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FYI appoints engineering contractor for HPA plant


Published 12-JUL-2023 12:00 P.M.


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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:

FYI dev schedule

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 🔲