Engineering Services Provider appointed for HPA Project
Our Wise-Owl critical metals Investment, FYI Resources (ASX:FYI) is progressing an innovative high purity alumina (HPA) project that could revolutionise the industry.
FYI has partnered with the Australian subsidiary of the leading global aluminium producer, the +$10B capped Alcoa, to develop the HPA project via a joint venture (65% Alcoa : 35% FYI).
The project aims to produce HPA that is purer and substantially cheaper than the current predominant process, and leaves a much smaller environmental footprint.
The JV is currently developing a demonstration plant in WA which will produce up to 240 tpa HPA.
Earlier today, FYI announced that Hatch Engineering was awarded the engineering services contract to support work for the demonstration plant.
With over 70 offices around the world, Hatch is a leading, global multidisciplinary management, engineering and development consultancy with extensive experience in critical minerals.
The Hatch appointment fits in with the main objective we’d like to see FYI deliver in 2022 — commissioning the demonstration plant. The key catalyst for this will come in December with the $50M funding decision by Alcoa.
While we are not privy to Alcoa’s internal discussions regarding its funding decision, there are positive indications of its continued commitment to the project. We note that Alcoa did mention the HPA project in its latest quarterly presentation and commentary.
We also take confidence in seeing FYI management increase their own holdings — managing director Roland Hill recently acquired $190k of shares at a premium through an off-market transaction.
For more on our analysis on FYI Resources, here is a link to our FYI Investment memo.