Company Details

Altech Chemicals Ltd (ASX:ATC & FSE: A3Y)

ASX Listed, Frankfurt Stock Exchange
Listed, Project Financing

Company Information

  • Executive Summary

    Executive Summary

    Altech Chemicals Limited is aiming to become one of the world’s leading suppliers of 99.99% (4N) high purity alumina (HPA) (Al2O3).

    HPA is a high-value, high margin and highly demanded product because it is the critical ingredient required for the production of synthetic sapphire, which is used in the manufacture of LED lights, semiconductors and scratch-resistant sapphire glass used for watch faces, camera lenses and smartphone components.

    There is no substitute for HPA in the manufacture of synthetic sapphire.

    Global HPA demand is approximately 25,315t (2016) and demand is growing at a compound annual growth rate (CAGR) of 16.7%, primarily driven by the growth in worldwide adoption of LEDs. As an energy efficient, longer lasting and lower operating cost form of lighting, LED lighting is rapidly replacing traditional incandescent light bulbs.

    Altech has completed a Bankable Feasibility Study (BFS) for the construction and operation of a 4,000tpa HPA plant at the Tanjung Langsat Industrial Complex, Johor, Malaysia. The plant will produce HPA directly from kaolin clay, which will be sourced from the Company’s 100%-owned kaolin deposit at Meckering, Western Australia. Altech’s production process will employ conventional “off-the-shelf” plant and equipment to extract HPA directly from its alumina-rich kaolin using a hydrochloric (HCl) acid-based process. Production costs are anticipated to be considerably lower than established HPA producers who mostly use expensive and highly-processed feedstock materials such as aluminium metal to produce HPA.

    The financial results from the Company’s BFS are compelling:

    • Capital cost estimate US$78.7 million
    • Payback period 3.7 years
    • Estimated pre-tax NPV of US$357.5 million (@ 9% discount)
    • Highly attractive IRR of 33.3%
    • Long-term sale price forecast of US$23,000/tonne for 99.99% (4N) product
    • Cost of goods sold US$9,070/tonne, delivering a gross margin of US$13,930/tonne
    • EBITDA of US$55.7 million per annum

    Altech’s HPA project presents a robust and attractive business case that delivers high margins, strong cash flows, and the rapid payback of a relatively modest capital investment.

    The Company is currently in the process of securing project financing with the aim of completing the debt funding component by Q4, 2017. Other project development stages progressing include the detailed design, permitting and approvals, and subject to funding, the Company will commence the ordering of long-lead items, initiate site clearances and then commence construction.

    Request Info

    • 100% Ownership of a unique low-impurity feedstock
    • An integrated process that will produce 4N high purity alumina (HPA) directly from kaolin ore, no re-refinement is required
    • HPA production costs forecast to be considerably lower than all current suppliers, because the Company owns its feedstock and the production process recycles the primary reactant – hydrochloric acid (HCl)
    • The HPA plant will be located in a politically stable, low cost manufacturing jurisdiction (Malaysia), and in the region of the highest HPA demand – Asia Pacific (APEC)

    Seeking Cornerstone Investors

  • Company Highlights

    Company Highlights

    • Off-take sales agreement signed with Mitsubishi for first 10 years of 4000tpa HPA production

    • Debt funding via German KfW IPEX-Bank

    • Application for ~$US60m German export credit finance

    • Detailed design for HPA project advancing with EPC contractor M+W Group

    • DMP approval of mining proposal and mine closure plan for proposed kaolin mine at Meckering, Western Australia.

  • Board & Management

    Board & Management

    Iggy Tan

    Iggy Tan

    Managing Director
    Mr Tan is a highly experienced mining and chemical executive with a number of significant achievements in commercial mining projects such as capital raisings, funding, construction, start-ups and operations. Mr Tan has over 30 years’...

    Mr Tan is a highly experienced mining and chemical executive with a number of significant achievements in commercial mining projects such as capital raisings, funding, construction, start-ups and operations. Mr Tan has over 30 years’ chemical and mining experience and has been an executive director of a number of ASX-listed companies. Having been involved in the commissioning and start-up of seven resource projects in Australia and overseas, including high purity technology projects, Mr Tan is an accomplished project builder and developer. Mr Tan previously held the positions of managing director of Nickelore Limited, Galaxy Resources Limited and Kogi Iron Limited.

    Luke Atkins LLB

    Luke Atkins LLB

    Non-Executive Chairman
    Mr Atkins is a lawyer by profession and one of the founders of the Company. Mr Atkins brings to the board extensive experience in the areas of mining, exploration, and corporate governance. Mr Atkins a...

    Mr Atkins is a lawyer by profession and one of the founders of the Company. Mr Atkins brings to the board extensive experience in the areas of mining, exploration, and corporate governance. Mr Atkins a non-executive director of ASX-listed mining company Bauxite Resources Ltd (BRL). Mr Atkins formerly held the role of executive chairman of BRL after co-founding the company in 2007. Mr Atkins has had extensive experience in capital raisings and has held a number of executive and non-executive directorships of private and publicly listed companies.

    Peter Bailey

    Peter Bailey

    Non-Executive Director
    Mr Bailey is a highly experienced and qualified engineer with over 40 years’ experience in the mining and industrial mineral production industries. With an electrical engineering degree from the University of London, Mr Bailey’s career...

    Mr Bailey is a highly experienced and qualified engineer with over 40 years’ experience in the mining and industrial mineral production industries. With an electrical engineering degree from the University of London, Mr Bailey’s career spans iron ore, bauxite and zinc-lead-copper mining, alumina refining and alumina chemicals industries respectively. Mr Bailey was president of Alcoa Bauxite & Alumina in 1996, and was responsible for Alcoa’s eight alumina plants outside of Australia. He was also the chairman of the Alcoa Bauxite joint venture in Guinea, Africa. In 1998, he was appointed president of Alcoa Worldwide Chemicals’ industrial chemicals department. Post Alcoa, Mr Bailey was CEO of Sherwin Alumina, an alumina refinery located in Texas, USA.

    Daniel Tenardi

    Daniel Tenardi

    Non-Executive Director
    Mr Tenardi is a highly experienced mining executive with some 40 years in the industry, including with a number of global resource industry leaders across a range of commodities, including iron ore, gold, bauxite, and...

    Mr Tenardi is a highly experienced mining executive with some 40 years in the industry, including with a number of global resource industry leaders across a range of commodities, including iron ore, gold, bauxite, and copper. Mr Tenardi previously spent 13 years with Alcoa, at its bauxite mines in the Darling Range in Western Australia, and a further two years at Alcoa’s Kwinana refinery. Mr Tenardi subsequently worked at executive level for Rio Tinto’s Robe River Iron Associates. Mr Tenardi was managing director of Bauxite Resources Ltd, and general manager of operations and chief operating manager at CITIC Pacific Mining. Mr Tenardi is currently non-executive director of Grange Resources Ltd.

    His Royal Highness Tunku Yaacob Khyra

    His Royal Highness Tunku Yaacob Khyra

    Non-Executive Director
    Tunku Yaacob Khyra is the executive chairman of the Melewar Khyra Group of Companies (Melewar), a Malaysian based diversified financial and industrial services group. He is the major owner and shareholder of Melewar. Tunku Yaacob...

    Tunku Yaacob Khyra is the executive chairman of the Melewar Khyra Group of Companies (Melewar), a Malaysian based diversified financial and industrial services group. He is the major owner and shareholder of Melewar. Tunku Yaacob sits on the boards of Khyra Legacy Berhad, Mycron Steel Berhad, MAA Group Berhad, Melewar Industrial Group Berhad, Ithmaar Bank B.S.C.(listed on Bahrain Stock Exchange) and several other private companies.
    Tunku Yaacob graduated with a Bachelor of Science (Hons) degree in economics and accounting from City University, London. An accountant by training, he is a Fellow of the Institute of Chartered Accountants in England and Wales and a member of the Malaysian Institute of Accountants. He started his career as an auditor with Price Waterhouse, London from 1982 to 1985 and subsequently joined Price Waterhouse Kuala Lumpur from 1986 to 1987. He joined Malaysian Assurance Alliance Berhad in 1987 and retired as its chief executive officer in 1999.

    Uwe Ahrens

    Uwe Ahrens

    Alternate Director
    Mr Uwe Ahrens is executive director of Melewar Industrial Group Berhad and managing director of Melewar Integrated Engineering Sdn Bhd. He also sits on the board of several other private companies. Mr Ahrens holds Masters...

    Mr Uwe Ahrens is executive director of Melewar Industrial Group Berhad and managing director of Melewar Integrated Engineering Sdn Bhd. He also sits on the board of several other private companies. Mr Ahrens holds Masters Degree’s in both mechanical engineering and business administration from the Technical University Darmstadt, Germany. Upon graduation, Mr Ahrens joined the international engineering plant supplier, KOCH Transporttechnik GmbH in Germany, now belonging to FLSmidth Group, where he held a senior management position for 12 years, working mainly in Germany, USA and South Africa.
    In 1997, he was based in Kuala Lumpur as general manager of KOCH in South East Asia and became managing director in 1999. He joined Melewar Group in 2002 and is also currently chief technical officer of the Melewar Group of companies being responsible for engineering, upgrading, modification and extension of machinery and plant as well as overall maintenance.

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  • Contact Details

    Contact Details