And just when we thought the whole situation was messed up enough, surely it could not get more? Wrong! What does this global climate change agreement signed today now mean for France, Macron and the Montagne d’Or issue?
In fact, what does it mean for Reunion, Barrick, and Newmont re., future gold exploration in France’s FG? Fortunately for France they have not renewed most (maybe still all) the exploration concessions. They could deny those now and remember these other companies do not fall under the 1989 France Russia Investment Treaty. Also, they do not have anywhere near the time and financial commitment that NG/OREA have in Montagne d’Or. Nor do any of them have a BFS 2021 and mine design just waiting to be considered by a French gov’ that has basically supported the project for 10 years.
You thought Macron was already somewhat screwed re., the environmental NGOs and his April 2022 reelection bid; consider his situation now. Now a highly public goal of deforestation stopped by 2030! Confronted by NG with a mine that will clearly deforest, despite its mine redesign 33% reduction footprint.
Now it seems that NGOs will not even worry about ESG compliance issues. Their focus will be on Macron and France having just signed an agreement to stop deforestation while being confronted by a huge Rainforest gold mine permit in FG.
However, again, remember it appears that the 1989 Investment Treaty does not allow for an environmental defense? So, what will France do?
Will they contest the legal process and draw the Montagne d’Or issue out for several years? At the same time, they basically let the other FG exploration concessions dissolve? France knows that the other explorers are unlikely to contest in court; they don’t have a data backed ‘attack’ or timeline, and the small sunken losses for Barrick and Newmont are just part of their doing business.
Or, will France pay up (full or reduced damages) rather than face a publicized legal battle pre-election? NG + OREA = approx.., 800 mill US damages or a negotiated reduced amount to close the curtain on gold mining in French Guiana? For this France needs OREA in the process.
Weigh French politics and the appearance of leading world Rainforest climate change adherence side by side with the NGOs (vs the concern for the FG economy)? The French have been critical of Brazil’s recent Rainforest actions so is this a chance to show them exactly how the French will do it in FG?
As I have suggested OREA may have some interesting news by the turn of the year.
COP26: World leaders promise to end deforestation by 2030 https://ukcop26.org/glasgow-leaders-declaration-on-forests-and-land-use/ …Governments of 28 countries also committed to remove deforestation from the global trade of food and other agricultural products such as palm oil, soya and cocoa.
These industries drive forest loss by cutting down trees to make space for animals to graze or crops to grow.
More than 30 of the world's biggest financial companies - including Aviva, Schroders and Axa - have also promised to end investment in activities linked to deforestation…
GLTA -
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