King River Resources Limited(ASX:KRR)has received a research & development tax rebate of AU$452,831, which the Company plans to use to support working capital. The Australian explorer qualifies for the Tax Rebate as research into the development of the processing methodology conducted during FY21 complies with the criteria set out for the Federal government’s Research & Development Scheme.
The Company is currently advancing its High Purity Alumina (HPA) project to leverage the growing opportunities from high technology industries.
Overview of the HPA Project
King River Resources’ wholly owned subsidiary High Purity Metals Limited is committed to developing the HPA project. The focus is on the commercialisation of the 4N HPA and 5N aluminium precursor opportunities that aid in maximising the return on investment for the Company’s shareholders.
The Company plans to produce 5N (≥99.999%) aluminium precursors and 4N (≥99.99%) HPA through its ARC process, which is based on utilising an industrial aluminium chemical feedstock, then undertaking recrystallisation for purification and finally calcination.
Aluminium precursors and HPA are high purity forms of aluminium salts and compounds witnessing strong demand from high technology industries. They are premium priced materials with significant annual demand growth forecasts, primarily driven by the strong momentum of sapphire/LED industry and the rapidly expanding lithium-ion battery industry.
What developments are panning out at the HPA Project?
In June 2021, a pre-feasibility study into a 9,000tpa 4N HPA operation was finalised, highlighting a CAPEX of AU$203 million, annual EBITA of AU$193 million, project net present value (NPV) of AU$1,043 million and internal rate of return (IRR) of 50.8%.
The development progressed in a Detailed Feasibility Study for a 2,000tpa 5N aluminium precursor plant, which is projected to provide a much lower cost of entry into the market with an expected high rate of return.
With considerable investment in R&D, the Company expects to imminently have product samples available to send out to end-users for qualification in their process. Meanwhile, KRR is also conducting ongoing experiments on manufacturing precursors for Li-B Cathodes Active Materials (P-CAMs).
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