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Corella Resources (ASX:CR9) has made significant progress in its kaolin to high purity alumina (HPA) project, focusing on optimizing the existing flowsheet to enhance outcomes and reduce process variables. This effort aims to set parameters for the next stage of scaling up the project.
Progress and Focus
The company has successfully demonstrated that kaolin from its Tampu resource can produce high-quality 5N HPA. With this achievement, Corella Resources, an ASX mining stock, is now concentrating on selecting an efficient flowsheet for use in pre-feasibility and definitive feasibility studies. The goal is to scale pilot plants progressively while focusing on cost reduction.
Corella Resources has received cash and in-kind support from industry partners and a financial contribution from the Resources Technology and Critical Minerals Trailblazer program. This support, along with potential state funding, enables the acceleration of a six-month research and development project, which has a budget of $500,000.
The company's contribution includes $75,000 in cash and $50,000 in-kind support for accessing certified HPA analysis at a leading global laboratory in the US. The R&D program is exploring an alternative flowsheet that addresses key operational factors impacting environmental impact, funding, and economic metrics, such as low capital and operating costs, energy efficiency, and reagent recycling.
Strategic Timing and Industry Goals
Jess Maddren, CEO of Corella Resources, emphasized the importance of timing in the HPA industry:
"Corella Resources’ Kaolin to HPA (K2HPA) project is advancing quickly through collaborative strategies with industry and research groups. Our goal is to develop a novel, low-capex and opex flowsheet to move towards production as soon as possible with a cost-effective processing plant."
Maddren highlighted the critical need for the HPA industry to develop a feedstock and process independent of the aluminium supply chain. This is particularly important given the projected global demand for copper and aluminium over the next decade.
The company plans to develop a kaolin wash plant as a precursor to the HPA processing plant. This will enable Corella to produce various products from processed high-purity kaolin, with cost and profitability improving as the final product becomes more refined.
Future Opportunities
The Tampu kaolin resource totals 24.7 million tonnes, with half deemed suitable for HPA production. In addition to the Trailblazer program, Corella Resources may benefit from the Future Made in Australia program, which includes the Critical Minerals Production Tax Incentive. This incentive offers a 10% production incentive on relevant processing and refining costs for critical minerals, including HPA, from 2027-28 to 2039-40.
Corella Resources aims to leverage this tax incentive to reduce costs and enhance the economic viability of its HPA production facility. The company plans to commence construction of a lab-scale pilot plant in early 2025.
