Australian high-purity alumina firm FYI Resources Limited and Alcoa of Australia Limited extended their agreement to develop a joint venture to develop and market FYI’s high-purity alumina (HPA) project.
The initial agreement began on the 5th of May this year and the parties say that they have made “substantial progress” on bringing the joint venture to fruition. The one-month extension is meant to give the parties time to negotiate the terms of the joint venture and draft the text of an agreement.
The firms hope to collaborate on a joint venture that will utilize the respective strengths of each organization to build a HPA business that will take advantage of the global rise in demand for HPA in the high-tech energy materials sector.
FYI’s managing director Roland Hill said in a press release that it continues to work diligently on bringing the joint venture to life.
“Alcoa and FYI are negotiating a significant opportunity for a unique Joint Venture to leverage our combined strengths to capture opportunities in the high-growth HPA market. While the requirement for the extension is not ideal, our commitment to successfully negotiating a binding agreement is unwavering and we will continue to work constructively towards its completion.”
“While not yet conclusive, Alcoa is encouraged by the progress made towards the establishment of a possible joint venture with FYI Resources for the production of HPA,” noted President of Alcoa of Australia Limited Michael Gollschewski.
Both FYI and Alcoa of Australia say they intend to accelerate the development of the joint venture, the one-month extension to the memorandum of understanding notwithstanding.