Maiden leucoxene shipment leaves Bunbury Port

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 15 Mar 2016   Posted by admin

By Rachel Seeley

THE first shipment of L70 leucoxene product from MZI Resources’ Keysbrook mineral sands project in South West WA has departed Bunbury Port enroute to the US.

This shipment marked the start of cashflow from the project, with offtake customer Chemours using the L70 leucoxene to make pigments for paints, plastics and other applications.

“This shipment represents Keysbrook’s arrival as the single biggest producer of high value leucoxene in the world, as we continue to ramp up cash flow generation and build value for shareholders through high margin product sales,” MZI managing director Trevor Matthews said.

More than 3800t of zircon concentrate was also shipped to Tricoastal/Wensheng – China’s largest mineral sands processor – under a five-year offtake agreement.

MZI expected Leucoxene would make up about 70 per cent of annual sales from Keysbrook, with the remainder from zircon.

The company had secured offtake agreements for 73 per cent of its total planned production for 2016, comprising 100 per cent of the zircon production and 65 per cent of the leucoxene products.

MZI stated it was in discussion with other prospective customers for Keysbrook leucoxene and expected to sell all available production in 2016.