Abstract: An aqueous clay slurry 7 is partially dewatered by filtration to remove a first portion of water therefrom which is collected as the filtrate 71. The partially dewatered clay slurry 9 is then contacted with a hot drying gas 25 in a spray dryer 20 to remove an additional water therefrom which is entrained as water vapor in the drying gas 27 exhausted from the spray dryer. The drying gas 27 exhausted from the spray dryer 20 is contacted in a cooling tower 40 with cooling liquid 59 to cause at least a portion of the water vapor evaporated from the aqueous slurry to condense.