RE: RE: Eritrea to be 2011 growth leaderWow....one of the first rules of investing is to be sure that the government is "stable" pro business and democratic in the country you are investing into....
What Ronin has posted from the U.S. Department of State should open your eyes wide....no I mean Wide as it is clear, non judgemental and warns of investing in Eritrea at this time.
Well at least South Boulder will still have their nickel assets if their potash lands are ever "expropriated" without compensation....
You can have lots of shallow potash at good grades but what good is it if you cant get it out of the ground....and if you do the government takes it away from you or imposes impossible taxes or tariffs on you....
Anyone that believes it is as easy as digging and finding a good resource is dead wrong....Eritrean Potash is not likely going to be mined anytime soon in my opinion unless South Boulder can totally finance the cost of Capex for mine construction...as i do not believe any bank or financier will touch this area with a ten foot pole.
The benefit to Allana is that we now know that there is likely shallow potash on the eastern shore of the basin and our property.....hope Allana decides to take a poke with at least one hole into the eastern shoreline....could open up a whole knew field for us....not that we need it but would help the resource numbers....
And Champ you may be right that Eritrea to be 2011 growth leader....as its not so hard to grow when you are starting from nothing.......
Karma
Listen and Learn
"Eritrea as a
fragile country, the lowest economic rating offered.
Risks of investing in Eritrea are high and include: lack of transparency in the regulatory process, severe limits on the possession and exchange of foreign currency, lack of objective dispute settlement mechanisms, difficulty in obtaining licenses, large-scale use of conscripted labor, and
expropriation of private assets"
Expropriation and Compensation
The GSE has shown a pattern over many years of expropriating businesses without notice, explanation, compensation, or recourse. There are no legal provisions for such expropriations other than eminent domain for public purposes, but due process of law is not followed and the idea of public purpose has been liberally interpreted by the GSE