This study focuses on the role of low-quality calcined Fanja (FNJ) clay in enhancing the behavior of cured cement mortar (CM) and its resistivity to chloride and sulfuric acid attack. Ordinary Portland cement was replaced with different quantities (10%, 25%, 35%, and 50% by weight) of FNJ, which was calcined at different temperatures (620 °C, 760 °C, and 900 °C). After 28 days of curing, all the hardened mortars were immersed in 5% sulfuric acid for up to 12 weeks. Additionally, a rapid chloride permeability test was conducted on the 91-day cured CM and CM-FNJ samples to evaluate the affinity of calcined FNJs to retard the chloride diffusion into CM. The results showed that all samples containing FNJ900 showed better physical and mechanical properties than the control sample, while CM with NFJ760 recorded nearly similar performance as CM-NFJ900. In contrast, the CM-FNJ620 mixtures showed lower properties than those of other mixtures. In addition to the pozzolanic reactivity of the calcined clay, the presence of hematite in the calcined clay strongly contributed to increasing the mechanical properties of the hardened mortar through forming calcium ferrosilicate hydrate binding phase, as confirmed by X-ray diffraction. Moreover, the existence of hematite increased the resistivity of CM against sulfuric acid attack as it acts as a buffer for an acidic medium. Compared with CM-FNJ900, the CM-FNJ760 is recommended for use as it exhibited a higher strength activity index and comparable resistance to accelerated chloride diffusion and sulfuric acid accompanied by lower energy demand and lower CO2 emission, achieving the concept of ‘sustainability’.