AMMG to commence DFS on South West alumina project

THE BOURSE WHISPERER: Australia Minerals and Mining Group (ASX: AKA) is about to commence a Definitive Feasibility Study (DFS) for the company’s 100 per cent-owned South West High Purity Alumina project, located in the south west of Western Australia.

AMMG has appointed a Perth-based metallurgist and process engineering company to complete the DFS with the aim of addressing the following processing technology criteria:

Data Review

–    Flowsheet Review; and
–    Pilot data and equipment.

Process engineering

–    Revised Process Design Criteria development;
–    SysCAD Model development;
–    Plant layout design;
–    Process Flow Diagram development;
–    Equipment List and Capital Expense;
–    Piping and Instrumentation Diagram and Control Philosophy;
–    Operational Expense;
–    Plant Layout design; and
–    Safety and Operational Philosophy.

“The DFS is the next stage of development for this project as it will detail the design, construction, capex and opex costings necessary for pursuing financing options for a HPA pilot/mini-production plant,” AMMG managing director Ric Dawson said in the company’s announcement to the Australian Securities Exchange.

“The appointment of this highly-experienced metallurgical/process engineering company is based on their previous success in the optimisation and management of efficient laboratory and processing plant operations both in Australia and overseas.

“The DFS is scheduled for completion in September 2013; subsequent to this and provided the securing of the necessary funding requirements occurs, a tendering process would ordinarily follow, with commencement of operations anticipated around mid to later next year.”

AMMG previously announced production of 99.99 per cent (4N) high purity alumina (HPA) using its processing technology.

The company stated it is confident it will be able to produce higher 5N or 6N purity levels, subject to further successful development of the process.

AMMG has lodged three patent applications to protect the intellectual property of its processing technology.
The company considers the DFS to be the next stage of development in this project as it will scope the design, construction and financing requirements for a HPA production plant.

AMMG is currently targeting potential investors and off-take customers.