Suvo Strategic Minerals Ltd (ASX:SUV) is trading higher on sealing a materials transfer deal with global industrial technology provider Calix Ltd, which could see Suvo take first mover advantage as the only commercial-scale operating kaolin mine and only hydrous kaolin producer in Australia.
Calix conducted a trial 20-tonne bulk sample using Pittong clay obtained from the Victorian mine’s previous Imerys ownership. Data from the trial showed that kaolin was calcined at temperatures between 550 and 700 Celsius, demonstrating good conversion and high aluminium availability.
Following this investigation, the companies struck a deal to allow Suvo to access market-ready metakaolin samples developed using Calix’s cutting-edge calcination technology, where an electric calciner directly flash-heats kaolin to create metakaolin. All energy consumption data during conversion will be captured and provided to Suvo.
Investors have responded positively to today's news, driving shares as much as 12.83% higher to $0.088.
Convenient co-location in central Victoria
This technology is highly compatible for use in renewable energy.
Calix will assist Suvo in accelerating its metakaolin green cement supply initiative from the company’s Pittong operations, just west of Ballarat in Victoria.
Calix’s research, development and production facility is strategically located at Bacchus Marsh, near the Pittong plant.
What’s more, Suvo’s engagement with Calix comes as the company continues testing kaolin samples from its WA-based Gabbin project to determine its suitability for conversion to metakaolin.
The agreement will look to replicate and build on previous test work, which in turn allows the company to do further downstream testing with various end users.
Suvo plans to partner with key users to determine the quickest pathway to market, with metakaolin samples to be sent to existing and new offtakers.
Clean, green cement at time of growing demand
Metakaolin is a supplementary cementitious replacement for clinker, a key ingredient in cement production, which has been used by the cement industry for more than 50 years as a pozzolanic to reduce porosity, increase compressive and flexural strength, and offer greater durability and control of concrete breakdown.
Cement production is responsible for roughly 8% of global CO2 emissions, about the same carbon footprint as all motor vehicles.
Studies have shown that increasing the percentage of metakaolin used in cement has the potential to reduce the carbon intensity of cement by up to 40%.
The green cement market has an estimated value of US$27.2 billion, with growing demand for sustainable materials pushing this value in one direction.
Suvo non-executive chairman Henk Ludik said: “This is an exciting engagement that will assist Suvo’s entry into greening the cement and concrete sectors, with studies attributing up to 8% of annual CO2 emissions globally to this sector.
“With global demand increasing and the global green cement market anticipated to grow to US$56 billion by 2027, we see this engagement as a crucial step towards diversifying Suvo’s product basket and meeting demand for low-carbon raw materials with industrial application.
“Successful conversion of our kaolin would make Suvo the nation’s only producer and supplier of the highly refined metakaolin used in green concrete and other clean technology applications.”
Calix managing director Phil Hodgson added: “This engagement with Suvo represents an exciting opportunity to help develop in Australia what is already happening elsewhere – the decarbonisation of the cement sector – in this case through the opportunity to replace some of the clinker with activated clays.
“We look forward to working with Suvo on this assessment program.”