Queensland Pacific Metals Ltd (ASX:QPM) has executed a binding Heads of Agreement with Lava Blue Ltd for licensing of proprietary technology for high purity alumina (HPA) production and the joint development of a definitive feasibility study (DFS) for HPA production at the TECH Project.
Both QPM and Lava Blue are confident the Lava Blue process will be able to successfully refine TECH Project aluminium hydroxide feedstock into 99.99% (4N) HPA.
The partnership will advance QPM’s progress on HPA, leveraging off the knowledge and expertise of an industry expert, which will allow QPM to maintain its focus on the production of net negative carbon nickel and cobalt sulphate.
Lava Blue will play an integral role in the HPA section of the TECH Project DFS including test-work, piloting and direct support to engineers.
Engineering consultants Engenium will undertake the DFS – Engenium has worked with Lava Blue for several years and is involved with the development and construction of Lava Blue’s demonstration plant.
"Value enhancer"
QPM managing director Dr Stephen Grocott said: “From our pre-feasibility study, it was evident that HPA production is a significant value enhancer for the TECH Project.
“We are delighted to work with Lava Blue and their partners QUT and Engenium.
"This joint development significantly advances us with respect to achieving commercial production of HPA at the TECH Project.
“By leveraging off Lava Blue’s technical expertise and networks in HPA, we will be able to maintain our focus on the production of net carbon negative nickel and cobalt, whilst ensuring the HPA opportunity is not left behind.”
Tremendous validation
Lava Blue managing director Michael McCann added: “The collaboration with QPM was a tremendous validation of the approach Lava Blue had taken to the issues of making HPA.
“Like a lot of materials that are required for the production of batteries, the challenges of making HPA are not obvious until you are attempting to do it repeatedly, and with the aim of achieving highly controlled and consistent outcomes.
“We see QPM taking a very similar approach to the scaling up of the Direct Nickel Process™.
“We look forward to working with QPM on the manufacturing of HPA as part of their incredibly exciting TECH Project.”
Deal terms
The key terms of the heads of agreement are:
➢ Initial fee: $25,000;
➢ DFS completion fee: $75,000;
➢ QPM makes a final investment decision (FID) to construct HPA Refinery fee: $100,000;
➢ Commercial plant commissioning fee: $250,000;
➢ Royalty payable on commercial HPA production (commercial in confidence);
➢ 18 month exclusivity period where QPM will not enter negotiations with another HPA technology supplier;
➢ QPM can terminate if the initial phase testwork fails or if Lava Blue causes material delays to QPM during the DFS for the HPA Refinery; and
➢ Long-form agreement to be entered into between the parties
Integral role
Lava Blue’s technology is based around the conventional hydrochloric acid leach, which was the base case for QPM.
This technology centres on the ability to deal with trace impurities, process control and demonstration plant confirmation of designs.
The initial phase of the partnership, which has commenced, involves Lava Blue undertaking lab-scale test-work to produce 4N HPA from aluminium hydroxide produced from QPM’s pilot plant.
To ensure success, Lava Blue will undertake detailed characterisation test-work to confirm that problem impurities can be identified and dealt with as part of the process.
DFS on HPA refinery
QPM will engage Engenium to undertake a DFS on a HPA Refinery for the TECH Project.
The feasibility study, carried out in conjunction with Lava Blue, will be undertaken in parallel with other DFS activities and will be finished in time with and form part of the final TECH Project DFS.
Demonstration plant
Lava Blue is a mineral resources and materials science company focused on the science and engineering of HPA production from a variety of feedstocks.
Working in conjunction with the Queensland University of Technology and Engenium, Lava Blue has been methodically de-risking the controls and scale-up of proprietary processes for the production of +4N HPA.
They have now produced HPA from a number of very different feedstocks and have commenced work on material supplied by QPM as they prepare to apply their proprietary knowledge to production of HPA for QPM.
They are now building a 20 kilogram batch demonstration plant in Brisbane, which will validate all unit operations, materials of construction and processes and, when combined with machine learning, will result in advanced and flexible process controls.
The Lava Blue demonstration plant is under construction and will be operational in the first half of 2022.