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Asia Iron Australia Pty Ltd (AIA) and its subsidiary companies have announced the redundancy of Head of Projects, Ben Zikmundovsky’s employment with immediate effect.
Mr Zikmundovsky has also been replaced on the Boards of AIA and its subsidiaries by Shareholder Nominee, Mr Chuanmao Li. Mr Li is already employed by the Group as part of the Perth based management team in the role of Corporate Relations Manager.
The Shareholders have confirmed to AIA that they remain committed to the Extension Hill Magnetite Project as part of a long term investment program.
However; there is currently an elevated level of caution in financing Chinese overseas investments, particularly with regards to iron ore projects, which the shareholders continue to work through with its bankers, China Development Bank.
With the current economic outlook, low iron ore prices and the estimated timeline for securing project financing being extended, the AIA Board have placed the Extension Hill Magnetite Project in a “Holding” pattern until financing approvals can be achieved.
AIA will continue to focus on port, power and land access options and strengthen internal corporate processes until such time as financing approvals have been obtained.
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