RE:RE:RE:RE:Chinese State Owned CompaniesEvh,
You're absolutely right that the high corporate tax rate of 35% (it may be 30% for miners) is not the only reason Western miners avoid Congo. The 25% value is what remains of the profit after a 35% tax is applied to Ivanhoe's 39.6% share of the project (and presumably the profits).
We'll have to agree to disagree, EVH. For me it's fairly obvious that Chinese state owned mining companies can afford to take greater risks than Western miners that are completely accountable to shareholders. If the government loses money, it's not that big a deal. If shareholders lose money, they'll fire management. Although you could argue Freeport needed to pay their debt, you couldn't say the same for Lundin. It should be noted that no Western miner made an offer for Freeport (56%) or Lundin's (24%) share of Tenke Fungurume, even at rock bottom fire sale pricing. Chinese state owned companies are in a different position from a Western junior like Ivanhoe. They like to earn money the same as anyone else, but enjoy a greater tolerance for high risk.
And recent inexpensive purchases by Chinese state owned mining companies in Africa does not necessarily herald a new boom in commodities, as pumpers here have suggested. The Chinese government has an entirely different set of priorities than IVN shareholders.