Executes Stage 1 Construction Agreement for HPA Plant
Perth, July 12, 2018 AEST (ABN Newswire) - Altech Chemicals Limited (Altech/the Company) (
ASX:ATC) (A3Y:FRA) is pleased to announce that it has executed a stage 1 construction works agreement with its appointed engineering, procurement and construction (EPC) contractor SMS group GmbH (SMS) of Germany, for the commencement of construction at its Malaysian high purity alumina (HPA) plant site in Johor, Malaysia.
Highlights
- Stage 1 works construction agreement executed with SMS
- Works to occur in parallel with project finance close
- Bulk earthworks, retaining walls, storm water tanks and foundation piling
- Also includes site electrical sub-station structure and maintenance workshop
- Majority of the ~A$10 million site works credited against US$280 million EPC contract
Construction works covered under the stage 1 construction agreement includes bulk earthworks; extensive foundation piling; the construction of retaining walls; underground storm water/process discharge tanks (OSD tanks); construction of the site electrical sub-station structure; and construction of a maintenance workshop. The maintenance workshop will be used as the construction site offices during stage 2 of the HPA plant construction. Engineering works incorporated in the stage 1 construction program include the finalisation of layout drawings and the construction permitting process (Development Order) from local authorities.
The stage 1 agreement covers the first 6-7 months of the proposed two year construction period. The value of the works is approximately A$10 million, the majority of which will be credited against the US$280 million lump-sum fixed-price HPA plant EPC contract awarded to SMS which will commence following finance close.
Altech has decided to equity fund stage 1 construction in Malaysia to maintain project momentum and the works will be conducted in parallel with project finance close.
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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