Canada’s Geomega Resources will receive up to C$4.5 million of funding from Rio Tinto to advance work on its bauxite residue valorisation technology, which it says could improve the environmental footprint of alumina refining.
A joint development agreement (JDA) between the companies covers Rio Tinto’s purchase of a demonstration licence. It will complete engineering studies that could pave the way for construction of a demonstration plant in Saguenay, Quebec, according to Geomega.
Geomega expects an initial C$1.5 million of payments from Rio Tinto, followed by up to $3 million if it goes ahead with the demo plant.
“For four years Geomega and Rio Tinto’s research, engineering and technical teams have been working together to validate Geomega’s bauxite residue valorisation technology as part of our ongoing efforts to reduce the environmental footprint of alumina refining,” Rio Tinto Aluminium Arvida Research and Development Centre general manager, Josette Ross said.
“This new joint development agreement sets out a clear path to demonstrate to what extent Geomega’s technology can contribute to address one of the global aluminium industry’s greatest challenges, with the added benefit of creating potential new sources of critical and strategic minerals here in Canada.”
Geomega says it will retain ownership of “all background and foreground intellectual property related to the technology”.
CEO Kiril Mugerman said the JDA was a key step for Geomega towards commercial licensing of its technology and “executing on our vision of becoming a leading technology royalties company with focus on critical and bulk metals extraction”.
“Importantly, this partnership highlights the growing demand for sustainable solutions in managing industrial and mining residues,” Mugerman said.
“The technology could potentially allow Rio Tinto to improve the environmental footprint of alumina refining by reducing the amount of bauxite residue stored while allowing the extraction of direct reduced iron grade ore and some critical and strategic minerals such as rare earth element concentrate and titanium concentrate.
“By working with one of the world’s leading aluminium producers we have the opportunity to demonstrate the robustness of our process and pave the way toward commercial deployment in Quebec, Canada, and then globally.”
Canadian Venture Exchange-listed Geomega’s share price has tripled this year, leaving it with a market value of about C$53 million.
