Alpha HPA has announced a final investment decision (FID) for Stage Two of its HPA First Project in Gladstone, Queensland, setting the stage for the establishment of the world’s largest single-site high-purity alumina products refinery.
This milestone follows a rigorous three-year product marketing campaign engaging over 200 end users, the successful 16-month operation of Stage One, and a comprehensive redesign of the Stage Two facility to enhance process refinements, expand product range capability, and meet key customer requirements.
The FID is underpinned by a robust definitive feasibility study, credit approval for $320 million in project debt, and an $80 million cost overrun facility provided by government agencies, including the Northern Australia Infrastructure Facility and Export Finance Australia.
Additionally, Alpha HPA has secured $120 million through a fully underwritten equity raising by Bell Potter Securities Limited and Macquarie Capital (Australia) Limited, complemented by a share purchase plan (SPP).
Alpha HPA’s Managing Director Rimas Kairaitis announced the immediate commencement of project execution for the full-scale Stage Two facility, leveraging advancements already made in key project elements.
“Construction of the 10-hectare, state-of-the-art facility will begin mid-2024 on the existing HPA First Project site at Yarwun, near Gladstone,” Kairaitis said.
“Stage Two will enable full-scale production of up to 10,000 tonnes of high-purity aluminium materials per year, creating 120 ongoing local jobs and 300 jobs during construction.”
The project financing is bolstered by significant government support and strong equity backing, including investment from Orica.
Alpha HPA has also received unsolicited proposals for alternative, non-dilutive financing arrangements to support any additional Stage Two capital needs.
Kairaitis emphasised the importance of this decision: “This decision to proceed with the commercialisation of the Stage Two HPA First Project and the successful project financing represents a major step-change in the business growth. We are delighted to receive comprehensive financing support from the Australian Government and new and existing shareholders.
“The feasibility study and financing represent a comprehensive endorsement of the Company’s technology and business strategy and allows for Alpha HPA to establish Australia’s first, large-scale commercial capability to manufacture high purity aluminas and related products to support key high technology growth sectors and the global energy transition.”
Alpha HPA’s proprietary process technology offers a unique, cost-competitive, low-carbon method to manufacture ultra-high purity aluminium materials.
These materials are crucial for high-tech applications, including semiconductors, lithium-ion batteries, and LED lighting.
In addition to the HPA First Project, Alpha HPA is progressing with its Alpha Sapphire business, having completed the installation of initial sapphire growth units and commenced first crystal growth.
With the FID secured, Alpha HPA is poised to significantly impact the high purity alumina market, supporting technological advancements and contributing to the global energy transition through innovative and sustainable manufacturing practices.
