Altech Chemicals (ASX:ATC) has reached an agreement with its appointed engineering, procurement and construction (EPC) contractor on a framework for a fixed price contract for the construction of the proposed high purity alumina (HPA) plant in Malaysia.
A fixed price EPC contract will be a positive outcome for shareholders, project financiers and the HPA project as it de-risks the construction phase of the project.
Work is ongoing with M+W Group to finalise details of the fixed price EPC contract.
Information from the continuing detailed engineering and design work is required to enable the various equipment suppliers to submit binding quotations for incorporation into the final contract price.
Detailed engineering work is anticipated to be completed during the June quarter, which will enable the company to submit its application for German government-backed export credit finance and the total debt package.
Iggy Tan, managing director, commented: “Reaching conceptual agreement with M+W Group on a fixed price construction contract is a significant de-risking accomplishment for Altech shareholders.
The fixed price contract also delivers to debt providers a high level of comfort in terms of total project costs, potential cost overruns and completion delays. This is a great outcome and achievement for the company”
Altech is aiming to become one of the world's leading suppliers of 99.99% HPA through construction and operation of the proposed HPA plant in Malaysia.
The plan is for the HPA plant to process raw kaolin mined and shipped from the company’s 100% owned Meckering kaolin deposit located in Western Australia.