Tax Dispute Clouds Orbminco’s Mongolian Project Progress

Survey Success at Bronze Fox

Orbminco Limited (ASX – OB1) has recently completed a comprehensive geophysical survey at its Bronze Fox Project in Mongolia, employing induced polarisation and gravity techniques. The survey not only reaffirmed existing exploration targets but also uncovered several new anomalies west of the current resource and at Shuteen North, potentially expanding the project's scope.

Mining Lease Progress

The company is in the final stages of applying for a mining lease covering the western portion of the resource. Securing this lease would enable Orbminco to consider full-scale exploitation of the entire resource, a critical step toward advancing the project from exploration to production.

Tax Dispute Clouds Outlook

However, Orbminco faces a legal hurdle with a tax claim from the Mongolian Tax Authority involving one of its local entities holding tenements at Bronze Fox. A recent lower court decision favored the tax authority, prompting Orbminco and partner Kincora Copper Limited to appeal to the Supreme Court of Mongolia. The company maintains the claim lacks merit but acknowledges uncertainty around the timing of the appeal hearing.

Operational Pause and Strategic Focus

In light of the tax dispute and ongoing due diligence on the Majestic North project, Orbminco has paused on-ground exploration activities in Mongolia. This cautious approach reflects the company’s intent to clarify its legal position and focus resources on projects with clearer pathways forward.

Looking Ahead

Orbminco’s recent survey results and mining lease application signal positive momentum for its Mongolian operations, yet the tax dispute injects a layer of regulatory risk. How the Supreme Court rules and the timing of lease approvals will be pivotal in shaping the company’s near-term development trajectory.