Altech Chemicals Ltd (ASX:ATC) is progressing with stage-one construction activities at its high purity alumina (HPA) plant in Johor, Malaysia, completing the structural steel erection for its maintenance workshop frame and roof.
Work is now also underway on the installation of internal mezzanine flooring and cladding of the building walls.
Retaining wall construction has proceeded well along both the western and eastern site boundaries and is estimated to be 90% complete.
Maintenance workshop construction progress
READ: Altech Chemicals project NPV to potentially increase 32% based on CRU high purity alumina market out
The internal site retaining wall construction is also complete and the area is currently undergoing backfilling.
Additionally, development of the onsite detention (OSD) storm water tank is proceeding to plan with pouring of the base concentrate floors now complete for all four tank zones as well as the completion of wall casting in the first three tanks.
To complete the OSD tank construction, concrete roof panels that are being pre-cast on site will be lifted onto the tanks and then backfilled.
Overall site view showing construction progress
Earlier this month the company learned that its HPA project net present value will potentially increase by 32% to US$669 million, according to a market outlook report prepared by CRU Consulting.
The 4N+ high purity alumina (HPA) price forecast report also estimated that Altech’s earnings before interest, tax, depreciation and amortisation (EBITDA) would increase from US$76 million to US$100 million per year.
The plant will produce HPA directly from kaolin clay which will be sourced from the company’s 100% owned kaolin deposit at Meckering, Western Australia.
Its production process is set to employ conventional ‘off-the-shelf’ plant and equipment to extract HPA using a hydrochloric acid-based process.