Queensland-based Alpha Hpa, which specialises in the production of ultra-high purity alumina used in LED lighting, semiconductors and lithium-ion batteries, will receive $400m in new loans to establish a processing facility in Gladstone.
The cash splash follows an $840m package to Gina Rinehart-backed Arafura Rare Earths to support the mineral exploration company develop its Northern Territory-based mining and refinery, and brings taxpayer exposure of critical mineral exploration and processing to well in excess of $2bn. “The global race for new jobs and new opportunities is on. Our government wants Australia to be in it to win it,” Mr Albanese said in a statement.
The support is expected to create a combined 445 ongoing jobs across Queensland and South Australia and comes at a critical juncture for the rare earths industry, after prices for key commodities plunged last year. Volatile commodity prices and significant production costs have made it difficult for the industry to secure finances, leading a number of miners to mothball projects.
Similarly, the United States has also sought to firm up its own critical mineral supplies, rolling out tax incentives, grants and loans to projects via President Biden’s Inflation Reduction Act.