Iluka Resources sheds roles as rare earths build gets underway and rutile, zircon markets struggle

About 130 roles have been culled at rare earths aspirant Iluka Resources as the company tries to trim costs and bunker down for construction of a $1.8 billion rare earths refinery in WA. Providing quarterly numbers on Wednesday Iluka told the market it had been reviewing ways to save costs during the three months to December, and that it could save about $20 million in 2025 by removing roles. “In Q4 2024 Iluka completed a review to ensure the cost base of the company was sustainable and aligned with its operational outlook and project delivery objectives,” the statement read. “As a result of the review, approximately 130 roles were identified to be removed across operations and support functions, with expected savings amounting to ~$20 million for 2025.” Shares in the company were down 7.9 per cent to $4.90 at 11am. It’s not clear how many individual operations lost jobs, but some of the cuts were made to staff numbers working at Iluka’s synthetic rutile kiln 1 in Capel that has been on ice since 2023 amid general weak demand. The last time Iluka had a major job cull was in 2019 when it gave 90 workers the chop. The recent round of cuts comes as Iluka’s core mineral sands business struggles, while the company also burns through cash to build its Eneabba rare earths refinery north-east of Jurien Bay. Mineral sands revenues for 2024 were down 8.9 per cent to $1.12 billion, which included $290m in the December quarter. This quarterly figure was 17 per cent lower than what Citi’s analysis had expected, while UBS said Iluka’s 2025 outlook “disappoints”. Iluka’s combined zircon, rutile and synthetic rutile output fell 22.4 per cent from financial year 2023 to 2024 to 496,200 tonnes, but was ahead of its most recent guidance for the year. Looming tariffs on Chinese imports in Europe and the United States could potentially boost demand for Western pigment producers, according to Iluka, and the company expects this will be a “positive dynamic” for demand of its synthetic rutile. In December Iluka locked in an extra $400 million to build its proposed $1.8 billion Eneabba refinery — Australia’s first fully-integrated rare earths refinery that will be able to produce the oxides used in magnets and defence applications. The Federal Government will lend up to $1.65 billion for the build, with Iluka stumping up $214 million. Earthworks and non-infrastructure upgrades to power lines and office buildings progressed over the quarter. Tendering and contract awards for equipment, fabrication and site works contract packages were also underway, with total spend at the development so far hitting $337m.