Suvo Strategic Minerals signs three-year agreement for sale of silica sand

Suvo Strategic Minerals (ASX:SUV) has signed a three-year agreement with BQ Nominees, trading as Barfold Quarry, for the sale of its silica sand.

The deal covers by-product produced from Suvo’s hydrous kaolin operation in Victoria and is expected to generate revenue between $1.5m to $2m.

Suvo estimates 200,000t of silica sand stockpiles at the Pittong processing facility with 90% (180,000t) saleable silica sand.

Due to the supply shortages of sand in the construction industry, it’s estimated that all 180,000t of saleable silica sand will be processed and hauled by Barfold in the first year of the agreement.

Once the current stockpile has been depleted, sales of the by-product will be linked to production of hydrous kaolin at Pittong.

Based on current recoveries, 1t of hydrous kaolin generate around 1.2t of saleable silica sand.

Throughout the remainder of the agreement, Barfold will process and purchase all available future saleable silica sand production.

Barfold will use the silica sand from Pittong in its premix concrete. In the coming weeks, the company will mobilise its own equipment to the Pittong processing facility and begin dry screening of the existing silica sand stockpiles.

Suvo managing director and chief executive Hugh Thomas is pleased with the agreement.

“We are delighted to enter into this agreement with Barfold Quarry for the sale of our silica sand from Pittong,” he said.

“Our number one focus is to increase our sales of hydrous kaolin in the Asia Pacific region, to match our increased production capacity following the successful plant upgrade at Pittong.”