RE:What is the risk of war in the Congo over the electionsKidlaw1 wrote: I've been getting Congo/Kabila news feeds and I see alot of articles on the opposition and various entities warning Kabila to not rig the elections so his appointed successor wins. Many of these entities (opposition leaders, church, UN) highlight the risk of chaos and another civil war if Kabila doesn't play fair.
And to be honest, I don't think he would. People with dictator like control do not give it up so easily since they designed the government system to work in their favour in almost every way and the best way for Kabila to maintain his control is to have someone he trusts takeover. I think for someone like him it is also a matter of protection, since he has made so many enemies, once he loses his throne, I am sure his enemies will try and make his life misreable.
No matter the outcome, whether Kabila's successor wins or someone from the opposition wins, who is to say some sort of chaos will not break out? KAT shares would certaintly take another drop if that happens.
I had minor concerns about all the past issues with KAT because it's just Gertler wanting was already promised and Gecamines and Congo waiting a bigger piece of the cash cow and as for the OSC investigation, well all companies have some sort of skeleton in the closest.
But this war concern I find less predictable, so to those who have better insight... what do you think? Why long KAT when the uncertainty of war is looming?
War in the DRC would certainly not be good. BUT....everybody in the DRC and especially the war lords know that the mines are critical for the DRC and even for them. That is why war in the south is very unlikely. Also do not forget that DRC is a HUGE country with in the middle a jungle. Katange mine if pretty far south, far away from the jungle. And the jungle is where all the warlords (at least the smaller ones) hide out.
So even if there are major upsets in the DRC (and there have been in the last years, there is a permanent civil war ongoing) the mining seems to continue.... One could even conclude that it is actually the mining that is financing the war(s) as it is basically the only income the country has. And that makes any investments into mining in the DRC a bit (if not a lot) questionable. We all say it is good for the country but is it really?
Anyway, the mines are pretty save as everybody in the DRC knows that their lifes depend on it (in one way or another). So they stay pretty much clear of the mines and their infrastructure...