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- FYI Resources (FYI) and Alcoa Australia have entered a 90-day period of exclusive discussions on the terms of a possible high purity alumina (HPA) joint venture
- In September last year, the companies signed a memorandum of understanding (MOU) to explore the joint commercial development of FYI’s HPA project
- In February, the potential partners also successfully completed a pilot plant trial, a condition president of the MOU
- During the 90-day period — starting from May 5 — Alcoa and FYI will carry out further due diligence to establish the viability of establishing the joint venture
- Shares traded at 52.5 cents on May 5
FYI Resources (FYI) and Alcoa Australia have entered a 90-day period of exclusive discussions on the terms of a possible high purity alumina joint venture.
In September last year, the companies signed a memorandum of understanding to explore the joint commercial development of FYI’s HPA project.
FYI’s Cadoux aluminous clay project is located 220 kilometres northeast of Perth in WA and has a definitive feasibility study life of mine of more than 25 years.
The company also has land in Kwinana, an industrial area south of Perth, where it intends to refine feedstock from Cadoux into HPA for supply to the traditional LED market and for the growing lithium-ion battery market.
In February, the potential partners also successfully completed a pilot plant trial, a condition president of the MOU.
Alcoa and FYI have now commenced an exclusive negotiation period in which they will carry out further due diligence to establish the viability of establishing the joint venture.
“We believe there is a highly complementary fit between the corporate objectives, cultures and operational expertise of FYI and Alcoa,” said Managing Director Roland Hill.
“Any commercial agreement would also seek to leverage the corporate capabilities of Alcoa, who are globally recognised as a leading producer of alumina, and FYI who have developed and demonstrated an innovative, fully integrated and environmentally conscious HPA refining process,” he continued.
“We view Alcoa as an ideal partner in which to assist us to achieve our goal of developing the HPA project into a major world-class asset to produce and supply high quality, ultra-pure HPA to meet the increasing global requirements for HPA market-related applications.”
The 90-day exclusivity period commenced on May 5, 2021.
Shares last traded at 52.5 cents on May 5.
