Perth, Australia-based mineral sands explorer Iluka Resources Ltd announced that it will pick up an 18.3% stake in Rotherham, UK-based metal powder producer Metalysis for ₤12.2 million ($A22.5 million). 

The decision was made because Iluka wanted to gain access to Metalysis' new technology which is used to produce titanium powder. Iluka managing director David Robb said the company could potentially benefit from the technology by paving the path for new markets in metals and alloy manufacturing, the report explained.

Robb added: "The successful commercialization of the Metalysis process could create significant value, and potentially result in a material increase in demand for Iuka's high grade chloride feedstocks. This investment represents an opportunity for Iluka to utilize its understanding of the titanium industry, specifically the high grade and very high grade titanium dioxide feedstock sectors, and its strength in product development, to help bring a potentially game-changing technology to market."

Iluka made the announcement about the stake buy as its full-year profit slid 94.9% to $18.5 million. The slump was mainly due to low demand for its mineral sands products, Yahoo News reported.