Altech Signs Off Take Agreement for 100% of HPA Production
Perth, April 27, 2016 AEST (ABN Newswire) - Altech Chemicals Limited (
ASX:ATC) is pleased to announce that it has executed a 10 year off take sales arrangement (Agreement) with Mitsubishi Corporation's Australian subsidiary, Mitsubishi Australia Ltd (Mitsubishi) for 100% of the high purity alumina (HPA) production from the Company's proposed Malaysian HPA plant.
Highlights:
- Altech signs off take sales arrangement with Mitsubishi for first ten years of HPA operations
- Secures sales for 100% of Altech's proposed 4,000tpa HPA production
- Exclusive global distributor with well established global customer base
- Mitsubishi Corporation is Japan's largest global trading company
The Agreement appoints Mitsubishi as the exclusive buyer of the full 4,000tpa production capacity and will commence on the date of first shipment of final HPA product. The contracted sale quantities will mirror Altech's proposed HPA plants' production ramp up and account for 100% of planned production. Under the Agreement both parties have set specific off take sales target quantities (see table below), which will be at prevailing market prices.
Altech managing director, Mr Iggy Tan said that securing the off take arrangement with Mitsubishi for all of the production from the Company's proposed HPA plant is an integral step towards securing project financing. "The 10 year off take arrangement for the sale of 100% of Altech's HPA production is a significant milestone and a strong vote of confidence in the Company, the HPA project and the team working to bring it to fruition.
"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", Mr Tan concluded.
The off take sales quantities can be viewed in the table, see link below.
Background
On 24 September 2015, the Company announced a sales and distribution agreement with Mitsubishi for the Japanese HPA market only; however following further discussions, Mitsubishi expressed interest in being appointed as the exclusive buyer and global distributor for 100% of the Company's proposed HPA production. Mitsubishi is Japan's leading general trading company with more than 200 bases of operation 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.
To view tables and figures, please visit:
http://abnnewswire.net/lnk/56DDG09N
About Altech Batteries Ltd
Altech 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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