High Priority

High purity alumina’s standing as a critical mineral

Critical minerals have remained central to conversations this month. While Prime Minister Albanese met with top trading partner, China, back home, Federal Resources Minister Madeleine King hosted two roundtable discussions with the country’s resources sector — one focused on the traditional resources sector and the other focused on critical minerals and rare earths.

A common theme across both roundtables was the need for government to invest in common user infrastructure and reforms to the approvals process, according to Minister King.

Minister King says Australia’s resources sector has worked hard over decades to carve out a leading role as a globally significant producer of the minerals and metals that the world needs.

“The resources sector has for decades invested in innovation and productivity enhancement, which has helped to cement Australia’s position as a global resources powerhouse,” she said.

“The resources sector is among the most productive sectors of the national economy and the insights from this sector will help shape key questions on national productivity.

“Australia’s critical minerals sector faces unique set of circumstances to scaling up their operations and securing investment.

“The [Federal] Government wants to ensure our world-leading resources sector is seizing a new generation of opportunities in critical minerals, which are a key component of the [Federal] Government’s Future Made in Australia agenda.”

Looking to China, Minister King says the country has had a head start on Australia.

“China invested heavily in critical minerals and rare earths processing decades ago.

They invested in the research and development needed to drive this industry,” she said.

“Australia has a decision to make, and indeed [the Federal] Government has made this decision, that we are going to compete with China in that industry.

“Now we cannot compete overnight. We do need to invest strongly, and we need to talk with industry about how best government can help them start to compete with that Chinese development so the world can have an alternative supply chain for critical minerals and rare earths.”

While rare earths have been in the hot seat recently, Australia is not overlooking other commodities, with major investment and progress underway for many critical minerals projects.

In the fifth instalment of our Critical Minerals Outlook series, we spotlight emerging HPA projects that are looking to tap into our ample aluminium resources while keeping our environmental footprint in check.

High purity alumina

High purity alumina (HPA), a refined form of aluminium oxide, is a vital part of Australia’s critical minerals list. Added in 2022, HPA has a wide range of applications from LEDs to lithium-ion batteries, making it another essential player in the energy transition.

Known for its high melting point, thermal conductivity and electrical insulation, HPA is a high-purity white crystalline powder form of aluminium oxide (Al2O3) and is a critical component in high-performance electronics, optics and lithium-ion batteries in the automotive and aerospace sectors.

At the moment, most HPA comes from high purity aluminium metal, an expensive starting point that relies on three industrial processes — bauxite refining, alumina smelting and HPA production. Each of these steps adds to the hefty energy consumption and carbon footprints linked with HPA production. This has sparked a growing interest in uncovering new production methods that use cheaper materials and more environmentally friendly processes.

As the world economy shifts towards renewable energy and electrification, Australia’s rich resources, stable investment climate and commitment to sustainability position us to become a key player in the future of HPA production.  Australia sits on a wealth of bauxite reserves — the main ingredient for alumina —ensuring a steady and reliable supply chain for HPA production.

The booming electric vehicle industry and the rising popularity of lithium-ion batteries are driving increased demand for HPA, making Australia’s strategic positioning in the sector all the more crucial.

HPA First project

Overview: Alpha HPA (ASX: A4N) is commercialising a world’s first process technology to deliver ultra-high purity aluminium materials to market, for use in semiconductor, lithium-ion battery, direct lithium extraction (DLE), LED lighting, and synthetic sapphire

industries.

Stage one of the Gladstone-based HPA First project, is in small-scale

commercial production (about 400tpa) of the full product offering of a range of high purity aluminium oxides, hydroxides and nitrates.

Status: In May 2024, Alpha HPA commenced production of synthetic sapphire from its HPA pellets under a new business arm, Alpha Sapphire.

Construction of the stage two, large-scale commercial production

facility (about 10,000tpa) commenced in September 2024, targeting first production

commencing in 2027.

As of December 31, 2024, all bulk earth works were complete and all long lead time equipment was ordered and under fabrication.

Stage two of the HPA First project will see a significant scale-up in production capacity, enabling Alpha HPA to meet increasing demand from international customers in sectors including LED lighting, electric vehicle batteries, and semiconductor manufacturing. For stage two, Alpha HPA has been awarded up to $66.7m in grants from the Federal and Queensland Government and up to $400m in loans from government agencies. All key approvals are in place.

Potential: Alpha HPA’s proprietary process enables the sustainable production of ultra-HPA using 100% renewable energy, near zero waste and around 70% lower carbon emissions than traditional methods. The project has already delivered almost 100 local jobs and is expected to create an additional 120 at full production.

Alpha HPA’s premium products are based on its novel Smart SX purification process,

which represents the world’s first application of solvent extraction purification

technology for aluminium. The process is disruptive at a number of levels, including:

• Low Carbon, High Purity: By using a common industrial feedstock, recycling all

reagents and using 100% renewable electricity, Alpha can manufacture ultra-

high purity materials with a carbon footprint reduction of about 70% compared to

other processes.

• Low Cost: The front end of the purification process is 100% wet-chemical

and operates at atmospheric temperatures and pressures with a 100%

reagent recycle.

• Flexibility: Able to produce a full range of high-purity aluminium materials from a

single process.

Common industrial feedstock can be sourced directly from Rio Tinto’s alumina refinery in Yarwun (2.5km away).

Reagents can be sourced directly from Orica Yarwun (adjacent) with binding agreements in place. Reagents will be recycled on a 100% basis and returned to Orica for further processing.

HPA project

Overview: Cadoux has developed a groundbreaking, cost-effective, and environmentally sensitive method for manufacturing premium HPA. Cadoux is advancing development of its modular small-scale production and demonstration plant

(SSP) in multi-stages of engineering as the Company advances towards commercialisation of its HPA production facility earmarked for Kwinana, WA.

Cadoux has a staged development approach starting with a small-scale (about 1000tpa) production plant (SSP) in stage one that will be added to in further stages to achieve final commercial production of 10,000tpa.

Status: Cadoux is advancing its innovative HPA project in multiple stages to commercial production.

Stage one involves the development of the SSP which is currently being developed.

Stage two involves the planned development of the commercial scale HPA Plant.

The mining lease, environmental and heritage approvals have been granted over the Cadoux mine site that is situated on private land, where Native Title is extinguished. Cadoux’s Customer Centre of Excellence will ensure product customisation, facilitating product qualification and sales to a variety of end-use applications. In Q1 2024, Cadoux initiated the permitting process for production facilities in the Kwinana-Rockingham Strategic Industrial Area.

The HPA project FEED deliverables currently being undertaken will lay the groundwork for the next stage of development and will define the detailed engineering, procurement, and construction (EPC) phases, ensuring the final plant design and construction meets project goals outlined in the company’s definitive feasibility statement.

Potential: The company’s vision is to revolutionise HPA production by leveraging its high-grade free-dig open pit resource in a hydrochloric acid leach and precipitation process. Through a comprehensive, end-to-end business model, encompassing the entire supply chain from mining to market, Cadoux aims to ensure complete traceability and origin authenticity of the HPA it produces.

Production facilities in the Kwinana-Rockingham Strategic Industrial Area ensures easy access to raw materials, inbound and outbound logistics and skilled labour from the Perth region.

Footnote: Information extracted from Austrade’s Australian Critical Minerals Prospectus