“The best way to describe what calcined kaolin does is when you go to a store and buy something, they print out a receipt, and when you flip it over, the ink doesn’t bleed through to the other side. That’s the function of calcined kaolin,” explains Bojan Bogunovic, interim CEO of SUVO Strategic Minerals, otherwise known as Australia’s largest and sole producer of hydrous kaolin. Kaolin itself is a chalk-white, clay mineral produced by the chemical weathering of aluminum silicate minerals. Due to its natural white hue, it’s often used in paper coating and ceramics like porcelain. Different forms of kaolin include hydrous (wet) kaolin, calcined kaolin, and metakaolin. Hydrous kaolin is used mainly in paper, paint, and rubber manufacturing. Calcined kaolin is used for top coat in paper packaging and premium paints. Metakaolin can act as a partial substitute for cement in concrete production.
SUVO currently supplies just under 90% of Australia’s hydrous kaolin demands, which equates to roughly 20kt per annum. This has generated a turnover of $11 million in sales in the 2023 financial year. However, they currently do not produce calcined kaolin, another useful by-product sought after by many of their neighboring customers. Calcined kaolin is used for more premium applications, and therefore, warrants a higher price. Currently, there are no calcined kaolin suppliers domestically. Many companies who require it for applications like paper coating and premium paint must rely on international suppliers like the USA, who charge close to $750/ton. To put things in reference, SUVO currently sells hydrous kaolin at about $600/ton, and even just a minor movement in price, such as by +$20 across its entire sales book, can mean an overall revenue increase of $1 million! “There is about a 10kt per annum market potential for calcined kaolin to exploit in Australia, so lots of opportunity in turnover and profit there,” says Bogunovic.
One can only imagine the impact producing calcined kaolin will have on SUVO’s bottom line. Especially given that SUVO owns 100% of their mining operations for kaolin, giving them the flexibility to branch out and add additional revenue streams, such as opening a calcined kaolin plant, known as a calciner, or producing metakaolin for the green concrete project. SUVO currently has a calcination specialist on board to aid them on this project. The goal is to start producing calcined kaolin within the next 12 months subject to quality acceptance of SUVO’s calcined kaolin product by its customers.
The decision to venture into calcined kaolin production not only signifies a smart business move but also underscores SUVO‘s commitment to innovation and resilience. By embracing a multi-purpose approach to its starlight offering, hydrous kaolin, SUVO not only secures its position in the market but contributes to local economic growth and stability. Moreover, the company’s exploration of eco-friendly alternatives like “Colliecrete” highlights a proactive approach towards environmental stewardship, aligning with the growing demand for sustainable practices. This could just be one of the tools in SUVO’s evolving toolbox, one can only wonder what’s next for this emerging company.