Altech Chemicals moves closer to raising US$20 mln for its HPA plant expansion project

One of the world’s promising high purity alumina producer, Altech Chemicals is planning to raise US$20 million in a placement for its proposed capacity expansion plan of the high purity alumina plant from 4000tpa to 4500tpa. The move comes after the company was forced to more than pare down the estimated capital costs for the project.

Altech has been granted additional time to finalise the capital raising in the form of a voluntary suspension following a trading halt. It is expected the voluntary suspension will be lifted on or before Friday 27th October 2017.

Altech Chemicals had put a price tag of US$80 million on the HPA project, which covers a mine at Meckering, Perth, and an alumina processing plant at Jahor in Malaysia. On Monday, October 23, it revised its estimate of capital expenditure to US$298 million.

The overall project price hike was followed by due diligence by its proposed German lender Kfw IPEX-Bank, who updated financials based on current market conditions along with projections.

Altech is now seeking US$185 million in project financing from Kfw IPEX-Bank, of which $US165 million is expected to be covered by a low-interest, long-life loan from Germany’s Export Credit Agency subject to a decision expected in mid-December, The West Australian reported.

Altech Managing Director Iggy Tan said the scope, throughput and flexibility of the project had also changed considerably since the company’s earlier bankable feasibility study, which reflected the cost difference. He is hopeful that a positive decision will be reached post discussions with Kfw IPEX-Bank.