Iluka weighs rare earths expansion as profit slides

Mineral mining company Iluka is having talks with the federal goverment on a rare earths refinery. (Stuart Walmsley/AAP PHOTOS)

Iluka Resources is weighing the cost of expansion into rare earths as global economic uncertainty depresses demand for its mineral sands.

The mining and processing company on Wednesday reported a first-half net profit of $134 million, down 34 per cent from $204 million a year earlier, as global economic uncertainty continues to weigh on sales.