Fast Metals processes waste with more waste to extract important minerals

Aluminum has left an indelible mark on the world, with more than 3 billion tons of red clay, a waste product of the refining process, currently stored in open-air vats or piles. But for Sumedh Justo, co-founder and CEO of Fast Metals, there is treasure in caustic waste.

“It’s a very rich resource,” he told TechCrunch. “If you attack with the right chemistry, it can be very profitable.”

Justo believes Fast Metals has found that the chemistry, which happens to be partly made up of another waste stream, is also produced from alumina refineries.

The startup recently raised a $4.3 million seed round led by New Climate Ventures with participation from Azolla Ventures, Astor Swiss, and Rio Tinto’s accelerator, Founders Factory.

The crimson red color of the clay comes largely from rusty iron, the most common compound in the mixture. But the byproduct also contains important minerals, including titanium, aluminum and rare earth elements.

Despite its mineral riches, red clay was largely ignored because separating those minerals from iron oxide was too expensive, Justo said. “We are removing this obstacle,” he added.

Gusto had designed most of the process while studying for his doctorate at the Colorado School of Mines. But one piece was missing, until one day, while talking with fellow co-founder Anthony Staley, things fell into place. “We said, ‘Oh, wait, there’s a waste stream that could make the whole process very economical, and it’s right there,'” Gusto said.

Fast Metals applies this waste stream, along with other chemicals, to the red clay in six different steps. Various minerals drop along the way, each of which can be sold.

“The iron pays for the expenses, the other stuff is the profit,” Gusteau said.

The potential for profit is great. Titanium dioxide sells for about $2.50 to $3 per kilogram, while scandium oxide sells for about $750 per kilogram.

With the new financing, Fast Metals plans to expand its operations. The startup has entered into a commercial contract with Metalox, a mineral processing company, to process one ton of red clay and refinery waste per week later this year.