Altech secures settlement for mining lease at Meckering

Altech Chemicals Limited announces that it has executed a settlement and option to purchase agreement for the freehold land that completely encompasses its mining lease application M70/1334 at Meckering, Western Australia. As reported previously, the landowners had objected to the application for grant of the mining lease and the objection was before the Warden’s Court (WA). Concurrently, the Company continued to negotiate a settlement with the landowners and a final settlement has now been reached.

The parties have agreed to settle for an undisclosed amount and on the terms and conditions contained below:

• Landowners will dismiss the objection to the grant of M70/1334
• Altech will proceed with the grant of the mining lease
• Landowners have granted Altech an option to purchase 94 hectares of land which includes the area subject to M70/1334
• Option period of 18 months to purchase the land
• Mining operations may commence only after the purchase the land at the agreed price

M70/1334 is estimated to contain ~11 million tonnes of kaolin mineral resources, which will be sufficient to supply feedstock for Altech’s proposed Malaysia HPA plant for in excess of 250 years. Altech managing director, Mr Iggy Tan said “the Company is delighted to have reached agreement with the landowners for the freehold land purchase at Meckering. The grant of M70/1334 can now proceed without objection, following which the Company will submit a Mining Proposal (MP) and a Mine Closure Plan (MCP), and upon approval of these items (and subject to funding) mining operations at Meckering will be ready to commence.

“This is yet another significant milestone achieved in the march to develop the Company’s high purity alumina project”, Mr Tan concluded.