Background: Examination of certain samples of clay from the Lake Frome area had indicated that there exist potentially large deposits of palygorskite-rich clay of possible economic value. An investigation of absorbent clays in general was requested by the South Australian Department of Mines and Energy in order to determine the potential use of the Lake Frome materials. Objectives: The primary objective of the investigation was to determine the markets, sources and specifications for absorbent clays in Australia. A comparison of the Lake Frome materials with specifications and with commercial clays formed the secondary objective. Summary of Work Done: A review of the market for bentonites, palygorskites and absorbents generally was carried out. Experimental work was performed on six samples from Lake Millyera, Jadliaura Creek and Lake Tarkarooloo to obtain data for comparison with specifications and commercial clay products. The results showed that potential markets may exist for the Lake Frome clay as a low grade absorbent suitable for pet litters and industrial spillages. Conclusions: Absorbent clays are not used extensively in Australia. The total market for bleaching earths is about 4000 tonnes per annum. Absorbent uses for oil spills, pet litter and general low grade absorption probably total some 5000-7000 tonnes per annum. Uses other than as bleaching and absorbents are small and were estimated at less than 3000 tonnes, since substitution by non-clay products is common but not quantifiable. A wide variety of minerals are processed into granular and powdered forms as absorbents. Competing minerals are palygorskite, bentonite, diatomite, illite, bauxite and magnesite. Lake Frome materials appear to be competitive with respect to the performance of these commercial products, but their preparation necessitates heating to 650ºC which changes their colour to red-brown. The competing materials are generally pastel buff/green colours, and this point of difference may cause market resistance to uptake of Lake Frome - derived products.