Australian Strategic Materials Ltd’s (ASX:ASM) Korean research and development partner ZironTech has produced 20.8 kilograms of high-purity titanium metal with energy and environmental benefits.
The JV has produced 99.83% pure titanium metal using only 30% of the energy normally required in the standard industry process by way of its innovative metal technology.
This technology reduces the energy usage in producing one kilogram of titanium metal to 35 kilowatts from 117 kilowatts required in the industry-standard Kroll process.
ZironTech’s optimisation process using samples from ASM’s Dubbo Project in Central West NSW also increases metal efficiency by 50%.
“Very significant result”
ASM managing director David Woodall said: “Being able to successfully produce high purity metal without incurring the traditional environmental impact is a very significant result for ASM.
“Our JV team has achieved this result using 70% less energy, with none of the environmental contaminants of comparable titanium industry methods.”
The pilot plant in South Korea has now successfully produced titanium, neodymium and praseodymium metal.
Shares have been as much as 13.6% higher to $2.34 intra-day.
Feasibility study
Woodall said: “We are focused on ensuring these high purity permanent magnet metals and titanium metals do not cause the environmental impacts of traditional methods.
“With our exclusive worldwide licence to commercialise this clean and environmentally responsible metal-refining technology, ASM is well-positioned in its strategy to add value to all Dubbo products.
“ASM’s focus is now on commencing a metal plant feasibility which will confirm the optimal size of a plant in Korea, with the opportunity to build additional plants in key manufacturing areas in Australia, North America and Europe.”
Optimisation study at Dubbo project
ASM is conducting an optimisation study of its $1 billion Dubbo Project, which can potentially reduce the capital and operating costs.
The company plans to finish the optimisation study by the end of 2020 while the feasibility study is expected to be completed in the fourth quarter of 2020.