA during the first four months of 2013. Addressing the two day Paydirt 2013 South Australian Resources and Energy Investment Conference at the Adelaide Convention Centre, Wickham said “while sector sales globally pre-2007 had shown little variation, the sector had gone through both ‘low’ and ‘high’ supply and demand cycles in the six years since. The latest low cycle, in 2012, corresponded with below trend global growth and destocking.”

Wickham continued: “There was evidence of strengthening demand during the first quarter in all main markets except Europe, and the level of customer inquiries and orders stronger than preceding quarters. The current price levels of zircon are also expected to encourage reintroduction of zircon in some applications.

Mr Wickham also pointed to industry commentary that may presage a potential recovery in demand for high grade titanium dioxide feedstocks becoming more evident in the second half of 2013, although this will be influenced in large part by the key US painting season.

Iluka has embarked over the past year in a cost reduction protocol and has reduced capital spending, while still committing to various growth options, to maintain a flexible response to the tougher market conditions. However, Mr Wickham said its Jacinth-Ambrosia mineral sands mine near Ceduna in far west South Australia, was operating at normal production levels. This had been aided by timely government approvals to increase heavy mineral storage on site which had allowed mining operations to continue.