Suvo Strategic Minerals Ltd (ASX:SUV) has partnered with German thermal processing experts IBU-tec Advanced Materials AG to start lab-scale testing on its Pittong hydrous kaolin, with the aim of producing calcined kaolin.
Rising demand in region
The move comes in response to rising demand in the Asia Pacific market for the product, including from Suvo's existing customers and distributors in the region, who already purchase Pittong hydrous kaolin.
There is currently no production of calcined kaolin within Australia and Suvo's Australian customers currently import 10,000 tonnes per annum of calcined kaolin, reflecting the strong market appetite for this product.
Calcined kaolin commands a price premium in the Asia Pacific market of around 20% to 40% compared to Suvo's current weighted average selling price.
To achieve optimal results, the lab-scale trials will use an electrically heated muffle furnace, varying temperatures and residence times to produce the reference sample.
Sustainable method
This method is likely to reduce production-related greenhouse gas emissions substantially compared to existing methods.
Pending successful outcomes from the lab scale testing, Suvo plans to upscale production to a 25-kilogram batch sample, enabling the distribution of 1-kilogram samples to its customers for testing and product evaluation.
The company anticipates completing the lab scale test works by the end of the first quarter of the new calendar year, paving the way for distribution to end users.
While Suvo remains committed to serving traditional markets such as paper, paint, rubber, adhesives and pharmaceuticals with its Pittong hydrous kaolin, the exploration of calcined kaolin production is a promising venture.
This strategic move positions Suvo to meet the burgeoning demand for calcined kaolin in the Asia Pacific market and diversify its product portfolio, bolstering its market presence.
“We are pleased to start this test work with our hydrous kaolin from Pittong to produce a calcined kaolin product which trades at a price premium compared to our current weighted average selling price,” Suvo interim CEO Bojan Bogunovic said.
“We remain focused on selling the Pittong hydrous kaolin to traditional markets and investing future cashflows generated into product development opportunities which will yield even better results for the company and our shareholders.
“With no onshore production of calcined kaolin, there is an opportunity for Suvo to extend its product offering to its valued customers in Australia and overseas.
“Much like the cement industry, the production of calcined kaolin globally is a high emitting process with firing temperatures of approximately 1050ºC.
“Suvo is focused on producing a greener product using an electrically heated calciner.”
What is calcined kaolin?
Calcined kaolin is the result of subjecting hydrous kaolin to high temperatures, typically around 1050ºC, in a process called 'calcination' using a kiln known as a 'calciner.'
During calcination, all free water evaporates, and organic impurities are burned off, causing the kaolin's structure to densify, enhancing its opacity and whiteness.
In the paper industry, opacity is vital as it determines how translucent a sheet of paper is. High opacity means minimal see-through, allowing clear and distraction-free printing on both sides.
The paint industry benefits from calcined kaolin as it improves tinting strength, indicating how resistant a colour is to alteration when mixed with another hue.
Calcined kaolin also offers advantages in ceramics, rubber and plastics.