The mineral sands producer also announced on Wednesday a production shutdown at a major kiln as global economic uncertainty hits demand for some mineral commodities, including high-grade titanium feedstocks.
Managing director Tom O'Leary said Iluka delivered increased prices and strong margins in the first half against a backdrop of evolving market dynamics.
The four-month production pause from October at synthetic rutile kiln 1 (SR1) in Capel, Western Australia, will coincide with planned maintenance at the adjacent SR2 kiln, with both to restart at the end of January 2024.
Mr O'Leary said the cost environment in WA was presenting challenges for projects throughout the industry as higher fuel, consumables, and labour costs impact on operations.
But work continued at all stages of Iluka's development pipeline, with those projects currently in execute phase - Balranald in NSW and Eneabba in WA - a particular focus, he said.
Engineering and procurement are under way at Balranald, a critical minerals development located in the Riverina district of NSW.
Australia's first fully integrated refinery for the production of separated rare earth oxides is being developed at Eneabba, supported by a $1.25 billion federal loan.
The company's offtake plans are focused on achieving recognition of strong environmental, social and governance (ESG) credentials and customers being able to trace the source and sustainability standards of products to be refined at Eneabba.
Iluka said major contractor Fluor Australia expected to complete the front end engineering design (FEED) by the end of the year.
"We have also announced the commencement of a feasibility study into rare earth metallisation," Mr O'Leary said.
Metallisation, currently dominated by China, is the next stage of processing that adds value after the production of rare earth oxides.
"This capability would broaden Iluka's potential customer base and further enhance our marketability as a sustainable producer of light and heavy rare earths with traceable product provenance," he said.
Iluka declared a fully franked interim dividend of three cents per share, down from 25 cents a year earlier.
The troubled Sierra Rutile arm of the business was demerged from the group in August 2022.
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