Altech Chemicals today provided an update on its high purity alumina (HPA) that highlights the completion of initial site establishment activities in Johor, Malaysia. The company told that the project site is now fully fenced and secured where the Stage 1 construction is progressing as planned.
In the announcement dated 12 March 2019, Altech Chemicals Ltd (ASX: ATC) told that the it has completed the removal of top soil from the project site whereas, site levelling and bulk earthworks is underway. It has been understood that Stage 1 work is well on track which translating the significant progress in the site from establishment stage to construction phase.
The report read that foundation pilling rig has already been mobilised to site for piling tests, scheduled to commence shortly. Workshop steel has reportedly been bought by the company and has reached close to the fabrication in preparation for off-site fabrication and sandblasting.
Altech received approval for the Development Order for its high purity alumina (HPA) plant in Johor, Malaysia in late January 2019. Since then, the major developments were made in the Stage 1 construction work including the erection of site construction office, installation of a security post and temporary ablutions and an establishment of a vehicle wash down the bay with sediment control. The safety control to the access to project site has also been achieved through the establishment of safety induction process with all entry onto the site strictly controlled via site security personnel as well as the 24×7 monitoring of the site.
Stage 1 construction work activities will follow the completion of site establishment work. These proposed works include bulk earthworks; maintenance workshop foundation piling; the construction of retaining walls; on-site water detention tanks (OSD tanks); construction of the site sub-station structure and a maintenance workshop. Altech also confirmed the highest safety standards being followed in the construction and development work.
In the December quarter report, the company told that the majority of stage 1 works have been funded and pre-paid to the EPC contractor and will be credited against the US$280 million lump-sum fixed-price HPA plant EPC contract price.
Looking forward, the company eyes strong and continued demand in the HPA market, particularly for lithium-ion battery separator sheets. In the recent 2018 Battery OSAKA conference, the company witnessed strong demand for HPA powder from South Korea and Japan with major HPA’s demand driven from the lithium-ion battery separator sheet sector which appears to be growing faster than expected. The price of HPA at the premium end of the market (Japan and South Korea) was reportedly held at US$40,000/t, and no negative change was reported for the HPA market with the outlook now more positive than earlier in the year.
ATC stock price declined by 6.897% to last trade at $0.135 on 12 March 2019. Over the past three months, the stock has massively gone up by 70.59%; however, the stock price slipped by 4.92% over the past 12 months.
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