FYI Resources Ltd (ASX:FYI) has kicked off the second phase of its extended pilot plant campaign - the second week of a four-week series of week-long pilot plant trials.
This is part of a flurry of activity and announcements as the company continues to conduct trial production in collaboration with Alcoa (NYSE:AA) of Australia to develop and commercialise its high purity alumina (HPA) refining process.
Following the success of the first week, Phase 1, the pilot program moves seamlessly into week two.
The second week will continue under the design criteria with minor tweaks and refinements to test operating objectives and assumptions.
The HPA samples from the first week’s trial have been submitted for independent, high-definition analysis and the results are expected shortly.
FYI will continue to update the market as results come in.
READ: FYI Resources Ltd making good progress on Alcoa HPA pilot plant JV
Funding agreement
FYI signed an MoU with Alcoa (NYSE:AA) back in August 2020 to collaborate on the development of the HPA project.
In October this year, the companies signed a binding term sheet that set out funding terms, including a funding allocation of up to US$243 million of the anticipated capex of US$250 million for 65% of project equity.
Feasibility study
In April of this year, FYI released an updated feasibility study (DFS) to produce HPA using an innovative flowsheet demonstrating the project’s solid economic metrics and technical merit.
FYI’s plans for HPA
FYI plans to be a significant producer of 4N and 5N HPA in the rapidly developing high-tech product markets.
HPA is a key component of certain high-tech products, including electric vehicles. It’s also critical to the static energy storage market, where it is used as a separator material between the anode and cathode in batteries to increase power, functionality and safety of the battery cells.