Impact Minerals leaps towards HPA production with 50pc Alluminous stake

Impact has taken a 50% stake in Alluminous, the new owner of HiPura and its HPA process technology developed by ChemX Materials.

The acquisition provides Impact Minerals with a second avenue to progress its HPA strategy. Pic: Getty Images

• Impact acquires 50% interest in Alluminous, becoming its largest shareholder 

Special report: Impact Minerals is on track to secure a 50% interest in Alluminous, positioning itself as the leading shareholder and accelerating its entry into the HPA market by up to two years. 

Alluminous is a newly formed company that acquired 100% of HiPurA and its HPA processing technology that was developed by ChemX before it went into voluntary administration in January.

Impact Minerals (ASX:IPT) believes the acquisition complements its flagship Lake Hope project in WA, which holds a measured resource of 730,000t grading 25.8% alumina, or 189,000t of contained alumina, providing very confidence levels to support a 10,000tpa HPA plant for 15 years, planned to be operational by 2027. 

It also potentially accelerates IPT’s entry into the $3.8b HPA market by up to two years, providing a significant time and cost advantage compared to the current projected timeline.

According to IPT, the HiPurA technology provides it with a critical downstream advantage involving a proven, modular and scalable processing route not dependent on any single feedstock.

The process has demonstrated >99.99% (4N) purity and offers IPT flexibility and optionality, enabling the assessment of the most commercially viable path to market through the Lake Hope project, chemical feedstocks or a combination of both.

Acquisition background 

HiPurA was a wholly-owned subsidiary of ChemX, however, both entities entered voluntary administration in January. 

IPT reviewed the initial data provided by the administrators and decided to pursue the opportunity.

The remaining 50% of Alluminous will be owned by the two founders and inventors of the HiPurA technology, together with North American venture capital investors with experience in the resource sector.

This structure is expected to support the development of the HiPurA HPA process by retaining the involvement of original developers and may facilitate access to North American capital markets.

Alluminous's next steps will be to demonstrate the HiPurA technology at pilot plant scale, followed by expansion to commercial-scale production in North America.

‘Rare and strategic opportunity’ 

IPT managing director Dr Mike Jones said the acquisition represented a rare and strategic opportunity for Impact. 

“ChemX ultimately failed due to financial issues rather than any technical shortcomings,” he said. 

“Our due diligence identified a robust, well-designed technology and business plan.

“The HiPurA process demonstrated innovation, scalability and the proven ability to produce 4N HPA at the micro-plant scale.

“The associated pilot plant, which is capable of producing at least 25 tonnes of HPA per year, is nearing commissioning and has the potential to accelerate the time to commercialisation materially,” Jones added. 

He said the acquisition provided Impact with a second avenue to progress its HPA strategy – HiPurA may serve to complement its Lake Hope Project, with plans to explore integration through back-engineering.

“The HiPurA technology also provides alternative development possibilities, with potential advantages including faster time to market, multiple feedstock options and a highly scalable production model,” he said. 

“Based on our current assessments, the time savings could be as much as two years, which may be worth millions of dollars.

“Impact is now uniquely positioned to become part of a vertically integrated, globally competitive supplier of HPA.”

What’s next? 

IPT will conduct test work to evaluate the compatibility of Lake Hope feedstock with the HiPurA process, utilising the same micro-plant used to develop and validate the process, followed by work in the full pilot plant. 

The pilot plant, which will produce HPA samples for potential customers, is expected to be operational by 2027. 

A PFS is set for completion in the current quarter.

This article was developed in collaboration with Impact Minerals, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.