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- Alkane Resources’ (ALK) subsidiary, Australian Strategic Materials (ASM), has successfully produced a titanium alloy from its South Korean pilot plant
- ASM, with joint venture (JV) partner Ziron Tech, produced a 30-kilogram sample using a patented process, which requires 45 per cent less energy
- The titanium production marks the first phase of the development of a low-emission, high-purity metal refining technology for permanent magnet alloys
- ASM and Ziron are working towards the commissioning of the electrorefining section of the pilot plant, which will produce ultra-high purity metal
- The JV is also planning further pilot plant runs to refine neodymium, praseodymium, and other rare earths from ASM’s Dubbo project
- Alkane Resources will hold an extraordinary general meeting to approve the proposed demerger of ASM to become a standalone, ASX-listed company
- Alkane resources is trading 0.8 per cent higher today at $1.26 per share
Alkane Resources’ (ALK) subsidiary, Australian Strategic Materials (ASM), has successfully produced a titanium alloy from its South Korean pilot plant.
ASM, in conjunction with joint venture (JV) partner Ziron Tech, produced a 30-kilogram sample using a patented reduction process, which requires 45 per cent less energy.
A novel process
The JV’s commercial pilot plant has been commissioned on time and on budget.
The titanium production marks the first phase of the development of a low-emission, high-purity metal refining technology for permanent magnet alloys. The process will also work to refine metals such as zirconium, neodymium and other rare earths.
The novel process has one great advantage over other techniques, in that it uses 45 per cent less power — a significant reduction given power generally accounts for 30 to 40 per cent of total costs in metal production.
Next steps
ASM and Ziron are working towards the commissioning of the electrorefining section of the pilot plant, which will produce ultra-high purity metal. The rollout is planned for July 2020.
The JV is also planning further pilot plant runs to produce neodymium, praseodymium, and other rare earths in metallic form.
Australian Strategic Materials Managing Director, David Woodall, says the company has achieved a major goal through the development of the clean metal tech.
“This is a significant milestone in the development of our integrated business plan that includes clean metal production from the development of the Dubbo Project in central west New South Wales,” David said.
“This has the potential to add significant value to our Australian project, while ensuring supply security and stability of these critical materials to global and domestic Australian manufacturing sectors.”
Australian Strategic Materials Managing Director, David Woodall
“This production of titanium metal alloy from titanium oxide feed is a first step in the ASM strategy of value-adding to the output from its polymetallic Dubbo Project, with its large in-ground resource of zirconium, rare earth elements (including yttrium), niobium, and hafnium,” David added.
“ASM’s investment in downstream processing will improve the economics of its Dubbo project, as well as ASM leading the worldwide commercialisation of this breakthrough metallising technology,” he continued.
With the Dubbo resource as ready feedstock for the world-beating refining process, ASM may have placed itself at the front of the pack of emerging rare earth producers.
A new beginning
Alkane Resources will hold an extraordinary general meeting on July 16 to approve the proposed demerger of ASM to become a standalone, ASX-listed company.
The Alkane board believes the demerger “has the potential to create more shareholder value than if the ASM business were to remain with Alkane, and believes the proposed demerger is in the best interests of Alkane shareholders as a whole.”
A streamlined, standalone ASM will retain the Dubbo project and the clean metal tech, and emerge with a $20 million cash balance and no debt.
Alkane will also be able to refocus on its Australian gold business in a win-win for shareholders.
Alkane Resources is trading 0.8 per cent higher today at $1.26 per share as at 11:20 am AEST.
