RE:RE:RE:Gecomines to issue new controls to partnersBlah blah blah
bloomfield18 wrote: NewDay,
Why do you suppose IVN will be granted special dispensation from the revised controls?
And even supposing this were true, what could stop the government from implementing changes at some point down the road, for example after investors have sunk a billion dollars into building a mine?
You could argue IVN would go on strike and refuse to produce copper concentrate, until which time a more equitable arrangement is found. But then the government could turn around and pass a law stating any non-productive mines may be seized by force and sold to operators prepared to abide by the new rules.You say that's a violation of their binding legal agreement with IVN? Well, this is their country. You don't make the rules. They do. SEAL Team 6 isn't going to invade the Congo just to save your neck if there is a travesty of justice.
I'm not saying this has to happen. I am saying this is a country where human life counts for little. it will take all of Friedland's considerable finesse, developed over many decades, to keep from getting steamrollered. He did a pretty good job in Mongolia, despite some huge setbacks. At one point the Mongolian government seized 34% of Oyu Tolgoi by simply passing a law. They didn't bother to get permission from the company. They stole it, all with the appropriate legislative veneer to make it appear legal. You should have listened to the distress on this board when that happened. Despite all that, eventually IVN recovered from the setback. Sky high prices for gold and copper greased the wheels of progress. Investors don't enjoy that advantage today.
Don't minimize the potential danger here. It may turn out to be nothing, or it could be a deal breaker.