Zeotech Locks In Major Kaolin Offtake Deal with MSI for Asian Markets

• Binding offtake term sheet executed with MSI for kaolin DSO and cosmetic kaolin
• Exclusive marketing rights granted for China, Taiwan, Hong Kong, South Korea, and Japan
• Committed minimum volumes over five years exceed AusPozz™ Project feasibility study projections
• Pricing aligned within 5% of recent Preliminary Feasibility Study weighted average sale price
• Mining at Toondoon Kaolin Project expected to commence in first half of 2026

Strategic Partnership with MSI

Zeotech Limited (ASX, ZEO), an emerging player in mineral processing technology, has taken a significant step forward by executing a binding offtake term sheet with Jiangsu Mineral Sources International Trading Co, Limited (MSI). MSI, a leading independent bulk raw material trader based in China, will hold exclusive rights to offtake and market Zeotech’s kaolin direct shipping ore (DSO) and cosmetic kaolin products across China, including Taiwan and Hong Kong, as well as South Korea and Japan.

This agreement not only validates the quality of Zeotech’s kaolin resources but also strategically positions the company within some of the world’s largest and most dynamic markets for industrial minerals.

Volume Commitments and Pricing

The term sheet outlines committed minimum annual quantities over an initial five-year period that notably exceed the volumes projected in Zeotech’s recent AusPozz™ Project Preliminary Feasibility Study (PFS). Specifically, the agreement covers 800,000 tonnes of kaolin DSO and 150,000 tonnes of cosmetic kaolin DSO, volumes that underscore MSI’s confidence in Zeotech’s product and market potential.

Pricing terms are closely aligned with the PFS, with agreed prices within 5% of the weighted average sale price. From the second year onward, pricing will be subject to annual negotiation, introducing a degree of flexibility that could reflect market conditions and demand dynamics.

Catalysing Project Development

Crucially, the commercial terms secured through this binding term sheet provide the financial foundation necessary to advance mining operations at Zeotech’s Toondoon Kaolin Project in Queensland. Mining activities are anticipated to commence in the first half of 2026, supported by early cash flows from the offtake agreement.

Zeotech’s CEO, James Marsh, highlighted the milestone as a pivotal moment that de-risks the AusPozz™ Project, which focuses on producing high-reactivity metakaolin for low-carbon concrete applications. The partnership with MSI not only validates the product’s quality but also accelerates Zeotech’s ambitions to become a commercial-scale producer in a market increasingly focused on sustainability.

Operational and Regulatory Context

The Toondoon Kaolin Project benefits from an approved mining lease and is located approximately 20 kilometres south of Mundubbera, Queensland. The project’s infrastructure includes an approved transport route to the Port of Bundaberg, facilitating efficient export logistics. Zeotech also owns the underlying freehold land, providing operational flexibility and potential for future expansion.

While the binding term sheet sets a clear path forward, it remains subject to standard conditions precedent, including financial close and regulatory approvals. Zeotech must notify MSI by 31 March 2026 that these conditions have been met to avoid termination of the agreement.

Looking Ahead

With this binding offtake term sheet in place, Zeotech is well positioned to transition from development to production, leveraging strong market demand in Asia for high-quality kaolin products. The deal with MSI not only secures early revenue streams but also lays the groundwork for scaling up the AusPozz™ Project, aligning with global trends toward greener construction materials.

Bottom Line?

Zeotech’s binding offtake deal with MSI sets the stage for operational launch and market expansion, but execution risks remain ahead.

Questions in the middle?

• Will Zeotech secure financial close and regulatory approvals by the March 2026 deadline?
• How will annual price negotiations from Year 2 impact long-term revenue stability?
• What are the prospects for expanding sales beyond the committed volumes and regions?