|There are 3 compelling factors that have contributed to Astra Resources’ chosen market positioning:
Steel and Resource Demand from China and India
As the Indian and Chinese economies have grown over the past decade, their steel markets have shown increasingly robust growth.
China’s steel production has grown by an annualized rate of return of over 18% over the last decade. China has been adorning the position of the largest steel producing country in the world producing 678 mMT in 2009. India has clocked 10% growth in steel production over the same period. This has had ramifications in the steel industry. Today India and China together account for 53% of global steel demand.
Increasing Urbanisation and Infrastructure Demand from Emerging Economies
In India alone, growing urbanization has led to a housing shortage of around 24.7 million units and there is approximately US$910 billion to be spent by 2018 on building infrastructure like electricity, roads and bridges, telecom, railways, ports and much more. This persistent growth indicates that the demand for resources and access to quality steel is at a premium. Both India and China have large demand for Astra’s output products.
Positive Geological and Operational Characteristics at Mine Locations
Africa is proven to be a vast area of high quality resources. India has untapped mining potential and has similar Pre-Cambrian geology to WA along with high-yield assets ready for development. India has a number of positive operational characteristics which underpin the asset development.
Astra Resources has rigorous selection criteria for projects that allow it to capitalise on these market characteristics.