Asian Metal: Hi Jaeyeong Ahn, Thank you for taking some to take part in this interview. Could you please give us a background on your company and its current state of production?

Ahn: Shindong Resources Co., Ltd is SPC in Korea for ‘Sautbay Tungsten Development Project’ in Uzbekistan.It was established on May.2013 by Shindong Corporation which is opeating Limestone mine in Korea.Shindong Resources has invested jointly with Uzbekistan Government Organization (Goscomgeology) thorugh J/V company Uz-Kor Tungsten LLC and 51% share holder of J/V company and operator.

Asian Metal: What about tungsten concentrate market in South Korea? How about the total output and demand for tungsten concentrate?

Ahn:In korea, threre is small tungsten concentrate importer and process to produce ferro tungsten.As we know there are some end users which are interested in construction of smelting plant in korea but we consider that our major target of marketing is Uzbekistan and China concentrate market.

Asian Metal: How is your tungsten business going on in H1,2016? Which products do you focus on at the moment? How about the demand for every product in different areas?

Ahn:We are not at the stage of production but at the stage of completion of exploration.We will commence production of 3,000 ton/year tungsten concentrate and/or APT from the end of 2018.

Asian Metal: What is the advantage and disadvantage of your company to sell tungsten materials into China?

Ahn: According to results of ‘technical and economic study’ for our project with international consulting company, production cost of tungsten concentrate would be lower than average cost of private tungsten mining companies in China include transportation cost.So we think our product could have strong competitiveness in China Market but as specification of our product is not fixed and little bit lower tungsten grade (lower than 65% WO3), it would be disadvantage of our company include long distance transportation.

Asian Metal: Do you think demand will pick up soon in Q4? Which downstream industry will be brighter?

Ahn:We don’t think demand on H2 2016 pick up soon. But we understand market status would not be down anymore and its almost bottom. Demand of Tungsten largely depends on economic situation of china and global, it would be not sharply but slowly rise from H2 2016 or H1 2017.

Asian Metal: What is your plan in the near term? For example, would you like to expand your business with China or other special area?

Ahn: We are looking for strategic investor to secure investment for development. It is our understanding that there are some potential strategic investors which will take off product of tungsten concentrate as their raw material in China.We hope we could find and contact them successfully.

Asian Metal: How about your idea about the global tungsten market? Do you think it will be influenced greatly by Chinese tungsten prices?

Ahn: Yes. At this moment, as strategic mineral, Tungsten products are controlled my China government for import and export. And inter-continental or long distance trading looks not easy and not so affected by Chinese tungsten price, as the highest reserve holder and the highest producer of tungsten, China price can directly or indirectly affect to global tungsten market.

Asian Metal: What do you think about the supply of global tungsten market? Will the output of tungsten materials out of China increase further in the future?

Ahn: Yes. But not in short period. As I understand, demand on Tungsten is largely depend on the economic situation in global, demand on market would be slightly and slowly increased from the 2017, accordingly, output of tungsten material from china would be increased.

Asian Metal: Thanks again for your time. Wish your company a bright future.

Ahn: Thanks.