Australian innovator Altech Chemicals Ltd. revealed on Friday that it has garnered the go-ahead from Germany’s government for project finance export credit cover to guarantee a portion of the debt incurred in the course of its high-purity alumina project.
The firm acknowledged the approval of the German government inter-ministerial committee on their appeal for a debt guarantee. Altech did not elaborate upon the terms, but the company has gone on record in the past as desiring between US$165 million and US$185 million in guarantees from Berlin for its US$298-million high-purity alumina project.
Altech’s project is being constructed by German engineering titan SMS Group GmbH, which has also offered a throughput, processing, and quality guarantee for the project, which is a prerequisite for garnering a debt guarantee such as the one in question.
Altech and SMS are taking advantage of a program established by the German government that provides such credit guarantees to firms who utilize a sizable proportion of German content in their design and/or building projects.
Iggy Tan, Altech’s managing director, declined to give further details, but did point out the important development is the result of a mountain of work on the part of several parties involved in the project.
“News of the IMC decision for offer of cover is an outstanding milestone for the Company’s high purity alumina (HPA) project, the culmination of many years of hard work by Altech staff, consultants, EPC contractor SMS group GmbH, KfW IPEX-Bank and many others associated with the project.
“Complete details of the offer of cover are expected to be received in the coming days and will be announced in due course.”
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.