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[August 2008]
Iluka Can Commence Jacinth-Ambrosia Early Site Works
Iluka Resources Ltd (Perth, WA, Australia) has received approval from the South Australian Government to commence civil and infrastructure site works for its Jacinth-Ambrosia mineral sands project in the Eucla Basin, South Australia.
As part of the Mining and Rehabilitation Plan (MARP) for the development, Early Works approval will allow Iluka site access to commence works including road, site accommodation and airstrip construction, as well as establishing power supply, communications and the water supply pipeline corridors and a borefield sourcing ultra saline water for eventual processing operations.
The Early Works approvals is the first approval that enables Iluka to undertake site works. The next phase of regulatory approvals will be for a MARP which includes the details of the construction phase. This will be followed by a MARP which will cover all aspects of the ongoing mining operations at the site.
The Iluka Board approved the expenditure of up to $420 million for the project in May this year. Mining Leases were granted by the Department of Primary Industry and Resources in July 2008.
The approval of the MARP Early Works is a critical step in allowing Iluka to achieve mining operations by mid 2010 and full production of approximately 300,000 tonnes per annum of zircon from 2011. Mining operations are expected to extend to approximately 2020. The Jacinth-Ambrosia project will include the processing of heavy mineral concentrate at Iluka’s existing mineral separation processing facilities at Narngulu in Western Australia.
Iluka is the largest global market participant in the zircon sector, with a market share in 2007 of approximately 37%. In 2007, the estimated global supply of zircon was approximately 1.3 million tonnes. In addition to the Jacinth-Ambrosia project, Iluka is also developing the second phase of the Murray Basin rutile and zircon province in the Murray Basin of Victoria at an estimated capital expenditure of up to $209 million. Commissioning of this project is expected in the first quarter of 2009.
www.iluka.com
ENDS