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MZI Resources: Off-take customer significantly increases leucoxene purchases for 2016

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MZI Resources: Off-take customer significantly increases leucoxene purchases for 2016

MZI ResourcesLtd. said July 18 that its off-take customer has requested asignificant increase to the contracted sales volumes for its L70 and L88leucoxene product from the Keysbrookmineral sands project in Western Australia, in the December half.

The request comes amid growing signs of improving marketconditions for titanium dioxide feedstocks, including increases in price for titaniumdioxide pigments by major producers, and increases in feedstock prices.

The unnamed customer's request for increase in volumesubstantially offsets the previously announced and will result in thesale of all L70 produced this year.

The company accommodated its major customers request whilemaintaining capacity to supply prospective third-party customers for L88product, based on the availability, as production ramps up toward targetedlevels.

MZI said it continues to advance discussions with otherprospective customers for Keysbrook's leucoxene and expects to sell allavailable production this year.