Next up, we have only two, only two left to go, guys. If you want to hang on another five, this is another couple of, you know, 15 odd minutes, 20 minutes, before beer time, we'll get there. Next up we have Zeotech. Zeotech, another exciting Queensland story. Zeotech is pioneering Australia's first commercial production of metakaolin. Hope I got that term right. Metakaolin with its AusPozz project, helping to decarbonize the concrete industry. Telling us the good news about Zeotech is their CEO, all the way from Cornwall, U.K. Mr. James Marsh, come on down.
Hi, good afternoon everyone. Thanks for staying to listen and not going to drinks yet. Hopefully you'll find this interesting. It's a bit different. There's nothing like it in the conference. That's why I do hope you find it interesting.
Zeotech, we plan to change the way concrete is made in Australia and maybe even around the world. Big claim there, but everyone here should know about concrete. Concrete, second most widely used material in the world, behind water. There's about three tons of concrete for every person in the world. Here we have a massive opportunity. I'm going to tell you all about it. Just disclaimer. Our product name is AusPozz. You might think that's a bit of an odd name, but there is reasoning behind that. AusPozz is a high-reactivity metakaolin. This is nothing new. The Romans discovered this 2,000 years ago. That's why Roman concrete still stands now. Because they use this stuff to make their concrete last that long. It's been around a long time. It's been used in concrete commercially for many years.
I was involved in writing patents for this, in France 35 years ago. It's never been used widely for a number of reasons. I will tell you why it is about to be used widely, and this will be AusPozz. The secret of what we have is our really high purity kaolin. Kaolin is something that you're probably well aware of. It's been used commercially in applications for a thousand years, mainly things like paper, paint, ceramics, rubber. Our resource of kaolin is probably, I can safely say, it's probably the purest in the world of its type. In situ grade that you may relate to, it's probably about 99% of what we take out of the ground converts to what we have as an end product. There's nothing I've seen in the world, and I've worked in this, in 59 countries. I've never seen one as pure as this.
This is something very unique and very special. What we do is we convert that to something called metakaolin. It goes from kaolin, which is not reactive. It's heated at 750 degrees centigrade, and it converts that to metakaolin. Metakaolin is reactive in concrete. It reacts in concrete, gives cementitious properties, and it adds a whole lot of benefits to concrete, but very importantly, you'll find out it decarbonizes it considerably. As I said before, it's been used for a long time. AusPozz happens to be more reactive than anything that's been around, and we can replace now up to 50%. On our booth, you'll see a lump of concrete there that has got half of the cement that's been replaced by AusPozz, and yet the concrete is actually still high performance. It's fully validated. It fits existing standards for use, so there's no barriers to entry.
It can be used right away, and independent life cycle analysis shows that it's about 80% less carbon than cement. The advantages I mentioned, there's a whole host of advantages here, and this is historically why it's been used. It's been used for many years to give high strength, high durability, to cure concrete cancer, basically to make concrete last a lot longer. It also reduces shrinkage by 1/2 . We found that we can replace 20% of cement in concrete, and we can give concrete this double the strength. A huge increase in strength, as well as decarbonizing, but it also gives things like improved fire resistance. It can make concrete fire resistant. A whole range of different and very desirable properties here that can be improved by using it.
About three weeks ago, we issued our pre-feasibility study, the first study ever done on this, and we started with a nameplate capacity of about 300,000 tons a year of this. That's for one train of production, one production train. We have got scope to produce, to actually double this and put two trains on there. We stayed very conservative. We wanted to make sure we had a very robust, fully validated PFS that we could substantiate. It's a 300,000 ton production of the metakaolin. It also incorporates 150,000 tons a year of the DSO. Because our kaolin is so pure, it means we can get a higher price than normal for the DSO. There's a big market out there for it. That's early cash flow, so early cash flow from DSO. We end up there with some very interesting metrics.
The sort of cash flow, at after tax is about AUD 1 billion for the 20-year project mine life and about AUD 1.6 billion EBITDA. NPV at over AUD 400 million. IRR about 42%, very quick payback around about two years. Very importantly, we can avoid about 230,000 tons of carbon from this one train, and I'll tell you why that's so important shortly. We can also add about 140 new jobs in a regional area. There's some very interesting numbers there and very interesting, particularly to the government. This gives you a bit of a schematic of a breakdown of our expenditure and our cash flow. On the left, you see the pie chart. We got about capital, total capital is around about AUD 100 million for that single train. The big chunks that you see in the cost down there are really the transport and the processing.
We incorporated the highest costs that we had to make sure we had a very strong feasibility study. There's some very clear opportunities to reduce those numbers dramatically. We've certainly been working towards those in the DFS. On the right, you see the graph there. This shows the project cash flow. Year one, which is not far away. We're talking about Q1 next year. Just around the corner, we've got the DSO bringing in about a steady state of about AUD 12 million. That's going to help us from Q1 next year. Once we've got the AusPozz coming out of the plant, we're looking at a steady state of about AUD 73 million for the combined operations. Some very healthy numbers there. The Port of Bundaberg is where we want to build our site. There's lots of kaolin around in Australia. Most of it is non-economic because it's nowhere near a port.
That's one reason it's never been commercialized where we are actually quite close to a port. We're very lucky. We've got Bundaberg nearby, about 260 kilometers by an approved trucking route. We've got a site there that's been, we've got an LOI with the Gladstone Ports Corporation in a state development site. Very important there, it's already got a multimillion dollar bulk minerals loading facility that's actually not being used at the moment. They really want us there to start using that. It all comes down to, our project comes down to simplicity. We've got to keep this simple. If you don't keep it simple, you can't make money in this business. Industrial minerals is like that. We're very, very lucky we've got this high purity starting point. That means that we have an exceptionally simple processing flow sheet. We don't need to do any refining at all.
That's unique in the world. I don't know any kaolin like this that you don't need to refine. Where you can see there at the bottom line in gray, that's a typical process route for kaolin. Quite intensive. It involves slurrying, screening, centrifuging, dewatering. You've got chemicals involved, lots of water, lots of energy. You end up with a product that you can then convert to metakaolin. By then, you've probably spent about AUD 300 a ton, and you've got a very high carbon footprint. Our green flow sheet there, you see, all we do is crush and possibly mill it, cast on it, and we end up with a product that can be used in concrete right away. Very, very simple. We end up with a product, AusPozz, which is probably the lowest cost product of its type in the world. It's probably the most reactive.
I can tell you that because I've made this product in five different countries for different companies. This is the most reactive, so highest performance, lowest carbon, and very economic. We've got some huge advantages here. Big question that we get asked by the major cement and concrete people is, how much have you got? How many decades can you supply this for? At the moment, we based our pre-feasibility study on about 10.9 million tons of job material we have. We actually have 20 million tons in the mining lease, fully granted mining lease. That is only 5% of our total land holdings. The resource is open in all directions. We will be shortly drilling that out completely. The orange shape that you see is freehold land owned by the company. We own that freehold. We have the fully granted mining lease. I say it's open in all directions.
We're confident that we'll get many multiples of that resource. We'll be able to buy this for many, many years beyond that 20 years in the project PFS and also probably add in the extra trains. Very simple mining. It's actually a quarrying operation. There's about two meters of overburden, which is actually a bulk site, not as good as Simon's bulk site. We have actually got somebody who wants to buy it, funny enough. We don't need to sell that. We probably won't sell it. Very simple mining, basic quarrying, and it's very close to ports. Here's a schematic of the plant design. You see, I said train one, and the top line is train one. It's a rotary cast ironer. Those things are used widely around the world for cement production, lime production, mineral sands, all sorts of other minerals. It's nothing new in that technology.
It's been around a very long time, very mature. We've got space to put two in there. We can double those project metrics and actually improve on that with economies of scale. Early cash flow. I mentioned we've got this early cash flow Q1 next year. This is to supply the DSO. We can get that to one customer in China. This is the biggest trader in kaolin in the world, probably that I've known for a long time. He loves this material. It can be upgraded very easily with high recovery. He signed a Memorandum of Understanding for over five years, about 800,000 tons of that ore. We've got a pink grade that's got a bit more iron in. That's great for cosmetics. That's much higher value.
He's included that and also bauxitic clay, which is a question mark on that one. That's a Memorandum of Understanding, and we're working towards a binding offtake for that. We're planning to start that supply Q1 next year. Now the main game is AusPozz for concrete. This is a huge opportunity. There's about 30 million cu m of concrete poured in Australia per year, using about 10 million-1 2 million tons of cement. I mentioned before that our AusPozz can replace 50% of cement. If we aim to target maybe 10% replacement, that's a million tons a year or more, which is way beyond our 300,000 ton plan. The market here is huge. That's just in Australia. Australia is a drop in the ocean compared to the rest of the world. What's causing the big demand here is to decarbonize this industry. It's a very dirty industry.
It produces massive amounts of carbon. The government has now brought in a safeguard mechanism. Any company producing over 100,000 tons of carbon will be paying somewhere around about AUD 50, maybe AUD 60, AUD 70 per ton for the carbon. Every ton of AusPozz they use is one ton less. That adds automatically AUD 50 to AUD 70 per ton of value to the product. Bearing in mind that if you can make concrete double the strength by using our material, you have to use half the concrete or even half the total cement. That's an even bigger decarbonization opportunity. We've got lots of interest. This is the biggest market pull I've ever experienced in 37 years in this business. We've got every single major in the company in concrete, cement testing it.
We've got people who want to buy it right now, and people will pay a good, pay a good price for it. So nine tier one, and I say tier one, it's Holcim type equivalents. Holcim has signed an MOU with us. This is the world's biggest building products company, and they don't sign MOUs with companies like us ever at all. This is a very unique situation. They've seen the opportunity here, and they want this product. We're now moving towards an offtake with Holcim. If we get that signed up, then there'll be no stopping us at all. Now this is something you may or may not agree with, but regardless of that, it is actually a thing, and it means that it's a very good thing for us.
We can, with our train one, eliminate about 230,000 tons a year of carbon, which is equivalent to about 54,000 cars off the road every year or 3.5 million trees planted every year for 10 years. To put it in perspective, even more interesting is that there are companies in Australia that have been given grants of up to AUD 50 million, AUD 50 million that is, to reduce 100,000 tons a year of carbon. We can reduce double, more than double that, and we can create new jobs. We think there's a great opportunity for government funding here as well. Commercial pathways, short term, DSO, easy, Q1 next year. Medium term, producing AusPozz into concrete batching plants. They can be added by bag, by silo, even as a liquid form. The end game, which we're working towards, is to get it into cement.
We can get it into cement at the source. That means that whoever has it can have a super high performance cement. It's been described as putting concrete on steroids using our stuff. It'll be steroids for concrete, and it'll be super low carbon. That is a win-win for any cement producer. That is our end game to get into the product at source. Through the whole supply chain, that'll go in bulk. It'll go in bags. It'll go everywhere. Timeline. This gives you a schematic of where we are now. We've published our PFS. We now started our DFS. Final approvals have started. That is for just some upgrades to the mine site area to get on the road to get the material out and looking at the production area at Bundaberg. We're going to do a big drilling program. We're going to get that resource expanded.
We're going to produce a proven mineral reserve. Start shipping DSO early next year. Complete the DFS first half next year. In 2028, we'd be producing our own material at Bundaberg. In 2029, full pelt production. That's the worst case scenario. We're now working on the best case. We're now working back from that to see how quickly we can do that. The board, very competent board. Last thing to mention quickly is Shane Graham joined most recently. He ran Boral and Holcim for 30 years. He wasn't ever going to join an assets company ever. He looked at our results and he joined the company. That tells you something about what we've got. Any more information, come and see me at the booth. Thank you very much.