FYI Resources: An Emerging Producer of High Purity Alumina and Rare Earths

About FYI Resources

FYI Resources (ASX: FYI) is an emerging critical minerals company focused on developing high quality projects for the production of high purity alumina (HPA) and rare earth elements (REEs) in Western Australia. The company applies ESG and economic principles to ensure the long-term sustainability and value creation from its innovative and high quality HPA and REE projects.

FYI is positioning itself to be a significant producer of >99.99% HPA for the rapidly growing markets of electric vehicles, LED lighting, and other tech applications. The company has developed an innovative and integrated process design for HPA production using the feedstock kaolin. FYI acquired the Minhub mineral processing company in 2022 to enter the downstream REE production market.

The company’s flagship project is the development of a HPA refining facility in Kwinana, Western Australia. FYI aims to be a sustainable and integrated HPA producer that can provide reliable supply of high quality HPA to meet forecasted strong demand growth.

WA Government Funding Grant

FYI Resources has been conditionally awarded a $3 million grant by the Western Australian Government to further develop its HPA refining project. The grant was provided via the state's Investment Attraction Fund (IAF) which supports innovative projects that can stimulate jobs, investment and economic diversification in WA.

The funding provides strong government backing for FYI's innovative HPA production process and recognizes the project's strategic importance to WA in developing new critical mineral industries. The grant will allow FYI to accelerate its HPA development plans, including constructing a demonstration-scale HPA production plant at Kwinana.

The demonstration plant will produce HPA samples for customer testing and qualification. It will also optimize FYI's process design and serve as a testing facility. The proposed location provides engineering advantages to enable future modular capacity expansions. The grant will match FYI’s funding contribution dollar for dollar.

Strategic Importance of High Purity Alumina

HPA is a high value critical mineral product that is the key input for certain high-tech applications such as LED lighting and lithium-ion batteries. HPA demand is projected to experience strong double digit annual growth driven by the burgeoning electric vehicle and energy storage markets.

HPA’s main use is as a separator material in EV and static storage batteries to increase power, functionality and safety. As the EV market expands globally, HPA demand will significantly rise. HPA also provides specialized properties for LED lighting and sapphire glass production.

FYI’s high purity HPA product aims to exceed 99.99% aluminum oxide content which provides the quality and performance required by these high-tech users. The company applies high ESG standards to ensure sustainable and responsible HPA production.

Integrated Development Approach

FYI is taking an integrated, de-risked and phased approach to developing its HPA refining capacity. The demonstration plant will provide bulk HPA product samples to potential customers for testing and qualification. This will assist with final product development and optimization.

The demonstration plant also serves as a testing facility to optimize the innovative production process. Its design has inbuilt modular flexibility for staged capacity expansion aligned with customer demand.

The initial targeted capacity is 1,000 tpa HPA before expansion. Locating the plant at Kwinana provides close access to required infrastructure to support this phased development approach.

Innovative Production Process

FYI has designed an innovative integrated process for refined HPA production from kaolin feedstock. The company has already demonstrated the technical viability of this process through extensive pilot plant trials and product testing.

FYI’s differentiated production method delivers high HPA recoveries without the requirement for costly feedstock upgrade processes. The process design achieves quality and efficiency gains by using moderate temperature and atmospheric pressure systems.

These advantages can deliver projected operating costs in the lowest quartile for HPA production worldwide. The process also has environmental benefits from the use of cleaner energy systems and avoidance of waste production.

Rare Earths Diversification

In addition to its HPA strategy, FYI has diversified into downstream rare earth processing through the acquisition of Minhub Operations Pty Ltd in 2022. This provides entry into the US$7 billion current REE market that is projected to triple within this decade.

REEs have burgeoning demand for use in tech applications from smart phones, computers and EV motors to wind turbines and advanced electronics. However, current supply chains are constrained and largely centered in China.

Minhub will operate as an independent entity within FYI Resources and maintain its focus on producing high performance REE compounds and metals for sale into specialty and tier 1 technology sectors. This acquisition diversifies FYI's critical minerals business and provides additional growth opportunities.

Conclusion

FYI Resources is positioning itself as an emerging, integrated producer of high purity alumina and rare earths to meet rapidly growing demand from technology markets. The company is progressing its flagship HPA project in Western Australia having proven its innovative production process and secured WA Government financial support.

FYI applies ESG principles to pursue sustainable industry development and demonstrate HPA's credentials as an ethical battery supply chain material. The demonstration plant will be a key milestone, providing product samples to customers and optimizing the refinement process.

With the backdrop of surging demand forecasts for HPA and REEs in high-tech applications, FYI offers investors exposure to these critical mineral opportunities. The company has a clear growth strategy to capitalize on its proprietary processing technology and industry relationships.

The de-risked phased development approach provides solid foundations for FYI to become a reliable long term supplier of high purity alumina and an integrated rare earths producer. Investors have the opportunity to gain exposure to these high growth critical mineral markets through FYI's emerging production projects.

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