In addition to supporting the welfare of all its employees, the company is only proceeding with discretionary expenditure that will assist to position it to continue to progress its high purity alumina (HPA) project once financial markets and the global economy stabilise.
HPA site works
At the company’s HPA plant site in Malaysia, almost all the outstanding stage two site construction work (electrical substation) has been completed and no work additional to stage two is currently planned.
The minor remaining work on the substation consists of internal fit-out (most of which been completed), sewage and drainage work.
Malaysia’s Covid-19 movement control order
Work at the HPA plant site is currently suspended due to the Malaysian government’s imposition of a movement control order in response to the outbreak of Covid-19, which is currently in effect until 31 March 2020.
The HPA site is fully fenced and has 24-hour security (both at the industrial complex entrance and at the plant site) as the movement of security personnel is exempt from the control order.
It is expected that site work can re-commence easily when the control order is lifted.
European initiatives continue
On the basis that it is likely that most able governments, but particularly those in Europe, will make available significant (likely unprecedented) economic stimulus once stability returns to financial markets and the global economy, Altech is continuing with its European based activities to best position it for this situation post COVID-19.
Promotion of Altech HPA project
Altech alternate director and member of the management board of Altech Advanced Materials AG (AAM) Uwe Ahrens is continuing with his German-based work to promote Altech’s HPA product and to assist AAM with its planned rights issue and share placement.
Although face-to-face meetings are currently being limited by the Covid-19 situation, teleconference and internet facilitated meetings are continuing.
Altech Advance Materials AG
AAM has advised Altech that it remains on track for prospectus approval from BaFin (German Federal Financial Supervisory Authority) by mid-April 2020.
The rights-issue shall commence upon prospectus approval, but timing may be altered in light of the Covid-19 situation.
AAM continues to work with the Swiss international Investment Bank that is appointed as placement agent in relation to the issuance of equity or other equity instruments (securities) by AAM via private placement, which remains scheduled to follow the AAM rights offer.
Assessment of green credentials
As announced on 18 March 2020, AAM has appointed the Centre of International Climate and Environmental Research (CICERO) associated with the University of Oslo (Norway), to complete an independent determination of Altech’s HPA project green credentials.
This work is continuing and is important for positioning the project for a more stable global economy and broadening access to financial and equity markets, in particular ‘green’ funds and lenders.
Altech has not been advised by either German government-owned KfW IPEX-Bank, or by Macquarie bank of any changes to their respective support for the company’s HPA project.