Asian Metal: Please give us a brief introduction of your company.

Mr.Das: My Company NuevoTech Mining was established in 2017 with the objective to help investors get the best value from their mining projects. Additionally we have been studying various mining projects for sale and bringing to investors in the form of an investment proposal. Once the investor is happy to go ahead, we would engage with them to manage the entire operations of the project on behalf of the investors. This model can help several overseas investors who want to invest in mining but do not want to get involved in the process or does not have the knowhow. We are currently looking at an iron ore mining project, and a gold mining project in Australia.

Asian Metal: Where is your iron mine located? What is the grade of iron ore?

Mr.Das: The iron ore mining project for which we have prepared an investment proposal is located in Northern Territory of Australia. The mine with resources of 488 million tonnes can start soon with a Fe grade of 58% as direct shippable ore, but with some more investment it can be upgraded to Fe 61% beneficiated ore, further with another step upgrade the ore can be upgraded to Fe 64%. The finished product is a pellet feed fines and we also have a proposal of setting up a pellet plant.

Asian Metal: Please introduce the progress of the project.

Mr.Das: The project was open for bidding by the current sellers and has already received several bids. It could be closing very soon. It will start the production next year. However, we keep getting more projects and anyone interested to invest in Australian Mining industry can get in touch with us.

Asian Metal: What are the advantages of your iron ore? Who are the target customers?

Mr.Das: This is a quick start project which can gradually build from its own cash flow and some further term loans. The initial investment required is quite low. This will generate pellet feed and will not require much grinding at the pellet plant saving cost of pelletisation. The target customers are mostly pellet plants in China.

Asian Metal: Can you introduce the current iron ore supply in Australia? What is the impact of the epidemic?

Mr.Das: I am not aware of much impact of the epidemic on the current supply of iron ore from Australia. Mines are operating with adequate preventive measures in place. Meanwhile, I have been receiving several requests from traders and brokers in iron ore for supply of iron ore. This is because most suppliers in Australia are already tied up but there is still demand for iron ore, mostly from China. Hence it would be prudent for any investor with capability, to invest in a good iron ore mining project to ensure future supply.

With increased demand in steel usage in the developing countries the need for steel will keep rising, hence the demand for iron ore will always be there. It is possible that the supply will increase in coming years causing the price to drop. Hence before acquiring any project, investors should understand the viability of the project during such future possible price drops.

Asian Metal: Iron ore prices in the international market went up continuously since this May. What do you think is the reason for the price increase?

Mr.Das: Yes, prices of iron ore in international market kept going up recently. The price of iron ore fine Australian 62%min CNF China climbed by about 30% in the past three months to around USD126/t. Iron ore prices are known for the cyclical nature. However this cycle is possibly driven by the short supply from Brazil. India used to be a supplier as well, but has restricted now due to several mine closure on regulatory grounds.

Asian Metal: What is your prediction of the market trend of iron ore in the fourth quarter?

Mr.Das: I think the market will remain buoyant even in the fourth quarter. However, the prices may start falling with the recovery of Brazilian iron ore supply once the COVID-19 is under control there.

Asian Metal: For the impact of the COVID-19 on the business, do you have any new plans?

Mr.Das: Thankfully there has been no major impact of COVID-19 on mining in Queensland, Australia, although impact has been there on retail business. And regarding our new plans, we are working on trying to get investors for this iron ore project. We are also working on a gold mining project, which is ready to be mined, with a ready processing plant and we are looking for investors for that project as well. Furthermore we have a LNG based pelletisation and steel making projects down the pipeline.