DGAP-News: Astra Resources Plc: Astra reveals Australian agriculture commodities strategy
(firmenpresse) - DGAP-News: Astra Resources Plc / Key word(s): Strategic Company
Decision/Miscellaneous
Astra Resources Plc: Astra reveals Australian agriculture commodities
strategy
23.04.2012 / 10:00
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Press Release
Astra reveals Australian agriculture commodities strategy
Adelaide, Australia - April 19 2012: International diversified resource
company Astra Resources Plc (FWB Code: 9AR) through its wholly owned
subsidiary Astra Mining Pty Ltd have signed a Joint Venture to be headed by
Australian icon Troy Dann as the first step in its agricultural commodities
strategy.
The Joint Venture has resulted in the creation of Astra Agricultural
Resources Pty Ltd (AAR), of which Astra retains 51 per cent ownership. The
Joint Venture plays a key role in launching Astra's commodity business.
In this major move by Astra, the company has recognised that further
diversification of its activities to include the provision of an
agricultural resources commodities division into a diversified resources
company with opportunities in mining, property development in
industrializing areas, commodities trading and green technologies, can only
strengthen the development of the company.
Astra sees this development in its group activities as a strength and
source of further diversification in its business activities.
Astra will provide funding to AAR from its forthcoming Prospectus, and
assist in the facilitation of a bond facility to AAR to further supplement
the funding requirements of the joint venture company for its working
capital requirements.
Astra CEO Dr Jaydeep Biswas says Astra's involvement in the project will be
an important commodity play and help bring to life the company's food bowl
business aspirations.
'A new report by the United Nations says the growing world population and
rising middle class will drive up demand for food by 70 per cent by 2050,
with agricultural exports potentially rising by 140 per cent over the same
period,' Dr Biswas says.
'As the living conditions of developing countries continue to improve there
will be an increased demand for protein and calorie-rich foods, which
translates into a need for more beef, lamb, pork, poultry meats and more
dairy products.
'Feeding these populations with protein rich food is also a prerequisite
for continued growth in minerals and steel, with the increase in major
global traders moving into agricultural commodities reflecting this notion.
'The Federal Government wants Australia to become a global food production
powerhouse, and Astra plan to capitalise on this desire by entering into
agriculture and food which will further
diversify our portfolio and create a growth business for when demand for
hard commodities decreases as developing economies enter a more mature
phase.
'Hard commodities go through cycles, and while Astra has diversified its
mining portfolio to the extent that any global downturn in their prices
would have minimal impact on the company, pushing ahead with commodities in
agriculture will further insulate Astra against market fluctuations in the
long term. It is a further hedge that the company is building into its
production activities.'
Troy Dann, appointed as AAR's Managing Director, is a third generation
award winning cattlemen from the Northern Territory and is very passionate
about what outback Australia has to offer the world in the future.
'The Northern Territory is on the door step to Asia with arguably the
cleanest pastures in the world covering over 330,000,000 acres or
approximately 140,000,000 hectares of outstanding and highly productive
land given the opportunity with further development from the exceptional
water systems of Northern Australia,' Mr Dann says.
'We are privy to some of the world's best growing and grazing land, with
Northern Australia often referred to as the region's food bowl due to the
rainfall, low population density, logistics and infrastructure, such as
port access to Asia via the North.
'AAR has vast potential with projected earnings suggesting net profit could
surpass $12 million by 2013/2014, increasing substantially in the years to
follow.'
Astra intend to capitalise on Australia's comparative advantage in
agriculture, something that cannot be replicated in Asia due to population
growth.
Astra Managing Director Silvana De Cianni says Australia has long been
slated as the food bowl for the expanding Asian region due to its
proximity, however insufficient investment means the sector has yet to
fully realise its potential.
'China, India, East Asia and the Middle East need additional agricultural
imports to fuel population growth, namely the expanding middle class, which
in turn increases demand for the resources required for industrialization,
such as power and steel,' Ms De Cianni says.
'Australia's proximity to Asian markets means we are in a prime position to
take advantage of this untapped opportunity by supplying these regions with
the high quality protein they require.
'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.'
Dr Biswas says the Australian cattle industry is expected to expand
exponentially, with data collected by Meat and Livestock Australia
indicating beef and veal production for 2012 will reach a record 2.197
million tonnes cwt, up 2.2 per cent, and global demand is expected to be
sustained, if not strengthened.
'Global beef prices are also tracking at historically high levels, with
total beef exports expected to increase, driven by expansion into Russia,
the Middle East and most southern Asian markets,' Dr Biswas says.
Astra Resources' global portfolio includes gold interests in Southeast
Asia, coal mine in Africa, iron ore in India, Norway and the Philippines,
carbon efficient businesses, a commodities business, the production of the
high-strength T-Steel technology in Hungary, clean coal technology and the
provision of mining services housing in Rockhampton, Queensland.
For more information about Astra Resources 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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