understanding the future, page-56

Why Sri Lanka's Future will be Bright?

(Here is a collection of points put out by MRF competitors! The Future is bright for Vein Graphite, MRF, Sri Lanka and Aussie companies in my opinion)

1. “A Nation on the rise”

2. The 26 year conflict ended in May 2009.

3. The macroeconomic situation is much improved. Sri Lanka has become a middle income country, and its credit worthiness has improved.

4. Sri Lanka consistently grew at a rate >8% in both 2010 and 2011.

5. Sri Lanka posted the fastest growth in South Asia in 2011 and is expected to achieve this again in 2012 at around 6.5%.

6. “The Lonely Planet” has named Sri Lanka as number one destination in the world to visit in year 2013. [Source: Economic data - World Bank]

7. Democracy and Member of the Commonwealth


Asbury Carbons – The world’s largest independent processor and merchandiser of graphite

"Vein graphite is known under various names including crystalline vein, Plumbago, Sri Lankan graphite, and
Ceylon graphite. The name "Sri Lankan" and "Ceylon" are commonly used for vein graphite since the island nation of Sri Lanka (formerly Ceylon) is the only area to produce this material in commercial quantities.

Serious mining and exportation of Ceylon graphite began about 1824, however the unusual deposits of Ceylon have been known since the middle of the 1600s.

Due to the natural fluid-to-solid deposition process, vein graphite deposits are typically above 90% pure with some vein graphite reaching 99.5% graphitic carbon in the "as found" state. This level of purity is possible because the deposition of carbon occurs as a precipitation of solid carbon from a geologic fluid that is traversing emplaced rock. There is no intimate mixing or association of the gr
aphite with country rock as in conventional flake graphite deposits where the non-carbon and carbon phases may be deposited contemporaneously.

Typical veins measure from centimetres to nearly 2m in thickness with the highest purity material being located toward the centre of the vein away from contact with the wall rock. Vein graphite is mined using conventional shaft or surface methods typically used to mine vein-type deposits.

Vein graphite is available in sizes ranging from 8cm lumps to powder as fine as 5-micrometers. Products covering the range of purity from 94% graphitic carbon to 99% graphitic carbon are commonly available. In many applications vein graphite may offer superior performance since it has slightly higher thermal and electrical conductivity, which result from its high degree of crystalline perfecti
on. Vein graphite also has the highest degree of cohesive integrity of all natural graphite materials. High cohesive "energy" means that vein graphite is easy to mold and can be formed into solid shapes without the aid of a binder addition."


Vein Graphite Superiority:

Extremely high purity, low mining cost, large production from shallow pits, low labour costs, minimal further
processing, diverse applications for end users and a
high level of demand.

“A large number of shallow pits had historically been sunk into the weathered rock or top soil in order to produce graphite at low cost and in fairly large quantities. At times this caused extensive damage to the ore bodies and consequently in most instances the deeper reserves have not been mined. It is therefore assumed that large amounts of graphite mineralization remain to be exploited.”
[Source: page 5, Graphite in Sri Lanka - MMJW Herath and JH Meewakkala (GSMB 2008)]


I think the future is very bright for Sri Lanka because it is not India or Pakistan! Sri Lanka can form a hub between the west and east that is not caught up in anyone else's rivalries or agenda's. Sri Lanka loves the west and has a history that stretches back well beyond Australia. Just as India is plagued with corruption, Sri Lanka is going through its own struggles with corruption, skills shortages and infrastructure.

Because of Vein Graphite's importance to the world players and emerging next generation of Chips, solar, batteries, communications, wireless and so forth, Sri Lanka is getting the attention of the world. China cannot allow Sri Lanka to be positioned completely to the west and may step in with large offers and buy-ups, just like Africa, the Chinese have a successful strategy of building infrastructure in return for business development and mineral rights.

The Chinese government gives subsidies and support for Chinese companies that build overseas and increase Chinese hegemony through peaceful trade and development. Interesting times for MRF because I am sure it is being eyed for all soughts of acquisitions just on principle.

More news flow is expected over the next few months, I would not be surprised to see more re-evaluations by the pundits before that and more news about the success of the CR and other news not expected. Will MRF get the recognition by the market its big brother BBR gets? Will MRF ever escape the dog-house? Who knows...

Kind Regards