Andromeda Metals Ltd (ASX:ADN, OTC:ANDMF) has moved its high-purity alumina (HPA) project into the next phase of commercialisation, initiating pilot-scale testwork to optimise its proprietary flowsheet and produce 4N (99.99% purity) HPA samples for potential customers.
The pilot will demonstrate continuous production — a step up from earlier batch processing that achieved 99.9985% purity — and generate samples in multiple forms, from amorphous to crystalline (gamma to alpha), to suit end-use requirements.
Using refined kaolin feedstock from the Great White Project, the program will also inform future feasibility studies and produce an amorphous silicate by-product for further assessment.
“We are excited to progress the HPA Project to the next stage of commercialisation, with the production of commercial samples of 4N HPA designed not only to demonstrate the technology in continuous process but also generate commercial samples for engagement with potential customers,” Andromeda’s acting chief executive officer, Sarah Clarke, said.
“The production of HPA represents a high-value, strategic growth opportunity that complements our premium kaolin product offering from the Great White Project. It also positions Andromeda to expand into the critical minerals sector, enhancing our product portfolio and exposure to emerging markets.”
The pilot initiative follows the recently announced HPA scoping study, which identified a continuous pilot plant as the key next step to optimise the flowsheet and produce commercial samples.
Andromeda’s scoping study points to low-cost, low-carbon HPA pathway
Andromeda recently released a Scoping Study assessing the economic potential of producing high purity alumina (HPA) from Great White kaolin, positioning the company to advance an HPA project with strong margins and a lower-carbon footprint.
High purity alumina (HPA) is designated a critical mineral in Australia, the United States and Europe due to its role in advanced technologies and energy applications. The study indicates Andromeda could emerge as a competitive global producer, underpinned by Great White Project (GWP) kaolin quality and recent test work validating a novel flowsheet that achieved 99.9985% (4N) purity.
Key outcomes
- HPA processing facility sized for 10,000 tonnes per annum (tpa) of 4N HPA, using about 30,000 tpa of GWP kaolin feed.
- Net Present Value (NPV) at a 10% discount rate (NPV10): ~A$1.48 billion pre-tax and A$1.01 billion post-tax.
- Pre-production capital: ~A$155 million (including 30% contingency), implying capital intensity of A$15,459 (US$9,894) per tonne of HPA capacity, below other reported processes.
- Operating cost: ~A$4,718 (US$3,020) per tonne, excluding potential amorphous silicate by-product credits.
- Product margin: 85%, or ~A$26,532 (US$16,980) per tonne, based on a conservative A$31,250 (US$20,000) per tonne price.
- Market: forecast 20% compound annual growth rate (CAGR) in demand and a potential 2030 shortfall of up to 78,071 tonnes, equal to 127% of current global capacity.
- Emissions: modelled 6.47 tonnes of carbon dioxide per tonne of HPA (t-CO₂/t-HPA) on natural gas — 48% lower than the 12.44 t-CO₂/t-HPA reported for traditional aluminium alkoxide routes.
The Scoping Study provides preliminary market, technical and economic justification for progressing the HPA Project toward development.