Astron re-establishes heavy minerals business in China
Astron's new headquarters at 111 Connaught Road Central in Hong Kong reflects the mineral sands mining company's big plans for China.
Astron's new headquarters at 111 Connaught Road Central in Hong Kong reflects the mineral sands mining company's big plans for China.
The company used to buy zircon from miners in its homeland in Australia and modify them for the Chinese market in the early 1990s. Using its own distribution network across the mainland, Astron created a supply niche among the country's tile and paper manufacturers.
The company is planning to re-enter the Chinese market, but this time, on a much larger scale. It will be supplying the country with a wider range of heavy mineral products from its own enormous mineral sands mine.
"We've got knowledge of the Chinese market, built up from our previous business there," says Gerard King, Astron's chairman. "If we can get the supply from our own mine, we can readily market it."
Astron will start full-scale mining operations at its Donald asset in Victoria, Australia this year. With about 4 billion tonnes of ore, the site is one of the world's biggest heavy mineral sands deposits. When fully developed, Donald will catapult Astron to be among the five largest global suppliers of zircon, accounting for 8 per cent of the world market.
The company's research and development team in China is, however, working on other heavy mineral products. Astron is keen on working with potential investors in setting up a titanium oxide plant in China to produce upgraded variations of titanium for various industries, such as construction. Also, given the size of the Donald output, Astron is looking into producing uranium and thorium. The company will market these products by re-establishing its distribution network across the country.
To raise capital for the Donald project, Astron is talking to potential partners from China and is planning to list on the Hong Kong stock exchange.
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