Transcription of Finance News Network Interview with Aus Asia Minerals Limited (ASX:AQJ) Executive Chairman, Robert Swarbrick
Lelde Smits: Hello I’m Lelde Smits for the Finance News Network and joining me from Aus Asia Minerals Limited (ASX:AQJ) is its Executive Chairman, Robert Swarbrick. Robert, welcome to FNN.
Robert Swarbrick: Thanks for having me.
Lelde Smits: Aus Asia Minerals is developing low cost iron ore and coal opportunities in Indonesia. What appeals to you about the country?
Robert Swarbrick: Indonesia’s got enormous growth potential. It’s got 280 million people, a low tax environment, politically safe and cheap labour, labour rates. One of the most important things, a similar project in Australia would have the production costs of twice the size.
Lelde Smits: What is your current presence in Indonesia and plans to expand it?
Robert Swarbrick: Aus Asia’s got two projects, a producing iron ore project and a coal concession, which isn’t producing quite yet. The main aim of the c ompany is to slowly acquire more projects, as we get larger.
Lelde Smits: Looking closer at your iron ore interests. Where are they located and what are your plans to develop them?
Robert Swarbrick: The iron ore project’s located in West Sumatra, 73 kilometres away from Padang and we intend to start full production, in the next month or two.
Lelde Smits: Can you outline your coal interests and strategy to achieve production ?
Robert Swarbrick: We have a High GCV(gross calorific value) coal project about 200 kilometres away from Padang. It’s low volume but high margin.
Lelde Smits: What are the company’s funding plans to facilitate the development of these projects?
Robert Swarbrick: We’re fully funded now, so we’re all set to go to start production.
Lelde Smits: Aus Asia Minerals has also recently restructured. What are the main changes that occurred and what did they achieve?
Robert Swarbrick:Coal Fe Resources Limited (ASX:CES) was a dormant company; it had some small coal projects in Indonesia, which weren’t making any money. So the idea was to bring it two projects, which were revenue positive and that’s why we renamed it Aus Asia Minerals. And we’ve increased the Board to make it more credible. So looking forward to great things in Indonesia.
Lelde Smits: Finally Robert, what are the Board’s ambitions for Aus Asia Minerals?
Robert Swarbrick: The main focus really is to get the iron ore project into full production. And then after we start producing 30,000 tonnes a month, we want to acquire some other projects and refocus that. So we’ll consolidate and perhaps have three or five mines of the same size, with a major ambition to pay dividends back to shareholders.
Lelde Smits: Robert Swarbrick, thank you for the update from Aus Asia Minerals.
