Zeotech’s $204M Kaolin Deal and $13M Raise Propel Low-Carbon Concrete Ambitions

Strong Commercial Foundations

Zeotech Limited (ASX, ZEO) has marked a pivotal quarter with the execution of a binding offtake agreement valued at approximately $204 million with Jiangsu Mineral Sources International Trading Co, Limited (MSI). This agreement secures the supply of up to 950,000 tonnes of kaolin direct shipping ore (DSO) products over five years, including a growing volume of high-value cosmetic kaolin. MSI’s exclusive marketing rights across key Asia-Pacific markets such as China, South Korea, and Japan position Zeotech as a significant player in the global kaolin supply chain.

The deal not only underpins early cash flows but also supports Zeotech’s broader strategy to commercialise its high-reactivity metakaolin product, AusPozz™, which targets the burgeoning low-carbon concrete market.

AusPozz™ Demonstrates Real-World Performance

Zeotech’s commercial-scale concrete demonstration pour of approximately 100 cubic metres showcased AusPozz™’s technical capabilities as a supplementary cementitious material. The concrete mix, designed to meet Queensland’s Department of Transport and Main Roads 40MPa pavement specification, incorporated a 20% replacement of cementitious content with AusPozz™.

The results were impressive, a 28-day compressive strength of 67.5MPa, exceeding the design requirement by over 65%, and no cracking after nearly four weeks. The successful integration of AusPozz™ into standard batching, transportation, and curing processes validates its readiness for large-scale construction applications.

Industry engagement was robust, with over 35 stakeholders attending, including major construction and materials companies. This enthusiasm has translated into emerging commercial opportunities such as larger concrete trials, windfarm design mix testing, and potential offtake agreements.

Strategic Partnerships and Intellectual Property Growth

Building on the concrete trial’s success, Zeotech signed a non-binding Memorandum of Understanding with Laing O’Rourke Australia Construction Pty Ltd to explore field trials of AusPozz™ in live projects. This collaboration with a global construction leader could accelerate market adoption and validate AusPozz™’s sustainability credentials.

Further strengthening its technological edge, Zeotech secured a Korean patent for its proprietary impurity-free synthetic zeolite production technology, complementing a previously granted Japanese patent. These intellectual property assets open commercial avenues in the Asia-Pacific region, including potential licensing arrangements.

Advancing Project Development and Capital Position

The company raised $13 million through a well-supported placement, bolstering its balance sheet to accelerate mining readiness at the Toondoon Kaolin Project and progress the definitive feasibility study for the AusPozz™ Project. Mining approvals and infrastructure planning are advancing, with production anticipated to commence in 2026.

Zeotech also engaged closely with Cement Australia, Australia’s leading cement supplier, through reciprocal site visits and a subsequent non-binding MOU to exchange technical data and assess infrastructure capabilities. This engagement signals growing industry validation of AusPozz™ as a key enabler of low-carbon construction.

Outlook

With binding commercial contracts, validated product performance, strategic partnerships, and a strengthened financial position, Zeotech is well-positioned to become Australia’s first commercial producer of high-reactivity metakaolin. Its focus on decarbonising the built environment aligns with global sustainability trends, offering investors a compelling growth story in industrial minerals and construction materials.