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Gold/Mining/Energy : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: Claude Cormier who wrote (15166)	7/31/2003 10:23:53 AM
From: TheBusDriver	Respond to of 39344

<<The cost of labor and material in China & Mongolia is much less than in the US, Australia or anywhere else>> He actually said 1/2 the cost CC. Also sounded to me like most of the capital equipment would come from China....BWDIK? Wayne

To: Claude Cormier who wrote (15166)	8/1/2003 1:05:23 AM
From: Elizabeth Andrews	Respond to of 39344

NGX has about 300 employees running a 50,000 tpd mine. In China they will have 3,000 people all doing not much. In Mongolia who knows what the government will insist on. Will it be decreed as one person per shovel? Anyhow, this isn't about China vs. other copper producers. This is about Robert seducing the food chain and the dream of employment for Mongols. There's no comparison between what happened at Voisey's Bay and what is going to happen in Mongolia as these are totally different markets and environments, especially for copper. Voisey's Bay has the potential to lower the owner's cost of production that might enable it to control the nickel market, which is why Inco had to own it as that market is an oligopoly. Copper isn't. So for you dreamers who are expecting a take out by a major, get your pillows out. Anyhow I'm not anti-China. I'm sure that the Chinese will buy the lowest cost copper they can find. If Mongolia can do it, fine. But the economics of that deposit, once the higher-grade core is mined, are no different than NGX but with much lower gold content. At 50,000 tpd the high-grade is gone in 2 ½ years. Then what?