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Highlights
- FYI Resources Limited (ASX:FYI) has started the trial production of HPA through its extended pilot plant campaign.
- The proposed commercial HPA production by FYI and Alcoa is in line with the Western Australia Government’s Battery Industry Strategy.
- The current trial production run is the second joint pilot plant trial between FYI and Alcoa.
FYI Resources Limited (ASX:FYI, OTC:FYIRF) continues to achieve new milestones at its flagship High-Purity Alumina (HPA) project in Welshpool, Western Australia. In a significant announcement, Australia-based resource player has announced the commencement of the extended pilot plant campaign, undertaken in collaboration with Alcoa of Australia.
The proposed commercial HPA production by FYI and Alcoa is in line with the Western Australia Government’s Battery Industry Strategy. The government envisions to create a sustainable, world-leading, and value-adding battery industry that can help the nation create more jobs, contribute to skill development, benefit regional communities, and support economic diversification.
Related Article: FYI Resources (ASX:FYI) embarks on extended HPA pilot plant trial
Delegates visit the facility
Coinciding with the beginning of the trial, Minister for Mines and Petroleum Honourable Bill Johnston and various representatives from the Department of Jobs, Tourism, Science, and Innovation undertook a site visit to view FYI and Alcoa’s joint development HPA pilot plant in operation.
Apart from this, Mr. Eugenio Azevedo, a representative from Alcoa of Australia, and FYI Managing Director Mr. Roland Hill also marked their presence during the HPA pilot plant tour with the Manager of metallurgy Mr. Alex Borger from IMO Pty Ltd.
Related Article: FYI Resources Limited inks binding term sheet with Alcoa for HPA development
Second pilot plant trial
The current production run is the second joint pilot plant trial between Alcoa and FYI. The Company has already finished the first trial run, which had commenced on 19 October 2021. The current trial run has an extended operating time of two weeks followed by an operational assessment period of one week and then a second two weeks of operations.
Significant operating parameters for the pilot plant trials were as follows:
Additionally, the HPA producer has also been qualified for land in Kwinana Industrial Area. The land is provided to the company as part of the government's action to facilitate the project as it is related to the strategy administered by the Department of Jobs, Tourism, Science, and Innovation.
Related Article: FYI Resources Limited (ASX:FYI) and Alcoa agrees to extend HPA JV Exclusive Agreement
Agreement with Alcoa
The resource player released an updated feasibility study in April 2021 for the production of HPA using an innovative flowsheet that demonstrated outstanding economic metrics and technical merits of the project.
Having finalising an MoU with Alcoa in August 2020, FYI inked a binding term sheet in October 2021 for the joint development of the HPA project including the allocation of funds of up to US$243 million of the anticipated capital expenditures of US$250m for 65% of project equity.
Shares of FYI last traded at AU$0.350 per share as of 19 November 2021.
