FYI Resources Ltd [ASX:FYI] and Alcoa Australia will undertake an extended High Purity Alumina (HPA) production trial at FYI’s pilot plant facility in Welshpool, Western Australia.
The production run aligns with the staged joint development project the pair announced on 1 October 2021.
The FYI Resources Ltd [ASX:FYI] share price was relatively flat at the time of writing. FYI shares are currently trading at 44 cents, down 1%.
Source: Tradingview.com
Let’s look at today’s announcement in detail.
How to Limit Your Risks While Trading Volatile Stocks. Learn more.
FYI and Alcoa to commence extended HPA pilot plant trial
FYI Resources said the primary objective of the pilot plant trial is to demonstrate processing efficiencies that yield high-quality HPA via FYI’s process flowsheet.
The extended pilot run will produce HPA that will be used for further detailed product qualification and assessment by prospective customers and offtake parties.
Data generated from the trial will also inform the design and engineering for a proposed demonstration plant.
FYI will also sequester a portion of the pilot plant output to progress broader applications and downstream opportunities, including HPA anode development.
FYI notes the trial run will provide it and Alcoa with supplementary information including:
- ‘Continued demonstration of the “end to end” efficiency of FYI’s innovative HPA refining process
- Quantification of operational efficiency improvements
- Data to assist with aligning and improving FYI’s ESG goals
- Quantified scale up factors and validation of construction materials for proposed demonstration plant.’
What’s next for the FYI Resources Share Price?
The pilot plant production trial is expected to commence on 19 October, with continuous 24-hour operations for two weeks.
A short break will be used to analyse production data before a further two weeks of continuous operations.
The trial run will target 4N purity HPA. FYI flagged that 5N product may also be produced. If that’s the case, the material will be used to research ‘niche downstream development applications.’
FYI Resources Managing Director Roland Hill commented:
‘The extended pilot plant trial is an important phase in our HPA project development.
‘We are excited that we are approaching this milestone with Alcoa as it provides us with an ideal opportunity to finalize our initial design and engineering prior to progressing the final engineering phases.
‘The significant quantity of HPA generated from the pilot plant will support our customer outreach program, including the provision of further assessment material as requested by the various potential off-take parties seeking to undertake detailed qualification studies on our high quality HPA.’
Global demand for HPA is rising due to its use as coating in lithium-ion batteries. But HPA is also heavily used in synthetic sapphires like LEDs and microchips.
Businesses like FYI are banking on growth in the LED and lithium-ion battery sectors to raise global HPA consumption over the coming years.
HPA, LEDs, lithium-ion batteries, new-age tech…
If you’re interested in these things and want to know how you could possibly profit, then I recommend reading our free lithium report.
It outlines three stocks that could surge on the back of renewed demand for lithium in 2021.
Regards,
Kiryll Prakapenka,
For Money Morning
PS: Our publication Money Morning is a fantastic place to start on your investment journey. We talk about the big trends driving the most innovative stocks on the ASX. Learn all about it here
