The days of the single resource operation are coming to an end, according to Austral Resources Australia chairman David Newling.
Mr Newling pointed out at the company’s AGM today that Austral Resources (ASX: AR1) was the only miner in the North-West Queensland area with a substantial toll treatment offer.
Austral has the Mount Kelly oxide processing plant and came back onto the ASX last year after buying the Rocklands site (pictured above) from Copper Resources Australia.
The company told the ASX today that the Rocklands circuit would be upgraded, including with a new SAG mill that the company has taken possession of this quarter.
Austral’s role in the future would be as an enabler, Mr Newling said.
“We will lead the consolidation because we have the assets. Those assets are what takes dirt in the ground and puts money in people’s back pockets,” he said.
Austral’s infrastructure on its eastern and western assets was worth more than $800 million, placing the cost of building plant from the ground up beyond most junior miners, Mr Newling said.
“Look, it’s very hard. The cost of new processing facilities these days is sort of north of $300 million. That’s very hard for junior resource companies to raise,” he said.
“I don’t think it is readily achievable in today’s market, certainly with the uncertainty in the future.
“We’re in a great position. I think we’ve been fortunate in terms of timing, but it’s really upon us now to exploit that for shareholders.”
Addressing the AGM today, Mr Newling described the past 12 months as a turning point for the company, following the completion of major transactions, a return to the ASX and more than $100 million raised from shareholders.
Austral’s strategy has centred on consolidating infrastructure across Mount Kelly, Rocklands and
the Lady Loretta site it recently acquired from Glencore.
The company plans to undertake a brand refresh later this year as its operational footprint continues to grow across the region.
Disclaimer – the author is an Austral Resources shareholder.
This article first appeared in Industry Queensland.
