Lake Hope PFS Reveals A$1.165B NPV and 1.73Mt Ore Reserve at 26% Al2O3
Impact Minerals Limited has released a robust Preliminary Feasibility Study for its Lake Hope High Purity Alumina project, revealing strong economics and a maiden Ore Reserve. The company is advancing towards a Definitive Feasibility Study and pilot plant construction, positioning itself for low-cost, low-carbon HPA production.
- Post-tax NPV10 of A$1.165 billion and IRR of 47.5%
- Maiden Ore Reserve of 1.73 million tonnes at 26% Al2O3
- Targeting 10,000 tonnes per annum of 4N HPA production
- Potential by-product revenue from sulphate of potash (SOP)
- Definitive Feasibility Study and pilot plant underway aiming for 2031 production
Strong Economic Foundations
Impact Minerals Limited (ASX, IPT) has delivered a compelling update on its Lake Hope High Purity Alumina (HPA) Project in Western Australia, following the completion of a Preliminary Feasibility Study (PFS). The study highlights a post-tax net present value (NPV10) of A$1.165 billion and an internal rate of return (IRR) of 47.5%, underpinned by a maiden Ore Reserve of 1.73 million tonnes grading 26% alumina (Al2O3). These metrics underscore the project's potential as a low-cost, scalable supplier in the growing global HPA market.
The project targets steady-state production of 10,000 tonnes per annum of 4N (99.99% purity) HPA, a critical material for advanced electronics, electric vehicles, and LED manufacturing. Notably, the PFS excludes potential revenue from a sulphate of potash (SOP) by-product, which could further enhance project economics.
Strategic Ownership and Development Pathway
Following the positive PFS results, Impact Minerals has exercised its option to acquire an 80% interest in Playa One Pty Ltd, the owner of the Lake Hope assets and associated intellectual property, including two metallurgical patents. This acquisition consolidates Impact's control over the project and its proprietary processing technology.
The company plans to commence a Definitive Feasibility Study (DFS) alongside the construction of a pilot plant, supported by a federal government grant in collaboration with CPC Engineering and Edith Cowan University. The pilot plant aims to validate and optimize the hydrometallurgical flowsheet, produce product samples for customer qualification, and explore integration with the recently acquired HiPurA® downstream processing technology.
Innovative Processing and Environmental Considerations
Lake Hope's processing leverages a patented low-temperature leach (LTL) hydrometallurgical process, which offers cost and environmental advantages. The process includes a potassium hydroxide pre-treatment stage that generates SOP as a by-product, followed by acid leaching and calcination to produce HPA. The project benefits from a low carbon footprint, with plans for 70% renewable power at the Kwinana refinery by 2040.
Environmental and heritage surveys have identified no significant impediments, and Impact Minerals is engaging constructively with the Ngadju Aboriginal Native Title holders to ensure collaborative development. The company is also advancing necessary mining lease applications and environmental approvals.
Market Outlook and Future Opportunities
The global HPA market is forecast to grow at a compound annual rate of approximately 20-23%, driven by demand in electric vehicles, semiconductors, and advanced ceramics. Independent research indicates a supply deficit emerging from 2026, positioning Lake Hope to capitalize on favorable market fundamentals.
Impact Minerals is exploring opportunities to enhance recovery rates, reduce operating costs, and potentially produce higher purity HPA grades through pilot plant work. The company is also considering a modular refinery approach to scale production flexibly in response to market demand.
Risks and Next Steps
Key risks include variability in ore characteristics and the need for vendor equipment testing to mitigate potential cost and schedule impacts. The integration of Lake Hope feedstock with the HiPurA process remains to be validated but could accelerate market entry and improve economics.
Looking ahead, Impact Minerals will focus on advancing the DFS, completing pilot plant commissioning, securing offtake agreements, and progressing environmental and native title approvals. The company’s strategic moves and strong fundamentals place it well to become a significant player in the global HPA sector.
Bottom Line?
With a robust PFS in hand, Impact Minerals is poised to transform Lake Hope into a competitive, low-cost HPA producer, but pilot plant outcomes and market engagement will be critical next milestones.
Questions in the middle?
- How will pilot plant results influence final project economics and processing parameters?
- What is the timeline and likelihood for securing environmental and native title approvals?
- How will integration with the HiPurA process impact production scale and cost structure?