Suvo Strategic Minerals Ltd (ASX:SUV) has secured an extended agreement with major supply partner Norske Skoge Boyer until December 2024, covering up to and above 25,500 tonnes of high-quality paper kaolin over the next three years.
The kaolin product will be supplied from Suvo’s Victorian-based Pittong Hydrous Kaolin operations, with pricing commercial in confidence but in line with global rates.
This new agreement will begin this month.
Competing in global marketplace
“We welcome the contract extension with Norske Skog at Boyer which shows not only Suvo’s ability to supply large quantities of quality product but also our ability to compete in what is affectively a global marketplace," Suvo Strategic Minerals executive chair Robert Martin said.
The wholly-owned Pittong operations,40 kilometres west of Ballarat in Victoria, is the sole wet kaolin mine and processing plant in Australia and has been in operation since 1972.
Suvo acquired Pittong from Imerys S.A, one of the largest kaolin miners in the world. Pittong netted earnings before interest, taxes and depreciation (EBITDA) numbers of $2.5 million in the first nine months, returning the price of its purchase with interest.
At Pittong mining contractors deliver crude kaolin ore to stockpiles from the two operating mines, Pittong and Lal Lal.
The plant takes its feedstock from the run of mine (ROM) and it is processed into four separate products for end users.
These products are 10% moisture lump, high solids slurry, 1% moisture powder and 1% moisture pulverised powder.
The solids slurry is used in paper and board manufacturing. The other products are used in paper, coatings, paint and specialist industries including rubber and pharmaceutical applications. Around 20-25,000 tonnes per annum is supplied to various end users.
About Suvo Strategic Minerals
Suvo Strategic Minerals is a dual commodity Australian mining company focused on the development of its 100%-owned White Knight Kaolin Project in the Yilgarn Craton in the central wheat belt and its 100% owned Nova Silica Project in the Gin Gin Scarp near the township of Eneabba, both in Western Australia.
Suvo catapulted into producer status when it acquired the Pittong Kaolin operations from an Imerys subsidiary, becoming the only hydrous kaolin producer in the country.