AusPozz™ Project Shows AUD 406m NPV and 42% IRR with 20-Year Mine Life
Zeotech Limited’s Preliminary Feasibility Study (PFS) for its AusPozz™ Project reveals a robust business case for Australia’s first metakaolin production facility, promising strong financial returns and significant carbon emission reductions.
- 20-year project life with 10.87 Mt high-purity kaolin resource
- Initial capital cost of AUD 115 million and payback period of 2.1 years
- Projected production of 300,000 tpa AusPozz™ and 151,000 tpa Kaolin DSO
- After-tax NPV8 of AUD 406 million and IRR of 42%
- Strong commercial interest with MOUs from Holcim Australia and MSI China
A Groundbreaking Step for Low-Carbon Concrete in Australia
Zeotech Limited has unveiled the results of its Preliminary Feasibility Study (PFS) for the AusPozz™ Project, marking a significant milestone in the development of Australia’s first dedicated metakaolin production facility. Metakaolin, a highly reactive supplementary cementitious material (SCM), is poised to play a pivotal role in reducing the carbon footprint of concrete, a major contributor to global emissions.
The PFS outlines a compelling business case, underpinned by a 20-year life of mine supported by a substantial 10.87 million tonnes of high-purity kaolin resources. The project targets an annual production capacity of 300,000 tonnes of AusPozz™ metakaolin and 151,000 tonnes of Kaolin Direct Shipping Ore (DSO), positioning Zeotech as a key player in the domestic and potentially international low-carbon building materials market.
Robust Financials and Strategic Partnerships
Financially, the project demonstrates strong viability with an initial capital expenditure of AUD 115 million and a notably short payback period of just over two years following commissioning. The after-tax Net Present Value (NPV8) stands at AUD 406 million, complemented by an Internal Rate of Return (IRR) of 42%, reflecting robust margins and operational efficiency.
Zeotech’s commercial strategy is bolstered by Memorandums of Understanding (MOUs) with industry heavyweights such as Holcim Australia for AusPozz™ and Jiangsu Mineral Sources International Trading Co. (MSI) in China for Kaolin DSO products. These agreements validate market demand and provide a solid foundation for future sales and distribution channels.
Environmental and Social Impact
The environmental credentials of the AusPozz™ Project are particularly noteworthy. By enabling a one-for-one replacement of cement with AusPozz™ in concrete, the project could reduce embodied carbon emissions by an estimated 229,800 tonnes of CO₂ equivalent annually. This reduction is comparable to removing over 53,000 petrol-powered cars from the road each year or planting nearly 3.8 million trees annually for a decade.
Beyond environmental benefits, the project promises significant social and economic impacts in regional Queensland, with a projected workforce exceeding 140 skilled personnel across mining, logistics, manufacturing, and administration roles. Zeotech’s commitment to local employment and community engagement aligns with broader regional development goals.
Pathway to Definitive Feasibility and Beyond
Following the positive PFS outcomes, Zeotech plans to advance to a Definitive Feasibility Study (DFS) in the third quarter of 2025. This next phase will refine technical, regulatory, and commercial aspects, including further drilling, environmental approvals, and binding offtake agreements. The company aims for a Final Investment Decision (FID) by early 2026 and anticipates full production capacity by the first quarter of 2029.
Additionally, Zeotech is exploring Horizon 2 initiatives involving the production of high-value zeolite products from metakaolin feedstock, targeting environmental applications such as methane emission reduction and animal feed supplements. These developments could further diversify the company’s product portfolio and enhance its sustainability impact.
Bottom Line?
Zeotech’s AusPozz™ Project sets a new benchmark for sustainable building materials in Australia, but its success hinges on securing funding, regulatory approvals, and binding offtake agreements in the coming months.
Questions in the middle?
- How will Zeotech secure the estimated AUD 95 million funding without diluting existing shareholders?
- What are the key regulatory hurdles remaining before construction can commence?
- How will the company manage potential risks related to mining and processing interruptions?
