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- FYI Resources Limited is advancing to position itself as one of the leading suppliers of High Purity Alumina (HPA).
- FYI executed a contract with Hatch Engineering for providing quality engineering works on the HPA Project.
- The leading global engineering firm will facilitate engineering studies for the HPA demo plant.
FYI Resources Limited (ASX:FYI|OTCQX:FYIRF|FSE:SDL) is progressing determinedly to position itself as one of the leading suppliers of High Purity Alumina (HPA). FYI has executed an engineering service contract with Hatch Engineering to support work at the HPA demonstration plant.
FYI operates an HPA Project in the Western Australia region. The Company aims to set up an installed capacity of 8,000Mt HPA annually. To achieve this milestone, the Company has joined hands with Alcoa, a world-leading alumina producer. Alcoa has committed to funding US$243 million for the development of the project.
For more information on the project, click here.
After an extensive review of several international engineering firms, Hatch has been selected. Hatch is a multidisciplinary engineering firm, providing management, engineering and development consultancy to the energy and resource companies globally. The engineering firm has an extensive experience in critical minerals and has an international reputation for its services.
Hatch group of companies has 70+ offices with more than 9,000 staff.
Data source: FYI update, 23 August 2022
FYI’s HPA project is already garnering attention in the industry and attracting Tier-1 support and project funding. FYI managed to time the project’s development when the industry demand for HPA is growing.
The Definitive Feasibility Study (DFS) on the project has resulted in excellent financial metrics with an IRR of 55% and a payback period of just 3.2 years. The project is expected to result in a net cash flow of US$131 million annually.
HPA has wide application across various sectors due to its distinctive chemistry and physical characteristics. Alumina is used extensively in the manufacturing of scratch resistant glass, phosphors, LEDs and lithium-ion batteries.
With more than 300 million EV cars projected to hit roads by 2030, as per the International Energy Agency forecasts. This will also push the demand for HPA exponentially.
Source: FYI Presentation
Australia is on its way to becoming a critical mineral powerhouse
Australia holds a strategic position for the supply of key critical minerals, including nickel, rutile, tantalum, and zircon. However, the country is not able to exploit the most of this opportunity as several of the vital minerals end up in the discarded tailings.
To make the best use of these minerals, the Australian Government upgraded its strategy to grow its critical mineral sector to help meet the future global demand.
In March 2022, Australia’s Federal Government included HPA on the National Critical Minerals list. This could be an encouraging move for the country’s critical mineral players.
The nation is currently taking action to grow into a critical mineral powerhouse. The Federal Government has made commitments to invest AU$200 million to support the Critical Minerals Accelerator Initiative. The main objective is to support strategically significant projects at challenging points in their development.
