Zeotech (ASX:ZEO) CEO James Marsh says the company is delivering “disciplined progress across all key workstreams” at the Toondoon Kaolin Project in Queensland.
Recently, the company has focused on advancing exploration, approvals, infrastructure planning, and commercial engagement at the project, located 20km south of Mundubbera.
Recent developments for the project include an extension to Zeotech’s $200 million binding offtake with Jiangsu Mineral Sources International Trading (MSI), valid through to 30 April 2027.
The extension provides amendments to the original agreement that enhance commercial alignment and operational flexibility.
Meanwhile, Zeotech completed a 3,100m drilling campaign at the project, comprising 110 drill holes to support resource expansion and mine planning.
The company has been approved by the Queensland Government’s Department of Environment, Tourism, Science and Innovation for its estimated rehabilitation cost application.
For applications, the North Burnett Regional Council has also approved Zeotech’s operational works development application. This application concerns the private access driveway connecting the mining lease to Myola Road.
The tender process for the key haul road and access infrastructure works has been completed, with a preferred contractor selected.
This includes the approval required to procure long-lead civil construction items, including materials and critical components required for roadworks and intersection upgrades.
Zeotech has progressed key environmental and regulatory approvals, including fauna management approvals and water feature declassification.
The company is continuing to advance the Port of Bundaberg logistics strategy, with the Gladstone Ports Corporation progressing construction of the permanent Bulk Material Loading Facility (BMLF).
The BMLF is intended to support long-term export capability.
Proposals have been received for kaolin direct shipping ore (DSO) trial shipment, advancing planning for initial export activities, which are currently under review.
Zeotech is continuing to engage with stakeholders on the project, including government agencies, regulators, port authorities, and representatives of the offtake partner.
“Completion of the latest drilling program has strengthened our geological understanding, while the approval of key environmental milestones and selection of preferred contractors have further de-risked the development pathway,” Marsh says.
“The extension of our MSI offtake agreement reinforces the strength of our strategic partnership, and our continued engagement with Gladstone Ports Corporation highlights strong alignment on delivering permanent bulk-loading infrastructure at the Port of Bundaberg.
“Together, these outcomes support a clear and structured pathway toward initial DSO operations and the transition to sustainable export capability.”
Zeotech will be attending the Noosa Mining Conference, held on 22–24 July at Peppers Noosa Resort, Noosa Heads, Queensland.
Mining.com.au is an official media partner of this year’s conference and will be at the event.
Write to Maddison Elliott at Mining.com.au
Images: Zeotech
