Iluka Resources has approved its $275 million Cataby mineral sands project, which is set to provide more than 400 jobs, after securing offtake agreements for 85 per cent of production from the deposit.

Cataby has an 8.5-year initial mine life and is located 150 kilometres north of Perth, with annual production of 200,000 tonnes of synthetic rutile, 50,000t of zircon and 30,000t of rutile.

Iluka estimates that construction of the mine, which is expected to take 18 months, will provide 250 jobs while the operations will sustain 160 jobs in addition to the 160 workers at the company's Capel site.

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