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Alpha HPA (ASX:A4N) ramping up processes for HPA First project

Materials
ASX:A4N      MCAP $929.1M
23 December 2019 15:30 (AEST)

Alpha HPA (A4N) has provided an update on its HPA First Project which it is commercialising to produce roughly 10,000 tonnes of high purity alumina per annum.

The company has completed all the key engineering and design stages of the HPA Definitive Feasibility Study (DFS). It is now in the final stage of estimation for detailed capital costs (CapEx) and operating costs (OpEx).

A draft of the DFS is expected to be completed in quarter one 2020.

Chemical Counter-party

The HPA producer is in the late stage of chemical counter-party discussions. These are aimed at reaching an agreement for the supply of key process reagents, off-take of the by-product and will dictate the location of the project.

Alpha HPA knows this agreement will influence the engineering, labour and costs of the project, so is seeking to complete negotiations with a chemical counter-party immediately before finalising the DFS.

Pilot Campaign 3B Complete

The company has reported this phase is now complete. Campaign 3B has converted the Aluminium Salt from campaign 3A into HPA-precursor. This pre-cursor will now be converted into HPA for end-users and research programs.

Successful Boehmite Production

After consulting with a Japanese lithium-ion battery separator manufacturer, Alpha HPA has successfully manufactured crystalline, high-purity boehmite (aluminium-oxide-hydroxide) using the HPA First process.

Boehmite is the only material, other than HPA, that is used in high volumes when making ceramic-coated separators for the lithium-ion battery market.

The company is now completing larger scale batch production of high-purity boehmite to provide a sufficient sample for the Japanese manufacturer to assess.

FY19 R&D Rebate of $684,000 received.

Alpha HPA has now received $684,000 from its FY19 R&D (research and development) rebate to be used for its HPA First project.

“The 2019 calendar year has been incredibly productive for Alpha HPA, with the pilot plant operation confirming the validity and stability of our proprietary licensed solvent extraction and HPA refining technology,” Managing Director Rimas Kairaitis said.

The company expects to close this calendar year with a cash position of roughly $4.8 million.

Alpha HPA is up a slight 2.44 per cent with shares trading at 21 cents each at 2:35 pm AEDT.

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