At a loss as to why Ord trades so cheap I undertook considerable research on and off over the past few weeks. Here, I reached the conclusion the market as a whole has yet to be enlightened to Ords huge potential. Not so the German International Aluminium Mining Journal that states:
Laos: In March 2008, Chinas Nonferrous Metal Industrys Foreign Engineering & Construction Co. (NFC) and Australias Ord River Resources announced plans to build a 4m tpy alumina refinery in Laos as part of the Bolaven Plateau bauxite project. The refinery will be built in three stages:1.2m tpy in the first, before being increased to 2.4m tpy in the second, and finally to 4m tpy. The project in southern Laos is spearheaded by Laos-registered Sino-Australian Resources (Sarco), a 51:49 joint venture between NFC and Ord established in 2007. Sarco aims to start feasibility studies on constructing the refinery in the Bolaven Plateau once there are indications that 300m tonnes of bauxite are available in the area. It envisions starting construction of the refinery in 2010. Sarco has already started a feasibility study on transportation options for bauxite exports from the Bolaven Plateau to China. If this export is feasible, then Sarco will sell bauxite while the refinery feasibility studies, design and construction are underway. Sarco has done exploration work in excess of USD4m to define bauxite reserves on and around the Bolaven Plateau in Champasak province. It believes mineable reserves could exceed 1bn tonnes of bauxite. In April Sarco planned to apply for an alumina refinery license in Laos. The Bolaven Plateau could be one of the worlds largest bauxite deposits of 2 to 2.5 billion tonnes, enabling long-term production of 5 to 7 million tpy of alumina. Sarco currently has rights to 70% of bauxite mined from one 66 km2 block in the Bolaven Plateau in southern Laos. The company also expects to enter into a joint venture agreement for the Yuqida tenement in the Bolaven Plateau, which is said to have reserves of 440 to 570, million tonnes of bauxite. The company has applied for rights at a third 867 km2 tenement in the Bolaven Plateau.
The complete journal can be accessed on http://www.giesel.de/leseproben/Aluminium_Zeitung_05_09.pdf
In a similar vein, last June the Laos Vientiane Times reports the potential one of the worlds largest undeveloped bauxite resources and that the Bolaven bauxite study has reached a milestone and was yielding promising results. It highlights the feasibility study team consists of 41 technicians including a large team of geologists with drilling expertise. There is also a large team of local support staff. Among the equipment and materials on site are 10 drilling rigs, which can drill to a depth of more than 30 metres, which is adequate as the bauxite is close to the surface. Senior mining officials said the investors are conducting a feasibility study to ascertain information on the exact size of the bauxite deposit, before deciding whether to construct a facility to process the bauxite into aluminium. Lao mining officials said one of the major challenges the investors and government would have to address before proceeding with an aluminium processing plant is to ensure a sufficient supply of electricity, as the process consumes very large amounts of energy. The Lao government is promoting investment in hydropower plants to ensure a sufficient supply of power for the mining industry. No doubt the Bolaven Plateau is a very large project with high potential and one has to ask does Ord now present as once in a lifetime opportunity? I believe this is likely to be the case and shareholder patience is the byword. In the meantime the icing on the cake is, of course, the Copper Flats and Supplejack Projects.
VAN Price at posting:
2.9¢ Sentiment: Buy Disclosure: Held
