Join our daily newsletter At The Bell to receive exclusive market insights
- Andromeda Metals (ADN) has signed an agreement with a Japanese customer for 5000 tonnes per annum of premium ceramic grade product from its Great White Kaolin Project in South Australia
- Japanese porcelain manufacturer Plantan Yamade will pay $700 per tonne of the premium ceramic product after testing and analysing a series of samples
- Andromeda’s Great White halloysite-kaolin has also attracted interest from potential customers in Japan, Europe and Asia
- The project’s marketing and logistics consultants, Conrad Partners, are now engaging with high-end ceramic end users and potential toll refining companies in China
- Andromeda Metals is in the grey, last trading at 41.5 cents
Andromeda Metals (ADN) has signed its first legally binding offtake agreement with a Japanese customer for 5000 tonnes per annum of a premium ceramic grade product from its Great White Kaolin Project in South Australia.
The Great White Kaolin Project is a joint venture with Minotaur Exploration, in which Andromeda holds a 75 per cent interest.
The agreement is with Japanese porcelain manufacturer, Plantan Yamade, which has factories in both Japan and China. The customer’s payment of $700 per tonne is equivalent to the price used in the Great White Project pre-feasibility study, which took place in June 2020.
Plantan Yamade analysed and tested a broad series of samples at both laboratory and pilot-scale over two years, prior to running around 40 tonnes of material through its processing plant, which was used to manufacture a large batch of high-quality porcelain items.
Andromeda’s Great White halloysite-kaolin has also attracted interest from potential customers in Japan, Europe and Asia, due to its high quality and reliable long-life supply. The project’s marketing and logistics consultants, Conrad Partners, are now engaging with high-end ceramic end users and potential toll refining companies in China.
The company says previous visits to China confirmed substantial product offtake volumes through the signing of letters of intent for direct shipping ore, dry-processed and wet-processed material sourced from the Great White Kaolin Project.
COVID-19 freight restrictions have slowed the delivery of Andromeda’s product, however, quality control testing on six-tonne batches of product were able to be sampled.
The Great White Kaolin Project remains on track for the commencement of open-pit mining in February 2022.
Andromeda Metals is in the grey, last trading at 41.5 cents at 9:55 am AEDT.
