Alumina, News, Project approval

Andromeda advances Great White project

Andromeda Metals kaolin supply deal

Andromeda Metals has fast-tracked expansion plans for the Great White kaolin project in South Australia.

Expansion plans have been brought forward due to anticipated sales volumes for the Great White project’s kaolin products under binding agreements currently exceeding the planned production of 50,000 dry tonnes per annum (Mtpa).

The initial amount of 50,000Mtpa was determined in the Great White project definitive feasibility study (DFS) released in August 2023.

Stage 1A+ will now add 40,000Mtpa to this volume for a total capacity of 90,000Mtpa.

First production for Stage 1A is expected to occur 10 months from the final investment decision (FID), with Stage 1A+ production commencing 17 months from FID.

“The decision to increase the scale of our planned Stage 1A+ operation is a significant step forward in Andromeda’s commercial strategy, which greatly improves capital efficiency and financial outcomes, and support the ongoing discussions with the numerous debt providers currently underway,” Andromeda managing director and chief executive officer Bob Katsiouleris said.

The project’s acceleration follows Andromeda’s progress in negotiating with current and potential offtake partners, including Traxys.

The company anticipates total volumes committed under binding offtake agreements to surpass nominal Stage 1A capacity from Year 1 and reach 100,000Mtpa of kaolin in Year 3.

Andromeda said all the material assumptions used in the 2023 DFS continue to apply and have not been materially changed.

The pre-tax net present value of the Great White project has increased by $64 million due to the revenues brought forward by the re-scheduling of the expansion stages. The re-staged 2023 DFS now equals $1.074 billion.

As the Great White project ramps up, it was announced last week that Katsiouleris has resigned as Andromeda’s managing director and chief executive officer. He will continue in the role until July 31.

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