Governments’ green regulations, particularly in China and the EU, along with increasing consumer demand is creating burgeoning demand for high purity alumina (HPA). Industry experts suggest a 30% compound annual growth rate (CAGR) to 272,000 tonnes per annum by 2028 and a significant deficit.
A number of ASX-juniors are working to help meet this growing demand.
HPA is a pure, high-grade form of non-metallurgical alumina or aluminium oxide (Al2O3) with various applications and its rising demand is being driven by several factors.
Specifically, demand is coming from the global adoption of LED lighting, along with smart technology and industrial uses, and for use in lithium-ion battery separator coatings for electric vehicles and other consumer goods.
HPA is a premium non-metallurgical alumina product, characterised by its purity level – ie 99.99% (4N) or 99.999% (5N), and its application and performance, along with its market price, varies widely according to its degree of purity.
HPA is measured by the concentration of trace elements such as iron, manganese and sodium in the alumina compound. This is a highly important consideration for EV batteries, as HPA purity is critical to prevent battery ageing.
With demand for high quality HPA outstripping supply, substantially higher prices are being paid for the purest HPA.
HPA production
The traditional and most common method of producing HPA is by converting a highly refined material such as aluminium. However this approach is expensive, as using a highly processed feedstock material like aluminium metal requires a lot of energy.
Several new and disruptive technologies are now producing HPA from kaolin, an aluminium-rich fine white clay that results from the natural weathering of feldspathic rocks like granite. Kaolin clay is a relatively abundant, low cost and environmentally friendly HPA feedstock for emerging technologies.
These new processes are simpler, less expensive, less energy intensive and produce a higher quality HPA product. Production costs are low as the kaolin has already been refined and purified naturally by millions of years of weathering.
The HPA is produced from the hydrochloric acid (HCl) leaching of kaolin clay. This technique involves calcining the feedstock material, followed by the HCl acid leach, high temperature HCl recovery and HPA refining. Calcination is the process of roasting kaolin to a high temperature in air or oxygen or a limited supply of either to bring about thermal decomposition.
This represents the leading processing route that has been adopted by many potential kaolin miners looking to add substantial value by manufacturing and marketing HPA. A number of ASX-juniors are making strides in both mining kaolin or advancing kaolin to HPA processing technologies.
On the ASX both Andromeda Metals and Suvo Strategic Minerals have recognised the opportunity in kaolin and HPA.
Andromeda and "globally significant" TGWP
Andromeda Metals Ltd (ASX:ADN, OTC:ANDMF) is focused on advancing its flagship project, the Great White Project (TGWP) in South Australia’s Eyre Peninsula.
TGWP is centred on the large, high-quality Great White deposit, which contains a naturally occurring blend of halloysite tubes and kaolinite plates. The project hosts several high-value deposits featuring a natural blend of halloysite tubes and kaolinite plates.
Situated within the District Council of Streaky Bay, near Poochera on the Eyre Peninsula in South Australia, TGWP is poised to become a world-class mining operation.
Andromeda’s objective is to produce the highest-quality halloysite-kaolin available on the market, positioning South Australia as a pivotal supplier of minerals essential for the global transition to a more sustainable future.
Test work carried out by external consultants has confirmed that kaolin from TGWP is ideally suited for making HPA, due to its high alumina content and exceptionally low levels of alkali and alkaline earth metals.
The company is also developing Great White HRM as a refined kaolin for sale for use as an additive in the concrete industry and other associated applications and the Great White CRM as a refined, dried, bagged product for use by end-users in the high-end ceramics market.
Andromeda recently completed a A$3.4 million placement to advance TGWP. The funds raised will be used for:
- plant design and engineering to a high level of accuracy;
- de-risking the project further for investors and financiers, thereby facilitating the funding process and a final investment decision;
- product and market development for the company’s zircon-replacement, Great White HRM™ and HPA kaolin products; and
- technical, financial and legal activities to support the funding process for the Great White Project.
Andromeda has an offtake deal with Traxys Europe SA for the purchase of kaolin products from its project over the first five years of production. Under the binding agreement, Andromeda will supply Traxys with Great White CRM™ and Great White HRM™ products, addressing what the companies see as a geopolitically driven supply shortage.
Suvo Strategic Minerals: in box seat to fill void
In addition to its geopolymer concrete business, Suvo Strategic Minerals Ltd (ASX:SUV) is focused on production and the expansion of the wholly-owned Pittong hydrous kaolin operation near Ballarat in Victoria.
The company's exploration focus is on near-term kaolin and high purity silica assets in Western Australia.
After extensive discussions with major industry players and market participants in Australia and Asia, Suvo identified that kaolin and applicable chemistry from its Pittong project is best suited to the high-margin industries such paints and coatings, rubber, inks and pharmaceuticals.
This has prompted kaolin sales efforts and focus on purchasers operating in these industries, which Suvo believes will deliver improved long-term results.
Over the past year sales of hydrous kaolin products from Pittong gained global traction, with sales of hydrous kaolin products both to the local and international market totalling some 20,000 tonnes in FY24.
In the June quarter, Suvo achieved an average selling price on new customers converted after successful plant trials of A$863 per tonne — a 47% premium compared to the weighted average selling price for other existing customers in the same period.
The company continues product testing and trials with other potential end users operating in the end user markets or high-margin industries where the Pittong kaolin is being marketed due to its suitability.