FYI appoints engineering contractor for HPA plant
Our critical minerals processing Investment FYI Resources (ASX: FYI) just appointed its engineering contractor for its small-scale High Purity Alumina production plant.
The engineering scope is for a 1,000 tonnes per annum plant.
The smaller scale plant is 1/10th the size of which the company’s Definitive Feasibility Study (DFS) was completed on.
In its DFS, FYI would build a facility with capacity for ~10,000t tonnes per annum which returned:
- Net Present Value (NPV) = US$1Bn
- Internal Rate of Return (IRR) = 55%
- Capital Expenditures (CAPEX) = US$202M
- Payback Period = 3.2 years.
The engineering work will eventually feed into the company’s plant design work AND form the basis for the capital/opearting cost estimates for FYI’s HPA plant.
FYI expects engineering design to be completed by Q2-2024 and the final plant design to commence in Q3-2024.
What’s next for FYI’s HPA project?
The following is FYI’s development schedule for the small scale plant:
What’s next for FYI’s rare earths project?
FYI is also progressing the Minhub project which the company recenty signed a deal to acquire.
At a very high level, the Minhub deal is a 50:50 partnership with Arafura to develop a rare earths processing facility in the NT.
We did a deep dive on the deal in our last FYI note here: FYI to partner with leading Aussie rare earths company in NT
Here is what we are watching for next with FYI’s rare earths project:
- Technical work and offtake discussions with feedstock partners 🔄
- Feasibility Study (due early 2024 - 50:50 funded by Arafura and FYI) 🔄
- Binding agreements between FYI and Arafura (after the feasibility study) 🔲
- Site identification and permitting in Darwin, NT 🔲