MZI signs partial offtake deal with DuPont

MZI Resources has signed a deal to sell most of the high value titanium dioxide production from its Keysbrook mineral sands project to US-based DuPont Titanium Technologies, and is still looking for a buyer for the balance.

The agreement is for 25,000 tonnes of leucoxene L88 titanium dioxide per annum over an initial five-year term, with options to extend.

The project is expected to produce 38,400 tonnes per annum of L88, which contains 88 per cent titanium dioxide.

“This agreement, the third to be signed for the Keysbrook project, means that about 85 per cent of (the project’s) planned annual production by volume has now be sold under long-term contracts, which considerably de-risks the project,” MZI chief executive Trevor Matthews said.

Keysbrook has the potential to produce about 100,000 tonnes per annum of high-grade mineral concentrate, comprising L88 plus L70 titanium dioxide and zircon concentrate.

MZI has already signed an offtake agreement with DuPont for all leucoxene L70 produced at Keysbrook, while Tricoastal Minerals has agreed to buy zircon concentrate produced at the project.

The company will continue discussions with potential customers regarding the remaining product up for grabs.

Last week, MZI awarded GR Engineering Services a $54.6 million contract to provide engineering procurement and construction works at Keysbrook.

The contract is one of the final steps required before work can begin at Keysbrook, however, a development decision is yet to be formalised.

MZI said it would make an announcement on the development decision “in the near future”.

Shares in MZI were unchanged at 0.8 cents per share at 12:30pm.