AMMG Targeting 3000 TPA High Purity Alumina (HPA) Production

Highlights :

• Launch of Bankable Feasibility Study (BFS) targeting 3000 tpa HPA operation
• Aiming become a dominant global HPA producer
• Pilot plant test work to be completed at laboratory
• BFS to be completed towards end of Q3 2015
• Subject to funding, in position to place long-lead orders for plant

Australia Minerals and Mining Group Ltd. (AMMG) is pleased to announce that it has launched a Bankable Feasibility Study (BFS) based on the development of a 3000 tonnes per annum(tpa) high purity alumina (HPA) operation.

The target production capacity would position the Company as one of the top three HPA producers in the world. The Global High-purity Alumina market was valued at 19040tpa in 2014 and is expected to increase to 48230 tpa by 2018, growing at a CAGR of 27.89% according to Technavio Research.

Managing Director Mr Iggy Tan said that the increasing demand for HPA across a growing range of industrial process and high-performance electronic applications gives the Company confidence there is sufficient demand to support the development of 3000tpa HPA production capacity. The proposed 3000tpa HPA production represents less than 10% of the forecast global HPA demand in 2018. This represents an excellent opportunity to come into production during a period of sustained rising HPA demand and market growth.

“The Company’s previous work centred on the development of a 700tpa pilot plant as a first step towards the development of a full-scale commercial production facility.

“Following an in-depth technical and commercial review, the Company determined the significant value in proceeding directly to the development of a full-scale HPA production facility with the necessary pilot plant test work assigned to the laboratory.

“The Company is driven by the substantial savings associated with the proposed 300tpa production facility, which will save capital, reduce share holder dilution with additional capital raisings and an earlier-than-expected production date may also be achievable”, Mr Tan said.

As part of the BFS the Company has appointed various key contractors and consultants to undertake continuous pilot plant test work as part of the optimization and de-risking process. The location of the HPA plant is currently being investigated with potential sites requiring verification through corresponding environmental studies and approval of determine their suitability for commencement of site works.