An application has also been made for the HPA project to be afforded a Pioneer Status (High Technology) investment incentive classification.
Notably, a project approved as Pioneer Status (High Technology) will benefit from income tax exemption of 100% of its income for a period of five years from the commencement of commercial production.
Altech has been liaising with the Malaysian Investment Development Authority (MIDA) about its proposed HPA project since 2015 and recently finalised its applications.
The company’s project represents an investment of circa 1.2 billion ringgit (circa $380 million) in Malaysia.
Altech has secured support from the German government owned KfW IPEX-Bank which has approved a total project finance debt package of US$190 million for the high purity alumina project.
German engineering firm SMS group GmbH is the lead engineering, procurement and construction (EPC) contractor for the plant.
Altech’ Malaysian plant will produce HPA directly from kaolin clay, which will be sourced from the company’s 100%-owned kaolin deposit at Meckering, Western Australia.
HPA is a critical ingredient for the production of synthetic sapphire, which is used in the manufacture of substrates for LED lights and semiconductor wafers.
The company’s share price has increased circa 85% over the last six months to $0.195 as investors are impressed with the progress made by the company.