Items that containing this material may cast the Clear Vision spell. Outdated items may also have contained the Lightning Bolt spell, but these items likely will not work with the 3.1 rune material changes.
In DragonRealms, ilmenite is a pale silver metal tinged through with blue streaks. It has no other associations with the real life ilmenite.
It is a very rare material that must be provided for alterations. Intricate detailing via carving is not possible though engraving is fine.