OTCPK:KATFF - Post by User
Post by
topdopon Mar 08, 2019 11:34am
168 Views
Post# 29461410
As just posted to my KvN KAT Blog on Seeking Alpha
As just posted to my KvN KAT Blog on Seeking Alpha
I've prattled on and on here asserting that regardless of what we all felt, the removal of pre-agreed Development Agreements ("DA") without compensation was illegal and would be the "last straw that broke the camel's back" in respect of the DRC moving the mining tax & royalty goalposts such that it inevitably attracts legal challenge.
As predicted, such unwarranted, illegal sanction by Kinshasa has in a number of cases, been met with legal challenge via the Paris courts of International Arbitration.
And many people said, no you can't sue a Government.
Well you can. And companies do all the time. Specifically to DRC, I have showed exactly how it can be done: First Quantum won a massive US$1.25 Billion settlement in a judgement in 2012:
https://www.theglobeandmail.com/globe-investor/first-quantum-exits-drc-with-125-billion-settlement/article4104290/
Let's remember DA's were put in place to encourage and help the various international Mining Companies reap stable tax and fiscal regimes such that they could more safely invest hundreds & hundreds of millions of $ dollars in the DRC and in turn, create local jobs by the tens of thousands as well as local taxpayers by the tens of thousands.
Well, it looks like it just happened again - "suing a country, and winning":
https://www.bloomberg.com/amp/news/articles/2019-03-07/congo-lost-617-million-dispute-before-approving-oil-concession#referrer=https%3A%2F%2Fwww.google.com&_tf=From%20%251%24s
What makes interesting reading here is that its the Gertler play book all over again. DRC grants permits to foreigners, foreigners make moves to add value to those permits, Kabila steals them away from the foreigners, then "sells" them (extremely cheaply) to off shore entities that ALWAYS seem to have a LINK TO DAN GERTLER.
But these clowns don't always win... sometimes Paris wins too. And you think GLENCORE is going to just fade away and do what they're told like some Aussie/Vancouver junior? I think not.
These are my views only. Thanks for reading.