Minerals sands miner Iluka Resources has received South Australian government approval for its Jacinth-Ambrosia zircon project in the Eucla Basin.

Government approval for a construction, mining and rehabilitation plan allows the company to open the mining pit and establish infrastructure and processing facilities on site.

The plan is subject to further procedural approvals.

General manager South Australian development Hans Umlauff said the project remains on schedule for first production by mid-2010.

“To date, approximately $100 million has been committed to the project, with forecast project expenditure levels remaining within the total budget of $420 million,” Mr Umlauff said.

Last week, Iluka received Victorian government approval for its Murray Basin Stage 2 rutile and zircon project, which is slated to begin producing in the second quarter of next year.

Shares in Iluka were down 16 cents, or 3.85 per cent, to $41 at 11.19am. – Associated Press