Suvo Strategic Minerals Ltd (ASX:SUV) has renewed its mining licence at the Pittong Kaolin Project, which has been approved by Victoria’s Earth Resources Regulation, Department of Jobs, Precincts and Regions (DJPR).
Regulatory approval extends the Pittong mining licence MIN5408 held by Suvo subsidiary Kaolin Australia Pty Ltd, to December 2045.
This is important as the Pittong maiden mineral resource estimate of 3.74 million tonnes of resource, highlights the potential for a multi-decade mine life.
Suvo recently announced its maiden mineral resource estimate at Pittong, which is only 2 kilometres from its kaolin processing facility.
The resource is projected to yield 1.97 million tonnes of bright white kaolin with an ISO brightness of 80.51 and bleached ISO brightness of 83.61, under 45 micrometres (45μm) in size.
Milestone will help increase production
As part of the mining licence extension, Suvo’s rehabilitation bond held by Earth Resources Regulation increased to $1.774 million (from $398,000) as required under the Mineral Resources (Sustainable Development) Act 1990.
The increase in the bond was funded from existing cashflows. Suvo will submit ongoing annual assessments of the rehabilitation liability and conduct progressive rehabilitation activity. Bonds are returned to the mining licensee by the regulator once satisfactory rehabilitation of the site has occurred.
“This is a significant milestone supporting Suvo’s growth plans for Pittong, focused around increasing production capacity and diversifying our product basket,” Suvo non-executive chairman Henk Ludik said.
“This approval will support Suvo’s ongoing capital investment into the Pittong operations and will enable Suvo to continue playing a part in the local community as a responsible corporate citizen for years to come.
“Our investment in the Pittong processing facility will increase capacity, making sure we can fulfil the surge in demand for high-quality kaolin products.
“Coupled with enhanced production capacity comes our company-wide focus on achieving better environmental and social outcomes, which will be realised through more energy efficient operations, rehabilitation practices and producing metakaolin products that support the decarbonisation of the cement and concrete industries.”