Suvo Strategic Minerals Ltd (ASX:SUV) is in advanced discussions with C&D Logistics Group Co Ltd for a commercial offtake agreement of its hydrous kaolin products after the minerals division of Xiamen C&D selected two of the products for trialling.
C&D has agreed to accept delivery of 20 tonnes of two high-quality water-washed kaolin products from Suvo’s 100% owned Pittong plant in Victoria for various commercial-scale trials.
“C&D’s decision to move ahead with commercial trials following the evaluation of samples speaks volumes about the quality of kaolin being produced from our Pittong operations in Victoria,” Suvo non-executive chairman Henk Ludik said.
“This is the logical next step towards a material supply agreement between the two companies with negotiations on this front already well advanced.”
C&D Logistics’ project and procurement manager Albert Fu also commented: “We look forward to establishing a long and good working relationship with Suvo.”
Under a cooperation agreement signed in May of this year, Suvo and C&D will also work to develop and grow other kaolin-related product markets with kaolin sourced from Pittong in hopes of developing long-term relationships with customers across a range of industries, products and locations.