March revenue was $A196.3 million, compared to $434 million in the December quarter.

The result reflected a monthly delay in a 26,000 tonnes shipment of high-grade titanium dioxide products and a reduction in zircon production caused from lower heavy mineral concentrate volumes from Jacinth-Ambrosia in South Australia.

The completion of mining at the Douglas and Kulwin deposits in the Murray Basin of Victoria also impacted rutile production, while lower synthetic rutile production reflected the start of scheduled maintenance shutdowns at its largest synthetic rutile kiln (SR kiln 2) in Western Australia’s South West.

Zircon production for the latest three-month period came in at 115,700t, versus 148,400t in the December quarter, with rutile volumes of 50,700t compared to 65,900t in the previous quarter.

Synthetic rutile production accounted for 50,600t versus 68,700t in the previous three-month period, with upgradeable ilmenite at 72,400t compared to 60,500t previously and saleable ilmenite at 123,600t versus 111,800t in the December quarter.

The mine focus in the Murray Basin is now moving from Kulwin to the Woornack, Rownack and Pirro deposits, while in WA, plans to reactive the SR kiln 1 are progressing for a fourth quarter re-start.

Its Murray Basin operations contributed rutile production of 33,900 during the quarter and 34,800t of zircon, while processing of wet high intensity magnetic separation ilmenite sourced from the Kulwin mine began.

This ilmenite, previously considered of no commercial value, will be transported to the North Capel dry mill separation plant in WA where it will be fractionated to produce sulphate and chloride ilmenite streams for direct sale or utilisation in synthetic rutile capacity for upgrading.

Heavy mineral concentrate from the Eneabba operation in WA’s Mid West, which resumed operations in December, was processed through the upgraded Narngulu mineral separation plant at Geraldton during the quarter.

It is expected to produce 140,000tpa of ilmenite which will be suitable as a feed source for the production of a premium synthetic rutile product, while a further 25,000t of zircon and about 25,000t of rutile will also be produced.

Feasibility studies are also in train for four potential new mineral sands projects capable of starting within the next three years.

Announced in November last year, these projects are part of Iluka’s 11 enhanced production projects, and include two new project studies in the US for deposits which have the potential to extend the economic life of its Virginian operation by at least 10 years.

Meanwhile, a prefeasibility on the Cataby mineral sands deposit in WA, where Iluka is targeting first production from 2014, is tracking towards a mid-year completion date.

Located 150km north of Perth, Cataby offers the potential of being a large, long life and high quality chloride ilmenite deposit, suitable as a feed source to Iluka’s synthetic rutile facilities and is also expected to produce material levels of zircon during its initial years.

In New South Wales, a PFS on the West Balranald and Nepean rutile-dominated deposits is expected to be finalised in the first quarter of 2013.

Iluka is targeting a construction start during 2014 with first production during the latter half of 2015.

Shares in Iluka were down 2.4% or 41c in morning trade to $16.86.