JOHANNESBURG (miningweekly.com) – Mineral sands miner MZI Resources has received a request for a significant increase in contracted sales volumes for L70 and L80 from the Keysbrook mine, in Western Australia.
The request from its major leucoxene customer comes amid growing signs in recent months of improving market conditions for titanium dioxide feedstocks, including material price increases for titanium dioxide pigments by major producers, and increases in titanium dioxide feedstock prices.
The ASX-listed company reported on Monday that the increased leucoxene purchases would offset the previously announced volume reduction notice and would result in the sale of all this year’s L70 product, with only limited L88 still available.
MZI stated that it would work to accommodate the customer’s request while maintaining capacity to supply prospective third-party customers for L88, based on product availability as production ramped up toward targeted levels.
“This is a welcome and definitive confirmation of both the improving outlook for premium titanium dioxide feedstocks such as those produced at Keysbrook and our strong relationships with blue-chip offtake customers.
“We will do all we can to accommodate our customer’s increased requirements whilst also maintaining sufficient flexibility to cater for other potential purchasers and further building our customer base,” said MZI MD Trevor Matthews.
The zircon, rutile and leucoxene deposit, which has a mine life of 15 years, is located about 70 km from Perth.
Edited by: Chanel de Bruyn
Creamer Media Senior Deputy Editor Online
EMAIL THIS ARTICLE SAVE THIS ARTICLE
To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
