Orbite to separate gallium and scandium at Quebec plant

Orbite Aluminae on Tuesday said it had entered into an agreement with US chemicals consultant M&K for the engineering and construction of a separation plant capable of producing gallium oxide at a purity of 4N (99.99%) and scandium oxide at a purity of 2N or greater (99%+) from the acid recovery circuit of its high-purity alumina (HPA) plant in Cap-Chat, Quebec.

The agreement with the St Louis, Missouri-based M&K was a significant advancement for Orbite’s business plan, which had previously expected the separation and production of these two oxides would begin with the company’s smelter-grade alumina (SGA) plant.

The separation facility, which had already been designed as part of the SGA plant, would now be integrated into the HPA design, thus advancing the production of gallium and scandium into 2013.

“We are receiving much more interest for immediate delivery of scandium and gallium than we had anticipated from the market. As a result, we intend to capitalise on these opportunities to quickly establish ourselves as a key supplier of high-purity and high-value products,” Orbite chief marketing officer Yves Noël said.

M&K cofounder Stan Meyer added that the ability to separate and produce these two rare-metal oxides at a high-purity level represented a “smart, strategic” move for Orbite.

“Combining Orbite’s technology with our own expertise, we continue to build on our solid partnership, which is the best bet to ensure the project’s success,” Meyer said.

Orbite’s proprietary process, in its simplest form, revolves around the feedstock, held together by silica, being dissolved in a strong hydrogen chloride (HCl) solution, which frees the alumina and elements of iron, magnesium and sought-after REEs such as gallium and scandium.

The process resulted in a pure grade of alumina, which would give Orbite a significant competitive advantage in the HPA market, which covets net margins of about 30%. The by-product elements are removed from the HCl when it is washed for reuse.

Construction of the HPA plant was reported to be ahead of schedule, with commissioning expected to begin in the next few weeks and the plant to be complete by the end of the year.

Orbite said the civil engineering and infrastructure work was now more than 98% complete, and the electrical work was also ahead of the original construction timetable.

Meanwhile, the company announced the departure of Dr Joel Fournier, who until recently was involved with the research team at Orbite’s laboratory located in Laval. Technical director of the research team Dr Hubert Dumont had assumed responsibilities in assisting CEO Richard Boudreault with research and development and operations.

Fournier would continue to advise Orbite on an ongoing basis should it be required.

Orbite’s Toronto-listed stock traded 2.64% lower at C$2.58 apiece on Tuesday.