Australian innovator Altech Chemicals Ltd. announced yesterday the execution of a stage 1 construction works agreement with Germany’s SMS group GmbH, the firm it enlisted as its engineering, procurement, and construction (EPC) contractor for the high-purity alumina (HPA) plant it has commissioned to be built in Johor, Malaysia.
The agreement, which covers the first 6 to 7 months of the expected two-year construction period, covers activities including bulk earthworks, foundation piling, building of retaining walls, underground stormwater processing and discharge tanks, building of electrical infrastructure, and building of a maintenance workshop, the latter which will be used as headquarters for stage 2 construction activities.
In addition, layout drawings will be finalized and the permitting process will be completed by the engineering team during stage 1.
The work of stage 1 is expected to cost A$10 million, which the firm expects to be drawn from the A$280 million lump-sum fixed-price HPA plant EPC contract between Altech and SMS. The contract is slated to commence upon finance close.
Altech has chosen to equity fund the first stage of construction in Johor in order to preserve the project’s momentum, it explains. The company says work will be carried out simultaneously with the closing of project finance.
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 later this year.