Disruptive technology strategy breaks new ground for resources companies

Sept. 23, 2012 - PRLog -- Adelaide, Australia – 23 September 2012: International diversified resource company Astra Resources (FWB Code: 9AR) says its focus on a disruptive innovation strategy is a first for the industry and could pave the way for how similar companies operate in the future.
The strategy, which aims to disrupt existing market networks, create entirely new market segments and replace existing incumbent producers in the resources sector, is seen as a bold move by Astra and one that will potentially catapult its status to that of an industry trailblazer.
The term, coined by Clayton M. Christensen and introduced in 1995, describes innovations that improve a product or service in ways that the market does not expect by displacing an earlier technology, a move that often leads to lowering prices in an existing market.  
Some examples of disruptive innovation throughout history include train transport disrupting automobile transport, CD’s and USB flash drives disrupting 3.5inch floppy discs, laptops disrupting PCs, Internet disrupting faxes and digital photography disrupting chemical photography.
Astra CEO Dr Jaydeep Biswas says since its formation the company has focused its attention on building Intellectual Property and technology assets rather than concentrating on a single mining project that would see it end up as a microcap.
“The one constant in human evolution over time has been the development of new technologies in every area of life, however the resources industry, apart from upgrading existing technologies, has never taken this path,” Dr Biswas says.
“We identified some two years ago that long supply lines for mined commodity resources to developing markets will come under pressure if those countries began to focus on progressing their own resources and introduce new technologies using their own low cost structure.
“Hence Astra has focused on acquiring proven, disruptive technologies for the resources business which will change the cost structure of end-user demand, and in turn reduce the demand for resources in these countries.
“This strategy has allowed us to develop a world-class technology-led resources company with a cornerstone position in carbon efficient businesses, and a selective entry into property, agricultural commodities and renewable resources where it balances our long-term portfolio.”
However, while Astra’s forward thinking strategy has been applauded by shareholders and those with an eye on innovation, some within the industry have been critical.
“Because of our technology focus we are constantly approached by numerous third party facilitators with offers that they think may fit within our strategy,” Dr Biswas says.
“While many of these opportunities may seem exciting on the surface, we do not make a final commitment to any project or funding route unless we are 100% sure, and sometimes we withdraw if there has not been full disclosure or questionable representations including not meeting set key target milestones.
“Unfortunately in this harsh economic climate there are many third party facilitators, whose projects they represent may not met our stringent requirements, and who in turn find it useful to criticise our company on blog sites and through Internet media.
“This practice has happened frequently to Astra and many other high-growth companies, and criticism without giving the true and complete facts is easy to make, but to build a company for all of the shareholders’ interests in these difficult times is something all Astra shareholders lobby the directors to do, and the maintenance of the shareholders’ interests is our key focus.”
Astra’s strategy is underpinned by the company’s corporate structure, which focuses on the key business units of technology, mining, and business diversification, all backed by a diversified project and geographic base.
Dr Biswas says as more and more resources companies find it difficult to operate under their current model, Astra’s disruptive technology focus will become the new megatrend.
“Astra identifies inefficient industries, or ones with high cost structures with dominant players or monopolists, where we can introduce revolutionary technologies to disrupt the life cycle of the product,” Dr Biswas says.    
“By focusing on both ends of the supply chain through supplying raw materials and utilising our ground-breaking technologies, Astra is able to meet the evolving demands of end-users, while avoiding costly investment in the manufacturing step of a process.
“As the costs of traditional mining practices continue to rise, what we are doing will become the norm, and by locking in these technologies now we are in effect trailblazing a new paradigm in the resources sector.”
Astra Managing Director Silvana De Cianni says Astra’s nanosteel, T-Steel and Clean Coal Conversion technologies are solid examples of new-market disruptions as they are groundbreaking innovations with little to no known competitors.
“Nanosteel aims to be the new type of steel which will revolutionise the steel industry, is stronger, air-corrosion resistant and enables end-users to benefit from energy and cost savings as less raw materials are required to create the same amount of end-product,” Ms De Cianni says.
“As Astra continues to grow, it will continue to identify industries which are inefficient or have high cost structures and develop disruptive technologies to create new markets and gain market share from existing incumbents.
“Such opportunities typically arise in industries with products that are in the mature or declining stage of its life-cycle where the products have been established, manufacturers aim to maintain market share or markets are shrinking as the market becomes saturated.”
Astra will continue to focus on acquiring disruptive technologies to add to its diverse project base, particularly those that change the cost structure of value chains that have high costs and out-dated technologies.  
Astra Resources’ global portfolio includes gold interests in Southeast Asia, coal mine in Africa, iron ore in India, Norway and the Philippines, carbon efficient and commodity businesses, the production of the high-strength T-Steel technology in Hungary, clean coal technology and the provision of mining services housing in Rockhampton, Queensland and a large Agricultural focus on creating Australia as the food bowl for the Asian Region through Astra Agricultural Resources.

For more information about Astra Resources visit www.astraresources.co.uk

For all media enquiries contact:
Bruce Nelson +61 (0) 423 403 449 (bruce@zakazuhka.com)
Caitlin Petrou +61 (0) 402 823 343 (caitlin@astraresources.com.au)

Disclaimer in regards to Forward-looking Statements
Certain statements included herein, including those that express management’s expectations or estimates of our future performance constitute “forward-looking statements” within the meaning of applicable securities laws. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at this time, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Investors are cautioned not to put undue reliance on forward looking statements. Except as required by law, Astra Resources PLC does not intend, and undertakes no obligation, to update any forward-looking statements to reflect, in particular, new information or future events