Iluka yesterday reached another key regulatory milestone for its Jacinth-Ambrosia project in the Eucla Basin of South Australia.
The attached is a Media Release, issued predominantly for Western Australian purposes.
The key features of the latest regulatory approval are as follows:
� The Western Australian Parliament passed an amendment to the Mineral Sands (Eneabba) Agreement Amendment Bill 2008.
� The amendment was necessary because the original establishment of the Narngulu processing facilities had, in the State Agreement, been linked with mining operations at Eneabba, Western Australia.
� The passage of the Bill will, with subsequent government approvals, allow Iluka to expand its Narngulu processing facilities to accept up to 600,000 tonnes of Jacinth-Ambrosia (South Australian) heavy mineral concentrate, with final product produced in Western Australia and shipped through the Port of Geraldton. Approximately $60 million of the project capital expenditure of $420 million will be committed to the Narngulu upgrade.
� As you may be aware, the use of the existing processing facilities in Western Australia has been a deliberate capital reduction initiative, as well as mitigating project execution risk.
As advised previously, the Jacinth-Ambrosia zircon project is within budget and on-schedule for first production by mid 2010. The key South Australian Government regulatory approval, the Construction Mining and Rehabilitation Plan, was received on 14 November. Site civil works have commenced, including the laying of a water pipeline.
Jacinth-Ambrosia is expected to produce at least 300,000 tonnes of zircon once in full production in 2011.
Please let me know if you have any queries.
Regards
Rob
Robert Porter | General Manager Investor Relations and Corporate Affairs
Iluka Resources Limited | Level 23, 140 St Georges Terrace | Perth WA 6000
Phone +61 8 9360 4751 | Mobile 0407 391 829 | Fax + 61 8 9360 4336
robert.porter@iluka.com