Zeotech Ltd., an emerging Australian mineral processing technology company, has entered into a non-binding memorandum of understanding (MOU) with Jiangsu Mineral Sources International (MSI) Trading, a China-based international trading house. The agreement sets the stage for potential offtake or distribution deals involving Zeotech’s kaolin and bauxitic clay direct shipping ore (DSO) products, aimed at supporting the company’s commercial and operational growth.

The MOU proposes potential sales of up to 800,000 metric tons of low-iron kaolin DSO, 150,000 metric tons of pink cosmetic-grade kaolin DSO, and 1.5 million metric tons of bauxitic clay DSO over a five-year period. These proposed volumes could sustain mining operations at Zeotech’s Toondoon Kaolin Project in Queensland, Australia, and create early revenue streams for the company.

Zeotech Managing Director and CEO James Marsh said the agreement is a pivotal step in the company’s commercialization strategy.

“We are excited to work with MSI on advancing toward early cash flow from our ready-to-mine kaolin resources,” Marsh said. “The Toondoon project’s high natural purity has enabled this DSO opportunity, which is particularly attractive due to the inclusion of higher-value cosmetic-grade pink kaolin and bauxitic clay, which was previously considered waste material but now offers added economic value.”

The inclusion of bauxitic clay in the proposed agreement is seen as a strategic win for Zeotech. Once regarded as overburden, the bauxitic clay now represents a potential revenue-generating product, which could significantly improve the economic efficiency of the overall mining operation. The company noted that monetizing this material aligns with its goal of maximizing resource value and minimizing waste.

To support logistics and exports, Zeotech is working with Gladstone Ports Corporation at the Port of Bundaberg. The port’s existing bulk handling infrastructure — including its mineral conveyor system, ship loading facilities, and DSO storage areas — is well-suited to handle bulk kaolin shipments and streamline the supply chain.

The MOU is set to expire on Dec. 31, 2025. Either party retains the right to terminate the agreement with 30 days’ written notice, allowing for flexibility as discussions and negotiations progress toward binding commitments.

The Toondoon Kaolin Project comprises Mining Lease (ML) 80126 and Exploration Permits for Minerals (EPMs) 27395 and 27866. The site covers more than 28,000 hectares and is located approximately 20 kilometers south of Mundubbera in Queensland. The high-grade kaolin deposit is suitable for open-cut mining and has minimal overburden, making extraction efficient and cost-effective.

Zeotech owns approximately 682 hectares of freehold land that encompasses ML 80126 and overlaps with the adjacent EPMs. This ownership provides direct access to local transportation networks, supports current operations, and enables future site expansion in response to market demand.