Zeotech, an emerging mineral processing technology company, has signed a non-binding memorandum of understanding with Jiangsu Mineral Sources International Trading, a China-based international trading firm. The agreement, announced recently, establishes a framework for potential offtake or distribution deals for Zeotech’s low-iron kaolin, pink cosmetic grade kaolin, and bauxitic clay direct shipping ore products from its Toondoon Kaolin project in Queensland, Australia.

MSI could purchase 800,000 tonnes (t) of low-iron kaolin DSO and 1.5 million tonnes of bauxitic clay DSO over five years.

The MOU outlines possible purchases by Jiangsu Mineral Sources International of 800,000 tonnes of low-iron kaolin, 150,000 tonnes of pink cosmetic grade kaolin, and 1.5 million tonnes of bauxitic clay over five years. These commitments could support sustained mining operations at the Toondoon Kaolin project, enhancing its economic viability. Zeotech CEO James Marsh stated: “We are excited to be able to work with MSI towards a pathway to early cashflow from our ready-to-mine kaolin resources, as we continue to progress with the accelerated commercialisation of our AusPozz high reactivity metakaolin project. Toondoon kaolin has an exceptional natural purity, which has led to this DSO opportunity.”

The sale of bauxitic clay, initially considered overburden, offers a new revenue stream, improving the project’s overall financial outlook. Marsh noted: “Toondoon kaolin has an exceptional natural purity, which has led to this DSO opportunity, which is made especially compelling by including the materially higher-value cosmetic-grade pink kaolin and the bauxitic clay, which was initially considered overburden but now can add value to the overall mining project.”

Zeotech has partnered with Gladstone Ports at the Port of Bundaberg, utilizing their bulk mineral conveyor, ship loading system, and storage facilities to support the kaolin export operations. The Toondoon Kaolin project, covering 28,000 hectares approximately 20 kilometers south of Mundubbera, Queensland, includes an approved mining lease (ML 80126) and exploration permits (EPMs 27395 and 27866). The open-cut mining operation benefits from minimal overburden and Zeotech’s ownership of 682 hectares of freehold land, providing direct road access and potential for future expansion.

The MOU remains in effect until 31 December 2025, with either party able to terminate it with 30 days’ written notice. The Toondoon Kaolin project’s high-grade deposits and strategic location position Zeotech to meet growing demand for kaolin products while advancing its broader mineral processing initiatives.