RE:An excellent read for IVN shareholdersI question whether Glencore actually paid too little for Katanga. DRC settled for $140 million, instead of $585 million. The journalist failed to note the date of the final settlement, March 2009, the very bottom of the Great Recession. No one had a clue if the global economy would ever recover. Cobalt had plunged from $50 lb to $15, copper $4 lb to $2. No mining company would have given them their asking price of $585 million at that time. In 20/20 hindsight, Glencore made a great deal. But it was at the the lowest ebb of the global economy. They bought into a 70 year low strictly by accident. You're allowed to sometimes get lucky in life.
Bribery is a way of life in many developing nations. For example, if you want police to investigate a crime in India, you often need to pay them. They don't see it as bribery. It's part of the cost of doing business, and supplements an inadequate salary. If you don't want to get involved in bribery, at least half the globe becomes inaccessible. However, the DRC does take this to an extreme level. It's present at every level of Congolese society.
To me, the biggest issue by far is the new mining law. In this respect, I feel IVN is in a strong negotiating position, since major construction has not yet started. The presence of Zijin at K-K is a plus. There are no other options for the government. They can't give the project to someone else. They must settle with the JV, or tax revenues will not be realized. IVN and Zijin can bide their time. They shouldn't rush into something which is unacceptable.