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HPA First to cost A$308m

17th March 2020

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – The definitive feasibility study (DFS) into ASX-listed Alpha HPA’s high purity alumina (HPA) First project, in Queensland, has found that it could generate free annual cash flows of A$280-million a year from the production of 10 000 t/y HPA.

The project is expected to require a capital investment of A$308-million, and will have a capital intensity of A$30 800/t of HPA with unit costs estimated at A$8 730/t HPA after by-product credits.

“The HPA First project DFS is the result of a rigorous technical and financial process validating the project as a compelling business case,” said Alpha HPA MD Rimas Karaitis.

“The DFS outcomes combined with the recent memorandum of understanding with Orica and finalization of the project site in Gladstone, have now laid a firm foundation for the next steps: permitting, finance and construction of the project.”

Alpha HPA noted that project financing discussions will include a range of options, including strategic funding from offtake partners, bank finance export credit finance and government lending.

Edited by Creamer Media Reporter

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