Australian critical minerals company Alpha HPA on Monday announced a final investment decision for the second stage of its high-purity alumina (HPA) refinery in Gladstone, Queensland, on the back of a positive definitive feasibility study (DFS) and securing A$520-million for the development.

The financing comprises A$320-million credit, along with a A$80-million cost overrun, from government agencies and a fully underwritten institutional placement of A$120-million.

With the necessary funding secured, Alpha is poised to kickstart project execution, with construction set to start in the middle of the year. First production is targeted for the first half of the 2027 financial year.

“The feasibility study and financing represent a comprehensive endorsement of the company’s technology and business strategy and allow for Alpha 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,” said MD Rimas Kairaitis on Monday.

Stage 2 of the HPA project represents the full-scale deployment of Alpha’s aluminium purification and refining technology to produce a range of aluminium-based materials for speciality, high-technology markets, including semiconductors, lithium-ion batteries and LED lighting.

The DFS is based on an annualised high-purity aluminium product capacity of 10 430 t/y, operating at a unit cash cost of A$9 578/t aluminium product after byproduct credits.

The project will deliver yearly earnings before interest, taxes, depreciation and amortisation of A$255-million to A$403-million.

Preproduction capital expenditure is estimated at A$553-million, including A$79-million contingency.

In parallel, Alpha will continue to advance its downstream Alpha Sapphire business, completing installation of the initial two sapphire growth units and completing first sapphire crystal growth.