Emerging cleantech player Zeotech Ltd (ASX:ZEO) has unveiled a robust preliminary feasibility study (PFS) for its AusPozz™ Project in Queensland, laying the groundwork for what could become Australia’s first commercial-scale metakaolin manufacturing facility for the low-carbon concrete market.
The PFS outlines a 20-year operation supported by ultra-high-purity kaolin resources from Zeotech’s wholly owned Toondoon Kaolin Project, targeting production of 300,000 tonnes per annum (tpa) of AusPozz™ and 151,000 tpa of direct shipping ore (DSO) kaolin.
Location of Toondoon Mine Site and AusPozz™ Manufacturing Facility.
With strong economic metrics, early offtake interest from major players including Holcim Australia and the potential to slash industrial carbon emissions, the project marks a pivotal step in Zeotech’s ambitions to supply next-generation supplementary cementitious materials (SCMs) to a rapidly decarbonising construction sector.
Strong financials and fast payback
The headline figures from the PFS point to a compelling investment case. Zeotech estimates after-tax project cashflow of $1.01 billion, underlying earnings (EBITDA) of $1.6 billion and a post-tax net present value (NPV8) of $406 million. The internal rate of return (IRR) sits at 42%, with capital costs forecast at $115 million and a payback period of just over two years from commissioning.
Key project parameters.
These figures are underpinned by a Measured and Indicated kaolin resource of 10.87 million tonnes (Mt), supporting the proposed life of mine. Early cashflow from DSO operations could lower the up-front capital requirement to about $95 million, including working capital.
CEO James Marsh said the results confirm Zeotech’s confidence in the strategic and commercial case for the AusPozz™ Project.
“AusPozz™ is well-positioned to become a game changer in Australia’s building and construction materials sector, with the potential to make a substantial contribution to the nation’s net-zero carbon emission targets,” he said. “We eagerly look forward to advancing the DFS and continue driving sustainable innovation.”
Low-carbon building material with global relevance
AusPozz™ is a high-reactivity metakaolin product derived from thermally treated kaolin. As a SCM, it can partially replace clinker in cement and traditional cement in concrete, offering a pathway to significantly reduce embodied carbon.
Zeotech’s lifecycle analysis suggests that a one-for-one replacement of cement with AusPozz™ could cut carbon emissions by roughly 229,800 tonnes of carbon dioxide (CO₂)-equivalent per year at full capacity — comparable to removing more than 50,000 petrol cars from the road or offsetting electricity use in more than 30,000 homes.
Independent trials have also shown AusPozz™ improves concrete performance. Results include up to 50% higher compressive strength at 56 days when substituting 20% of cement, along with better durability, reduced shrinkage, and resistance to common degradation mechanisms such as alkali-silica reaction and chloride penetration.
Strategic site selection and logistics advantage
The proposed AusPozz™ Manufacturing Facility will be built at the Port of Bundaberg, a key regional infrastructure hub in Queensland. The port location offers access to deepwater shipping routes, utilities and potential renewable energy sources, enhancing the project's sustainability profile.
Proposed AusPozzTM Manufacturing Facility Area at the Port of Bundaberg.
Kaolin ore will be supplied from Zeotech’s Toondoon Project, which includes an approved mining lease and extensive surrounding exploration permits. Ore will be transported via an existing B-Double approved haulage route.
With simple open-pit mining, minimal stripping ratio and close proximity to port infrastructure, the logistics chain is well established — further lowering the development and operating risk.
Customer pipeline and market opportunity
Zeotech has already signed a memorandum of understanding (MoU) with Holcim Australia, part of the world’s largest building materials group, to trial and potentially offtake AusPozz™. Additional interest is evident in a 65-strong opportunity pipeline, and an MoU has been secured with Jiangsu Mineral Sources International Trading Co. China (MSI) for 950,000 tonnes of kaolin DSO over five years.
Summary of Sales and Specifier Opportunity Pipeline.
The market opportunity is substantial. Globally, SCM demand is forecast to reach US$40 billion by 2030, driven by both regulatory pressure and sustainability initiatives in construction. In Australia alone, more than 10 million tonnes of cement is used annually — a market Zeotech is directly targeting with its low-carbon alternative.
Next steps and future growth
Zeotech plans to advance to a definitive feasibility study (DFS) in the third quarter of 2025, with a final investment decision slated for early 2026. Production is expected to begin in the first quarter of 2029.
The DFS will focus on refining engineering design, securing environmental and utility approvals, conducting customer trials, and locking in offtake agreements. Expansion of the AusPozz™ facility with a second production train is also under consideration.
Proposed AusPozzTM Manufacturing Facility Area Site Layout
Beyond metakaolin, Zeotech sees longer-term potential in downstream applications. These include zeoteCH₄®, a proprietary zeolite designed to capture landfill methane, and zeolite-based animal feed supplements to address livestock health issues such as milk fever.
Positioned for impact
Zeotech’s AusPozz™ project represents a combination of resource quality, economic viability and climate-aligned industrial development. If brought to market as planned, it will mark a first for Australia’s building materials sector — and a potential turning point in the race to decarbonise concrete.
With a strong early-stage business case and clear pathway to execution, the company appears poised to capitalise on a market transformation already under way.