Altech Chemicals presents Annual Report & Full Year Statutory Accounts for 2015/16

Altech Chemicals Ltd presented their Annual Report & Full Year Statutory Accounts on Tuesday, September 29 for the 2015/16 financial year.
 
Iggy Tan, Managing Director of the company presented the yearly report and review of operations in front of the company shareholders.

During 2016 Altech made considerable progress towards commercializing its kaolin deposit at Meckering. One big step towards it was the construction of a high purity alumina (HPA) plant at Johor, Malaysia that will produce 99.99% (4N) HPA (Al O). Also important was the development of a kaolin quarry and container loading facility at Meckering.



Altech published its positive bankable feasibility study report in June.  The Company has secured debt financing for its HPA project to a considerable extent. Altech is targeting total maximum project debt coverage of US$70m. The finalisation of project finance, the debt structure and the availability of debt finance remains subject to ongoing due diligence by German bank KfW IPEX and the ECA. Due diligence consultants were appointed in August 2016 and the work is in progress.

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Achievement highlights during the year included:

• The grant of Meckering mining lease (ML) M70/1334;
• Execution of an off-take sales arrangement with Mitsubishi Corporation appointing them exclusive buyer of Altech's full HPA plant capacity;
• The reservation of the HPA plant site within the Tanjung Langsat Industrial Complex, Johor, Malaysia;
• The appointment of M+W Group as the EPC contractor for the Malaysian HPA plant; M+W Group commenced detailed design in March 2016;
• The addition of board members Tunku Yaacob Khyra and Mr Uwe Ahrens as his alternate, which followed the subscription by Melewar International of $1m of shares;
• A well-supported share purchase plan (SPP) in April 2016; raising ~$0.750m followed by a share placement of ~$1.2m to sophisticated investors; Ÿ appointment of Dr Jingyuan Liu as general manager (operations) and Mr Martin Ma as marketing manager (China); and
• An updated Indicated Mineral Resource (JORC 2012) for M70/1334. I look forward to updating you on the progress that the Company makes in the 12 months ahead, next year.

According to a report by Persistence Market Research, in 2015, global consumption of HPA was 21,309tpa, and by the end of 2016 it is estimated to reach 25,315tpa. Demand for HPA is expected to increase at a rate of 16.7% (CAGR) to 86,831tpa by 2024.