Alpha HPA is officially set to establish the “world’s largest” single site high purity alumina products refinery in Gladstone, Queensland.
The company has made a final investment decision (FID) on Stage Two of the ‘HPA First’ project, which follows the successful construction, commissioning, and 16 months of operation of the Stage One precursor facility.
The facility represents the first commercial application of Alpha HPA’s proprietary licensed solvent extraction and refining technology to produce 99.99 per cent pure aluminium.
The Stage Two FID is supported by studies, credit approval for $320 million in project debt, and an $80 million cost overrun facility from Government agencies, the Northern Australia Infrastructure Facility, and Export Finance Australia.
The project is also supported by a $120 million fully underwritten equity raising by Bell Potter Securities and Macquarie Capital, as well a share purchase plan.
Alpha HPA managing director Rimas Kairaitis said the company will now immediately commence project execution for the full-scale Stage Two facility having already advanced several key elements of the project’s implementation.
“Construction of the 10-hectare, state-of-the-art, full-scale facility will commence mid-2024, on the existing HPA First project site at Yarwun, near Gladstone, where the company’s Stage One facility is already in small-scale production of its high purity aluminas and aluminium materials product range,” Kairaitis said.
“Stage Two will encompass full-scale production of up to 10,000 tonnes of high-purity aluminium materials per year creating 120 ongoing local jobs on top of 300 jobs during construction.”
In addition to the government debt and strong equity support including Orica, Alpha HPA said it has received non-solicited approaches for the provision of alternative and non-dilutive financing arrangements from a number of parties.
These include advanced proposals for alternative financing to fund any further Stage Two capital requirements.
“This decision to proceed with commercialisation of the Stage Two HPA First project and the successful project financing represents a major step-change in the business growth,” Kairaitis said.
“We are delighted to receive comprehensive financing support from the Australian Government and from new and existing shareholders.”
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