• Impact Minerals has announced a 50/50 joint venture acquisition of Hipura Proprietary Limited, a company with solvent extraction technology for high-purity alumina (HPA) production, which was previously owned by the now-bankrupt ChemX Materials.
• The acquisition includes a nearly-completed pilot plant capable of producing at least 25 tons per annum of HPA, requiring just electrical connections and approximately $500,000 in capital to commission over the next 3-6 months.
• Impact believes this acquisition significantly accelerates their path to production compared to their existing Lake Hope project, potentially placing them second only to Alpha HPA in terms of Australian HPA production capability.
• The joint venture company, named Alluminous, will be independently operated with a board consisting of two members from Impact and two from other shareholders, with plans to appoint an independent chairperson.
• Impact is exploring the possibility of using material from their Lake Hope project as feedstock for the Hipura process, which could potentially reduce costs compared to the chemical feedstock currently required.

Impact Minerals Limited is an Australian resources company, has announced a significant strategic acquisition aimed at accelerating its path to becoming a producer of high-purity alumina (HPA). In a recent interview, Dr. Mike Jones, Managing Director of Impact Minerals, detailed the company's acquisition of a 50% stake in Hipura Proprietary Limited, a company formerly owned by the ASX-listed ChemX Materials Limited, which entered administration in January 2025. This acquisition represents a strategic pivot that could potentially transform Impact's timeline and approach to entering the HPA market.

The Strategic Acquisition

The transaction involves Impact Minerals and a group of other investors acquiring Hipura Proprietary Limited, with Impact holding a 50% stake in the joint venture. The acquisition price was $2.2 million, split 50/50 between Impact and its partners, with Impact contributing $1.1 million. Additionally, both parties have committed to providing a further $1 million in working capital ($500,000 each) to bring the pilot plant to operational status.

"We announced today that we are going to be basically joint 50% owners with a group of other investors in a private company called Hipura Proprietary Limited, and that was a subsidiary of ChemX Materials Limited which was listed on the ASX. Both of those companies went into administration in January, and we've been working on a deal to acquire Hipura since then."

The acquisition is particularly significant because of the technology and infrastructure it provides. Hipura has developed a solvent extraction process for producing HPA, similar to the approach used by Alpha HPA, which has achieved significant market success. The acquisition includes an almost-completed pilot plant that requires only final electrical connections and commissioning.

The Hipura Technology & Infrastructure

The value of the acquisition centers on Hipura's technology and physical assets. The company has demonstrated its process works at a micro-plant scale and has built a pilot plant with the capacity to produce at least 25 tons per annum of HPA, and potentially more if operated semi-continuously.

Dr. Jones emphasized the impressive state of the pilot plant: 

"The pilot plant has the capacity to produce at least 25 tons per annum of high purity alumina and potentially more if it's run in a semicontinuous fashion... they were so close to commissioning. So basically, everything but the electrical has been installed and the electrical wiring is basically all there, needs to be plugged in."

The technology uses a solvent extraction process which, according to Dr. Jones, represents the "bedrock of Alpha HPA Limited's success" - a company that has achieved a billion-dollar market capitalization in the HPA space. This process differs from Impact's original approach at Lake Hope, which uses a natural feedstock and hydrochloric acid leaching.

Accelerated Path to Production

Perhaps the most significant aspect of this acquisition is how it accelerates Impact's timeline to commercial production. Prior to this acquisition, Impact was focused on their Lake Hope project in Western Australia, which is nearing the completion of a prefeasibility study. However, that project would have required considerably more time to reach a similar stage of development.

"This pilot plant is basically on the verge of that. We think it can produce a lot more [than 25 tons]... which would give us, I wouldn't say semi-commercial, but certainly gives us a foothold into the marketplace and significantly, compared to any other competitors in the HPA space on the ASX market, we're now just behind Alpha."

The timeframe for commissioning the pilot plant is estimated at three to six months, with approximately $500,000 of the committed working capital allocated to completing the electrical work and getting the plant operational.

Potential Market Position & Competitive Landscape

The acquisition potentially positions Impact Minerals as the second most advanced HPA producer in the Australian market, behind only Alpha HPA. Dr. Jones notes that Alpha HPA has achieved a billion-dollar market capitalization with their HPA technology, despite limited actual sales to date.

"Significantly, compared to any other competitors in the HPA space on the ASX market, we're now just behind Alpha. Obviously, they're trying to scale up, but no one else that's in the HPA space has either got a pilot plant or can produce, anywhere near that kind of quantity. So we've taken a huge step forward over our peers."

The HPA market has seen growing interest, particularly with applications in semiconductors, LED lighting, and batteries. Dr. Jones mentioned that Alpha HPA has reported indicative demand exceeding 30,000 tons for its 10,000-ton plant, suggesting strong market potential.

Interview with Managing Director, Dr. Mike Jones

Joint Venture Structure & Management

The joint venture, named Alluminous, will operate as a private entity, which Dr. Jones notes will ease ASX reporting requirements. The management structure will include two board members from Impact and two from the other investors, with plans to appoint an independent chairperson who will have the casting vote in case of disagreements.

"When you're in a 50/50, you can end up getting into all sorts of problems in terms of being able to progress things if you're arguing over what type of tea or coffee that you have in the office... The way we're going to go around that is that we have two board members from each group... and we are on the search now for a non-executive but independent chairperson... they will have the casting vote."

The operational team will include some of the original technical experts from ChemX, including the technical officer who holds the patent for the technology and the original managing director who has established marketing connections. Impact will also contribute expertise through their existing team, which includes experienced chemical engineers with alumina experience.

Integration with Lake Hope Project

A key strategic element of the acquisition is the potential to integrate it with Impact's existing Lake Hope project. Impact is exploring whether material from Lake Hope could serve as a feedstock for the Hipura process, potentially reducing costs compared to the chemical feedstock currently required.

"We believe at this stage, there's the strong possibility that we can bolt on the Hipura to our Lake Hope project and provide material for their particular process... it's currently using a chemical feedstock which costs, I can't remember what it is off the top of my head per ton, and we might be able to provide feedstock at a cheaper price from Lake Hope."

This integration will require technical validation, and Impact plans to test Lake Hope material through the micro-plant that comes with the acquisition. The success criteria will hinge on cost and purity, with the need to achieve the industry standard "4N5" purity (99.995%) to compete effectively in the market.

Scaling & Commercialization Strategy

One of the most intriguing aspects of the acquisition is the potential for a modular approach to scaling production. Unlike Alpha HPA's 10,000-ton-per-annum plant that required approximately $400 million in funding, Impact believes the Hipura process could enable smaller, more capital-efficient plants.

"The Hipura process, as we understand it right now, is actually modular. We believe that we can build 1,000 ton, 2,000 ton, 3,000 ton per annum, depending on how the economics work, at a lot less capital expenditure than, let's say, Alpha".

This modular approach could potentially address one of the key challenges in the industrial minerals space: the balance between securing offtake agreements and accessing debt financing for large-scale plants. Dr. Jones noted that this was precisely what caused difficulties for Altech Chemicals, which had previously attempted to enter the HPA market.

The involvement of North American investment groups in the joint venture also points to potential geographical expansion, with Dr. Jones indicating that North America could be a target market for future scale-up, particularly due to the growing semiconductor industry demand for HPA and potential tariff considerations.

Future Outlook & Next Steps

With the acquisition expected to be finalized within a week, Impact's next steps include a thorough review of the Hipura assets, accurate estimation of capital and working costs, and commissioning of the pilot plant. Once the plant is operational and producing 4N HPA consistently, the company will be positioned to produce material at scale and intensify marketing efforts.

"Clients won't take you seriously until you've got this pilot plant... it really has changed the whole profile."

Looking further ahead, Impact and its partners will need to make strategic decisions about scaling up production, potentially exploring opportunities in North America, and determining the optimal integration with the Lake Hope project. The acquisition provides Impact with significant optionality in how it approaches the HPA market.

The transaction is described as "clean" with no hidden liabilities, unresolved IP issues, or legacy contracts to be negotiated, providing a fresh start for the technology under the new joint venture arrangement.

The Investment Thesis for Impact Minerals

• Accelerated Path to Revenue: The acquisition of Hipura potentially reduces Impact's timeline to production by 12-18 months, creating near-term revenue potential from the 25+ ton per annum pilot plant.
• Competitive Positioning: Impact now claims to be the second most advanced HPA player on the ASX behind Alpha HPA, which has achieved a billion-dollar market capitalization.
• Technology Validation: The acquired solvent extraction technology is similar to that used by Alpha HPA, which has demonstrated commercial success and secured significant government funding.
• Modular, Capital-Efficient Growth: Unlike competitors requiring hundreds of millions in capital expenditure, Impact believes the Hipura process enables smaller, modular plants that can be scaled efficiently.
• Dual-Track Strategy: Impact maintains optionality with both the Hipura technology and its Lake Hope project, creating multiple potential paths to market and the possibility of integration between the two.
• Strong Market Outlook: Growing demand for HPA in semiconductors, LEDs, and batteries provides a robust addressable market, with Alpha HPA reporting indicative demand exceeding 30,000 tons.
• Cost Advantage Potential: The potential to use Lake Hope material as feedstock for the Hipura process could create cost advantages compared to the chemical feedstock currently required.
• Strategic Partnership: The 50/50 joint venture structure brings in additional expertise and capital sources, particularly from North American investment groups that could facilitate future expansion.

High Purity Alumina: A Critical Material for High-Tech Applications

High Purity Alumina (HPA) has emerged as a critical material for several high-tech applications, including LED lighting, semiconductor manufacturing, and lithium-ion batteries. The market is experiencing growing demand, particularly in the semiconductor industry, where HPA is used in both the semiconductors themselves and in the slurries used to polish wafers. Recent global focus on securing critical mineral supply chains, particularly in North America, has heightened interest in this sector.

The emerging importance of HPA is evidenced by the success of companies like Alpha HPA, which has achieved a billion-dollar market capitalization despite limited commercial sales to date. This valuation is built on the technology's potential rather than current revenues, similar to major resource discoveries.

The semiconductor industry in particular represents a significant growth opportunity, with Alpha HPA recently announcing a letter of intent for 4,000 tons of material. With global initiatives to re-shore or near-shore semiconductor manufacturing, particularly in North America, regional HPA production capabilities could become strategically valuable, potentially providing Impact Minerals with opportunities for geographical expansion beyond Australia.