May 23, 2024


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Iluka share price lifts off on rare earths refinery progress

Female South32 miner smiling with mining machinery in the background.

Image supply: Getty Photos

The Iluka Resources Ltd (ASX: ILU) share price is marching better in early morning trade, up 1.69%.

Iluka shares shut yesterday at $8.89 and are presently investing for $9.04.

Beneath, we look at the most current development reported by the S&P/ASX 200 Index (ASX: XJO) uncommon earths miner.

What progress was noted that’s lifting the Iluka share price?

The Iluka share price tag is attaining just after the organization declared even further progress with the progress of its Eneabba uncommon earths refinery in Western Australia.

Iluka noted that Fluor Australia has been awarded the deal to full the Entrance Stop Engineering Style (FEED) and undertake Engineering, Procurement and Design Administration (EPCM) solutions for the refinery.

The firm referred to as the contract award “an crucial step in the supply of the refinery and [its] unusual earths diversification”. It explained Fluor’s 100 moreover decades of practical experience in engineering, procurement and development expert services will assist make certain the profitable execution of this “globally considerable development”.

The ultimate investment selection for the Eneabba refinery was announced on 4 April, and the Iluka share price received on that news.

Iluka is funding the advancement below a danger sharing arrangement with the Australian Government.

The totally integrated refinery will produce light-weight and significant divided exceptional earth oxides. It will be able to method feedstocks from Iluka’s personal portfolio and from 3rd celebration suppliers. This involves the two mineral sands and scarce earths deposits.

Construction is slated to start out later in 2022. The initially rare earths production is envisioned in 2025.

What are uncommon earth components?

Relying on how you outline them, there are both 15 or 17 diverse uncommon earth aspects.

Regardless of the title, they are truly pretty considerable. What makes them rare is that they tend to be observed in extremely limited concentrations. Indicating miners will need to dig up and type via a ton of dust to get to the useful stuff.

You are going to obtain scarce earths in most fashionable systems. That features impressive magnets utilised in wind turbines and electrical motors. They also form critical components of your laptop and smartphone. And governments are eager to secure materials for their use in plane and significant-tech navy apps.

Iluka share cost snapshot

The Iluka share price has struggled this year, down 11% so considerably in 2022. That compares to a 12% yr-to-day reduction posted by the ASX 200.