High-purity alumina specialist Alpha HPA (ASX:A4N) has launched a major $225 million institutional placement to accelerate the construction of its Stage 2 "HPA First" Project.
The capital raise is highlighted by a landmark $75 million cornerstone commitment from the National Reconstruction Fund Corporation, marking a federal endorsement of Australia’s critical minerals processing capabilities.
The placement, priced at $0.75 per share—an 11.2% discount to the last closing price—also received strong backing from existing major shareholders AustralianSuper and Orica.
The funds are primarily earmarked for the Gladstone facility, which aims to become the world’s largest single-site manufacturer of high-purity alumina.
HPA is a vital component in the manufacturing of semiconductors, lithium-ion batteries, and LED lighting.
The NRFC’s involvement underscores the project’s environmental credentials. CEO David Gall noted that Alpha HPA’s proprietary technology, powered by 100% renewable energy, produces approximately 70% fewer emissions than traditional manufacturing methods.
Despite a 26% increase in projected capital expenditure due to project re-baselining, the company has now amassed approximately $590 million in total funding for Stage 2, including prior state and federal grants and loans.
"This investment is a strong endorsement of our strategic importance in the global energy transition," said Managing Director Rob Williamson.
Construction of the Stage 2 facility is slated for completion between late 2027 and early 2028.