Altech Chemicals Ltd (ASX:ATC) is starting construction of its high purity alumina (HPA) plant and the company will provide an update at this month's Proactive Investors CEO Sessions.
The 4-hectare site for the plant in Johor, Malaysia, has been cleared after Altech executed the stage I construction agreement with its appointed German contractor.
READ: Altech Chemicals clears site ahead of HPA plant construction
This was the first task in the detailed schedule of works for stage I construction.
Managing director Iggy Tan said: “The site clearance caps off an exciting 12 month period for Altech as we take another step towards our goal of becoming a major producer of high purity alumina.”
As part of a vertically integrated strategy, Altech intends to supply the plant with kaolin from its deposit at Meckering in Western Australia.
HPA has recently joined lithium, cobalt, nickel and copper as a recognised key input to lithium-ion batteries.
It is already experiencing high demand growth in the LED sector and is a critical ingredient in the production of synthetic sapphire.
READ: Altech Chemicals shareholders dig deep to raise $4.3 million in support of high purity alumina strategy
To support this strategy Altech recently completed a $17 million placement to institutional and professional investors followed up by a share purchase plan (SPP) which raised $4.3 million.
Tan said: “The company is extremely pleased with the number of applications for new shares that it received from shareholders under the SPP.
“In excess of 550 shareholders, representing approximately 20% of all shareholders, participated which is an exceptional outcome.
“Momentum growing rapidly”
“Project momentum is growing rapidly, the site for our HPA plant has been cleared and the stage-I construction agreement was recently signed, which will see works in Johor commence shortly.”
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Sydney details, Monday, August 20, 2018
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The Proactive CEO Sessions will feature five presenting companies in total.