Alpha HPA welcomes the Australian Government’s Critical Minerals Production Tax Incentive, introduced today to the Australian Parliament.
Alpha HPA commends the legislation designed to bolster Australia’s standing as a global leader in critical mineral processing and manufacturing. This initiative aligns with Alpha HPA’s mission to sustainably produce high-purity aluminium materials that support the world’s transition to decarbonisation.
The Critical Mineral’s Production Tax Incentive provides a 10% refundable tax offset for eligible expenditure on processing and refining activities. Valued at $7 billion over the first decade and $17 billion over 14 years, this incentive ensures public funds are directed toward projects that succeed, with support only delivered where value-added products are produced. The incentive will operate over a 10-year period from 1 July 2027 – 30 June 2040, supporting corporations subject to Australian income tax, while maintaining stringent foreign investment oversight.
Key details of the policy include its application to all 31 critical minerals currently on Australia’s Critical Mineral’s list, with the potential for further expansion through government decisions. The policy specifically targets midstream and downstream processing activities, emphasising chemical and thermal processing techniques that substantially transform feedstock into higher-value, chemically distinct outputs.
Alpha HPA’s Managing Director Rimas Kairaitis commended the policy, emphasising its alignment with the company’s strategic objectives.
“We consider the Critical Minerals Production Tax Incentive as a positive catalyst for Australian manufacturing, offering tangible support for companies like Alpha HPA that are adding downstream value to Australia’s abundant critical mineral resources,” Mr Kairaitis said.
“By focusing on midstream processing, the policy not only secures Australia’s place in global supply chains but also drives investment and innovation in our local industries. The improvement in financial returns delivered via the incentives will assist in attracting onshore and offshore private capital providers and enable further investment in Australia’s critical minerals processing capacity.”
Alpha HPA is well positioned to capitalise on this initiative through its 10-hectare, state-of-the-art Stage Two facility, now under construction in Gladstone. This facility will produce the critical, high-purity aluminium materials for high-technology applications, including the semiconductor, lithium-ion battery, synthetic sapphire, direct lithium extraction (DLE), and LED lighting sectors, further cementing Australia’s role as a responsible supplier to global markets.
“This incentive reinforces the importance of midstream processing in the value chain and recognises the pioneering work of Australian companies in transforming raw materials into high-value products.” Mr Kairaitis said.
Ends.
media contact: Ellie Blumel – +61 (0) 448 122 948 or eblumel@alphahpa.com.au
