Welcome to Suvo Strategic Minerals’ first shareholder update for 2022 and my maiden report as Non-Executive Chairman of the Company. It has been a hugely rewarding transition onto the Suvo board, with the Company ending a busy quarter with some encouraging milestones being reached.
Among these were the major supply agreement extension with Norkse Skog Boyer for another three years to supply 25,500 tonnes of hydrous kaolin products used in the production of quality paper products here in Australia. We are also in talks with potential customers looking to access our kaolin for use in other applications, such as green cement – which is a highly desirable market for Suvo to enter.
Our strategic green cement focus is part of a broader focus on diversifying the Company’s high value product basket – led by the production of High Reactivity Metakaolin – for sale to customers using them across a range of industrial and product applications. Specifically, our green cement push is being supported by ongoing research and development, technology trials and studies to firm up market creating opportunities through knowledge building and tangible results.
That includes new relationships with Calix Australia and Curtin University to test calcination technology on our Pittong kaolin and investigate the potential to use our WA Gabbin kaolin as a partial replacement for clinker in the emission intensive cement manufacturing process. Meanwhile trials conducted by FLSmidth on the latter found it could be converted to an HRM product equal or higher in quality to those available in the marketplace produced by our contemporaries.
In Victoria our Pittong maiden mineral resource estimate confirms longevity of the site for many years to come. Recent placement activity raised more than $8 million, which will predominantly help accelerate modernising our Pittong processing facility to more than double its nameplate capacity. Along with nearby fully licensed Lal Lal and Trawalla resources, Pittong continues to be a focal point for mining and processing high grade kaolin products.
In Western Australia approvals are moving forward for our dual commodity Eneabba and Muchea projects, with investment in accelerating their completion coming off the back of recent capital raising activity.
Stay tuned to our Company’s communication channels as we look to roll out more updates through the current quarter.