logo-loader

Altech Chemicals Ltd in final planning phase for high purity alumina plant

Published: 12:00 21 Sep 2016 AEST

au_altech_chemicals_iggy_headshot_358_57e1ff94c3331

Altech Chemicals Ltd (ASX:ATC) is progressing through the detailed design and engineering phase, the final planning phase, for the proposed high purity alumina (HPA) plant in Malaysia.

German firm M+W Group was appointed as the engineering, procurement and construction contractor in March 2016.

Detailed design and engineering activates are expected to continue until the first quarter of 2017.

This will overlap with the expected commencement of construction, which remains subject to the finalisation of project financing.

Altech is in the fortunate position of having been able to fast track detailed design and engineering, primarily because of the comprehensive engineering work undertaken during the bankable feasibility study phase of the project.


Background

Altech is aiming to become one of the world's leading suppliers of 99.99% HPA.

HPA is a high-value, high margin and highly demanded product as it is the critical ingredient required for the production of artificial sapphire.

Artificial sapphire is used in the manufacture of substrates for LED lights, semiconductor wafers used in the electronics industry and scratch-resistant artificial sapphire glass. Sapphire glass is used in models of the Apple watch.

There is no substitute for HPA in the manufacture of artificial sapphire.

Altech was recently granted its mining lease at Meckering, where it is planning to mine 120,000 tonnes of kaolin every three years on a campaign basis, each mining campaign will last two months.

The resultant raw kaolin will be stockpiled, then containerised into standard shipping containers at the rate of around 40,000 tonnes per annum and transported to Johor, Malaysia for processing into HPA at the company’s proposed plant.


M+W Group


M+W Group is a leading global high-tech engineering firm with around 6,000 employees worldwide.

Established in 1912, M+W Group has a strong presence in Asia with regional offices is both Singapore and Penang, Malaysia.

The firm manages projects of all dimensions on behalf of clients from various sectors, including electronics, chemicals and pharmaceuticals, energy and information technology.

It has completed over 700 projects in the Asia Pacific region, where it employs around 2,200 highly skilled and experiences staff.


Financing

During August, Altech received a summary of senior facility agreement indicative terms and conditions from German government-owned KfW IPEX-Bank for the proposed US$70 million of debt financing.

The financing is for Altech's Malaysian HPA plant.

Altech and KfW IPEX-Bank commenced detailed discussions and negotiations of the proposed facility agreement terms and conditions, which are not binding on either party yet.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

Altech Batteries boosts CERENERGY output to 120 MW/h per year

Altech Batteries Ltd (ASX:ATC) CFO Martin Stein speaks with Proactive after the company released an updated definitive feasibility study (DFS) demonstrating increased output of 20% for the CERENERGY® battery manufacturing project, from 100 megawatt hours (MW/h) to 120 MW/h per year. Lead...

on 7/11/23