FYI Resources Ltd (ASX:FYI, OTCQX:FYIRF) will resume control of the high-purity alumina (HPA) project near Kwinana in Western Australia following a decision by project partner Alcoa (NYSE:AA) of Australia Ltd to pull out.
The emerging critical mineral company said it remains committed to progressing the project considering the commercial advantage, high quality HPA, and positive customer response to the product, coupled with strong forecast growth in market demand.
It noted that while Alcoa (NYSE:AA) has acknowledged the work completed to date “demonstrated the merit of (FYI’s) process to produce high purity alumina”, the company had decided not to pursue further HPA development at this time.
An opportunity
“While this is not the outcome we envisaged, the HPA project has advanced considerably, benefitting from Alcoa’s rigour and US$5 million investment,” FYI Resources managing director Roland Hill said.
“FYI recognises the value proposition of the strategy and views regaining control and management of the project as an opportunity.
“As HPA has been our core focus for more than five years, we will move ahead with our HPA development strategy, having retained our original IP and all information and data gathered during development.
“Furthermore, the market response for our high quality, high purity HPA is extremely positive, and we will concentrate on those relationships.
"Resuming control of the project will enable FYI to drive the development, including regular timeline and milestone updates, with an agile and innovative approach whilst providing clarity and transparency via shareholder communications.
“FYI intends to adopt a project schedule with emphasis on an accelerated timelier approach to development. We have a highly experienced team that can move the project forward.”
Adequately funded
FYI has identified a preferred site near Kwinana, Western Australia for a small-scale HPA demonstration plant and is considering further commercial site options.
It will construct an alternative development plan and schedule for the revised small scale production facility and incorporate the ongoing product marketing and customer outreach activities.
The company is adequately funded with $10.1 million in treasury as of end January to continue the small scale production and demonstration development work.
For now, it has come up with the following short-term priorities:
- revise and redefine the HPA project development with a “speed to market” approach;
- continue investigating alternative funding sources;
- incorporate current critical minerals industry and government support into long-term development plans;
- incorporate developed process optimisation and improvements (including flowsheet efficiencies and decarbonisation technologies);
- finalise process technology development and scale-up factors suitable for a commercial HPA facility; and
- continue HPA product market development with new and established potential customers.