Suvo Strategic Minerals’ agreement with PT HBIP covers the commercialisation and manufacturing of low carbon cement and/or concrete products in Indonesia. Pic: Getty Images
Mining
Special Report: Suvo Strategic Minerals is forming a joint venture with Indonesia’s PT Huadi Bantaeng Industry Park (PT HBIP) to commercialise and manufacture low carbon cement and concrete products.
Under the non-binding term sheet, the two parties will use their best endeavours to negotiate in good faith and agree upon the terms of the definitive formal and binding agreements for the equal JV.
The JV will engage in discrete development activities to manufacture the products – including low carbon concrete containing waste nickel slag as a component – in Indonesia.
Manufacturing of cement generates large quantities of CO2 and requires large amounts of energy due to the process involved with producing clinker, the mix of limestone and other minerals that make up its bulk
Suvo Strategic Minerals’ (ASX:SUV) solution comes in the form of geopolymer cement, a material made from industrial by-products such as nickel slag – a waste product from making nickel pig iron – which would usually be discarded in landfill.
Nickel slag is mixed with other waste materials, such as fly ash, along with chemical activators to create a product with a significantly lower carbon footprint than Portland cement while retaining a compressive strength (of 40 megapascals) that exceeds most precast concrete products.
Under the agreement, PT HBIP – 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 – will be responsible for sourcing and supplying the required raw materials.
This includes, but is not limited to, the supply of the nickel slag and other materials required to produce SUV’s geopolymer cement and/or other concrete mixtures or formulations.
PT HBIP will also be required to provide the JV 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.
In return, SUV’s wholly-owned subsidiary Climate Tech Cement will be responsible for supplying the low carbon cement and or concrete mixtures or formulations to the joint venture.
“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 utilising their industrial waste (nickel slag) but we have done so creating a novel binder; a one-part low carbon geopolymer cement,” SUV executive chairman Aaron Banks said.
“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 300-400 million tonnes per annum.
“Huadi, in alliance with other smelters, produce around 15 million tonnes per annum 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.”
This article was developed in collaboration with Suvo Strategic Minerals, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
