Andromeda Metals Ltd (ASX:ADN) has set its sights on the global industrial minerals market through a partnership with Opaque Ceramics Pvt Ltd, a company based in Ahmedabad in the Indian state of Gujarat.
The company is particularly keen to explore kaolin distribution and the development and potential distribution of kaolin-zircon mixtures.
A non-binding agreement has been signed with Opaque, which began trading zirconium silicate opacifiers in 1978, for this purpose.
Strategic move
“We are excited by the opportunity to partner with Opaque, a leading ceramics minerals innovator across both the Indian and global markets,” Andromeda chief executive officer and managing director Bob Katsiouleris said.
“The strategic partnership seeks to develop, market and distribute innovative market-leading products that enable production of bright, white and physically strong ceramics, leveraging the unique qualities of combining Opaque’s micronised zircon and Andromeda’s high-quality kaolin products.”
The following will be discussed under the agreement:
- the purchase by Opaque of 5,000-10,000 wet metric tonnes (wmt) per annum of Great White CRM™ for direct sales and distribution into the ceramic tile, ceramic glaze, porcelain tableware and sanitaryware markets in India and potentially other markets, including Bangladesh, Sri Lanka, Middle East, Saudi Arabia and Oman;
- development of a new product, utilising an additional 5,000-10,000 wmt per year of Great White kaolin product, to enhance or expand the existing range of Opaque zircon-based products, through incorporating the unique qualities of Great White kaolin, including high-brightness and its zircon replacement potential; and
- five-year offtake term, with first shipments planned during the first quarter of calendar year 2025.
Eye on premium market
“Always ‘Obsessed with Quality’, we believe the partnership with Andromeda takes Opaque on the right path of diversified strategic growth in the premium end of the market segment, still leveraging the strengths and resources in the same industry at its core,” Opaque founder and director Atit M. Vora said.
“We are very optimistic about the joint collaboration between our companies.”
Opaque manufactures an extensive range of zircon-based products and has an extensive global distribution network centred around India’s major ceramics production centre of Morbi.
Its range of micronised zircon products has made the company one of the world’s leading ceramic mineral technology companies, with more than 1,000 tile producers and 500 sanitaryware firms as customers.
Sizeable market opportunity
According to a study by MECS, a centre for research on manufacturing machinery and supply chain, the Indian market is the second largest ceramics market in the world.
Its ceramic tile production is forecast to be 3.3 billion square metres in 2024, growing at a compounded annual growth rate of 9-10%.
India’s growth is supported by being the world’s most populous country, having recently overtaken China, and an average annual economic growth rate of 5.5% over the past decade, making it the world's fifth-largest economy.