Altech Batteries Ltd Stock Market Press Releases and Company Profile
Quarterly Activities and Cashflow Report
Quarterly Activities and Cashflow Report

Perth, Oct 30, 2015 AEST (ABN Newswire) - Altech Chemicals Limited (Altech/the Company) (googlechartASX:ATC) presents the quarterly activity report for the three months ended 30 September 2015.

$1.13 Million Share Placement

In early August, 2015 the Company announced that it had raised $1.13 million via share placement for the commencement of detailed design work for its proposed high purity alumina (HPA) project and for corporate and general working capital purposes.

A total of 19,144,068 fully paid ordinary shares have been issued at $0.059 per share, representing a ~10% discount to the 5 day VWAP of the Company's shares as traded on the ASX on the date on which the share placement price was set.

The majority of the placement ($1.0 million) was to Malaysian cornerstone investor Melewar IIC Limited (Melewar). Melewar is a diversified Malaysian industrial firm with interests in steel, energy and engineering businesses, and as a result of the placement Melewar has become the second largest shareholder of the Company, holding approximately 11.98% of shares on issue following the completion of the placement. The Company has invited Melewar to nominate a Malaysian based non-executive director to join the Altech Board, this will provide Altech with invaluable insight into the Malaysian business and operating environments as it progresses the development of its HPA plant.

The share placement was made in two tranches, an initial tranche of 8,974,576 shares ($0.530 million) was issued in accordance with the Company's placement capacity under ASX Listing Rules 7.1 and 7.1A; 8,474,576 shares to Melewar and 500,000 shares to the professional investor. A second tranche of 10,169,492 shares ($0.600 million) was issued post quarter end, following shareholder approval at the Company's Annual General Meeting on 15 October 2015.

Commenting on the share placement at the time, executive chairman of Melewar IIC Limited, Royal Highness Prince Ya'acob Bin Tunku Tan Sri Abdullah, said that Altech's HPA project is a very exciting, and that he looked forward to assisting the Company with its development plans: "The potential for Altech to be one of the worlds leading producers of high purity alumina at a low cost, with its plant in Malaysia is what attracted our attention and has culminated in this investment. The rapid growth in demand for sapphire based products from LED lighting manufacturers, and the electronics and smart phone sectors is compelling. Altech management team, led by Mr Iggy Tan with his proven track record of developing these type of projects, was another key consideration."

Altech managing director, Iggy Tan welcomed Melewar as an Altech shareholder. Mr Tan said that Melewar was a high calibre Malaysian company: "Royal Highness Prince Ya'acob Bin Tunku Tan Sri Abdullah is executive chairman and part owner of the Melewar Industrial Group, a diversified Malaysian industrial firm operating successful iron and steel, energy and engineering businesses in Malaysia. The Prince is a very successful businessman in his own right and is the grandson of the first King of Malaysia. We are pleased to have such a great partner to help develop our project in Malaysia."

Agreement signed with Mitsubishi Australia Ltd for High Purity Alumina sales into the Japanese market

On 24 September 2015, Altech announced that it had executed a sales and distribution agreement (Agreement) with Mitsubishi Corporation's Australian subsidiary, Mitsubishi Australia Ltd (Mitsubishi) for its proposed high purity alumina (HPA) product.

The Agreement appointed Mitsubishi as the exclusive seller and distributor of Altech's final HPA product to the Japanese market.

Mitsubishi is Japan's largest general trading company with more than 200 bases of operations in approximately 90 countries worldwide. Mitsubishi employs a multinational workforce of approximately 70,000 people across some 600 companies.

Mitsubishi has been engaged in long-term business with customers from around the world in virtually every industry, including energy, metals, machinery, chemicals, food and general merchandise.

In 2014, consumption of HPA in Japan was an estimated to represent 21% of estimated total global HPA demand for the year.

The Japanese market will be important for Altech and the agreement reached with Mitsubishi provides the Company with the required marketing and distribution experience for its HPA in this market.

Altech's managing director, Mr Iggy Tan said at the time that, "the Agreement with Mitsubishi marks another important milestone for the Company's HPA project". Mr Tan went on to say, "Altech are delighted to partner with one of Japan's largest companies and a very reputable name worldwide". "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 of HPA", Mr Tan concluded.

Land for the Company's proposed High Purity Alumina plant secured in the Tanjung Langsat Industrial Complex, Johor, Malaysia

During the quarter, the Company announced that it has now secured land in the Tanjung Langsat Industrial Complex, Johor, Malaysia for its proposed high purity alumina (HPA) plant.

The Company has reserved a ~4 hectare site in a section of the industrial complex that is set aside for chemical facilities. The site is initially reserved until 30 December 2015 and upon execution of an option to lease, will be leased for a period of thirty years, with an option to renew. The land reservation and option to lease has been secured with a non-refundable deposit of MYR300,000, that is credited against the 30-year lease payment on exercise of the option.

As previously announced, the Company selected Tanjung Langsat as the location for its proposed HPA plant based on significant economic and developmental benefits, including the ready availability of required consumables such as hydrochloric acid, limestone, quicklime, power and natural gas - all at highly competitive prices. The availability of skilled labour, proximity to an international container sea-port and international airports (Johor Bahru and Singapore) and the various investment incentives on offer were additional benefits.

Feedstock for the HPA plant will be sourced from the Company's 100% owned aluminous clay (kaolin) deposit at Meckering, Western Australian. Approximately 18,565tpa of beneficiated kaolin will be containerised (using 2 tonne "bulka bags") and transported via road to the port of Fremantle, Western Australia (a distance of ~153kms). The containers will be shipped from Fremantle to the port of Tanjung Pelepas (a container port located in south-western Johor, Malaysia ~90kms by road from Tanjung Langsat) and then transported via road from Tanjung Pelepas to Tanjung Langsat.

Operating costs in Malaysia for the HPA plant are estimated to be in the region of 40% lower compared to an equivalent plant operated in Western Australia. In addition, the shipping of the Company's final HPA product from the Tanjung Langsat international sea container port to nearby Asian markets will provide both cost and delivery time advantages. Overall, Altech expects its proposed HPA plant to be in the bottom quartile of the operating cost curve for the world's HPA producers. Altech's HPA project has the potential to enhance the Malaysian region's HPA value-add chain, as sapphire glass producers such as Rubicon Technology currently operate a facility in Malaysia.

Permitting for Meckering kaolin mining operations commenced

A project application for the Company's proposed aluminous clay (kaolin) mining operations was lodged with the Western Australian Department of Environment Regulation (DER) during the quarter, as part of the permitting requirements for the project.

The DER has confirmed its acceptance of Altech's project application and confirmed that the next and final permitting requirement for the Meckering beneficiation plant as a Works Approval application, which will also be assessed by the DER.

Once the Works Approval is granted, construction of the beneficiation plant can commence. Also, under DER regulations, based on the beneficiation plants processing rate of less than 50,000 tonnes per annum (tpa), the plant may only require registration post construction rather than an application for an Operating Licence.

Mining approvals are regulated by the Western Australian Department of Mines and Petroleum (DMP) and the Company has already submitted a mining lease application, the first step in the DMP approvals process. Following grant of the mining lease, the Company will submit a Mining Proposal (MP) and a Mine Closure Plan (MCP) and upon approval of these items (and subject to funding), mining operations at Meckering will commence with overburden removal for the establishment of an open pit mine.

The ML grant is currently before the mining warden, with both the Company and the freehold landowner having lodged their respective submissions in relation to the application. At the same time, the Company is discussing an access compensation arrangement with the freehold landowner for the project pursuant to the Compensation Agreement announced to the Australian Securities Exchange on 14 February 2011.

The Company anticipates that both the DER and DMP approval processes will be relatively straightforward. There are no other permitting requirements for the Project.

To view the full report, with tables and figures, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-ATC-740493.pdf


About Altech Batteries Ltd

Altech Chemical Ltd ASX:ATCAltech Batteries Limited (ASX:ATC) (FRA:A3Y) is a specialty battery technology company that has a joint venture agreement with world leading German battery institute Fraunhofer IKTS ("Fraunhofer") to commercialise the revolutionary CERENERGY(R) Sodium Alumina Solid State (SAS) Battery. CERENERGY(R) batteries are the game-changing alternative to lithium-ion batteries. CERENERGY(R) batteries are fire and explosion-proof; have a life span of more than 15 years and operate in extreme cold and desert climates. The battery technology uses table salt and is lithium-free; cobalt-free; graphite-free; and copper-free, eliminating exposure to critical metal price rises and supply chain concerns. 

The joint venture is commercialising its CERENERGY(R) battery, with plans to construct a 100MWh production facility on Altech's land in Saxony, Germany. The facility intends to produce CERENERGY(R) battery modules to provide grid storage solutions to the market.

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Contact

Corporate
Iggy Tan
Managing Director
Altech Batteries Limited
Tel: +61-8-6168-1555
Email: info@altechgroup.com

Martin Stein
Chief Financial Officer
Altech Batteries Limited
Tel: +61-8-6168-1555
Email: info@altechgroup.com



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