Perth materials technology group FYI Resources has announced a positive result from its definitive feasibility study (DFS) for its Western Australian high purity alumina (HPA) project.
The company, which plans a kaolin mine at Cadoux, WA and a processing plant at Kwinana south of Perth, has also secured $80 million in development equity financing for the project.
The company conducted a definitive feasibility study on its integrated mine and processing project which will produce 8,000 tonnes per annum of HPA over 25 years.
HPA is a high value, versatile material used in lithium-ion battery technologies as a coating for separators.
Managing director Roland Hill said: “The DFS results represent a persuasive economic case supported by extensive and technically detailed studies.
“The extent of diligence in this body of work provides us with assurance in our innovative HPA refining process to be able to deliver a high quality, high purity product in a consistent and reliable manner.”
The DFA results closely mirrored earlier studies and provided a clear way forward for the project.
The project is forecast to cost $198 million, have a NPV (net present value) of US$543 million when completed, and show an internal rate of return of 46 per cent.
Project payback post tax is 3.6 years.
Hill said the project was one of the sector’s lowest capital and operating cost projects.
“We have secured landmark equity financing backing which we consider to be an outstanding achievement.
“The financing facility assists in de-risking the project by providing access to equity funding at critical stages of development.”
FYI received the major approvals for its strategy from the WA mines department in January.
Picture: FYI Resources
Subscribe to our free @AuManufacturing newsletter here.