A Leading Vertically Integrated HPA Developer with a Defined Strategy to Reach Production

Institutional Investor Information Pack
Institutional Investor Information Pack
Perth, Jan 19, 2017 AEST (ABN Newswire) - Altech Chemicals Ltd (ASX:ATC) is pleased to provide the Company's latest presentation titled "Institutional Investor Information Pack - 'Meeting a Sapphire Future'".

It addresses the funding & engineering update on HPA project.

Funding overview

- Altech expects to fund the development of the HPA project using a simple, sole lender, non-dilutive funding structure with one of Europe's leading international project and export finance banks

- An indicative term sheet has been received for a US$70m debt funding package with German KfW IPEX-Bank

o The combined project finance package is expected to include US$60m of export credit finance at highly competitive terms (LIBOR +2% to 3%)

- Export credit is a scheme that provides cover to bank lenders to insure against an export loan, and was identified as being applicable to Altech's HPA project because the majority of the project's plant and equipment will be sources from German / European manufacturers and the EPC contractor (M+W Group) is a German company

o The remaining US$10m is expected to be provided with standard commercial terms

- Thorough due diligence is currently being conducted by consultants on behalf of KfW IPX-Bank

- Definitive (EPC) project capital expenditure estimates are required in order to finalise the project financing agreements

Engineering: Detailed Design

- Detailed design and engineering work is currently being undertaken by German firm M+W Group in Stuttgart, Germany

- M+W Group was appointed as Engineering, Procurement and Construction (EPC) contractor in March 2016

- Leading global engineering and construction firm with extensive Asian experience

- Established Singapore and Malaysian offices, with extensive Malaysian construction experience

- Detailed design is progressing well and on track

To view the full presentation, please visit:

About Altech Chemicals Ltd

Altech Chemical Ltd ASX:ATCAltech Chemicals Limited (ASX:ATC) (FRA:A3Y) is aiming to become one of the world's leading suppliers of 99.99% (4N) high purity alumina (HPA) (Al2O3).

HPA is a high-value, high margin and highly demanded product as it is the critical ingredient required for the production of synthetic sapphire. Synthetic sapphire is used in the manufacture of substrates for LED lights, semiconductor wafers used in the electronics industry, and scratch-resistant sapphire glass used for wristwatch faces, optical windows and smartphone components. There is no substitute for HPA in the manufacture of synthetic sapphire.

Global HPA demand is approximately 25,315tpa (2016) and demand is growing at a compound annual growth rate (CAGR) of 16.7% (2016-2024), primarily driven by the growth in worldwide adoption of LEDs. As an energy efficient, longer lasting and lower operating cost form of lighting, LED lighting is replacing the traditional incandescent bulbs.



Iggy Tan
Managing Director
Altech Chemicals Limited
Tel: +61-8-6168-1555
Email: info@altechchemicals.com

Shane Volk
Company Secretary
Altech Chemicals Limited
Tel: +61-8-6168-1555
Email: info@altechchemicals.com

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