Suvo has signed a key MoU with China’s LIXIL AS Sanitary Manufacturing (Tianjin), one of the world’s largest producers of sanitaryware and ceramic products.

Reaching an agreement with a tier one company, especially one with an annual turnover of about $20bn, is not especially common and often a sign that your products are world class.

Suvo Strategic Minerals (ASX:SUV) has executed a memorandum of understanding with LIXIL after its refined kaolin sample successfully passed the Chinese company’s initial test work.

Under the non-binding agreement, the two companies will work together to produce tailor-made products from Suvo’s unique kaolin resource according to LIXIL’s technical requirements.

Additional testing of the company’s kaolin will also be carried out to help commercialise opportunities, including long-term supply agreements, with further bulk samples to be dispatched imminently to continue product development.

“This is a significant milestone in Suvo’s development in becoming a serious and recognised

supplier of high-quality hydrous kaolin products globally,” executive chairman Robert Martin said.

“This MOU is a testament to the quality of Suvo’s kaolin products and our technical ability to work with world leading industry companies.

“To work with Tier 1 manufacturers in the global ceramic industry such as LIXIL ASTJ and LIXIL, provides a significant opportunity for Suvo as we continue to fast track our White Cloud kaolin project in Western Australia and modernise, and upgrade our hydrous kaolin operations at Pittong in Victoria.”

Kaolin producer

Suvo is Australia’s only producer of hydrous kaolin at its Pittong operations in Victoria.

It also recently upgraded resources at its White Cloud project in WA by 84 per cent to 29.9Mt of kaolin, and has already reached a term sheet with CMM Toye Industrial Mineral Consultants for the potential purchase of 10,000t per annum of kaolin from White Cloud for $US850 per tonne.

Trials are also underway into the potential to use White Cloud kaolin to produce high purity alumina in the top end 4N and 5N specifications for high tech applications.

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.