Australian critical minerals miner Iluka falls on flagging impairment of minerals sands unit
Australia's Iluka Resources said on Thursday it expects to recognise two exceptional items, including an impairment of its mineral sands business, putting its shares on course for their largest single-day decline in two months.
The non-cash impairment charge for the segment is expected to be around A$350-million before tax and will be accounted for in its final 2025 results, Iluka added.
Shares of the critical minerals miner fell as much as 8.4% to A$5.92, set for their weakest session since late November 2025. The stock is the worst performer on the broader ASX 200 index .AXJO, which was down 0.4% as of 23:23 GMT.
The impairment comes after Iluka in September disclosed the suspension of production activities at its Cataby mine and Synthetic Rutile Kiln 2 (SR2) processing facility in Western Australia.
The decision had been taken due to subdued demand for mineral sands and their associated downstream products, with lower levels of global economic activity further weighing on purchasing behaviour of their customers, the company said in its September statement.
Rio Tinto is also looking to exit its minerals sands business, with the world's largest iron-ore miner last year flagging that its titanium and borates divisions were up for sale.
Iluka added in its Thursday announcement that it would also recognise a reduction for some of its inventory as price expectations have prompted a decrease in realised value for its items.
The company is expected to include exceptional charges totalling A$565-million pre-tax in its financial statement for the year ended December 31.
In its quarterly production report, Iluka flagged that development of its Eneabba rare earths facility, which is being built via a partnership with the Australian government, has progressed, with commissioning slated for 2027.
