kori, here is the article.... Sounds very promising, I do not...

kori, here is the article.... Sounds very promising, I do not hold this stock - but I think I will jump in soon....

Cheers

Commy


China ponders copper smelter
Florence Chong
June 16, 2007

CHINA Nonferrous Metal Mining Corporation (CNMC) yesterday flagged the possibility of developing a copper smelting plant in Australia.
Luo Tao, the president of the state-owned company, said a plant could be built "in the near future" if there was an opportunity.

CNMC is now developing a copper smelter in Zambia where it has massive investment in mines. The development cost "in excess of $US230 million" ($274.6 million), Mr Luo said.

Mr Luo said Australia and Zambia were preferred investment destinations for his company.

"We like Australia, a country rich in mineral resources, and we can offer to open the door to the Chinese market."

He said Beijing planned to invest $US1.5 billion in non-ferrous projects overseas under the current five-year plan for 2006-11.

Mr Luo and his key executives are in Sydney to discuss development plans for CNMC's joint venture with Ord River Resources - particularly Copper Flats in the Kimberley region of Western Australia.

Mr Luo would not disclose the likely outcome of these discussions, saying that as CNMC and Ord River Resources were both listed companies, he had to be careful in what he said.

The Chinese company has an 18.5 per cent stake in Ord River Resources, whose key project is Copper Flats.

"We want the project to make substantial progress," he told The Australian through an interpreter yesterday.

He said CNMC had its own design and research institutes, and engineering teams specialising in non-ferrous metal projects.

"And we also have expertise in mining and smelting. We want to offer our expertise to Ord River."

The Chinese investor has undertaken to buy the entire output of Copper Flats mine when production starts.

"Maybe this (undertaking) will help get the pressure off our joint-venture partner, who will not have to worry about the sale of production and can concentrate on the mine development," said Mr Luo, who is also deputy chairman of Ord River Resources.

Drilling would begin in the next two to three weeks, with five rigs working on the site, Ord River Resources executive chairman John Towner said.

Ord River, a junior mining house, claims its find in the east Kimberley region could be one of the most significant in the history of Australian copper mining.

He said that over the past three years, CNMC had established a strong working relation with Ord River.

"The co-operation between us is good, and we want to extend it to countries outside Australia and China," he said.

Mr Luo said CNMC and Ord River planned to exploit the potential of a bauxite development in Laos.

"It will be a good project. The grade of bauxite is high quality," he said.

He also indicated his interest in Bougainville Copper in Papua New Guinea. Ord River is negotiating to buy into the project.

Mr Luo said CNMC's joint venture with Ord River would not preclude it from forming relationships with other Australian companies when opportunities arose.

CNMC turned over $US2 billion last year, but Mr Luo expected to lift revenues by $1 billion a year as new overseas mines went into production from next year.