Shares in Iluka Resources Limited (ASX:ILU) slumped to yesterday’s worst performer after the mineral sands producer announced it would reduce planned zircon production this year.
Iluka has blamed continued global economic uncertainty for the decision to reduce zircon output to 430,000 tonnes in the current calendar year.
The latest forecast compares with 500,000 metric tonnes forecast in February and 601,000 produced last year.
Zircon sales are expected to fall from the previously forecast 450,000 tonnes to 400,000 tonnes this year.
Iluka has confirmed it will maintain its high-grade titanium dioxide production.
Shares in Iluka Resources slumped 12.16 per cent on Tuesday, finishing the session at $14.01.
Iluka Resources recorded a net profit of $541.8 million in the 2011 financial year.
