ASX-listed Alpha HPA has been awarded up to A$21.7-million in government grants from the Queensland Department of State Development, Infrastructure, Local Government and Planning, to support the Stage 2 operation of its HPA First project, in Gladstone.

Alpha said on Thursday that the grant was to assist the company in the construction, commissioning and operation of the HPA First project, and was subject to Alpha providing evidence that finance approval was in place to undertake the project, as well as having feedstock and offtake agreements in place for the project, along with state approvals.

The grant will be payable to Alpha as reimbursement of project expenditure over seven milestones within an agreed six-year term, starting in March 2029, and subject to the company satisfying performance requirements, including construction and commissioning, the company spending a total of A$367.5-million on project expenditure, employing an average of 151 full time staff, incurring A$58.2-million in Queensland supply chain expenditure, and scaling to a minimum production of 10 640 t/y.

The A$300-million HPA First project will produce 10 000 t/y of high purity alumina (HPA) and related high-purity precursor products using Alpha’s proprietary licensed solvent extraction and HPA refining technology.

Alpha is in the midst of project financing discussions for the full-scale HPA First project, in the hopes of taking a final investment decision.

The company last year successfully commissioned the Stage 1 precursor production facility and achieved commercial production.

Alpha MD Rimas Kairaitis said this week that the company was delighted to receive the financial and commercial support from the Queensland government, and welcomed the state government’s recognition of Alpha’s products as key critical minerals.

“This financial assistance builds on the existing announced support from the Commonwealth government and adds further momentum for the project,” he added.