Zeotech Delivers Game-Changing PFS for AusPozz™ Project - A Story about Low - Carbon Concrete Additives.
- Noel Ong
- Jul 18
- 6 min read
Announcement
Zeotech Limited (ASX: ZEO) Zeotech Limited (ASX: ZEO) has released a Preliminary Feasibility Study (PFS) for its AusPozz™ Project, underpinned by its Toondoon Kaolin Project in Queensland (Figure 1), confirming the strong technical and economic potential of Australia’s first metakaolin manufacturing facility for the production of low-carbon concrete additives. The study marks a major milestone for Zeotech’s ambition to support Australia’s decarbonisation efforts and transform the construction materials landscape.
Figure 1: Toondoon Kaolin Project map (source: ZEO)
Zeotech, Chief Executive Officer, James Marsh commented:
“We are excited by the positive outcomes of the AusPozz™ Project PFS, which presents a compelling business case for establishing Australia’s first manufacturing facility dedicated to producing a world-class high-reactivity metakaolin. This advanced supplementary cementitious material (“SCM”) product offers both significant environmental and technical benefits, making it a key enabler in accelerating the transition to low-carbon concrete across a broad range of applications.”
“AusPozz™ is well-positioned to become a game changer in Australia’s building and construction materials sector, with the potential to make a substantial contribution to the nation’s net-zero carbon emission targets. We eagerly look forward to advancing the DFS and continue driving sustainable innovation.”
What is AusPozz™ Metakaolin?
AusPozz™ is a high-reactivity metakaolin, a supplementary cementitious material (SCM) that enhances strength, reduces shrinkage, and improves durability in concrete (Figure 2).
It is made by calcining ultra-high purity kaolin from Zeotech’s Toondoon Kaolin Deposit in Queensland.
“AusPozz™ is well-positioned to become a game changer in Australia’s building and construction materials sector, with the potential to make a substantial contribution to the nation’s net-zero carbon emission targets. We eagerly look forward to advancing the DFS and continue driving sustainable innovation.”
Figure 2: Zeotech's AusPozz™ high-reactivity metakaolin. (source: ZEO)
Unlike traditional SCMs such as fly ash (Figure 3) or slag, AusPozz™ is designed to be low-carbon, high-performance, and domestically produced. The proposed facility at the Port of Bundaberg will process 6.23 Mt of kaolin feed over the mine life, supported by nearby infrastructure, utilities, and export routes.
Figure 3: Traditional SCM from coal fly ash. (source: ZEO)
Key Project Highlights
The AusPozz™ PFS outlines a project with robust economics and clear sustainability credentials:
Project Cashflow: $1,014 million (after-tax)
EBITDA: $1,604 million over the 20-year Life of Mine
Net Present Value (NPV8): $406 million after-tax
Internal Rate of Return (IRR): 42%
Payback Period: 2.1 years
Initial Capital Cost: $115 million, with early DSO sales reducing funding needs to ~$95 million
Importantly, early revenue from Kaolin Direct Shipping Ore (DSO) reduces upfront capital needs and accelerates the project’s payback. The PFS also confirms AusPozz™ production capacity of 300,000 tonnes per annum, underpinned by a JORC-compliant Measured and Indicated Resource of 10.87 Mt of high-purity kaolinite and plastic clay.
From a commercial standpoint, Zeotech has secured strong early interest:
65 active sales/specifier leads
MOUs with major industry players:
Holcim Australia (for AusPozz™ trials and potential offtake)
MSI China (for 950,000 tonnes of Kaolin DSO over five years)
Environmentally, AusPozz™ offers a 1-for-1 cement replacement, potentially reducing emissions by 229,800 tonnes CO₂-e per year at nameplate production, equivalent to removing 53,600 petrol-powered cars or powering over 30,860 homes annually.
The Road Ahead: DFS and Beyond to a Low-Carbon Concrete Company.
With the PFS now complete, Zeotech is preparing to launch a Definitive Feasibility Study (DFS) in Q3 2025, to reach Final Investment Decision in Q1 2026 and achieve full-scale production by Q1 2029.
The DFS will advance:
Resource definition and expansion drilling
Binding offtake agreements
Detailed engineering and vendor trials
Environmental approvals and Port infrastructure agreements
Zeotech also unveiled “Horizon 2” downstream opportunities, including:
zeoteCH₄®, a proprietary zeolite targeting landfill methane emissions
Animal feed supplements aimed at preventing milk fever in cows
These initiatives highlight Zeotech’s long-term vision of becoming a diversified green materials technology company.
Next Steps – Summary
✅ Strong Business Case: AusPozz™ offers low-cost, low-risk production with strong market demand and attractive project margins.
✅ High-Quality Resource: The Toondoon Kaolin Deposit contains ultra-high purity kaolinite (>90%), ideal for DSO and metakaolin production.
✅ Scalable Production: The proposed 300,000 tpa AusPozz™ Manufacturing Facility at the Port of Bundaberg is supported by robust infrastructure, with potential for future expansion (Train 2).
✅ Market Readiness: Zeotech has secured 65 active sales leads and MOUs with Holcim (for AusPozz™) and MSI (for Kaolin DSO), signalling strong commercial interest.
✅ Environmental & Social Alignment: The Project supports low-carbon cement alternatives while promoting regional job creation and economic development.
✅ Execution Pathway:
DFS to commence in Q3 2025
Final Investment Decision (FID) targeted for Q1 2026
Full-scale AusPozz™ production expected by Q1 2029
Samso Concluding Comments
Zeotech’s Preliminary Feasibility Study for AusPozz™ should command investor attention. Seasoned investors will always agree that numbers speak volumes—strong margins, a quick payback period, and scalable market applications. I like that there is an alignment with a global shift toward greener infrastructure. At a time when governments and industries are actively seeking alternatives to traditional cement, Zeotech is positioning itself at the forefront of that transition.
The Company’s emphasis on commercial readiness—with active leads and MOUs—reinforces the Project’s viability, not just from a technical perspective but from a real-market demand lens. The backing of Holcim Australia is particularly notable, offering strong third-party validation. In addition, the Project’s location at Bundaberg and its connection to regional development goals enhance its long-term social and economic sustainability.
From the market perspective, a market capitalisation of AUD $127M is not a bad place for investors to consider a position. If Zeotech can make this happen, I would see much bigger valuations and numbers in the 8 numbers will easily be achieved.
I think the narrative is that Zeotech is not a kaolin play. It’s a transformative move into advanced materials with purpose—one that touches everything from housing to infrastructure, and even animal health in the longer term. That’s a rare blend in today’s resource sector.
The Samso Way – Seek the Research
At Samso, we always say the best stories are the ones that show the homework. Zeotech (ASX: ZEO) has done exactly that—through validated testwork, independent resource reviews, and detailed planning for both commercial and environmental success. With a strategic product like AusPozz™ and the groundwork in place, this is a story for those seeking growth with substance.
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