Significant cost savings identified by high purity alumina (HPA) integrated plant study

Australia Minerals and Mining Group Limited announces the successful completion of an integrated plant study (Study), which was based on the kaolin to high purity alumina (HPA) process flow sheet specifically researched and developed by AMMG. The Study was conducted by AMMG’s specialist engineering consultants (Consultants).

The Study’s findings indicate significant cost savings to capital (Capex) and operating (Opex) expenditure for AMMG’s proposed HPA processing pilot plant (Plant).

The objective of the Study was to further develop major operating parameters within AMMG’s process flow sheet by incorporating several efficiencies. The Study was conducted in conjunction with an optimization test work program(Test Work), which was commenced by the Consultants in February 2014 and is nearing completion.

Using a base case of2t/day(or 700t/year), the Plant’s Capex is estimated at under $10m, which is inclusive of a 30% contingency.

The Study’s Capex/Opex estimations for the Plant are significantly less than the figures determined by the previous pilot plant study in December 2013.

In the context of negotiating potential off-take agreements, the Study’s actual Opex figure will remain commercial-in-confidence at this stage, although it can be approximated at substantially less than $20/kg.

Based on major industry producers’ reported HPA prices of $54/kg*up to $300/kg(depending on purity and other specifications) the Study’s estimated Opex would enable AMMG to deliver a potentially competitively priced product.

AMMG managing director Ric Dawson said, “The positive findings of the Study are highly encouraging as we move forward advancing funding arrangements for the development of the Plant. We are satisfied the Study’s findings are in line with our expectations and understanding of our process and today’s HPA market”, he concluded.