FinancingCould come through the partner Zijin. CIBC said IVN would purchase the 0.8% share of Crystal River, and then proceed to finance K-K through half equity, half debt. Yet the Company never specifically promised that. Sometimes plans change. If Western investment bankers are less than enthusiastic, China provides an alternative.
Zijin would be less concerned about elections and democracy, and more with logistics. Is it doable from a practical perspective? It's interesting that drilling has not slowed in the least. The news release also referred to "specific assurances" from the government. Presumably those assurances were given to both IVN and Zijin. The government always has the option to provide a more generous stability pact than offered by the new mining law. They can't want international miners to pack up and go home, cutting back a reliable flow of revenue. We could be looking at a much smoother transition into production than investors realize. Maybe not, but I am impressed that there has been no reduction in progress. The drills keep turning, and will continue right through 2018. In 20/20 hindsight, bringing on a strong Chinese partner may have been one of the best decisions.
Even if elections do go ahead as planned, it's not necessarily going to lead to major changes. It's a step in the right direction. But it's just a single step. Congo was corrupt at every level before Kabila ever came along. There are hundreds of competing interests, and they're all armed to the teeth. Not to make excuses for the guy, but if and when he goes, the underlying rot of corruption will remain. Those waiting for peace and stability in the Western sense of the word, may be waiting a lifetime. Any modest step forward is to celebrated as a victory.
It's up to us to adapt to the Congo political environment.