Mineral sands producer Iluka Resources appears set to make a decision within months on whether to advance its Cataby project, as improving market conditions support customer interest in the West Australian deposit.

Iluka managing director Tom O'Leary told an analyst call on Friday the company's discussions with potential offtake partners for Cataby had made "good progress" during the September quarter and it was well placed to make a decision on whether to proceed with its development before the end of the calendar year.