Aluminium producer Alcoa has pulled out of a high purity aluminium (HPA) project it was developing in Western Australia in partnership with FYI Resources, despite the companies proving the technology behind the deal.
High purity alumina is used in lithium-ion battery separators, and in synthetic sapphire to manufacture substrates for LED lights and semiconductor wafers used in the electronics industry.
FYI plans a kaolin mine and processing at Cadoux, WA and an HPA production plant at Kwinana south of Perth.
As recently as August FYI Resources appointed Hatch Engineering as an engineering services provider for the demonstration plant it was developing with Alcoa.
In an update to investors FYI Resources gave no reason for the move.
The company said resuming control of the project would allow it to manage its development strategy, timing, budgets, milestones and communications, as well as owning future cash flows.
The company retains access to all IP and data as well as customer relationships developed by the two companies.
FYI resources managing director Roland Hill said: “While this is not the outcome we envisaged, the HPA project has advanced considerably, benefitting from Alcoa’s rigour and US$5 million investment.
“FYI recognises the value proposition of the strategy and views regaining control and management of the project as an opportunity.”
He said the company would revise and redefine the project with a ‘speed to market’ approach.
FYI RESOURCES APPOINTS ENGINEERING PROVIDER FOR HPA PROJECT
Picture: FYI Resources