Zeotech Extends MSI Offtake and Advances Toondoon Kaolin Infrastructure

Offtake Agreement Extended and Commercial Terms Improved

Zeotech Limited (ASX:ZEO) has secured an extension of its offtake agreement with Jiangsu Mineral Sources International Trading Co., Limited (MSI) to 30 April 2027. The amended agreement introduces a priority right for MSI to negotiate purchases beyond committed volumes and revises operational clauses around shipping and demurrage, providing greater flexibility and commercial alignment. This extension underscores the strength of Zeotech’s strategic partnership with MSI as it moves closer to initial kaolin production.

Exploration Campaign Bolsters Resource Confidence

The company has completed a substantial exploration program at the Toondoon Kaolin Project, drilling 110 holes over approximately 3,100 metres. This campaign, which includes 23 reverse-circulation holes from prior geotechnical work, enhances geological understanding and supports mine planning. The results will feed into the project’s development strategy, increasing confidence in the mineral resource and paving the way for a maiden Ore Reserve.

Environmental and Infrastructure Approvals Advance

Zeotech has cleared significant regulatory hurdles, with the Queensland Department of Environment, Tourism, Science and Innovation approving the Estimated Rehabilitation Cost application for the mine plan. Additionally, the North Burnett Regional Council has approved the Operational Works Development Application for a private access driveway linking the mining lease to Myola Road. Approvals for fauna management and water feature declassification under the Water Act 2000 and Fisheries Act 1994 have also been secured, further de-risking the project’s development pathway.

Contractor Selection and Early Procurement Mitigate Risks

Tender processes for key haul road and access infrastructure upgrades, including the Myola Road and Mundubbera-Durong Road intersection, have concluded with a preferred contractor selected. Zeotech has commenced procurement of long-lead civil construction items to mitigate supply chain risks and ensure readiness for mobilisation. These infrastructure works are critical to enabling future haulage and logistics operations for kaolin export.

Port of Bundaberg Bulk Loading Facility Progresses

On the logistics front, Zeotech is advancing plans for a dedicated dry bulk kaolin receival, storage, and ship-loading facility at the Port of Bundaberg. Negotiations with Gladstone Ports Corporation (GPC) have reached the draft lease stage. Importantly, GPC has commenced construction of a permanent Bulk Material Loading Facility, expected to be completed in November 2026. This infrastructure is pivotal for Zeotech’s long-term export ambitions. In the meantime, existing wharf arrangements will support potential trial shipments, for which Zeotech has received proposals covering mining, haulage, and storage services.

Ongoing Stakeholder and Cultural Heritage Engagement

Zeotech continues active engagement with government, regulators, port authorities, and its offtake partner MSI, including a recent site visit by MSI’s director. Cultural heritage consultations with the Auburn Hawkwood People Corporation are progressing, with reports completed and negotiation meetings ongoing. These interactions reflect the company’s commitment to responsible development and community collaboration.