Minerals Corp in kaolin JV deal in China

March 17th, 2010
Kaolin extractor and processor Minerals Corporation Ltd has signed a deal to form a joint venture in China with a major steel mill to produce slag-based cement.
The partnership would make Kaocem, which is the Sydney-based company's trademarked kaolin-based low carbon cement.
Kaolin is a white non-swelling clay.
Minerals Corporation said in a statement on Wednesday it had signed a preliminary memorandum of understanding with an unnamed party to form the joint venture.
"A near term visit to China is planned to take this to a more detailed and formalised stage as well as holding discussions with the provincial government," Minerals Corporation said.
It said the steel mill would provide a reliable long term source of steel slag waste for making Kaocem.
Minerals Corporation also said it was seeking compensation from Descrete Australia Pty Ltd, which it alleged had not met its obligations under previous arrangements to co-operatively produce Kaocem in Australia.
It had not advised any proceedings against Descrete, however.
"Unless a satisfactory resolution is forthcoming, the company intends to call for repayments of monies advanced to Descrete in the order of $2 million, as well as seeking other damages," Minerals Corporation said.
"The company is open to an ongoing working relationship with Descrete, but only on terms that are fair, reasonable and in the best interests of the company."