Market ignores tariff noise as Iluka Resources | Australian Markets
Iluka Resources has yanked steering for one of its mineral sands exports for the subsequent quarter blaming tariffs, however is optimistic the Pentagon’s latest swoop on a main uncommon earths miner bodes properly for its own native ambitions.
The listed miner recovered from a weaker quarter by delivering 150,000 tonnes of zircon and rutile from its Cataby operations in WA and the Jacinth-Ambrosia project in South Australia, it reported on Wednesday.
But citing “ongoing uncertainty and the broad range of potential outcomes on market dynamics”, Iluka informed traders it could not be offering steering in phrases of anticipated manufacturing, or pricing, for its zircon merchandise.
The commodity is amongst many caught up in sweeping tariffs imposed by the US and is set to be levied at 10 per cent from August 1, although Iluka famous that about 50 per cent of Uncle Sam’s zircon imports come from South Africa.
“Titanium dioxide feedstocks and rare earth oxides remain exempt from tariffs,” Iluka stated.
Amid geopolitical tussles to secure uncommon earths provides the United States Government purchased more than $600 million price of shares in California miner MP Materials, and inked an offtake to buy its product at a set minimal price.
Iluka has long been pushing for uncommon earths costs “independent pricing mechanisms that are not linked to the Asian Metals Index”, in a bid to interrupt China’s stranglehold on the in-demand ingredient utilized in magnets for high-tech functions.
And it informed traders the agreed price of $US100 per kilo of uncommon earths merchandise set between MP and the US Department of Defense was encouraging for its own uncommon earths refinery construct at Eneabba.
“Iluka has previously provided a range of possible scenarios for utilisation of the Eneabba refinery at long-term forecast NdPr prices of $108/kg.”
The group stated locking in a price flooring was “an acknowledgement by the US government that higher prices for separated rare earth oxides are essential to building a sustainable Western and like-minded supply chain.”
As half of its $1.65 billion funding deal with the Australian Government, the Eneabba uncommon earths refinery being constructed close to Jurien Bay has strict restrictions imposed on future output being bought to China.
So far $570 million has been spent on construction, with earthworks accomplished and concrete contractors making “good progress”. Equipment has additionally began to reach on web site.
Iluka shares closed the day up 4 per cent to $5.39.
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