- Suvo Strategic Minerals (SUV) has extended a supply agreement with Tasmania-based paper mill Norske Skog Boyer
- Suvo will supply up to and above 25,500 tonnes of paper grade kaolin from its Pittango operation in Victoria over a three-year period
- SUV believes the contract shows its ability to supply large amounts of quality product and to compete in a global marketplace
- The pricing of the agreement is commercial in confidence but reportedly in line with global rates
- Company shares have been trading flat at 13 cents
Kaolin producer and silica sand exploration company, Suvo Strategic Minerals (SUV), has extended a supply agreement with Tasmania-based Norske Skog Boyer.
The agreement has been extended for a further three years and will expire in December 2024.
Over the course of the agreement, Suvo will supply up to and above 25,500 tonnes of high-quality paper grade kaolin from its Pittango hydrous kaolin operation which is located about 40 kilometres west of Ballarat, Victoria.
Owned by Norwegian pulp and paper industry company, Norske Skog, Norske Skog Boyer is one of the key providers of paper to Australia’s publishing industry. It runs a paper mill in southern Tasmania and produced Australia’s first newsprint in 1941.
The mill produces 285,000 tonnes of newsprint, book grades and light weight coated grades annually since the completion of an $85 million project in 2014.
Suvo Executive Chairman Robert Martin commented on the contract extension.
“We welcome the contract extension with Norske Skog at Boyer which shows not only Suvo’s ability to supply large quantities of quality product but also our ability to compete in what is effectively a global marketplace,” he said.
The pricing of the agreement is commercial in confidence but reportedly in line with global rates.
Company shares were trading flat at 13 cents at 1:41 pm AEDT.