HPA First Project
NAIF's loan to the Alpha HPA First Project will lead to the production of over 10,000 tons of high purity alumina (HPA) and a range of related high purity aluminium products.
January 2024
Resources
Gladstone, Queensland
The HPA First Project involves the development of a full-scale commercial plant and associated site infrastructure capable of producing over
Proponent Background
Alpha HPA Limited is a publicly listed, Australian-based company which has commercialised a proprietary technology to produce a growing range of HPA and related high purity aluminium products.
Project Overview
Based in the Gladstone State Development Area (GSDA),the 10-hectare, state-of-the-art facility will leverage the latest in process control systems and automation, capable of producing over
Demand for HPA products has grown rapidly from a low base, and this trajectory is forecast to continue, prompted by use in high technology manufacturing sectors including LED lighting, lithium-ion batteries and in semiconductors. It is an ideal material for use in electronic screens, optical lenses, and protective coverings. These sectors and applications are all rapidly increasing in importance due to their role in the clean energy transition and decarbonisation of the global economy.
The project has a key strategic advantage due to its proprietary processes and location:
- The HPA First project uses a proprietary technology in its process, which will see it be a low-cost and low-carbon producer of HPA compared to the incumbent HPA production processes currently in use globally; and
- The HPA First Project benefits from its integration and co-location in Gladstone with key partner/supplier Orica & feedstock provider Rio Tinto.
The Alpha HPA First project in is expected to create around 490 jobs during construction and more than 200 jobs (direct and indirect) on completion.
How We Helped
Commercial lending appetite is low for many Critical Minerals, and for HPA there is almost no commercial appetite. Commercial lenders have very limited experience with the HPA sector given the emerging and niche nature of the market. Without NAIF and other Government agency involvement to fill this funding gap, the project was unlikely to proceed.
The project is a good strategic fit for NAIF as it provides an opportunity to deliver key Government Policy Priorities such as realising the Critical Mineral Strategy, contributing to Australia’s clean energy transition and creating opportunities and economic growth in Australia’s regional communities. In addition to alignment with the Critical Mineral Strategy, from a jurisdictional perspective, there is also strong alignment with the Queensland Government’s policy to support regional economic development.
Public Benefit
The Alpha HPA project is set to inject $437 million into the regional economy over its construction and 20-year operational life, and forecast to create 489 direct and indirect jobs during the construction phase and 204 ongoing operational jobs, driving local employment and economic activity.
High Purity Alumina (HPA) is crucial for technologies supporting the transition to sustainable energy sources, including lithium-ion batteries and LED lighting systems. Alpha HPA leads aluminium manufacturing innovation, supporting economic diversification and skilled jobs in Central Queensland.
Related links
Indigenous Engagement
- The First Nations Bailai, Gooreng Gooreng, Gurang and Taribelang Bunda peoples
Gladstone, located in Central Queensland, is within the traditional lands of the First Nations Bailai, Gooreng Gooreng, Gurang, and Taribelang Bunda (FNBGGGTB) People.
The Traditional Owners are represented by the Port Curtis Coral Coast Trust (PCCC), who provides administrative and operational support for the Registered Native Title Body Corporate (RNTBC or PBC).
The PBC is responsible for and manages all Native Title, Cultural Heritage, TUMRA, Land and Sea Claim interests across the region. The PCCC office delivers dedicated social programs and coordinates the cultural heritage protection programs.
The region is home to ecologically and culturally significant ecosystems, including mangroves, seagrass meadows, coral reefs, tidal wetlands, and coastal river systems, as well as eucalyptus woodlands and freshwater catchments inland.
Indigenous Engagement Strategy Commitments
- Committed to inviting FNBGGGTB People to participate in Company events and activities that foster engagement and inclusion.
- Working collaboratively with the PBC to explore opportunities for equity participation in the project.
- Supporting community connection through sponsorship of FNBGGGTB-led events.
- Enhancing employment and training outcomes for FNBGGGTB People through scholarships into both technical and non-technical roles across the project.
- Embedding recognition of participation of FNBGGGTB People into tender processes, with selection criteria that consider direct employment and business contracting opportunities.
Indigenous Engagement Strategy Commitments
Alpha HPA is scheduled to commence reporting on their Indigenous Engagement Strategy commitments to NAIF following Financial Close, in line with NAIF’s framework. However, Alpha has shared outcomes achieved to date including:
- Prior to and during early works, Alpha HPA engaged the PCCC to conduct cultural heritage surveys on the project’s site. Alpha HPA also invited the PBC to participate in an equity acquisition arrangement for the project.
- In 2022 and 2023, Alpha HPA funded sponsorships for the 1770 Cultural Immersion Festival, supporting community-led cultural celebrations.
- In 2024, Alpha HPA invited the PCCC to conduct a smoking ceremony at the Project’s construction commencement launch event. In the same year, Alpha HPA sponsored and attended the First Nations Chamber of Commerce and Industry Summit in Gladstone.
- To date, the project has achieved a 5 per cent Indigenous employment rate. To further build on this, Alpha HPA have initiated the development of tender selection criteria to recognise Tenderers who can demonstrate engagement of First Nations people or First Nations owned businesses with a preferential weighting for FNBGGGTB People where commercially viable.
