Astra Resources deals itself into iron sands project in the Philippines

Astra Resources PLC (Code: 9AR) continues on its global expansion trail, with a company subsidiary signing an agreement covering an iron sands project in the Philippines.

The agreement is with Cagayan River Construction & Development Corporation (CRCDC), and establishes a joint venture for the purpose of dredging, developing and managing the iron sands reserves in the Cagayan River Delta - which is located in the Cagayan Valley Region and off-shore in the North Eastern part of Luzon in the Philippines.

The Astra Group will maintain a majority in the joint venture in terms of equity and profit share entitlement, and is subject to Astra providing bond finance facilities for development and operation.

Jaydeep Biswas, chief executive officer of Astra said that the dredging, developmental and mining permits that are currently allocated to CRCDC have now been assigned to the benefit of the joint venture.

“Third party reports including geological studies from CRCDC have been positive, indicating that the area is an established producing region that exports to nearby steel manufacturing markets in China, Korea and Taiwan.

“CRCDC has signed a Memorandum of Agreement with a Provincial Board  in the Province of Cagayan, allowing the dredging of the Delta with the responsibility to dispose of the sand metal content and residue.

“The unusually high grade iron content is disposable through export and the residue is recyclable into other construction uses.”

Silvana De Cianni, managing director of Astra, added that the operation will be fully mechanised from river seabed dredging preparation, to suction and discharge to barges. Dredging experts will oversee this aspect of the project.

“For the specific purpose of disposing the sand stone waste and residue and marketing the processed iron component of the sands, a separate subsidiary with Astra at the helm shall be incorporated in Hong Kong.”

Additional geological work and feasibility studies are being conducted in the area prior to finalising the funding from bond financiers.

The Philippine iron sands opportunity will provide Astra with a significant potential export business to China, Taiwan, and Korea at a time when India’s steel industry is growing exponentially and is providing a greater internal market for Astra’s operations in Orissa, India.

Astra Resources’ global portfolio includes gold and iron sands interests in Southeast Asia, coal mines in Africa, iron ore in India, carbon efficient businesses, mining housing developments in Queensland and the production of the high-strength T-Steel technology in Hungary.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/22627/astra-resources-deals-itself-into-iron-sands-project-in-the-philippines-22627.html