Altech Chemicals receives financing interest for high-purity alumina

Altech Chemicals has attracted interest in its high-purity alumina (HPA) project from a major German bank experienced with similar investments in the Asia-Pacific region.

Altech’s HPA operation encompasses mining properties 130 kilometres from Fremantle port in Western Australia and a proposed processing plant in Malaysia with a throughout capacity of 4,000 tonnes per annum.

The bank has delivered a Letter of Interest (LOI) expressing its interest to arrange senior debt financing for the project. The German Export Credit Agency was identified as applicable to Altech’s HPA project because the majority of the plant and equipment will be sourced from European Union manufacturers and because German group M+W is the appointed engineering, procurement and construction contractor.

Altech, M+W and the bank are now expected to submit a presentation to the agency’s administrator from which an initial determination of the eligibility for funding will be made. This traction in securing additional funds for the HPA project follows the completion of A$1 million placement last month with a cornerstone Asian investor.

Kaolin mining
A recent deal regarding the kaolin mining operations in WA that will feed the Malaysian HPA plant is now expected to generate up to A$3 million in cash plus royalties for Altech.

Last month, Altech finalised exclusive mining rights with Dana Shipping and Trading for up to 10 million tonnes of kaolin at the Meckering deposit. This arrangement includes a $1 million cash payment to Altech.

However, Dana has an option to increase its kaolin mining right to 30 million tonnes by paying an additional $2 million, and Altech will receive a 2% gross sales royalty on all bulk kaolin sales.