Zeotech (ASX:ZEO) has executed a non-binding term sheet with Gladstone Ports Corporation for a proposed agreement to lease land at the Port of Bundaberg.
Zeotech has proposed to construct and run operations of a dry bulk kaolin direct shipping ore (DSO) receival, storage, and loading facility on this land.
Located within the Bundaberg State Development Area, the proposed area covers between 15,000m2 and 22,200m2 adjacent to Newman Street, Burnett Heads.
Zeotech will conduct a detailed design and planning approval process before finalising the leasing area.
The company will use existing receival, storage, and loading facilities in the Port of Bundaberg precinct for its DSO kaolin operations in the near term.
Gladstone Ports will prepare the agreement to lease on behalf of both companies. The lease will be in effect upon satisfaction of the conditions precedent and no later than 12 months from the agreement.
Zeotech will provide a non-refundable $20,000 bank guarantee for the agreement to lease.
CEO James Marsh says the term sheet “establishes a clear and scalable pathway” for the company to develop export infrastructure.
“The designated land supports a capital-efficient, staged development model, leveraging existing investment in the Port’s Multi-Use Conveyor infrastructure to minimise upfront costs and accelerate time to market,” Marsh says.
“In the near term, Zeotech will utilise existing receival, storage and loading facilities within the Port precinct, providing immediate operational capability while advancing engineering, planning and approvals for a purpose-built bulk handling facility to support long-term expansion.”
Zeotech is targeting early cash flows through its DSO kaolin business, underpinned by a $200 million binding offtake agreement with MSI China. The company also aims to be Australia’s first commercial producer of metakaolin, supporting the decarbonisation of the concrete industry through its AusPozzTM solution.
Write to Maddison Elliott at Mining.com.au
Images: Zeotech
