Altech secures site for HPA plant, shares up 9%
Altech Chemicals (ASX:ATC) has followed-up its game-changing announcement that Mitsubishi would act as its sales agent with news that it had secured land for its high purity alumina (HPA) plant in Malaysia.
ATC has reserved a spot in the Tanjung Langsat Industrial Complex for its plant, with an option to lease the site for 30 years.
It is aiming to build a full-scale 4000 tonnes per annum alumina, to produce high-quality alumina for industrial customers in Asia.
ATC told shareholders today that it had selected the site because it had easy access to vital materials such as hydrochloric acid, limestone, quicklime, power, and natural gas.
The site also has the availability of skilled labour, and ATC said it anticipates building costs will be 40% lower than an equivalent plant in Western Australia.
The site is also on an international sea container port, making export of the product an easier exercise.
News of the land reservation sent ATC shares up over 9% nearing the close of trade yesterday, above the broader All Ordinaries gain of 1.8%.
The Altech play
ATC is aiming to mine a 65 million tonnes JORC-compliant aluminous clay in WA to be processed at an advanced beneficiation plant at Meckering, with the aim of producing 25,000t of alumina-rich kaolin clay per year.
This clay will be taken to a full-scale 4000tpa HPA production plant, using its technology to produce a 99.99% pure HPA product.
Recently it signed up industrial giant Mitsubishi to act as a sales agent for its finished product, giving ATC an entry into the lucrative Japanese market.
ATC has previously told investors that Japan accounted for 21% of HPA demand in 2014.
Mitsubishi is Japan’s largest general trading company, with more than 200 bases in about 90 countries around the world, including Australia.
The big growth market ATC is targeting is the consumer electronics manufacturer sector, which is increasingly using this advanced product in smart phones, tablets and laptops.
HPA can be used to make artificial sapphires, which can be turned into Sapphire Glass, a much more durable and scratch resistant material than the usual Gorilla Glass most of these products use.