Iluka Resources shares jumped after the minerals sands miner secured a near doubling in the price for rutile.

Iluka shares finished up 89 cents, or 5.64 per cent, at $16.68 after almost 12 million shares changed hands.

The company on Thursday said it had reached agreements with major titanium dioxide customers in the pigment market on rutile and synthetic rutile prices and volumes for the six months to June 30, 2012.

Rutile is used in the production of titanium, which is a key metal used in aircraft because it is strong, light and corrosion resistant.

Iluka expects the average price it receives for rutile will rise by 80 to 85 per cent compared to the forecast average price in the current half year of about $US1,340 per tonne.

There would also be an 85 to 90 per cent increase in the average price of synthetic rutile, compared to the forecast average price for the current half of about $US1,075 per tonne, Iluka said.

Iluka’s titanium dioxide is sold mainly into the pigment market, but also into other titanium market segments such as welding and titanium sponge, which is used in fabrication.

Iluka said the price increases reflected the company’s preferred product pricing approach, current market dynamics and competitive conditions.

Austock Securities senior client adviser Michael Heffernan said Iluka has been 2011’s “star of the resources sector”, with its share price rising more than 90 per cent in the calendar year to date.

Iluka holds about a third of the global market share for zircon, which is used in ceramic tiles.