MZI Resources gains Bunbury port access for Keysbrook mineral sands project
MZI Resources (ASX: MZI) has reached a key milestone with the execution of a Port Services Agreement with the Bunbury Port Authority in Western Australia.
Signing the Port Services Agreement with
the Bunbury Port Authority places MZI Resources another step closer towards
bringing its Keysbrook mineral sands project into production. The company is
now working towards finalising finance arrangements.
Importantly, the seven year contract, which covers the export of both Leucoxene
and Zircon, provides sufficient capacity to export all products that will be
produced from its Keysbrook mineral sands project.
MZI plans to export Keysbrook’s average annual production of approximately
91,000 tonnes of leucoxene and zircon concentrate products through the port to
key Chinese and world markets.
Ticking off the milestones
The company has been progressing development of the Keysbrook project in recent
months.
It had in April signed a crucial sales agreement with DuPont Titanium
Technologies that covered all of the leucoxene 70% titanium dioxide production
and had also reached a mineral sands toll treatment deal with Doral.
The agreement with DuPont Titanium Technologies is for an initial term of five
years with options to extend the contract and represents almost 30% of the
planned annual production by volume from the project.
Having world’s largest titanium dioxide pigment producer and a blue-chip company
as a customer also highlights the value of the Keysbrook Project and its
products.
MZI’s agreement with Doral covers the life of the Keysbrook Project and
de-risks the secondary processing of its planned products.
Analysis
With the Port Services Agreement with the Bunbury Port Authority now in place, MZI
Resources is well placed to proceed with development of Keysbrook with just
financing waiting to be finalised.
This is likely to be achieved soon as the company has already achieved several
major milestones while the current slow down in construction activity in WA’s
resources sector could result in a more favourable development contract, which
in turn will provide greater certainty in respect to development costs and
schedules and more desirable security arrangements.
