Impact Minerals has reported a strong year of technical progress at its Lake Hope High Purity Alumina (HPA) project in Western Australia, with early-stage research under an AUD 2.87 million Cooperative Research Centres Projects (CRC-P) programme beginning to reshape both the economics and the long-term scope of the development.

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In a corporate update released on January 9, 2026, the ASX-listed company (ASX: IPT) said the first 12 months of the CRC-P programme had delivered encouraging results from the application of advanced membrane technologies to its patented three-stage HPA production process. The work is being carried out in partnership with CPC Engineering and the Mineral Recovery Research Centre (MRRC) at Edith Cowan University (ECU).

The programme underpins Impact’s 80 per cent-owned Lake Hope project and is focused on accelerating the commercialisation of a low-cost, low-carbon pathway to produce HPA, a critical material used in lithium-ion batteries, LEDs and advanced electronics.

According to the company, the research has already strengthened the technical case presented in the Lake Hope Pre-Feasibility Study (PFS), which outlined a benchmark production capacity of 10,000 tonnes per annum of HPA and one of the lowest operating cost profiles globally. Impact confirmed that there have been no material changes to the PFS assumptions or outcomes since its release in June 2025.

At the heart of the work is the integration of membrane technology across the HPA flowsheet. While membranes have been used in water treatment for decades, their application in mining and critical minerals processing is more recent. The MRRC at ECU is regarded as a global leader in this field, working across technologies ranging from micro-, ultra- and nano-filtration to reverse osmosis, membrane distillation, membrane crystallisation and selective ion membranes.

Impact believes that embedding these systems into its existing flowsheet could materially reduce both capital and operating costs, while also lowering water use and environmental impact. The technology may also allow for modular HPA production, potentially shortening the time required to enter the market.

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Potash emerges as a major value lever

Much of the progress to date has been concentrated on Stage 1 of Impact’s patented process, which uses potassium hydroxide (KOH) to selectively leach alumina from Lake Hope clay at temperatures below 90°C. This step produces a brine rich in sulphate of potash (SOP), a high-value fertiliser.

At the time of the PFS, limited testwork meant the economic value of potash could not be fully incorporated into the project model, although Impact estimated that potash by-product credits could reduce net HPA operating costs by around 25 per cent. Over the past year, potash recovery has therefore become a central research focus.

Bench-scale testwork has now demonstrated direct SOP recovery using membrane crystallisation, producing potassium sulphate (K₂SO₄) crystals with a purity exceeding 94 per cent. The approach has the potential to either eliminate conventional crystallisers or significantly reduce their size, offering savings in both capital and operating expenditure.

This result has been supported by the development of a full pretreatment membrane system, combining microfiltration, ultrafiltration and nanofiltration, which removes more than 99 per cent of particles from the SOP brine. The cleaner brine improves crystallisation performance and enables efficient reagent recycling and water reuse.

High water recovery rates have also been achieved, with the recovered water meeting high purity standards suitable for reuse in the process or discharge, further reducing water consumption and environmental footprint.

In addition, researchers have identified a pathway to higher-value magnesium-enriched potash products. Testwork shows that magnesium can be selectively captured during the initial ore-washing stage and then reintroduced during SOP crystallisation to produce bespoke Mg-potash fertilisers, which may command premium pricing. This concept is now being explored in greater detail.

New iron removal and alternative processing routes

Beyond potash, the CRC-P programme has opened up several other potential improvements. In Stage 2 of the process, which involves hydrochloric acid (HCl) leaching of the Stage 1 residue to produce aluminium chloro-hexahydrate (ACH), researchers have identified what Impact describes as a potential breakthrough low-cost method for iron impurity control.

Referred to as the Direct Iron Extraction (DFE) method, the approach is being tested within the HCl circuit, with key results expected later in the first quarter of 2026.

Work is also underway on alternatives to HCl leaching of the Stage 1 residue. These options could offer cheaper feedstocks and potential integration with the HiPurA process, a separate HPA technology owned by Alluminous Pty Ltd, in which Impact holds a 50 per cent interest.

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A broader potash opportunity takes shape

As research has progressed, Impact says it has identified a much larger potash opportunity that could sit alongside the HPA development. Potash remains in strong global demand, with sulphate of potash commanding a significant premium over muriate of potash. Australia currently imports almost all of its potash, supplying a domestic market estimated at around 500,000 tonnes per year.

Under the existing Lake Hope PFS, SOP production as an HPA by-product is estimated at about 20,000 tonnes per year. However, Impact’s work has highlighted a potential standalone flowsheet that could allow direct potash extraction from clays at Lake Hope and nearby salt lakes, without the use of evaporation ponds.

This is notable given the history of potash projects in central Western Australia. Over the past decade, several ventures pursued groundwater-based potash using evaporation ponds, attracting hundreds of millions of dollars in investment. Most have since stalled or been abandoned due to technical challenges and weather-related issues.

The alternative flowsheet identified by Impact would also generate a valuable acid by-product, and much of the membrane-based crystallisation work already completed under the CRC-P programme remains directly applicable. Early economic assessments suggest the concept could support a large-scale mining project producing potash and acid for agricultural and chemical markets, adding substantial value to the broader Lake Hope asset.

Initial test results from this new process are expected by early February. If favourable, Impact believes potash resources could potentially be defined not only at Lake Hope but across other lakes within the wider project area, using existing drilling data.

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Freeze crystallisation adds another option

Complementing the membrane work, Impact is also assessing eutectic freeze crystallisation technology through a collaboration with private company Brinetec Pty Ltd. The process involves controlled freezing of brines, separating ice (water) from concentrated solutions that then crystallise salts depending on temperature.

Based on Brinetec’s prior testwork and modelling, Impact sees potential applications across wastewater treatment and potash crystallisation, particularly when combined with membrane systems. A bench-scale prototype has now been installed at the MRRC, with early results from potash crystallisation trials expected shortly.

Brinetec has also built a demonstration plant, which is being relocated to the same facility that hosts the HiPurA HPA pilot plant. Impact is reviewing whether the technology could have wider applications across its processing portfolio.

The Future Outlook

The next phase of work will focus on scaling up. Impact is preparing a 500-kilogram homogenised clay sample from Lake Hope to support pilot-scale testing of Stage 1 alkaline leaching and potash crystallisation. With an  aim to lift SOP purity to premium grades, bench-scale optimisation of membranes and crystallisation will continue.

Further evaluation of the Direct Iron Extraction method is also planned, alongside continued procurement and design work for membrane rigs and crystallisation modules. The company will also assess results from the new potash extraction flowsheet and advance studies on resource definition across the broader Lake Hope area, in addition to the alumina reserves already identified.

Impact’s Managing Director, Dr Mike Jones, said the first year of CRC-P work had materially increased the project’s value. He highlighted clear pathways to lower operating costs, improved water efficiency and the production of high-value fertiliser by-products, particularly SOP and magnesium-rich potash.

Associate Professor Amir Razmjou, who leads the CRC-P programme at the MRRC, said the integration of membrane technologies was delivering promising results, both in reducing environmental impact and improving overall process efficiency. Further advances, including pilot-scale development, are expected through 2026.

Together, the outcomes reinforce Impact’s view that Lake Hope has the potential to evolve beyond a single-commodity HPA project into a broader, low-waste, low-carbon operation with multiple commercial outputs.

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