Altech (ASX:ATC) Appoints Melewar as Construction Partner

ASX Announcement, 29th April 2015

Highlights:

• Memorandum of Understanding with Melewar Integrated Engineering Sdn Bhd
• Part of the diversified Melewar Industrial Group Berhad (MIG-Melewar)
• Construction services for buildings and steel works, civil works, roads and site infrastructure

Altech Chemicals Limited (Altech/the Company) (ASX: ATC) is pleased to announce that it has signed a Memorandum of Understanding (“MOU”) with Malaysian engineering and construction group Melewar Integrated Engineering Sdn Bhd (Melewar), appointing it as construction contractor for Altech’s proposed high purity alumina (HPA) processing plant in Johor Bahru, Malaysia.

Melewar is a leading multi-disciplinary engineering firm and offers one stop solutions to industrial planning, project engineering, development, construction and management. Melewar is part of the diversified Melewar Industrial Group Berhad, which is listed on “Bursa Malaysia” (Malaysian Securities Exchange), and is one of the largest downstream steel manufacturers in Malaysia.

The MOU provides for Melewar to supply construction services for buildings and steel works, civil works, roads and site infrastructure for the Company’s proposed HPA plant. Melewar operates various steel fabrication facilities in Malaysia, and is experienced at the efficient and cost effective pre-fabrication, then on-site assembly and erection of steel structures and equipment. Melewar will be working for the EPCM partner, M+W Group who were appointed on 10 March 2015.

Commenting on the appointment of Melewar by the Company, Altech’s Managing Director, Iggy Tan explained:
“Our strategy to appoint key high quality contractors for the HPA project continues. Specifically, Melewar have extensive construction experience in Malaysia. Melewar has the capability to deliver turnkey structural steel fabrication and erection for the HPA project at competitive pricing without compromising quality or time.”

About Altech Chemicals (ASX: ATC)

Altech Chemicals Limited (Altech/the Company) is aiming to become one of the world’s leading suppliers of 99.99% (4N) high purity alumina (HPA) (Al O ). HPA is a high-value product because it is the major source material for scratch-resistant artificial sapphire glass. Sapphire glass is used to produce a range of high-performance electronic applications such as LEDs, semi-conductors, phosphor display screens, as well as new emerging products such as smartphones and tablet devices. The global HPA market is approximately 19,040tpa (2014) and is expected to at least double over the coming decade.

Current HPA producers use an expensive and highly processed feedstock material such as aluminium metal to produce HPA. Altech produces 4N HPA directly from an ore feedstock, aluminous clay, from its Meckering deposit in Western Australia. The Company is now advancing a Bankable Feasibility Study (BFS) to develop a full-scale 4,000tpa HPA production facility. The Altech process employs conventional and proven “off-the-shelf” plant and technology to extract HPA from its low-cost and low-impurity aluminous clay feedstock, which results in lower operating costs.

Altech is a chemical processing group focused on creating a high-margin product to meet the growing global demand for the next generation of high-performance technologies.

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