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.
