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WA Kaolin signs three-year offtake deal

1st April 2022

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – ASX-listed WA Kaolin has inked a three-year offtake agreement with a Vietnamese distributor.

Under the terms of the offtake agreement, WA Kaolin is to supply 4 500 t/y, with a minimum 2 500 t/y, for three years, starting in July of this year.

Pricing for the agreement will be competitive to the world kaolin market delivered on a cost and freight (CFR) basis, and pricing of at least the minimum quantity will be negotiated on a quarterly basis through mutual negotiation and agreement.

“This is excellent news for WA Kaolin and builds further momentum as we near commencement of production for Stage 1 at the Wickepin kaolin project,” said CEO Andrew Sorensen.

“Combining this with previous offtake agreements and letters of intent announced, we have now secured contracts covering 90% of our expected Stage 1 output, prior to production commencing.

“As we near the Stage 1 production milestone, WA Kaolin is also well placed for expansion with funding to accelerate certain elements of Stage 2 development to increase production to 400 000 t/y secured. We are now incredibly close to becoming a significant kaolin producer on the world stage in a strengthening global market environment for the resource.”

Full production at the Wickepin project is targeted for before the end of the second quarter of this year.

Edited by Creamer Media Reporter

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