citic serious on aust ore, page-2

Aztec Resources Limited
ABN: 45 078 548 562
Suite 4, Level 5, South Shore Piazza
85 The Esplanade, South Perth WA 6151
T: 61 8 9423 0800
F: 61 8 9423 0801
E: [email protected]
17 August 2006
ASX Announcement
Aztec Signs First Sales Contract
Aztec Resources Limited (ASX and AIM code: AZR) (“Aztec”) is pleased to announce the signing
of its first long term sales contract for Koolan Island iron ore with CITIC Australia Commodity
Trading Pty Ltd, the operating subsidiary of CITIC Australia Trading Limited (ASX code: CAL).
CITIC Australia Trading Limited is part of the CITIC Group, one of China’s largest state-owned
enterprises and headquartered in Beijing.
Broad terms of the sales contract include:
• Nominal annual sale of 1.5 million tonnes at full production rate of 4 million tonnes per
annum for up to 15 years or the life of the mine, whichever is less. At production rate of
less than 4 million tonnes per annum sales are prorated.
• Prices are based on the annual benchmark price negotiated by the major Pilbara producers
for equivalent iron ore products.
CITIC Australia Trading Limited Chairman Mr Chen Zeng said CITIC was pleased to be the first
party to sign a sales agreement from one of Australia’s most historic iron ore mines.
“The average grade of Koolan Island iron ore at over 64% iron is attractive to the Chinese
market, and we are pleased to be the first to conclude a long term sales contract with Aztec.
We also wish to acknowledge the professional approach from Aztec’s management in concluding
these important negotiations and enhancing the great relationship between CITIC and Aztec,”
Mr Zeng said.
Chairman Ian Burston said the first sales contract was a significant milestone to date in the
rebirth of Koolan Island.
“CITIC Resources Australia has been a strategic shareholder in Aztec from the earliest stages of
the Koolan Island iron ore project. This support has culminated in the signing of Aztec’s first
long term sales contract and represents an important step in the development of Australia’s next
iron ore mine,” Mr Burston said.
The Company advises that additional sales contracts are currently under negotiation to cover
the balance of the planned annual production of four million tonnes.
Background on the CITIC Group
The CITIC Group is one of China’s largest state-owned enterprises, with assets in excess of
US$100 billion. CITIC Group’s activities include financial businesses (including commercial
banks), industrial investments (including those in the energy and raw materials sectors) and
international trade. It is headquartered in Beijing, People’s Republic of China.
CITIC Resources Australia Pty Ltd, a subsidiary of CITIC Group, is the majority shareholder of
CITIC Australia Trading Limited (ASX code: CAL).
About Aztec Resources Limited
The Koolan Island Iron Ore Project has a resource of 53 million tonnes of high quality iron ore.
With construction already underway, Koolan Island is set to become Australia’s next iron ore
mine. Production is forecast to commence in December 2006 with first shipments in early 2007
and is expected to grow to four million tonnes per annum by 2009.
The proximity of the mine to the coast provides significant capital and transport cost savings
when compared to many other iron ore development projects.
Further exploration drilling is expected to enhance the life of the project.
Mount Gibson Takeover Update
Aztec is currently assessing the Bidder’s Statement received from Mount Gibson on Friday 11th
August 2006 and will issue a detailed response in the company’s Target Statement in due
course.
In the meantime, Aztec shareholders are advised to TAKE NO ACTION in respect of Mount
Gibson’s unsolicited offer until they receive their Directors’ formal recommendation contained in
the Aztec Target’s Statement.
A dedicated toll free line for telephone enquiries 1800 602 244 has been set up and Aztec has
included a section on its website dedicated to the Mount Gibson Bid.
www.aztecresources.com.au
For further information please contact:
Aztec Shareholder Information Line
Australian Callers 1800 602 244
International Callers: +61 8 6218 4220
Media Enquiries
Purple Communications
Warrick Hazeldine
08 9485 1254
Mob: +61 (0) 417 944 616
E: [email protected]