FYI Resources Ltd (ASX:FYI) and joint development partner Alcoa (NYSE:AA) of Australia have selected the location for a small-scale production facility and high-purity alumina (HPA) demonstration plant near Kwinana in Western Australia.
Project designs have been finalised and are being reviewed by the joint development partners (JDP) with the permitting and environmental approvals process kicking off on the identified site.
Completing this work has set a solid technical and commercial foundation for the HPA project and provides the framework for the 2023 work schedule for the small-scale production and demonstration facility.
The JDP partners continue to develop and optimise various aspects of the process design to assess and improve performance, efficiencies, economics and product quality.
These studies include improvements in the process materials of construction, material handling, scaling up for commercial production and environmental and waste recycling and disposal.
Final investment decision
The joint development partners have advanced the HPA JDP in relation to the project delivery schedule including product development, technical refinements and project risk mitigation, however revisions to the scheduling and specifications of the small-scale demonstration plant have delayed a final investment decision (FID).
The JDP parties are focused on the completion of the project development and are working towards FID delivery as soon as practical.
This includes working towards the completion of the large quantity of corporate, legal and technical engineering sign-offs and a comprehensive marketing strategy which is being finalised.
Customer outreach
The JDP partners are targeting specific market segments for HPA offtake.
Increased customer outreach to established, emerging and niche market segments continues to provide market assurance as well as product development guidance.
These opportunities include sapphire glass, LEDs/micro-LEDs and electric vehicles (battery components) as well as other niche market opportunities arising as HPA becomes an increasingly important and sought-after product in the critical minerals sector.
Market analysis
A comprehensive third-party marketing research review was commissioned by the JDP on the HPA industry to provide an independent and targeted analysis of the various industry and geographic areas of interest.
The report provides an unbiased and objective view of the market supply and demand and provides additional guidance on the JDP marketing efforts.
The JDP is continuing to investigate broader product ranges and finishes client requirements