Impact Minerals (ASX: IPT) has laid the groundwork to becoming a fully integrated High Purity Alumina (HPA) producer following a string of operational milestones across two complementary fronts.
Recently, the company increased its stake in the Lake Hope HPA project in Western Australia to 80 per cent after a pre-feasibility study (PFS) confirmed a strong economic outlook.
At the same time, Impact is accelerating the development of its proprietary HiPurA technology through a newly acquired 50 per cent stake in Alluminous.
This platform could fast-track a cost-effective entry into the HPA market by integrating HiPurA’s solvent extraction process with production at Lake Hope.
Both ventures share synergies in feedstock chemistry and metallurgical flowsheets, strengthening the case for integration.
The Lake Hope HPA project
The Lake Hope tenure spans 238 square kilometres in the renowned mining jurisdiction of Western Australia.
And at its heart lies the high-grade aluminium clay minerals deposit also known as Lake Hope.
This deposit could facilitate cost-effective mining and offsite metallurgical processing through an innovative acid leaching technique.
So far, a JORC compliant resource containing 880,000 tonnes of aluminium oxide (Al₂O₃) at a grade of 25.1 per cent has been defined at the project.
Robust economic profile
Impact has outlined a strong economic case for bringing the Lake Hope deposit to life.
The recent PFS pointed to a multi-decade mine life with favourable production characteristics.
Here, management highlighted the “exceptionally strong economics” and a pathway to becoming a global supplier of low-cost HPA.
The PFS estimated an initial 33-year mine life with a production rate of 10,000 tonnes per annum.
It envisaged a payback period of only 2.2 years when using a product sale price of about A$35,500 per tonne.
The capital cost to build the mine totalled $259 million.
Operating costs excluding by-products were estimated at $9,450 per tonne.
The study projected post-tax cash flow of A$170 million each year, cumulating in A$5.15 billion for the duration of the mine.
All up, the PFS delivered a post-tax net present value (NPV) of about A$1.17 billion and an internal rate of return (IRR) of 47%.
Impact Minerals managing director, Dr Mike Jones, commented:
“With a simple and capital-efficient flowsheet, strong margins, and a minimal carbon footprint, Lake Hope offers us a pathway to become a leading supplier of 4N high-purity alumina as the market enters a period of rapid growth.”
Modern-day metal
4N HPA is a form of aluminium oxide where purity exceeds 99.99 per cent.
It is prized for its superior brightness, hardness, and resistance, making the product a key ingredient in advanced technological applications.
More specifically, 4N HPA is utilised in LED lighting, lithium-ion battery separators, catalysts, and synthetic semiconductors.
It also commands a premium price, ranging between US$15,000 and US$30,000 per tonne.
And according to research firm Mordor Intelligence, the broader HPA market could be in for a bright future.
Mordor projects the global market size for HPA to nearly triple by 2030, growing at a compound annual growth rate (CAGR) of 21.77 per cent.
It cited soaring demand from lithium-ion batteries, sustained momentum in LED lighting, and continued adoption of advanced semiconductor packaging for this potential surge.
Alluminous and the HiPurA advantage
Impact’s growth ambitions have been further strengthened by its acquisition of a 50 per cent stake in Alluminous – owner of the HiPurA technology.
The HiPurA process is a modular and scalable solvent extraction method which uses a sulphate-based chemical feedstock to produce 4N HPA.
This process could provide substantial cost benefits compared to existing HPA producers.
It has potential to fast-track Impact’s entry into the HPA market by up to two years and is complementary to the Lake Hope project.
Notably, Alluminous already boats a pilot plant that is largely built and nearing commissioning.
Impact is now focused on optimising the pilot plant, securing customer qualification, and targeting near-term revenue milestones.
Management has already reported significant interest from prospective customers and offtake partners, underscoring the strong market appetite for its 4N HPA products.