(RTTNews) - Alcoa of Australia Limited, a subsidiary of Alcoa Corp. (AA), has executed a binding term sheet with Western Australia-based FYI Resources Ltd (FYI.AX) for development activities to produce high-purity alumina, or HPA, Alcoa said in a statement.
Alcoa of Australia will hold a 65 percent ownership interest in the project, which will have stages of development before potential construction, in 2024, of a full-scale, 8,000 metric-ton-per-year (mtpy) HPA plant.
Alcoa noted that the development activities also set a pathway for a future joint venture for the project, of which Alcoa of Australia would be the manager and both parties would contribute specific intellectual property.
Alcoa of Australia will contribute an initial $5 million, over 2021-2022, to stage one project development activities that will include additional production trials, as well as the detailed design of an estimated 1,000 mtpy demonstration facility.
In stage two, a demonstration facility would be constructed, and detailed engineering undertaken for a full-scale HPA plant that would produce 8,000 mtpy.
Stage three would include the start of construction for the full-scale plant.
The full-scale facility is currently projected to cost approximately $200 million.
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