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Highlights:
Tellus finalises a kaolin production and marketing agreement with Traxys for global ceramics applications
Feasibility Study underway at Sandy Ridge to produce refined kaolin for export use
Sandy Ridge holds large-scale kaolin resources supporting long-term industrial supply
Tellus Holdings Ltd (ASX:TLU), operating within the Materials sector of the asx 200, has announced a formal agreement with Traxys, a multinational commodities firm, for the production, marketing, and sale of wet refined kaolin sourced from the Sandy Ridge Facility in Western Australia.
This development places the company’s kaolin operations on a broader international footing while continuing to support domestic industrial supply chains. Tellus, traditionally focused on environmental services and waste management, is progressing toward establishing its Sandy Ridge deposit as a high-grade kaolin source for industrial applications.
Kaolin Feasibility Study initiated at Sandy Ridge
Under the terms of the agreement, Tellus is conducting a detailed Feasibility Study to assess annual production of refined kaolin at the Sandy Ridge Facility. This study forms part of a broader initiative to leverage kaolin deposits identified across the company’s tenement.
Once the study is completed, Traxys will handle the marketing and global distribution of the kaolin. The material is intended for industrial ceramic manufacturing, including segments such as sanitaryware, tiles, white tableware, and porcelain ware. Kaolin’s applications span multiple industries due to its unique physical characteristics, including thermal resistance, fine particle size, and plasticity.
Strategic infrastructure and dual-use operations
Sandy Ridge operates as both an open-cut kaolin mine and a licensed repository for the permanent isolation of hazardous chemical and low-level radioactive materials. Tellus has highlighted that the facility’s existing backhaul logistics provide direct access to major ports, enhancing export efficiency for kaolin shipments.
The dual-purpose nature of Sandy Ridge strengthens the economics of kaolin extraction by complementing the site’s primary waste management functions. With operational infrastructure already in place, the company anticipates streamlined development for kaolin-related output.
Significant resource base supports scalability
Tellus has publicly disclosed an extensive kaolin resource across its Sandy Ridge tenure. In addition to current indicated and inferred deposits, the wider region is viewed as a major kaolin exploration zone. This scale positions Tellus to meet long-term demand across multiple end-user sectors and support consistent international supply.
Kaolin is widely used beyond ceramics in industries such as paper, paint, plastics, rubber, cosmetics, pharmaceuticals, and structural products. This breadth reinforces the mineral’s utility in manufacturing environments requiring high-purity raw materials.
Traxys to oversee global market access
Traxys, a diversified merchant in industrial minerals and natural resources, will serve as the exclusive channel for distributing Tellus kaolin to global clients. The firm has stated that market conditions support broader integration of refined kaolin across industrial applications worldwide.
With commercial operations spanning multiple continents, Traxys contributes established market networks that align with Tellus’ growth ambitions within the industrial minerals segment.
Tellus aligns operations with broader ESG framework
Tellus maintains a strategic approach to sustainable development by aligning its kaolin extraction with environmental, social, and governance objectives. The company facilitates industrial transitions within a framework that prioritises compliance, safety, and reputation management for Australian industries.
As an active player in circular economy solutions, Tellus continues to position Sandy Ridge as a site that balances resource extraction with responsible waste disposal and long-term environmental custodianship.
