24/04/2013 - 09:37

MZI signs off-take agreement for Keysbrook

24/04/2013 - 09:37

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MZI signs off-take agreement for Keysbrook
Drilling operations at the Keysbrook project, south of Perth.

MZI Resources has signed a sales agreement with US chemicals giant DuPont covering all of the leucoxene 70 per cent (L70) titanium dioxide to be produced at the Keysbrook mineral sands mine south of Perth.

MZI said the agreement with DuPont Titanium Technologies was for a five year term, with options to extend the contract. 

Other commercial terms of the deal were not disclosed.

MZI chief executive Trevor Matthews said the sales contract marked an important milestone for the project.

“Having DuPont, the world’s largest titanium dioxide pigment producer and a blue-chip company, enter into a sales agreement of this nature is a clear indication of the value of the Keysbrook project and its products,” Mr Matthews said in a statement.

“This agreement, the first to be signed for the Keysbrook project, represents almost 30 per cent of our planned annual production by volume and considerably de-risks the project.”

Mr Matthews said MZI was also continuing negotiations with other potential customers for the project’s L88 and zircon concentrate products.

Today's contract announcement follows the signing earlier this week of a processing agreement with Doral Mineral Sands for products from the Keysbrook mine.

The agreement will see Doral process heavy mineral concentrate from the Keysbrook mine at its Picton plant, located 10 kilometres from Bunbury Port.

Products to be produced include L88 and L70 titanium dioxides and a zircon concentrate at 56 per cent zircon.

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