Altech Chemicals Ltd (ASX:ATC) Option Exercised for Purchase...| MENAFN.COM

Wednesday, 29 June 2022 07:31 GMT

Altech Chemicals Ltd (ASX:ATC) Option Exercised for Purchase of Meckering Land


(MENAFN- ABN Newswire) Perth, Oct 17, 2017 AEST (ABN Newswire) - Altech Chemicals Limited (Altech/the Company) () () is pleased to announce that it has exercised its option to purchase the ~94 hectares of land at Meckering, Western Australia within which its granted and fully permitted kaolin mining lease M70/1334 lies.

Highlights

- Option to purchase Meckering freehold land over mining lease M70/1334 exercised

- Construction of Meckering kaolin mine and kaolin screening and loading facility fully permitted

M70/1334 was granted on 19 May 2016 and contains an estimated kaolin mineral resource of 12.7 million tonnes at 29.5% Al2O3, including an estimated kaolin ore reserve of 1.224 million tonnes at 30% Al2O3. (refer Table 1 in link below)

Kaolin ore from M70/1334 will provide feedstock for the Company's proposed Malaysian high purity alumina (HPA) plant. At Meckering, the Company is planning to mine approximately 140,000 tonnes of kaolin in twomonth mining campaigns, once every three years. The alumina rich mined kaolin will be initially stockpiled, then loaded into standard 20ft shipping containers at the rate of approximately 43,500tpa for transport by road to the port of Fremantle, Western Australia then shipped weekly to Malaysia.

Altech's mining proposal and mine closure plan for M70/1334 was approved in March 2017. A works approval for construction of the kaolin screening and loading facility was granted in August 2017. Altech's Meckering mine is now fully permitted, with construction of the kaolin screening and loading facility able to proceed, subject to finance.

Managing director Mr Iggy Tan said, "the exercise of Altech's option to purchase the land over mining lease M70/1334 is another important milestone in advancing our HPA project; Meckering is now fully permitted for construction. Development of the kaolin screening and loading facility then initial mining can proceed upon finalising of project finance."

To view tables, please visit:



About Altech Chemicals Ltd

() () is aiming to become one of the world's leading suppliers of 99.99% (4N) high purity alumina (HPA) (Al2O3).

HPA is a high-value, high margin and highly demanded product as it is the critical ingredient required for the production of synthetic sapphire. Synthetic sapphire is used in the manufacture of substrates for LED lights, semiconductor wafers used in the electronics industry, and scratch-resistant sapphire glass used for wristwatch faces, optical windows and smartphone components. There is no substitute for HPA in the manufacture of synthetic sapphire.

Global HPA demand is approximately 25,315tpa (2016) and demand is growing at a compound annual growth rate (CAGR) of 16.7% (2016-2024), primarily driven by the growth in worldwide adoption of LEDs. As an energy efficient, longer lasting and lower operating cost form of lighting, LED lighting is replacing the traditional incandescent bulbs.


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