PERTH (miningweekly.com) – Kaolin producer Suvo Strategic Minerals has struck a non-binding agreement with supply chain services provider C&D Logistics Group over a possible offtake agreement.
Under the terms of a non-binding cooperation agreement, the two companies would work to negotiate a sales and purchase agreement for a minimum of 80 000 t/y of hydrous calcined kaolin, with the product to be produced from Suvo’s existing Pittong operation, or other kaolin projects.
C&D has requested Suvo to provide 12 additional product samples of hydrous clay from its Pittong operations for further evaluation. Pending the outcomes of this evaluation, the two companies would further negotiate offtake agreements.
“This cooperation agreement with C&D marks a significant milestone in supporting Suvo’s strategic growth plan,” said Suvo noexecutive chairperson Henk Ludik.
“The agreement helps underpin the expansion works currently taking place at our Pittong operation, with the potential to lead to a minimum offtake of 80 000 t/y of hydrous calcined kaolin. The investment we are making in our Pittong expansion reflects the surging demand being seen globally for high-quality kaolin products.
“The agreement also comes after the recent successful bulk sample production of high reactivity metakaolin from our Gabbin deposit, which allows us to carry out meaningful discussions with potential global partners, such as C&D.”