Shared from the Tue 03 Jul, 2018 - Financial Review Digital...

Shared from the Tue 03 Jul, 2018 - Financial Review Digital Edition
Andromeda’s project takes off


HPA is becoming more popular because of its high brightness, corrosion and crack resistance and ability to withstand extreme temperatures.
With ‘‘Technology Metals’’ now the hottest catchphrase in mining, Andromeda Metals Ltd (ASX:ADN) is ramping up an exciting and lucrative niche in the growing global market.
Andromeda’s primary focus is high purity alumina (HPA) and halloysite from its joint venture with Minotaur Exploration Ltd (ASX:MEP) at the Poochera Project in South Australia in which Andromeda is currently earning up to a 75 per cent equity interest.
HPA is a base material for manufacturing light emitting diodes (LEDs), electronic displays, separators for lithium-ion batteries in the car industry, surgical tools and other instruments in the medical industry.
HPA is also seeing increasing global applications owing to its superior properties such as high brightness, corrosion resistance, crack resistance and its ability to withstand extreme temperatures.
Halloysite kaolin is used for ceramics and largescale industrial applications and China is showing strong interest in Andromeda’s product, so development is now a priority for the company. ‘‘We are in a strong position because we have a large amount of halloysite kaolin which is in demand by very mature existing markets, where current supply is drying up,’’ says newly appointed Andromeda Metals managing director, James Marsh. ‘‘This means we have a significant near-term opportunity to supply the high-value industrial mineral into China and the surrounding region, whilst we also focus on bringing the longer-term HPA opportunity to fruition. ‘‘The advantage we have is that halloysite is naturally much higher purity than typical kaolin, so we will have a premium feedstock material for the HPA process.’’ Mr Marsh, who started in the Andromeda MD role in late May, brings considerable experience and vital expertise in industrial minerals at a significant transition period for the company. ‘‘I joined Andromeda after almost 30 years working for kaolin companies throughout Europe, Australasia and the USA,’’ he said. ‘‘In 2010, I spent a year working on the Poochera Project for Minotaur, so I already had a good feel for the opportunity, and recognised the terrific potential.
‘‘It was a big decision to leave a successful role, uproot from Cairns and move to Adelaide, but the challenge and potential rewards made it too good to pass up.
‘‘My first key action on joining Andromeda was to spend a week in China reaffirming the customer off-take agreements and strengthening the associated relationships,’’ he said.
‘‘We are now absolutely certain we have exactly what the market needs and are working through all of the steps in order to accelerate approvals to production.’’
We are in a strong position because we have a large amount of halloysite kaolin.
James Marsh (left)