PERTH (miningweekly.com) – Mineral sands miner Iluka on Thursday reported a 7.1% decline in sales revenue for the January to September period, which the miner said reflected the mix variance in production being sold and the lower received prices.

Iluka’s year-to-date revenue declined to A$491-million, from A$528.7-million in the same period last year, which also reflected an 18.3% decline in production.

The miner attributed the lower September quarter sales revenue to the timing of bulk titanium dioxide shipments to customers, as well as the seasonally lower iron oxide by-product sales and lower received prices for ilmenite product.

During the three months to September, Iluka’s combined production of zircon, rutile and synthetic rutile reached 140 500 t, which was comparable to the 141 100 t produced in the previous quarter, and the 142 300 t produced in the previous corresponding period.

Combined zircon, rutile and synthetic rutile production for the year-to-date reached 392 600 t, up 3.2% on the 380 400 t produced in the same period in 2013.

However, ilmenite production in the quarter under review was down to 73 800 t, compared with the 116 600 t produced in the previous quarter, while the year-to-date ilmenite production was down 35.8%, to 693 200 t.

Iluka noted that its third quarter production settings were in line with expectations, and entailed lower mineral separation plant use than normal in order to reduce transport and operating costs, and to enable the progressive drawdown of finished goods inventory.

The company’s two operating mines in Australia, the Jacinth-Ambrosia project in South Australia, and the Woomack, Rownack and Pirro (WRP) mine in Victoria, continued at full pace during the quarter.

Iluka said that the production rates would enable optimum unit cash cost outcomes for the production of heavy mineral concentrate, which would be drawn down following the completion of planned mining in the first half of 2015, and before the start of mining at the next planned mine development.

During the quarter under review, a higher-than-forecast ore grade at WRP resulted in additional heavy mineral concentrate production and stock build, which Iluka said increased the volume for future drawdown and conversion to finished product.

Iluka’s Western Australian operations remained idled during the quarter, but activities were under way for a possible restart of mining at the Tutunup South project in January next year, where the production and stockpile of ilmenite was planned in advance of a kiln restart.