Name of the Project
Cadoux kaolin and Kwinana high-purity alumina (HPA) project.

Location
Western Australia.

Project Owner/s
FYI Resources.

Project Description
The project has a proven and probable reserve of 3.2-million tonnes grading 24.8% aluminium oxide. The ore reserve is based on the eco­nomically mineable portion of the measured and indicated mineral resource, which is estimated at 11.3-million tonnes grading 22.5% aluminium oxide.

The definitive feasibility study (DFS) on the pro­ject is modelled on a 25-year mine life from a potentially long-term mine life of more than 50 years.

Eighteen separate mining stages have been planned for the life-of-mine schedule. The average life of each stage is three years, with a total mine life of 51 years. The DFS has noted that the processing of this ore, in the mine plan, continues potentially for another ten years, until Year 62.

HPA production is estimated at 5 600 t/y in the first year and thereafter at 8 000 t/y.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at a 10% discount rate, of $543-million and an internal rate of return of 46%, with a payback of 3.6 years including ramp-up.

Capital Expenditure
The project is estimated at $198-million, compared with the prefeasibility study estimated cost of $179-million.

Planned Start/End Date
The DFS is targeting production of HPA starting in the second quarter of 2022 through a beneficiation plant in Cadoux; and a hydrochloric acid (HCl) leach and precipitation plant in Kwinana.

Latest Developments
In March 2020, FYI entered into a strategic project development equity financing facility of up to A$80-million with private equity group GEM Global Yield.

The equity commitment is primarily directed towards the capital requirement of the HPA project and will provide up to 30% of the project’s capital costs. The funding could potentially represent 100% of the equity component required.

Key Contracts and Suppliers
GEM Global Yield (equity).

Contact Details for Project Information
FYI Resources, tel +61 8 9313 3920 or email info@fyiresources.com.au.