Alcoa ponders FYI Resources partnership

GBM, Smartset deal

Alcoa of Australia and FYI Resources have started negotiations around forming a joint venture to develop high purity alumina opportunities.

In September 2020, FYI entered a memorandum of understanding (MoU) to enter a joint venture with Alcoa for FYI’s high purity alumina project in Western Australia.

Alcoa and FYI produced high-purity alumina at a pilot plant trial in Western Australia in February.

FYI managing director Roland Hill said Alcoa was an ideal JV partner for the company.

“I am extremely pleased we have progressed the HPA MoU to a period of exclusive discussions with Alcoa, under which we will negotiate towards a potential JV for FYI’s HPA (high purity alumina) project,” he said.

“We believe there is a highly complementary fit between the corporate objectives, cultures and operational expertise of FYI and Alcoa.

“Any commercial agreement would also seek to leverage the corporate capabilities of Alcoa, who are globally recognised as a leading producer of alumina, and FYI who have developed and demonstrated an innovative, fully integrated and environmentally conscious HPA refining process.

“We view Alcoa as an ideal partner in which to assist us achieve our goal of developing the HPA project into a major world-class asset to produce and supply high quality, ultra-pure HPA to meet the increasing global requirements for HPA market related applications.”

From May 5, FYI and Alcoa’s negotiations will take place under a 90-day exclusivity period in line with the MoU from September.

During the 90-day period, both companies will negotiate the terms of the potential JV, along with discussions concerning the technical and commercial viability of the JV.

The future development and commercialisation of FYI’s high purity alumina project will also be discussed.

FYI stated that high purity alumina is increasing in demand due to its properties used in lithium-ion batteries for the electric vehicle (EV) and static energy storage markets.

It is also used in LEDs, sapphire glass products and electronics.

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