Andromeda Metals has said the outcomes of its scoping study at the Great White kaolin project in South Australia could make it a leading global producer of critical minerals.
The study evaluated the economic potential of producing high purity alumina (HPA) – a mineral used in advancing technologies and energy applications – and found the mineral could be produced in a low-cost, low-carbon fashion.
This, Andromeda said, is underpinned by Great White being ideally suited to producing HPA, being high grade and having low levels of alkali metals and alkaline earth metals, with recent testwork showing HPA can be produced at the site at a purity of 99.99 per cent.
Key findings from the study also showed a net present pre-tax value for the HPA project of approximately $1.48 billion and a post-tax value of over $1 billion, with operating costs sitting at around $4700 per tonne.
It has also found “market-leading capital intensity” of $15,459 per tonne of HPA capacity, said to be significantly below other reported processes.
The product margin at the project sits at around 85 per cent, equivalent to approximately $26,500 per tonne, using pricing assumptions of $31,250 per tonne.
“The production of HPA is a high-value growth opportunity, which is not only complementary to the existing high-quality kaolin products planned to be produced from the Great White project, but would also see Andromeda’s product range extend into critical minerals,” Andromeda acting chief executive offer Sarah Clarke said.
“The HPA scoping study supports progressing the HPA project to the next stage, and demonstrates its potential for unlocking significant value for Andromeda and its shareholders.”
Among the project’s next steps include the completion of pre-feasibility studies.
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