FYI Resources Ltd (ASX:FYI, OTCQX:FYIRF) will build a small-scale production plant (SSP) near Kwinana in Western Australia to bring its high-purity alumina (HPA) quicker to the market.
This follows the decision by former project partner Alcoa (NYSE:AA) of Australia Ltd to pull out from the project in February, leading to a revised and re-engineering of the schedule to further de-risk and accelerate commercial production.
The revised development plan proposes a phased and scalable approach towards commercialisation of the project.
Based on current project data and taking qualification material requirements into consideration, FYI will initially target annual HPA production of about 1,000 tonnes.
This will allow the emerging critical mineral company to deliver samples to more than 25 potential tier-1 and tier-2 customers more quickly.
The HPA development work stream schedule.
Sufficient funds
FYI has established a portfolio of potential customers, which includes 12 tier-1 customers, and servicing 16 tier-2 end-users in the sapphire glass, e-mobility and niche product markets in East Asia, Europe and North America.
Over the next 12 months, FYI will focus on the delivery of the SSP and the associated supporting studies and approvals and permitting activities.
A preferred engineering service provider (ESP) will be selected soon to undertake the final engineering work as well as the SSP facility fabrication, installation and construction activities.
The company has sufficient funds for the project engineering phase and has several Federal and West Australian State grant funding applications pending for selected stages of project capital.
The actual capital and operating costs will be determined once a full equipment list and final procurement quotes are received by September.
Major step
“We have proven that our 100%-owned HPA project can make high-quality HPA and has significant value,” FYI managing director Roland Hill said.
“Now through the development of the SSP, we can focus on demonstrating consistent and reliable HPA production.
“The re-scoped and re-engineered HPA project schedule for the SSP is a major step towards realising the project’s value as outlined in the definitive feasibility study.
“We intend to design and construct the SSP based on our innovative process as demonstrated throughout our previous pilot plant campaigns.
“However, the schedule and sizing will be engineered to accelerate development and better address the positive market engagement responses received for our HPA to date.”
Significant player target
FYI has developed an innovative process design for the integrated production of HPA, predominantly for electric vehicles in the form of lithium-ion batteries, sapphire glass, LEDs/micro LEDs and other broader tech applications.
The company aims to be a significant producer of 4N and 5N HPA in the rapidly developing high-tech product markets.