Suvo Strategic Minerals Ltd (ASX:SUV) has executed a non-binding term sheet through its subsidiary Climate Tech Cement Pty Ltd (CTC) to establish an incorporated joint venture (JV) with PT Huadi Bantaeng Industry Park (PT HBIP) in Indonesia.
This 50:50 JV will collaborate to commercialise and manufacture low-carbon cement and concrete products containing nickel slag as a component at the Bantaeng Industrial Park, where PT HBIP has stockpiles of nickel slag.
The next step for the JV agreement will be for both parties to agree on a definitive formal and binding agreement, including a shareholders agreement which will govern the JV, within 90 days.
Delivering low-carbon cement to market
“We are pleased to progress our strategy in Indonesia with our new partners, PT Huadi Bantaeng Industry Park,” Suvo executive chair Aaron Banks said.
“In a short time, we have not only successfully created a formulation utilising their industrial waste (nickel slag) but we have done so creating a novel binder; a one-part low carbon geopolymer cement.
“The formation of this partnership is a key milestone for the company as it adds significant scale for potential future operations.
“The consumption of Portland cement within the broader region is around 300-400 million tonnes per annum.
“Huadi, in alliance with other smelters, produces around 15 million tonnes per annum of nickel slag.
“This partnership has the potential to lock in the necessary supply chains and give the company the best chance for success in delivering to market this low-carbon cement.
“We are excited to have also commenced preliminary offtake discussions for our nickel slag-based low-carbon product with large users of Portland cement in Indonesia and the broader Southeast Asia region.”
Low-carbon cement technology
SUV licenses the Murdoch Technology’ from Murdoch University under a worldwide and exclusive Intellectual Property Licence Agreement, a technology used for creating a low-carbon geopolymer concrete formulation known as ‘Colliecrete’.
Geopolymer concrete is a suitable replacement for concrete made using the traditional binder known as Ordinary Portland Cement (OPC).
The manufacture of OPC is a highly emitting process representing 8% of global CO2 emissions which is equivalent to the entire global car fleet.
Alongside dealings with PT HBIP, Suvo also entered into a binding joint development agreement with PERMAcast to develop and commercialise low-carbon geopolymer concrete (GPC) products.
Read: Suvo Strategic Minerals executes shareholders agreement with PERMAcast for 'green' concrete