DGAP-News: Astra Resources Plc: Astra Resources corporate structure driven by technology opportunities and commodities growth
(firmenpresse) - DGAP-News: Astra Resources Plc / Key word(s): Market
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Astra Resources Plc: Astra Resources corporate structure driven by
technology opportunities and commodities growth
22.03.2012 / 10:01
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Astra Resources corporate structure driven by technology opportunities and
commodities growth
Adelaide, Australia - March 22 2012: International diversified resource
company, Astra Resources (FWB Code: 9AR), says its corporate structure will
help drive the company's standing as a major participant in the global
market.
Astra CEO Dr Jaydeep Biswas says its structure includes the key business
units of technology, mining, and business diversification with risk
management as a theme, all backed by its diversified project and geographic
base and the continued acquisition of game-changing, commercially proven
technologies.
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'Our structure will allow us to become a global leader in efficient, high
quality steel manufacturing and clean coal conversion technologies, and
provide ongoing shareholder value creation through mining and green
innovations,' Dr Biswas says.
'Our technology strategy is spearheaded by the company's T-Steel which will
enable old and underperforming steel mills with low profitability to
produce high margin premium grade steels without major capital expenditure.
'Cost reductions are just one of the benefits of implementing the T-Steel
technology, as higher strength steel can be produced with a significant
reduction in raw material use for the same application.
'We are continuously assessing well-priced opportunities to acquire steel
mills in Eastern Europe which can act as a platform for conversion,
production and marketing of the T-steel products, in addition to external
licensing arrangements.
'In the future, the use of nano-technology in steel making is an area which
may bring additional improvements to the steelmaking industry and this is
something Astra is also exploring.
'We have intentionally supported T-Steel through the acquisition of a
number of other technologies including the recent joint venture with
Interecotech for their clean coal conversion technology.
'This pertains to the scientific process required for the manufacture of
Activated Coal Water Fuel (ACWF) as direct fuel for power plants at higher
efficiencies, and the gasification of coal to create hydrogen enriched
Syngas for the production of diesel fuel.
'As any type of coal can be used as feedstock for ACWF, developing
countries can utilise this technology to become more energy independent
using lower quality local coal thus reducing the need to import black coal
or diesel for their power generation requirements.
'The ACWF technology is a bolt-on to existing power stations, allowing fuel
diversity. This will have immediate and profound economic and logistics
benefit as the coal conversion technology will help turn local low quality
coal reserves into a useable product, reducing reliance on expensive
imports.
'By focusing on coal-fired power plants in developing countries, savings
are linked to the black-brown coal price differential and the
inter-continental logistics cost from black coal mine to end user power
station.
'ACWF technology will also be attractive to any country with a drive to
significantly lower carbon dioxide emissions due to theresulting increase
in the thermal efficiency of coal fired power stations.'
To capitalise on its technology strategy Astra has, or are in the process
of, securing the supply chain of raw materials related to the production of
these technologies.
The company's resources strategy, which underpins its technology push,
includes iron ore and coal interests across three continents.
The acquisition of mining assets close to production without the need for
major logistics infrastructure investment creates a pathway to early
revenues at lower risk.
Low infrastructure investment allows small boutique operations to be viable
rather than the scale and term required to pay off infrastructure bond
holders. Examples of these boutique market-ready projects are Astra's iron
sands project in Philippines and the iron tailings project in Scandinavia.
Astra Managing Director Silvana De Cianni says these acquisitions enable
Astra to create its own internal market, insulating the company against
fluctuating commodity prices.
'In the case of iron ore, Astra's projects are intended to be resilient to
iron ore prices of $80/tone, including costs of capital, since the
tenements are close to user markets, have the majority of infrastructure in
place and are close to revenue compared to most exploration and major
greenfield plays,' Ms De Cianni says.
'These types of projects do not suffer from the long-distance supply lines
and long term commitments to infrastructure bond holders which are a risk
if commodity prices fall.
'Investments in gold, copper and silver tenements assist in hedging the
risk of the dollar and dollar related commodities.
'Astra intends to invest in mining, steel and bolt-on power opportunities
in countries with a comparative advantage, being close to demand markets
without the need for major infrastructure investment or scale.
'In effect, we have reduced our risk of business by hedging our business
operations.'
Dr Biswas says the 'glue' between the mining interests and the market will
be a commodity trading business which will not take positions in the market
but act as a principal sales agent for Astra assets in steel making raw
materials, coal, precious metals and steel.
'The commodity trading business cannot ignore the fact that China, India,
Middle East and East Asia need agricultural products to fuel its population
growth which in turn increases the demand for raw materials for steel
production, premium steel and power generation technology.
'Northern Australia has some of the best growing and grazing land in the
world, often referred to as the region's food bowl due to the rainfall, low
population density, logistics infrastructure and close proximity to Asian
markets.
'This is a positive under any financial scenario, and the commodity arm of
Astra will participate in developing this region as a food bowl for Asia.
'Our risk management strategy therefore includes our commodities trading as
a principal for own production only and not taking speculative positions.'
Ms De Cianni says Astra has further diversified its projects to include
mining housing in Australia, commodities trading and off take, and carbon
credit technologies.
'Astra has acquired and optioned debt free land in one of the most
important mining regions in Australia, Rockhampton in Queensland, where we
will develop a range of housing options to service the mining sector,' Ms
De Cianni says.
'Add to this is our interest in Green Gum technology, a process that
converts waste from rubber tyres into fine and superfine rubber granules
gaining revenues and carbon credits, and you can see diversification is a
key pillar of our corporate structure.'
Dr. Biswas says Astra's strategic positioning ties the company's corporate
structure together.
'We are very focused on emerging economies with a preference for those with
high growth coupled with commodity and product demand,' Dr Biswas says
'Our mission statement, a diversified global resource company with the
entrepreneurial vision of a technology firm, describes our knowledge based
approach, and our eye towards ancillary opportunities which complement our
core focus with lower cost and quicker time to revenue.'
Astra Resources' global portfolio includes gold interest in Southeast Asia,
coal mine in Africa, iron ore in India, Norway and the Philippines, the
production of the high-strength T-Steel technology in
Hungary, carbon-efficiency businesses and the provision of mining services
housing in Rockhampton, Queensland.
For more information visit www.astraresources.co.uk
ENDS
For all media enquiries contact
Bruce Nelson +61 (0) 423 403 449 (bruce(at)zakazuhka.com)
Caitlin Petrou +61 (0) 402 823 343 (caitlin(at)astraresources.com.au)
Disclaimer in regards to Forward-looking Statements
Certain statements included herein, including those that express
management's expectations or estimates of our future performance constitute
'forward-looking statements' within the meaning of applicable securities
laws. Forward-looking statements are necessarily based upon a number of
estimates and assumptions that, while considered reasonable by management
at this time, are inherently subject to significant business, economic and
competitive uncertainties and contingencies. Investors are cautioned not to
put undue reliance on forward-looking statements. Except as required by
law, Astra Resources PLC does not intend, and undertakes no obligation, to
update any forward-looking statements to reflect, in particular, new
information or future events.
End of Corporate News
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161772 22.03.2012
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