Altech Chemicals Limited (Altech/the Company) (ASX:ATC) is pleased to advise that the Department of Mines and Petroleum (WA) has approved the mining proposal and the associated mine closure plan for its Meckering kaolin deposit. The mining approval marks an important stage in the development of the Company's proposed Meckering kaolin mine, which will provide feedstock for Altech's proposed Malaysian high purity alumina (HPA) plant.

Highlights

- Mining proposal approved for Altech's Meckering kaolin deposit (M70/1334)

- Important development milestone for supply of kaolin feedstock to Malaysian high purity alumina (HPA) plant

- Approval allows mining to proceed when required

- Stage 1 mining over a two-month campaign stockpiling 3 years' of HPA plant feedstock

The approved submission specifically allows for mining activities to commence within the Company's 100%-owned Meckering mining lease M70/1334, which is located approximately 140km east of Perth.

At Meckering, Altech plans to mine approximately 140,000 tonnes of kaolin once every three years; mining will take place in short two-month mining campaigns. The resultant raw kaolin ore will be stockpiled on site, then containerised into standard shipping containers at the rate of approximately 40,000tpa and shipped to Johor, Malaysia via the port of Fremantle, Western Australia.

Altech managing director Mr Iggy Tan said, "The Company is delighted to have received mining approval for the Meckering kaolin deposit. Whilst the Company will not need to commence mining kaolin until 2018, the approval of the mine is an important developmental milestone that has now been ticked off.

"The next step is the works approval application for the proposed loading facility at Meckering, which is assessed by the Department of Environment Regulation", Mr Tan concluded.

About Altech Chemicals Ltd

Altech 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.

    

Contact

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



Link: Altech - Mining Approval Received for Meckering Deposit



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