Altech Chemicals Ltd (ASX:ATC) has terminated an agreement with Dana Shipping and Trading S.A. for the right to mine up to 10 million tonnes of kaolin from the company’s Meckering kaolin deposit.
Under the terms of the kaolin mineral rights agreement struck in October 2015, if the first condition had not been satisfied by 28 January 2016, then either party could terminate the mining rights deed by notice to the other.
Altech has terminated the agreement and will focus on finalising the detailed design and securing funding for the construction of its High Purity Alumina (HPA) project.
Altech uses a process to convert aluminous clay, sourced from its own quarry in Western Australia to HPA with operating costs a fraction of its larger, more established companies.
Existing producers of HPA used processing routes that re-refine aluminium metal that was produced from bauxite via the Bayer Process, to produce HPA which is energy intensive and very costly.
Altech has an exclusive mandate with Kfw IPEX-Bank GmbH for the provision of services relating to project financing of its HPA project.
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