Australia’s only producer of hydrous kaolin, Suvo Strategic Minerals (ASX:SUV), has more than doubled the output capacity of its Pittong Project in Victoria.
Pittong is now capable of producing ~60,000 tonnes per annum, with its recent upgrade and optimisation programme completed on budget and ahead of schedule.
The upgraded facility will have flow on benefits to the regional, state and national economies, generating additional revenue and jobs.
The regional community will benefit the most, with the upgrade extending the mine’s life for decades to come, after recently celebrating 50 years of successful operation, while supporting existing jobs and creating new employment opportunities in regional Victoria.
In August 2022, the company concluded a plant upgrade and optimisation review for the Pittong hydrous kaolin plant. This independent review confirmed the name plate processing capacity of the Pittong plant to be ~60,000 tonnes per annum under certain operating conditions.
Over the past six days, the Pittong plant has been operated continuously, and produced in total, 1,004 tonnes of hydrous kaolin. This represents a 245% uplift in production compared to average weekly production rates achieved in calendar year 2022 of 410 tonnes.
This result validates Pittong’s ability to produce ~50,000 tonnes per annum (based on 83% utilisation) of hydrous kaolin. Production of kaolin at Pittong will increase incrementally in line with sales orders.
With the upgraded capacity, Suvo is working on securing new offtake agreements for the additional volumes with both Australian and international customers.
The successful commissioning of the Pittong processing facility is a major milestone for the company. The management and operations team at Pittong have done a tremendous job to deliver the upgrade and optimisation project on budget and ahead of schedule, with the previous anticipated completion date being the end of Q1 2023,” Executive Chairman Henk Ludik said.
This increase in production capacity allows Suvo to more than double production at its flagship Pittong operating kaolin plant. Assuming a full sales order book, the company will be able to reduce its operating costs and generate a four times uplift in forecast EBITDA.
“Pittong is the only producer of hydrous kaolin in Australia. This gives Suvo great confidence in unlocking value from traditional and new emerging kaolin markets.”