Altech Chemicals Ltd (ASX:ATC,FRA:A3Y) remains focussed on becoming one of the world's leading suppliers of 99.99% (4N) high purity alumina (HPA) (Al2O3).
HPA is a high-value, high margin product as it is the critical ingredient required for the production of synthetic sapphire.
Altech has received further support for this strategy from the German government owned KfW IPEX-Bank which has advised the company of credit approval for a total project finance debt package of US$190 million for its high purity alumina project.
The approved finance package is higher than the US$185 million of project finance initially proposed, reflecting the robust nature of the project.
The export credit cover component of the project finance is increased to US$170 million (was US$165 million) and the company has also been advised that this amount was approved by the German government inter-ministerial committee.
The balance of US$20 million will be at commercial terms.
Iggy Tan, managing director for Altech, commented:
"The company is delighted with the increased total debt package offered by KfW IPEX-Bank for the project and especially the additional loan cover made available by the German government (ECA cover).
"In our opinion the additional project finance is another significant vote of confidence for the project and follows an extensive detailed independent due diligence process."