Australian high-purity alumina firm FYI Resources Limited announced last week a memorandum of understanding with Alcoa Australia Limited to negotiate terms to a joint venture high-purity alumina (HPA) project.
FYI says the agreement establishes a 90-day contemplation period (beginning on 5 May) to allow the parties to conduct due diligence regarding commercialization of FYI’s HPA project. The agreement follows a course set in a MOU last September.
The firm says the conditions necessary for going forward with the plan have been met to date.
“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 project,” said FYI’s managing director Roland Hill in a statement filed with the ASX.
“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,” Hill concluded.
FYI said it would continue developing its strategy for marketing HPA during this period as well.