Announcing a profit of $4.1 million for the six months to June 30, the company said it is well placed to improve its performance in the second half.

“Productivity is improving as the dredge reaches design throughput and moves into higher grade ores,” the company said.

Improving the efficiency of its two dredge mining operations on North Stradbroke Island and its dry separation plant at Pinkenba, near Brisbane, is top of Consolidated Rutile’s agenda at the moment.

On the demand side, strong economic growth and a continued recovery in Asia are boosting demand for the company’s major products, rutile and zircon.

Rutile is used in titanium dioxide pigments and welding electrodes, while zircon is in demand for computer screen x-ray filters and ceramic glazes used in tiles, tableware and sanitary-ware.

Exploration has confirmed mineral resources in the company’s Herring-Enterprise deposit, which is likely to become its next North Stradbroke mining operation.