Altech signs off take sales agreement with Mitsubishi for all HPA production

Altech Chemicals Limited has announced the execution of a 10 year off take sales arrangement (Agreement) with Mitsubishi Corporation’s Australian subsidiary, Mitsubishi Australia Ltd (Mitsubishi) for 100 per cent of the high purity alumina (HPA) production from the company’s proposed Malaysian HPA plant.

The Agreement appoints Mitsubishi as the exclusive buyer of the full 4,000tpa production capacity and will commence on the date of first shipment of final HPA product. The contracted sale quantities will mirror Altech’s proposed HPA plants’ production ramp up and account for 100 per cent of planned production. Under the Agreement both parties have set specific off take sales target quantities, which will be at prevailing market prices.

Altech managing director, Mr Iggy Tan said that securing the off take arrangement with Mitsubishi for all of the production from the company’s proposed HPA plant is an integral step towards securing project financing. “The 10 year off take arrangement for the sale of 100 per cent of Altech’s HPA production is a significant milestone and a strong vote of confidence in the Company, the HPA project and the team working to bring it to fruition.

“Altech’s 4,000tpa HPA plant will position the company not only as one of the world’s largest producers of HPA, but also as one of the world’s lowest cost producers”, Mr Tan concluded.

The off take sales quantities are as follows:

Background

On 24 September 2015, the company announced a sales and distribution agreement with Mitsubishi for the Japanese HPA market only; however following further discussions, Mitsubishi expressed interest in being appointed as the exclusive buyer and global distributor for 100 per cent of the company’s proposed HPA production.