Cauldron Energy Ltd (ASX:CXU) (OTCMKTS:CAULF) has reached an agreement with Kuuwa Rentals to lease a T4 Sami Mobile Concrete Batching Plant (CBP) in Onslow, WA.
The CBP can produce a range of high strength quality concrete products which Cauldron plans to make available to customers in the region.
Uplift in investment activity anticipated
Kuuwa is a hire company based in Onslow having majority ownership by the Buurabalayji Thalanyji Aboriginal Corporation (BTAC).
Cauldron plans to further its commercial relationship with Kuuwa by hiring mobile equipment required to operate the plant, following Shire approval.
The region is expected to experience an uplift in investment activity from resource companies supporting the two significant offshore gas projects owned by BHP Group Ltd (ASX:BHP) and Chevron (NYSE:CVX).
Cauldron views these as potential markets for concrete sales once the plant has been re-commissioned.
Mobile concrete batching plant
The high summer and autumn temperatures limit effective transport distance of high-quality concrete.
Many of the potential projects, currently in planning, require delivery of concrete outside the effective trucking distance from the town of Onslow.
The CBP is mobile allowing the facility to be moved to any project site which is expected to commence construction.
Low carbon focus
Cauldron’s green low carbon focus can also be explored with ‘green concrete’ where cement potentially can be partially or completely replaced with alternative commodities with similar pozzolanic properties but without its carbon footprint.
Cauldron CEO Jess Oram said: “The relationship between Kuuwa and Cauldron is yet another step towards reducing the gap between Indigenous Business and the mining industry.
“A partnership formed on Thalanyji land makes it even more exciting. Our minds are firmly set on concurrently expanding our exciting interests in gold at Blackwood in the ‘golden triangle’ of Central Victoria, and all business opportunities that present in Onslow.
“We have been in the Onslow district since 2005 and are starting to build on many of the trust-based relationships we have established there.
“We hope to establish a similar presence in Blackwood.”