Perth-based Iluka Resources and Outokumpu-Lurgi Metallurgie have successfully completed pilot testing of a new synthetic rutile process, and scoping and feasibility studies are under way for the first commercial plant, which is expected to be in production by 2006. The NewGenSR process will produce a high-quality product (more than 94% TiO₂) from a broad range of ilmenite feedstocks, including those that are currently considered unsuitable for upgrading. The process involves oxidation of the ilmenite in a circulating fluidised bed (CFB), followed by a low temperature hydrogen-based CFB reduction step. Finally, conventional aeration is followed by improved sulphuric acid leaching. The process is suitable for upgrading ilmenites from the Murray Basin, where Iluka has major tenement holdings with a total estimated resource of 16.6 Mt of heavy minerals.