Andromeda Metals (ASX:ADN) has signed a non‑binding heads of agreement with Traxys North America to advance high purity alumina (HPA) supply into the US market.
The agreement establishes a framework for negotiating a potential five‑year sales agency arrangement targeting 2,000 tonnes per annum of HPA. Based on indicative pricing of US$20,000 ($28,260) per tonne, this represents potential annual sales of approximately US$40 million.
Traxys is a global commodity trader and supply chain manager appointed under the US Government’s Project Vault initiative to support critical minerals procurement.
HPA is designated as a critical mineral in the US, and the agreement follows Andromeda’s successful 4N+ (99.99%) HPA production, completion of the HPA Scoping Study, and commencement of pilot‑scale testwork.
Acting CEO Sarah Clarke says the collaboration positions Andromeda to capitalise on growing US demand for critical minerals.
“This collaboration positions Andromeda to capitalise on growing demand for critical minerals in the US and supports our objectives to build the next-generation of HPA supply, aligned with high growth technology markets,” Clarke says.
Global HPA demand is forecast to grow 20% per annum by 2030. China currently accounts for approximately 75% of global HPA production capacity.
Andromeda Metals is an Australian pre‑development industrial and critical minerals company advancing a portfolio of kaolin projects in South Australia.
Write to JC Villarba at Mining.com.au
Images: Andromeda Metals
