Suvo Strategic Minerals Limited’s (ASX: SUV) wholly owned subsidiary, Climate Tech Cement Pty Ltd, has executed a non-binding term sheet with PT Huadi Bantaeng Industry Park to establish an incorporated joint venture entity in Indonesia.
The SPV Entity, which will be owned 50/50 by the parties, will engage in discrete development activities for the purpose of commercializing and manufacturing low carbon cement and or concrete products in Indonesia, containing nickel slag as a component.
Executive chairman Aaron Banks commented: “We are pleased to progress our strategy in Indonesia with our new partners, PT Huadi Bantaeng Industry Park. In a short time, we have not only successfully created a formulation utilizing their industrial waste (nickel slag) but we have done so creating a novel binder; a one-part low carbon geopolymer cement.”
PT HBIP is the managing company of the Bantaeng Industry Park where significant quantities of nickel slag is stockpiled as part of the local nickel pig iron operations. The company will be responsible for sourcing and supplying the necessary raw materials required to the SPV Entity. This includes, but is not limited to, the supply of the nickel slag and other materials as per the specifications of CTC’s low carbon cement and or concrete mixtures or formulations.
PT HBIP will also be required to provide the SPV Entity with access to infrastructure including land and port facilities and critical utilities such as power, water, and any other necessary utilities which may be required.
CTC will be responsible for supplying the low carbon cement and or concrete mixtures or formulations to the SPV Entity. The parties will use their best endeavours to negotiate in good faith and agree upon the terms of the definitive formal and binding agreements, including the shareholders agreement which will govern the SPV entity, within 90 days.
“The formation of this partnership is a key milestone for the company as it adds significant scale for potential future operations. The consumption of Portland cement within the broader region is around 300 – 400Mtpa. Huadi, in alliance with other smelters, produce around 15Mtpa of nickel slag. This partnership has the potential to lock in the necessary supply chains and give the company the best chance for success in delivering to market this low carbon cement. We are excited to have also commenced preliminary offtake discussions for our nickel slag based low carbon product with large users of Portland cement in Indonesia and the broader Southeast Asia region.” Added Aaron.
To read more about this, please visit www.investorhub.suvo.com.au
To read more news like this, please visit www.theassay.com/news
