Australian innovator Altech Chemicals Ltd. announced yesterday that it is the recipient of an additional investment of US$11 million from the main contractor on its high-purity alumina (HPA) project. The pledge brings SMS’s total financial support to US$15 million.
SMS group GmbH will provide the additional equity investment in the project subject to Altech’s closing on a US$185-million finance debt facility. Altech projects closing on that loan will occur in the first quarter of next year.
SMS group’s investment comes on the heels of Altech’s successful share placement last month, in which SMS joined in a contribution of US$4 million to the cause. All in, SMS group has contributed or pledged a total of US$15 million, which Altech takes as a sign of SMS’s confidence in its HPA project.
Altech’s managing director Iggy Tan hailed the investment as a vote of confidence by one of the project’s biggest and most important participants.
“The Company welcomes the additional direct investment by SMS in Altech; it demonstrates the commitment and confidence of the EPC contractor to the HPA project and the Company. We are very fortunate to have such a supportive partner in this project.”
Founded in 1871 and based in Düsseldorf, SMS group is a privately-held firm that boasts an annual turnover of €3.3 billion. The firm designs turn-key solutions for processing plants, utilizing cutting-edge technology. SMS’s services also include buildings, infrastructure, and auxiliary equipment necessary for the projects it takes on.
Altech Chemicals is based in Subiaco, Western Australia and is attempting to develop a marketable process for delivering 99.99% (4N) HPA. It plans to construct a 4,000 metric ton per annum HPA plant at Tanjung Langsat Industrial Complex, Johor, Malaysia. 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.