Andromeda Metals Ltd (ASX:ADN) is pushing ahead with plans to commission the starter plant for the Great White Kaolin Project (GWKP) late next year, with first sales anticipated in the first half of 2024.
The near-term producer of the halloysite-kaolin industrial mineral has begun procuring long-lead capital items for the project, which is expected to take about six to twelve months to complete, including finalising tender documents, placing orders with selected manufacturers, and delivery to site.
Andromeda managing director James Marsh said: “This is an exciting moment for Andromeda and yet another significant milestone in progressing the Great White Kaolin Project. Ordering the long-lead items takes us another step closer towards delivering economic benefits and greater certainty for our customers, shareholders and the Eyre Peninsula community.”
Scale-up within three years
When fully operational, the starter plant is planned to process 100,000 tonnes per annum of ore, resulting in nameplate production of 50,000 tonnes per annum of product to fulfil customer agreements, and samples for prospective customers to evaluate.
The output from the starter plant is expected to deliver Great White KCM™90 and Great White HRM™. Andromeda plans to scale up production in the first three years of operation to meet expected demand and produce other products in line with customer needs.
De-risking approach
The starter plant is the first step in a staged approach to develop GWKP aimed at delivering the production and financial outcomes of the GWKP definitive feasibility study.
The staged approach is a de-risking move to develop the project through matching product output to customer demand while the Great White product brand is being developed.
A final investment decision will be made once the Program for Environment Protection and Rehabilitation (PEPR), which has been officially lodged with the South Australian Government, has been approved.