FYI Resources Ltd (ASX:FYI) has received a A$1.18 million tax rebate boost for the 2020-21 financial year, benefiting from the current state and federal push to keep innovation alive and kick-start the post-COVID economy.
The payment is a tax incentive rebate under an Australian Government scheme to boost research and development (R&D).
In partnership with Alcoa (NYSE:AA) of Australia, FYI is progressing an innovative process design to produce high quality, high purity alumina (HPA).
The government rebate relates to the company’s R&D expenditure on the development of the HPA project.
Tax incentive
Under the initiative, jointly administered by AusIndustry and the Australian Taxation Office, eligible companies can receive cash refunds of up to 43.5% of all eligible expenditure on designated research and development projects.
The company plans to continue to direct R&D funds towards the ongoing development of a fully integrated, low-risk, low-cost production of high purity 4N (99.99%) and 5N (99.999%) alumina products.
Eligibility for the scheme requires FYI to conduct technical work to advance potential customer-requested product finish specifications. It must also carry out zero-carbon studies and contribute to specialty downstream battery applications such as HPA coatings for anode and cathode coating architecture.
FYI – the future
Due to its unique characteristics and chemical properties, HPA is of increasing importance in emerging industries and is attracting growing interest from the burgeoning electric vehicle and static energy storage markets.
FYI aspires to become a significant producer of ultra-pure 4N and 5N HPA in these rapidly developing high-tech product markets. It applies a sustainable lens to its operations, with the aim of ensuring long-term shareholder value in a carbon-reduced future.