The Complete In and Outs of the Business of Rutile: Where Purity Meets Strategic Demand - ASX Players.
- Noel Ong
- 4 days ago
- 28 min read
Updated: 21 hours ago
Rutile has long stood in the shadows, overshadowed by better-known commodities like lithium, copper, and even its cousin, ilmenite. But beneath the surface, quite literally, lies a mineral that is becoming increasingly visible to investors as vital to the world’s industrial, technological, and geopolitical landscape. Is this appearance of importance something new or has the market developed the excitement because it needs a new story to sell?
At first glance, rutile might appear like just another mineral sand, but its chemistry tells a different story (Figure 1). Composed of titanium dioxide (TiO₂), rutile is the cleanest, most efficient natural feedstock for producing titanium metal and white pigment. And in a world that demands lightweight alloys for aerospace, corrosion-resistant metals for defence, and UV-blocking pigments for cosmetics and coatings, rutile quietly powers it all.
Figure 1: Rutile image.
What makes rutile uniquely valuable is its purity. With a typical TiO₂ content of ~95%, it doesn’t require the energy-intensive processing needed for ilmenite. This gives it a lower environmental footprint and makes it the preferred input for chloride-route titanium pigment production and high-grade titanium metal.
As supply tightens globally, the market is waking up. Demand is growing—not just from traditional pigment and welding industries, but also from new technologies and national security imperatives. And herein lies the opportunity: few new large-scale rutile deposits have been developed in recent decades. The sector is small, the barriers to entry are high, and the players are limited. But the upside is significant.
Natural rutile also carries scientific intrigue (Figure 2). Its optical properties are exceptional, boasting one of the highest known refractive indices in the visible spectrum. It’s used in optical instruments, polarisation devices, and even in sunscreen, where its nanoscale form absorbs harmful UV radiation while remaining transparent to visible light. It is, quite literally, everywhere—but barely recognised.
Figure 2: Natural Rutile: A Mineral of Scientific Fascination.
For ASX investors, this is the type of story that often slips through the cracks. Rutile doesn’t dominate headlines, but it underpins sectors that do. And now, with the rise of strategic critical minerals policies and decarbonisation agendas, rutile is being recast as an essential part of the industrial equation.
In this Samso Insight, we’ll explore the geology, global context, and ASX-listed players behind rutile’s quiet rise. From Iluka’s Sierra Rutile in Sierra Leone to Sovereign Metals’ giant Kasiya project in Malawi—and the emerging Minta story in Cameroon—we’ll unpack why rutile could be one of the smartest critical minerals plays that investors are still overlooking.
The rutile story is not one of hype, but of substance. And in today’s market, that’s where the real value lies.
The Strategic Importance of Rutile
As we have mentioned, the recent news which have created a "rush" for the ruitle narrative has created a new focus for the ASX small-cap sector. The recent news from Lion Rock Minerals Limited, DY6 Metals from Africa, and Petrotherm, with its titanium discovery in South Australia, means that there is a new focus for the sector. Investors are eager, and like all ASX investors, they are eager to pile their hard-earned cash into these stories.
One of the many questions I am getting from associates and followers is what the grades mean and what they mean in terms of the viability of the project. I am working on getting some "real" professionals onto a Coffee with Samso soon, but for now, let's see what we can gather as a Rutile 101 from this Samso Insight.
Please follow the links below to help guide you through another long and winding research blog.
Rutile: The Underappreciated Critical Mineral with Strategic Weight
Kasiya vs Sembehun: Complementary Giants in the Titanium Race
Why the Business of Rutile Is Not Just About Grade—But Timing, Jurisdiction, and Delivery
1. The Realisation of Rutile’s Strategic Importance
In the ever-evolving landscape of critical minerals, rutile is emerging as one of the most strategically significant yet often underappreciated commodities. Long associated with industrial paints and pigment production, rutile is now being repositioned as a core enabler of advanced manufacturing, national security, and clean energy infrastructure.
Natural rutile stands apart from other titanium feedstocks due to its exceptionally high TiO₂ content, typically around 95%. Unlike ilmenite, which must undergo energy- and carbon-intensive upgrading to become usable as synthetic rutile or slag, natural rutile is production-ready. This makes it the cleanest, most efficient, and lowest-emission feedstock for titanium processing—an attribute that is becoming increasingly important in ESG-conscious global markets.
As a feedstock, rutile is indispensable in two critical global supply chains (Figure 3):
Titanium metal production – essential for industries requiring high strength-to-weight performance, corrosion resistance, and durability.
Chloride-route titanium dioxide pigment production, which underpins everything from paints to plastics and sunscreens.
Figure 3: Rutile’s Role in Two Vital Global Supply Chains (source: Samso)
Titanium metal derived from rutile plays a vital role in:
1. Jet engine components and structural aerospace materials.
2. Medical implants and surgical instruments.
3. Naval armour and submarine casings.
4. High-durability pigments for paints, coatings, plastics, and packaging.
5. Plates and components for hydrogen electrolysers and solar technologies.
These applications are not optional—they are foundational. And rutile has no easy substitute in these processes. Its high purity enables more efficient chemical conversion, generates less waste, and results in a lower carbon footprint across the lifecycle.
This unique blend of purity, performance, and ESG alignment is what elevates rutile from an industrial mineral to a strategically critical resource. As such, rutile has been formally recognised as a critical mineral by the United States, the European Union, and Australia—a classification that reflects both its economic importance and the vulnerability of its supply chain.
The growing focus on de-risking global titanium supply, especially away from Chinese and Russian dependencies, further enhances rutile’s appeal. With new geopolitical tensions surfacing, supply security is now driving corporate procurement decisions and national industrial strategies alike.
For ASX investors, the message is clear: Rutile is no longer just a pigment input—it is a critical enabler of 21st-century technology and national resilience. And with global supply tightening and few new large-scale deposits in the pipeline, the value of rutile—both economically and strategically—is only beginning to be realised.
2. Titanium: A Metal for a High-Tech, Low-Carbon World
Titanium has quietly become one of the most indispensable metals in modern industry. As the world transitions to low-carbon technologies and advanced manufacturing systems, titanium is stepping into a starring role—lightweight, corrosion-resistant, and engineered for environments where strength, durability, and precision matter most.
Derived primarily from high-grade feedstocks like natural rutile, titanium metal combines a rare set of attributes that make it critical across sectors:
1. It has the highest strength-to-weight ratio of any commercial metal.
2. It is biocompatible, making it ideal for medical implants and surgical tools.
3. It is resistant to corrosion, even in seawater and extreme industrial settings.
4. It performs under extreme temperatures, critical for jet engines, spaceframes, and nuclear components.
In aerospace, titanium is fundamental. Every modern aircraft relies on titanium in its airframe, engine components, and fasteners to balance weight reduction with structural integrity. The same applies to spacecraft, naval vessels, and defence platforms. In energy systems, titanium is now used in hydrogen electrolysers, solar panel supports, and heat exchangers in geothermal and nuclear power sectors with steep ESG requirements and performance thresholds.
As global infrastructure evolves and the energy transition accelerates, titanium is transitioning from a specialist material to a baseline requirement. Whether it’s electric vertical takeoff aircraft (eVTOL), offshore wind structures, or next-generation EV components, titanium is becoming a foundational building block.
And the best feedstock for producing that titanium? Natural rutile (Figure 4).
Figure 4: Image of High Purity Rutile Product
Compared to synthetic rutile or slag, natural rutile’s high purity enables more efficient production of titanium sponge, reducing chlorine usage, emissions, and downstream costs. This advantage aligns with the global push for cleaner supply chains and lower embedded carbon in materials.
For investors and governments alike, titanium isn’t just an industrial input—it’s a strategic material underpinning sovereignty, sustainability, and technological leadership.
Rutile, as its purest and most direct precursor, now plays a crucial role in this broader global transition.
3. Global Supply and Geopolitical Landscape: Rutile Under Pressure
The global rutile market is under mounting pressure, and it’s not just about dwindling supply. As the world simultaneously decarbonises and re-arms, titanium feedstocks like rutile are shifting from simple commodities to elements of strategic planning. The titanium market, especially its natural rutile segment, is entering a phase where industrial demand meets national security.
Natural rutile remains a small but critical segment, comprising less than 10% of the global titanium feedstock supply. Yet it is unmatched in quality. With ~95% TiO₂ purity, low impurities, and suitability for chloride processing, it is the feedstock of choice for high-performance uses like jet engines, defence hardware, and low-carbon pigment. The problem is: there simply isn’t enough of it (Figure 5).
Figure 5: With ~95% TiO₂ purity, low impurities
According to TZMI and Iluka’s Sierra Rutile estimates, demand is set to outpace supply for the rest of the decade. Production from legacy assets is declining, few new projects are coming online, and high-grade resources are increasingly difficult to find and finance. Compounding this is the geographic concentration of supply: most natural rutile comes from just a handful of regions—Sierra Leone, Australia, and potentially Malawi via the Kasiya Project. No other large-scale operation is expected before 2026.
China, despite being a major consumer of titanium feedstocks, remains heavily reliant on imports for chloride-grade rutile, creating long-term vulnerability. This is shifting industrial attention toward safer jurisdictions. Australia stands out here, with active mineral sands developments in WA, Queensland, and the Murray Basin. Companies like Iluka Resources (ASX: ILU) and Sovereign Metals (ASX: SVM) are stepping into this role with new projects and value-adding processing strategies.
Figure 5A: The closure of the Strandline Coburn project in Shark Bay, Western Australia. (source The West Australian)
At the same time, Strandline Resources (ASX: STA) offers a cautionary note. Its Coburn Mine was placed in care and maintenance in mid-2025 amid trading losses and strategic restructuring. While suspended from trading, the Coburn operation holds long-term potential given its product mix and jurisdictional strength. It highlights a vital truth in the rutile space: execution risk, funding structure, and market timing must all align.
The chart below, from TZMI (March 2024), illustrates a projected tightening global rutile market (Figure 6).
Top chart: Rutile demand (yellow line) is expected to consistently outpace supply (SRL + other sources) from 2023 through 2027, highlighting a growing supply gap.
Bottom chart: Rutile prices (US$/tonne FOB) are forecast to rise steadily to 2028, especially under base and high scenarios, surpassing the TZMI long-term inducement price, signalling the need for new supply to meet demand and incentivise production.
Figure 6: Global Rutile Supply and Demand Projections (source: TZMI/SRL estimates)
Behind every production report is a deeper story of geopolitics, logistics, and capital. The global rutile squeeze is very real. And for investors paying attention, this moment offers both risk and a rare opportunity.
According to Straits Research, the global rutile market size was valued at USD 5.68 billion in 2024 and is projected to reach from USD 5.98 billion in 2025 to USD 8.97 billion by 2033, growing at a CAGR of 5.2% during the forecast period (2025-2033). See Figure 6A.
Figure 6A: The rutile market Prediction. (source: Strats Research).
The industry in 2024 continued to ride a wave of steady growth, with worldwide demand increasing incrementally in the face of subtle supply-side adjustments. Major trends were seen in industrial centers. In China, stricter environmental regulations have held back some mining activities, resulting in periodic supply bottlenecks that have driven spot prices for natural products higher.
a. Top 5 Global Rutile Resource and Production Regions:
Like all commodities, the global dominance sets the stage for who is going to be the main player in the supply chain. For many years, Iluka Resources has had the upper hand as they have all the expertise and the infrastructure to make the business work. Let's have a quick look at the major nations in this market.
i. Sierra Leone (Sierra Rutile Limited).
Figure 7: Sierra Rutile Operations (source: Iluka Resources).
World’s Largest Natural Rutile Producer: Sierra Rutile, based in southern Sierra Leone, is the largest producer of natural rutile globally, with over 50 years of operational history. (Sierra Rutile Media Release)
Significant Global Market Share: The company supplies approximately 20% of the world’s natural rutile, underscoring Sierra Leone’s hefty share in the global rutile market. (Mining Outlook)
Tier‑1 Sembehun Deposit for Extended Supply: The upcoming Sembehun project is considered a Tier‑1 rutile deposit, capable of producing around 175,000 tonnes annually over a 14-year mine life at steady state. (Mining Weekly)
Overall, Sierra Leone remains one of the top-five global rutile-producing countries.
ii. Malawi (source: Sovereign Metals)
Figure 8: Kasiya Project, Malawi (source: Sovereign Metals)
Estimated Resources: >1.8 billion tonnes (Kasiya Project – total MRE)
Key Region: Central Malawi – Kasiya, near Lilongwe
Notes: Malawi hosts the world’s largest known natural rutile deposit—Kasiya—owned by Sovereign Metals (ASX: SVM). The project is designed to produce ~222,000 tonnes of rutile annually at full capacity, representing approximately 24% of global supply. Kasiya is also the second-largest flake graphite deposit globally, offering a dual critical minerals profile. The project is ESG-aligned and powered by hydro-based electricity from the Mpatamanga Hydropower Project.
iii. Australia (source: Geoscience Australia / Iluka)
(see Table 1 and Figure 8A)
Queensland
North Stradbroke Island (Sibelco – historical)
Operated for decades producing rutile, zircon, and ilmenite.
Mining ceased in 2019 as part of a government transition away from sand mining.
New South Wales
Balranald Project (Iluka Resources – under development)
Contains rutile, zircon, and ilmenite.
Commissioning targeted for second half of 2025.
Northern NSW mineral sands fields (historical operations)
Several deposits have been mined over the years, yielding rutile and zircon-rich concentrates.
Victoria
Wimmera Region (Iluka Resources – advanced exploration)
Hosts fine-grained mineral sands with rutile, zircon, and rare earth-bearing minerals.
The Wimmera deposits are considered strategically important for long-term rutile supply.
South Australia
Jacinth–Ambrosia Mine (Iluka Resources)
Primarily a zircon mine, but produces rutile and ilmenite as by-products.
Located in the Eucla Basin, west of Ceduna.
Bondi, Sonoran, and other Eucla Basin deposits
Associated with heavy mineral sands, including rutile, currently processed through Narngulu (WA).
Western Australia
Narngulu Mineral Separation Plant (Iluka Resources, Geraldton)
While not a mine itself, this facility processes concentrates from across Australia, producing market-ready rutile for export.
Capel Operations
Produces synthetic rutile by upgrading ilmenite, contributing to Australia’s rutile supply chain.
Rutile is mined in NSW (Balranald, historic fields), Victoria (Wimmera deposits), South Australia (Jacinth–Ambrosia and Eucla Basin), and historically in Queensland (Stradbroke Island). Today, Iluka Resources is the dominant producer, with production processed at Narngulu (WA) and supported by synthetic rutile from Capel.
Figure 8A: Australian heavy mineral sands deposits and operating mines, 2019. Deposit size is based on total resources (EDR + Subeconomic Demonstrated Resources + Inferred). (source: “Commodity Summaries” section of Australia’s Identified Mineral Resources (AIMR) 2020 report, published by Geoscience Australia.)
Table 1: Australian Rutile Operations.
Region | Rutile Activity | Notes |
Western Australia | Eucla Basin deposits, Jacinth–Ambrosia | Active processing at Narngulu; significant supply |
South Australia | Jacinth–Ambrosia mine | Major rutile by-product operation |
New South Wales (NSW) | Balranald Project (Murray Basin) | Development underway; production from 2025 |
Victoria | Wimmera region | Exploration-stage deposits |
Queensland | North Stradbroke Island (historical) | Mining ended; legacy environmental management |
iv. Kenya (source: Base Resources) (Figure 9)
Figure 9: Map of Kenya, Mrima Hill Project (source: Base Resources)
Estimated Resources: ~250–300 million tonnes of heavy mineral sands (Kwale Project)
Key Region: Coastal Kenya – Kwale County
Notes: Operational Status of the Kwale Project
The Kwale Mineral Sands operations, owned and run by Base Titanium Limited (a wholly owned subsidiary of Base Resources), began production in late 2013. The operation extracted valuable heavy minerals—rutile, ilmenite, and zircon—through hydraulic mining and processing via a wet concentrator and mineral separation plant.
Following comprehensive exploration of nearby areas such as the North Dune and Kwale East, the company determined that these prospects lacked sufficient grade or scale to justify extending operations. Consequently, mining is scheduled to end in December 2024, with processing activities winding down soon after.
As of May 2025, Kwale’s mining journey has officially concluded. Base Titanium completed over 11 years of operations, exporting more than 5.2 million tonnes of mineral sands—including approximately 804,000 tonnes of rutile, 3.89 million tonnes of ilmenite, and 295,000 tonnes of zircon. The final bulk shipment of rutile departed in February 2025, marking the end of export operations.
Media:
v. Mozambique / Cameroon (Emerging Frontiers – source: LRM) (Figure 10)
Figure 10: Cameroon (source: LRM)
Estimated Potential: Early-stage – resource not yet fully defined
Key Regions: Moma (Mozambique); Minta (Cameroon)
These frontier regions are increasingly recognised for their rutile-rich mineral sands. In Cameroon, Lion Rock Minerals Limited (ASX: LRM), which was previously known as Peak Minerals Limited (ASX: PUA), is advancing the Minta Project (Figure 10), which has outlined a ~1,500 km² mineralised zone with rutile, monazite, and zircon. Early XRD results confirm high TiO₂ purity (>93% derived from rutile). These regions offer scale and potential, but also carry higher political and logistical risks.
Figure 10A: The Moma Mine in Mozambique which is operated by Kenmare Resources PLC who are listed on the London Stock Exchange. (source: Kenmare Resources PLC).
Kenmare operates the Moma Titanium Minerals Mine (Figure 10A and 10B), located on the north east coast of Mozambique. Moma is one of the largest titanium mineral deposits in the world and has Mineral Resources to support production for more than 100 years at the current production rate. Kenmare began production from Moma in 2007, and the Company has had a presence in Mozambique for almost 40 years.
Figure 10B: An overview of the Moma Mine in Mozambique operated by Kenmare Resources PLC. (source: Kenmare Resources PLC).
4. Highlights of Major Australian Rutile Resources
Australia plays a key role in the global rutile landscape through its high-grade, co-produced mineral sands deposits. These assets are characterised by stability, environmental oversight, and downstream integration.
Cataby (WA) (Figure 11)
Operator: Iluka Resources
Status: Producing
Notes: Key rutile-producing mine within Iluka’s mineral sands portfolio. Feedstock is processed at the North Capel plant. Known for reliable output and integrated logistics.
Figure 11: Cataby Site Overview (source: Iluka Resources)
Eneabba (WA) (Figure 12)
Operator: Iluka Resources
Status: Development / Processing
Figure 12: Eneabba (WA) (source: Iluka Resources)
Notes: Strategic processing and stockpile hub. Contains valuable rutile-rich sands and rare earths. Phase 3 development is underway to include titanium and rare earth refinement.
Coburn (WA) (Figure 13)
Figure 13: Coburn (WA) (source: Strandline Resources)
Operator: Strandline Resources (ASX: STA)
Status: Temporary period of care and maintenance
Notes: Care and maintenance allow new owners to reset the mine for long-term sustainability and profitability.
North Stradbroke Island (QLD)
Former Operator: Sibelco
Status: Historical (closed)
Notes: Previously a major rutile-producing site. Mining has ceased due to environmental and cultural considerations, but it reflects Australia’s production legacy.
WIM Resource Belt (Western Victoria) (Figure 14)
Figure 14: WIM Resource Belt (Western Victoria) (source: WIM Resource)
Operators: Astron Corporation, WIM Resource
Status: Exploration / Feasibility
Notes: Fine-grained heavy mineral sands containing rutile. Early-stage projects aiming to commercialise low-cost inland deposits.
Emerging Projects
Region: Eucla Basin, South Australia & Western Australia
Operators: Various juniors (e.g., Sheffield Resources)
Status: Exploration / Pre-development
Notes: Several projects targeting rutile as part of larger zircon-ilmenite systems. Potential to add to Australia’s future rutile footprint.
5. Key Rutile Companies ASX Investors Should Be Watching
The titanium feedstock market is evolving rapidly, and a select group of ASX-listed small cap companies are positioning themselves to capitalise on the rising strategic importance of natural rutile (Table 2). These companies span the full development curve—from established producers like Iluka Resources to early-stage explorers in high-potential jurisdictions such as Malawi, Cameroon, and Mozambique. For investors seeking exposure to this high-purity, ESG-friendly critical mineral, the following companies represent key positions to monitor.
Table 2: A list of Rutile companies in the ASX small-cap sector that have a notable resource.
📌 Notes on Table 2:
a) The table includes both advanced and emerging ASX-listed rutile companies, focusing on those with either a defined JORC mineral resource or a strategically significant exploration footprint.
b) Sovereign Metals (SVM) and Iluka Resources (ILU) are included for comparative context—SVM anchors the next tier of potential producers, while ILU remains the global incumbent with a mature portfolio.
c) Lion Rock Minerals Limited (LRM) and DY6 Metals (DY6) are early-stage entrants. While both have identified significant rutile mineralisation—particularly at Minta (PUA)—they have not yet declared JORC-compliant resources.
d) Rutile grade and TiO₂ concentration data are based on a combination of JORC reports, DFS studies, and third-party analyses (e.g., Toho Titanium, XRD confirmations), as disclosed in ASX announcements between 2018 and July 2025.
6. Iluka Resources (ASX: ILU) – A Mineral Sands Producer with a Natural and Synthetic Rutile Narrative.
Iluka is a leading rutile producer — both natural and synthetic. It is best described as a global mineral sands company with a portfolio spanning rutile, zircon, ilmenite, and rare earths.
So, Iluka is not just a rutile company, but rutile remains one of its core products. A complex company with a mineral sands business producing the following products:
Zircon – historically its largest revenue contributor (Figure 15).
Rutile (natural and synthetic) – Iluka is one of the world’s largest producers.
Ilmenite – mined and processed, some upgraded into synthetic rutile.
Rare earths – growing focus, with the Eneabba project in Western Australia positioning Iluka as a key critical minerals supplier.
Figure 15: The Jacinth-Ambrosia project in South Australia. According to Iluka, it is the worlds largest zircon mine (source: Iluka Resources).
Rutile in Iluka’s Business:
Iluka produces natural rutile at its Australian mines and processes it through its Narngulu separation facility.
It also upgrades ilmenite into synthetic rutile at its Capel kilns in Western Australia (SR2 active, SR1 on standby).
Projects like Balranald (NSW) will produce rutile, zircon, and ilmenite.
Historically, Iluka was the owner of Sierra Rutile in Sierra Leone (2016–2022), before demerging it into a separately listed company, later acquired by Leonoil in 2024.
The Sierra Rutile Connection - Historical Narrative.
Iluka Resources, through its subsidiary Sierra Rutile Holdings Ltd (ASX: SRX), historically operated the world’s largest natural rutile production base in Sierra Leone (Figure: 3). With over 50 years of supply history, Sierra Rutile remains a cornerstone of global high-grade rutile output, providing more than 20% of global demand and servicing industries ranging from pigments to titanium metal and welding.
The Sembehun Project completed a Definitive Feasibility Study (DFS) in 2023. Backed by a resource of 173.8 million tonnes at 1.45% rutile, Sembehun is forecast to produce up to 175,000 tonnes of rutile per annum over a 14-year mine life. The project offers robust economics, with a post-tax NPV8 of US$408 million and an IRR of 27.8%, leveraging established infrastructure such as the Area 1 port and processing facilities.
Sembehun is emerging at a time of tightening global rutile supply. Its premium rutile feedstock—high TiO₂ with low impurities—is ideally suited for chloride pigment processes and titanium metal, both of which are critical to aerospace, defence, and decarbonisation markets. Over 60% of Sierra Rutile’s sales in 2022–23 were to the U.S., underscoring its geopolitical relevance.
Figure 16: Sembehun, one of the world’s largest and highest-grade natural rutile deposits in Sierra Leone (source: SRX)
The Sembehun rutile project is owned by Sierra Rutile Holdings Limited, which holds 100% ownership of the project.
However, there's an important ownership update to note: As of late 2024, Leonoil Company Limited—a Sierra Leonean-owned company—acquired over 90% of the shares in Sierra Rutile Holdings Limited, and proceeded to complete a compulsory acquisition of the remaining shares under Australian Corporations Law. Sierra Rutile was subsequently delisted from the Australian Securities Exchange on 3 October 2024.
Historical Timeline for the Sierra Rutile Ownership:
(Figure 16A)
1960s – 1990s: Early Development
1967 – Rutile mining began in Sierra Leone by Sierra Leone Selection Trust (SLST), later renamed Sierra Rutile Limited.
For decades, Sierra Leone was one of the world’s largest rutile producers.
Operations were disrupted during the country’s civil war (1991–2002), with the mine forced to close.
2005 – 2016: Sierra Rutile as an Independent AIM-Listed Company
2005 – Sierra Rutile Limited was listed on the AIM (London’s Alternative Investment Market).
Operated independently, with rutile mining restarting and gradually expanding.
December 2016 – August 2022: Iluka Resources (Australia)
December 2016 – Iluka Resources Ltd (ASX: ILU), an Australian mineral sands giant, acquired Sierra Rutile for about A$375 million.
Sierra Rutile became a wholly owned subsidiary of Iluka, integrated into its mineral sands portfolio.
Iluka invested in studies on the Sembehun expansion project during this period.
August 2022 – September 2024: Sierra Rutile Holdings (ASX: SRX)
August 2022 – Iluka demerged Sierra Rutile, creating a separately listed company on the ASX under ticker SRX.
Existing Iluka shareholders received Sierra Rutile shares, and the company operated independently but was still foreign-controlled (ASX-listed).
September – October 2024: Leonoil Acquisition
September 2024 – Leonoil Company Limited, a fully Sierra Leonean–owned company, launched an off-market takeover for Sierra Rutile Holdings at A$0.18 per share.
The offer was successful, Leonoil passed the 90% threshold, and moved to compulsory acquisition of the remaining shares.
3 October 2024 – Sierra Rutile was delisted from the ASX.
Since then, Sierra Rutile is 100% owned by Leonoil, making it Sierra Leone–owned for the first time in its history.
Figure 16A: Sierra Rutile’s ownership journey spans nearly six decades — from its origins under SLST, through international ownership by Iluka Resources, to its ASX-listed chapter, and now a historic return to full Sierra Leonean control under Leonoil Company Limited.
This ILU (Iluka Resources) share chart shows a strong rebound in 2025 (Figure 17). After dipping below $3.50 in mid-April, the stock began recovering through May and June, before sharply rising in early July, peaking above $6.00. As of 31 July 2025, the share price sits at $5.15, reflecting renewed investor confidence likely tied to rutile market momentum and positive project developments. Trading volumes also spiked in July, signalling strong institutional interest.
Figure 17: Iluka Resources (ASX: ILU) Share Performance as on 31 July 2025 (source: ASX)
An industry stakeholder has commented that the ILUKA share price rebound is probably due to the U.S. Department of Defense (DoD) investing in MP Materials at 110/kg NdPr floor price. Positive indication for Iluka’s rare earth refinery in Eneabba.
MP Materials at a Glance
Who they are: MP Materials operates the Mountain Pass mine in California—the only commercial rare earths mining and processing facility in the U.S.—and is vertically integrated across mining, refining, and magnet manufacturing.
What they focus on: The company concentrates on neodymium-praseodymium (NdPr), essential for high-performance permanent magnets used in EVs, robotics, wind turbines, and advanced defense systems.
Iluka Resources Operations – Rutile Production and Growth Pipeline
Established Natural Rutile Producer
Iluka Resources remains one of the leading producers of high-grade natural rutile (92–95% TiO₂), sourced from its Australian operations (Table 3). These concentrates are processed at the company’s Narngulu mineral separation facility in Western Australia before being exported to international markets. With a long track record of supply into the pigment, welding, and titanium metal sectors, Iluka’s rutile product suite is firmly positioned at the premium end of the market.
Synthetic Rutile – A Scalable Advantage
In parallel, Iluka has built significant capability in synthetic rutile production, upgrading ilmenite into high-purity feedstock (88–95% TiO₂) through its rotary kiln operations at Capel, WA. The SR2 kiln, currently in operation, produces around 225,000 tonnes per year, while the SR1 kiln, restarted in late 2022, adds a further 110,000 tonnes per year capacity when market demand supports additional supply. This flexibility provides the company with a strong competitive advantage in meeting customer needs across different cycles.
Growth Pipeline – Balranald and Jacinth-Ambrosia
Looking ahead, Iluka is advancing the Balranald Project in New South Wales, which is expected to deliver substantial zircon and rutile production together with feedstock for synthetic rutile and rare earth products. The project is slated to commence commissioning in the second half of 2025, marking a major step in sustaining long-term supply growth.
Meanwhile, the Jacinth-Ambrosia mine in South Australia, recognised globally as a Tier-1 zircon operation, also yields rutile and ilmenite by-products that are processed through Narngulu. These operations further consolidate Iluka’s position as a diversified mineral sands producer with rutile as a central pillar of its product portfolio.
Table 3: Summary of Iluka Rutile Operations.
Project / Operation | Type of Rutile Involvement | Status / Location |
Narngulu (WA) | Processing natural rutile | Operational; Australia |
Capel (WA) | Producing synthetic rutile via kilns | SR2 active; SR1 available on restart |
Balranald (NSW) | Rutile and zircon mining; future synthetic rutile feed | Under development, commissioning in 2025 |
Jacinth-Ambrosia (SA) | Co-producing rutile alongside zircon | Active operation |
7. Sovereign Metals (ASX: SVM) – Kasiya Rutile-Graphite Project
Sovereign Metals is spearheading one of the most significant critical mineral developments globally with its Kasiya Project in Malawi. This flagship operation is defined by its geological simplicity, free-dig lateritic mineralisation, and substantial scale (Figure 18). It is the only known deposit combining a globally dominant rutile resource with a high-quality flake graphite co-product. Together, these attributes offer Sovereign exposure to two essential and supply-constrained critical minerals with diverse industrial applications.
Figure 18: Kasiya Rutile-Graphite Project (source: SVM)
Malawi’s supportive jurisdiction, favourable tariff positioning, and expanding power infrastructure further reinforce Kasiya’s commercial potential. With the Definitive Feasibility Study (DFS) expected by late 2025, and a robust pilot program already underway, Sovereign Metals is methodically progressing Kasiya toward development. The project's multi-commodity profile and strong ESG fundamentals position it to become a cornerstone for sustainable mineral supply chains in a changing geopolitical landscape.
The World’s Largest Natural Rutile Deposit
Kasiya contains a JORC-defined mineral resource exceeding 1.8 billion tonnes, making it the largest known natural rutile deposit globally. Hosting 17.9 million tonnes of contained rutile, the deposit is unmatched in scale and grade, offering a long-term supply alternative to declining traditional sources like Sierra Leone and Australia. The project’s mine plan outlines an initial 25-year operation delivering 222,000 tonnes of rutile per annum, equivalent to ~24% of the global natural rutile market at steady state.
The geological profile of Kasiya lends itself to cost-effective operations, as mineralisation occurs in soft, shallow saprolite. This allows for low-strip, free-dig mining and straightforward processing. Notably, the mineral is naturally high in TiO₂ content and low in impurities, reducing the need for energy-intensive upgrading processes typically required for ilmenite-based feedstocks. This purity positions Kasiya’s rutile as a preferred feed for chloride-route pigment production and titanium metal manufacturing.
Tier 1 Scale, ESG Credentials and Global Validation
Kasiya’s development has been strategically aligned with ESG benchmarks from the outset. A landmark agreement with Malawi’s state utility ESCOM secures access to grid-connected power, primarily sourced from the upcoming Mpatamanga Hydropower Project—a 358 MW World Bank-backed renewable energy initiative. This allows Kasiya to significantly reduce its carbon footprint and operating costs, placing it among a select few mining operations with a defined path to sustainable, large-scale power.
Figure 19: Kasiya: A Tier 1 Asset with Global Strategic Relevance (source: SVM)
Validation from downstream users has also reinforced Kasiya’s market potential. Japan’s Toho Titanium has independently confirmed that the project’s rutile meets premium industrial specifications, including >95% TiO₂, low deleterious elements, and suitable particle size for high-end pigment and titanium metal applications. On the graphite front, the project has delivered strong CSPG battery performance, making it a potential domestic alternative to the Chinese anode supply. Together, these attributes place Kasiya on a short list of Tier 1, future-facing mineral projects with global relevance (Figure 19).
The share chart for Sovereign Metals (ASX: SVM) from February to July 2025 shows a notable rise in early March, peaking just below $1.00, likely driven by positive investor sentiment or company announcements (Figure 20). However, the stock experienced a sharp correction in late March and early April, dropping to around $0.65. Since mid-April, the share price has shown a gradual recovery, fluctuating within the $0.65–$0.80 range. As of 31 July 2025, the stock is trading at $0.71, reflecting a stabilisation phase following earlier volatility. Trading volumes spiked significantly around March and again in July, indicating periods of heightened market activity and investor interest.
Figure 20: Sovereign Metals (ASX: SVM) Share Performance as on 31 July 2025 (source: ASX)
8. Lion Rock Minerals Limited (ASX: LRM)/ Peak Minerals (ASX: PUA) – Minta Rutile Project
Lion Rock’s Strategic Push into Minta Rutile Project in Cameroon
Lion Rock (ASX: LRM) is quietly building a critical minerals play in Cameroon (Figure 21). The Minta Rutile Project has:
1. A mineralised footprint nearing 1,500 km².
2. XRD-confirmed TiO₂ from rutile at >93%.
3. Notable co-products: monazite (rich in NdPr and DyTb), zircon.
4. Surface mineralisation is ideal for low-cost, free-dig mining.
Figure 21: Mineralised zone at Minta Rutile Project nears 1,500km2. (source: LRM)
Minta is still at the exploration stage but shows significant promise. With $3.5 million in new funding and a 100% drill success rate in early campaigns, it has the potential to become a high-quality, multi-commodity rutile supply hub. While PUA is not currently producing in Australia, its Cameroon project is quietly emerging as a future-ready asset.
• A Frontier Discovery in Cameroon
The Minta Project now spans a consolidated landholding of over 1,500 km², with recent tenement additions bringing new exploration corridors into the fold. Located in central Cameroon and supported by access to Atlantic shipping ports, Minta is positioned in an emerging critical minerals zone. Systematic auger and trench sampling across multiple zones has confirmed pervasive near-surface rutile mineralisation, with field observations and assays pointing to bulk tonnage potential.
• Premium Mineralogy and Critical Co-Products
Laboratory testing confirms the mineralisation is dominated by high-purity natural rutile, with XRD showing over 93% of TiO₂ sourced from rutile. The presence of monazite—rich in neodymium, praseodymium, dysprosium and terbium—suggests valuable rare earth by-products may also be recoverable. The surface expression and low stripping ratio add to the project’s appeal, potentially enabling a low-capex, free-dig operation in the future.
• Quietly Emerging as a Critical Minerals Opportunity
A 2,000 kg bulk sample program is underway, with follow-up metallurgical testwork to assess separation efficiency and final product quality. Downstream interest continues to grow, as buyers seek to diversify away from increasingly constrained rutile supply chains. With global rutile grades in decline and few new entrants on the horizon, Minta offers a rare mix of scalability, mineralogy, and jurisdictional optionality in a reshaping global titanium market.
The share chart for Lion Rock (ASX: LRM) from February to July 2025 shows a prolonged period of flat trading under $0.02 through to early June (Figure 22). A noticeable upward trend began mid-June, accelerating rapidly in July, with the stock peaking at $0.088 before settling at $0.063 by 31 July 2025. This strong rally suggests a surge in investor interest, likely fuelled by positive developments around the Minta Rutile Project or increased market awareness. Trading volumes significantly increased in July, indicating heightened buying activity and momentum-driven sentiment in the small-cap critical minerals space.
Figure 22: Lion Rock (ASX: LRM) / Peak Minerals (ASX: PUA) Share Performance as on 31 July 2025 (source: ASX)
9. DY6 Metals (ASX: DY6) – Exploring Cameroon’s Next Rutile Frontier
DY6 Metals is progressing rapidly in Cameroon with a dual-pronged exploration approach across its vast 5,901 km² Central Rutile Project (Figure 23). Located within a geologically rich corridor adjacent to Peak Minerals’ Afanloum discovery, DY6’s ground sits in what is shaping up to be a globally significant rutile province. The company is advancing its soil sampling and auger drilling programs to define rutile-rich zones, targeting in-situ, saprolite-hosted rutile mineralisation—akin to the Kasiya deposit model in Malawi.
With systematic fieldwork already underway, DY6 is positioning itself for a maiden drilling campaign that could firmly establish the Central Rutile Project as a strategic asset in the global titanium feedstock pipeline. Backed by a fully funded program and technical execution already in motion, the company is looking to release initial assay results by August 2025. Investors watching this emerging rutile play will be keenly focused on how those early results shape the path forward.
Figure 23: Map showing DY6’s full project portfolio in Cameroon. (source: DY6)
Systematic Sampling Across a Vast 5,901 km² Tenure
Regional soil sampling program underway over the full 5,901 km² holding, with auger drilling in progress on Nsimbo and Alamba licences adjacent to PUA’s Afanloum discovery.
Well-Funded Exploration with Dual-Project Momentum
Fully funded to accelerate exploration at both the Central Rutile Project and the Douala Basin HMS Project, with initial assay results expected in August 2025.
The DY6 Metals (ASX: DY6) share chart from February to July 2025 shows a long period of stability under $0.05 until mid-April, when a sharp spike occurred—likely in response to exploration updates or market revaluation (Figure 24). After a brief correction, DY6 maintained a steady upward trajectory through May and June, before a strong breakout in early July, pushing the price above $0.30. The recent pullback to around $0.26 suggests a consolidation phase following strong interest and higher trading volumes, likely driven by investor excitement over its rutile and rare earths exploration in Cameroon.
Figure 24: DY6 Metals (ASX: DY6) Share Performance as on 31 July 2025 (source: ASX)
10. Samso Concluding Comments
Rutile: The Underappreciated Critical Mineral with Strategic Weight
Prior to the recent discovery by Sovereign Metals Limited and that of Lion Rock Minerals Limited (ASX: LRM), previously known as Peak Minerals Limited (ASX: PUA), the word Rutile was pretty much under the radar of mainstream investors (In the Micro to Small Capitalisation sector), often and recently overshadowed by more headline-grabbing critical minerals like lithium or rare earths. The decarbonisation efforts and sovereign supply chain concerns have brought out the narrative of a supply squeeze and hence, intensified the strategic value of natural rutile is becoming increasingly clear.
With the highest TiO₂ content of any titanium feedstock, minimal processing requirements, and essential roles in aerospace, defence, and clean energy technologies, rutile (Figure 25) is no longer just a pigment mineral—it’s now recognised as a linchpin of future industrial systems. That recognition is being codified globally, with rutile now classified as a critical mineral in Australia, the EU, and the US.
Figure 25: A specimen of Rutile. (source: https://geologyscience.com/minerals/rutile/)
The story becomes even more compelling when you consider the tightening global supply dynamics. Mature producers like Iluka’s Sierra Rutile are maintaining strong positions but face rising challenges with grade decline, geopolitical complexity, and limited expansion runway. At the same time, projects like Sovereign Metals’ Kasiya are emerging as new anchors in the global titanium value chain, with tier-1 scale and ESG-aligned design built into their foundations. As natural rutile becomes more scarce—and synthetic substitutes fail to meet ESG or performance benchmarks—markets will increasingly gravitate toward scalable, secure, and low-carbon sources.
Kasiya vs Sembehun: Complementary Giants in the Titanium Race
The Kasiya and Sembehun projects, while both massive in their own right, represent complementary pillars in the titanium race. Kasiya’s strength lies in its size, purity, renewable energy integration, and graphite by-product upside, positioning it as the next-generation rutile supply base. Sembehun, on the other hand, builds on decades of operational history, offering near-term production and the backing of a globally recognised player in Iluka. Together, they signal a dual-track future for rutile—one rooted in legacy infrastructure and one built for the net-zero world. Investors would be wise not to see them as competitors, but rather as critical co-drivers of titanium’s global future.
ASX Small-Caps Quietly Building the Next Supply Base
As we look across the ASX, what’s striking is the quiet momentum building around smaller rutile players—Lion Rock Minerals (Peak Minerals), DY6 Metals, Petrotherm (ilmenite), all of which are carving out potential new lanes in the supply landscape. If you take Petratherm (Predominantly ilmenite) and DY6 Metals (Early stage), you are simply left with a two horse race with Lion Rock Minerals and Sovereign Metals to be the next HM/Rutile mining proposition.
This is the moment for investors to get ahead of the curve. Rutile may not dominate headlines yet, but as with lithium a decade ago, the early movers who grasp its strategic weight will be best positioned for what’s next. At Samso, we believe the rutile story is just beginning to unfold—and it’s one worth watching very closely.
11. The Samso Way – Seek the Research
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References:
Base Resources owns and operates the Kwale mineral sands mine in Kenya
Sierra Rutile Presentation June 2022
Sembehun DFS Reinforces Strategic Value of Significant Project
Diatreme Resources August 2018 Presentation
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