Emerging mineral processing technology company Zeotech has executed a non-binding memorandum of understanding (MOU) with Jiangsu Mineral Sources International (MSI) Trading, an international trading house based in China.
The MOU outlines the framework for potential offtake or distribution agreements for Zeotech’s low-iron kaolin, pink cosmetic grade kaolin, and bauxitic clay direct shipping ore (DSO) products.
Under the agreements, MSI could purchase 800,000 tonnes (t) of low-iron kaolin DSO, 150,000t of pink cosmetic grade kaolin DSO, and 1.5 million tonnes of bauxitic clay DSO over five years.
These commitments could sustain mining operations at Zeotech’s Toondoon Kaolin project in Queensland, Australia.
Zeotech CEO James Marsh said: “We are excited to be able to work with MSI towards a pathway to early cashflow from our ready-to-mine kaolin resources, as we continue to progress with the accelerated commercialisation of our AusPozz high reactivity metakaolin project.
“Toondoon kaolin has an exceptional natural purity, which has led to this DSO opportunity, which is made especially compelling by including the materially higher-value cosmetic-grade pink kaolin and the bauxitic clay, which was initially considered overburden but now can add value to the overall mining project.”
The sale of bauxitic clay DSO represents a strategic opportunity for Zeotech, potentially providing a revenue stream for a product that would otherwise be stockpiled. This could significantly enhance the overall economics of the mining operation, the company said.
The company has been collaborating with Gladstone Ports at the Port of Bundaberg, utilising their bulk mineral conveyor, ship loading system, and DSO storage area, which are well-suited for the bulk kaolin business.
The MOU is set to expire on 31 December 2025, with the option for either party to terminate by providing 30 days written notice.
The Toondoon Kaolin project, which comprises ML 80126 and EPMs 27395 and 27866, is a high-grade kaolin deposit with an approved mining lease.
Spanning over 28,000 hectares (ha) and located approximately 20km south of Mundubbera, Queensland, the project is a straightforward open-cut mining operation with minimal overburden.
Zeotech owns the freehold land covering the entirety of ML 80126 and overlapping the adjacent EPMs, totalling approximately 682ha. This land provides direct access to local roads, supporting mining operations and offering potential for future expansion to meet demand.
