Altech Optimistic That Incentives for High-Purity Alumina Project Are Soon Forthcoming From Malaysian Government
10 January 2018 by Staff
Australian innovator Altech Chemicals Ltd. informed investors that the firm has taken the next step in bringing high-purity alumina (HPA) to market with its Malaysian subsidiary’s application for a manufacturing license.
Per the company’s press release, its Malaysian subsidiary Altech Chemicals Sdn Bhd filed the application with the Malaysian Investment Development Authority (MIDA). Also filed with MIDA was an application for “Pioneer Status” (High Technology), which is a classification meant to provide incentives to certain new businesses and business ventures.
Should Altech’s Malaysian arm be granted such status, the entirety of the project’s statutory income would be exempt from taxation for a five-year period beginning upon commercial production. All accumulated losses and depreciation accumulated during that five-year period may be carried forward to years outside the period and deducted as well.
The firm says talks between its representatives and those of MIDA have been going on since 2015. The application could not be made until now however, as the necessary agreements were not yet in place.
Altech has high hopes for the success of both applications, as the firm says its MYR1.2 billion (US$300 million) high-purity alumina project is similar in technological and strategic nature to projects that have garnered approval in the past.
Altech Chemicals is based in Subiaco, Western Australia and is attempting to implement a marketable process for delivering 99.99% (4N) HPA using conventional equipment at a lower production cost than methods currently available. It plans to construct a 4,500 metric ton per annum HPA plant at Tanjung Langsat Industrial Complex, Johor, Malaysia that will use kaolin clay from a company-owned mine in Meckering, Western Australia. The firm is fast-tracking HPA production due to an agreement with Mitsubishi for 100% of its proposed HPA production for ten years. At present, Altech intends to commence project development in 2018.