Orbminco (OB1.AX) has wrapped up a major geophysical survey at its Bronze Fox Copper-Gold Project in just 2 months. 

• 📝 The survey, which included induced polarisation and gravity survey identified new anomalies west of the existing resource and at Shuteen North, paving the way for a near-term drilling program and bolstering Orbminco’s mining lease application over the western deposit, potentially enabling full-scale exploitation of Bronze Fox.

👩🏻‍⚖️ Don’t Celebrate Too Soon

Despite strong technical momentum, the Bronze Fox Project is shadowed by a ₮2.7 billion tax dispute, originally raised against Kincora Copper (KCC.AX) but now effectively impacting Orbminco as the current operator. The dispute, stemming from a lower court ruling in favor of the Mongolian Tax Authority (MTA), has been appealed to the Supreme Court of Mongolia.

• 🤔 While both Kincora and Orbminco maintain the claim lacks merit, the unresolved case introduces regulatory uncertainty that could affect project timelines and investor confidence.

🚶🏻 Why Kincora Walked Away

The dispute was central to Kincora’s exit from Mongolia in August 2024, when it signed a joint venture with Woomera Mining, later renamed Orbminco. Under the deal, Orbminco can earn up to 80% equity in Bronze Fox by investing $4 million over 5 years, with an option to move to full ownership thereafter. For Kincora, the tax battle marked the end of a long pursuit of a Tier-1 copper-gold discovery in Mongolia.

Finally… Bronze Fox remains one of Mongolia’s most promising undeveloped copper-gold projects. The tax dispute, originating from Kincora Copper and now affecting Orbminco, underscores a broader challenge. While Mongolia has introduced measures like ring-fencing to improve tax predictability, retrospective assessments still pose risks to investors. The case highlights Mongolia’s delicate balancing act, attracting foreign capital to the Gobi region while enforcing robust taxation. For Orbminco, navigating these regulatory complexities will be key to unlocking the project’s full potential.