RE:Reward and risk Still in the spirit of collaboration, I would like to add that all sorts of things are being said about security and political issues.
Mali is a country so big that it is the equivalent of 2 countries in 1, with completely different cultures. Most of the regrettable events involving rebel groups are happening in the center and north, while in the south and further west, where the Roscan project is located, and industrial activities. In the south and west, security issues are more about managing the activities of thousands of illegal gold miners, a consequence of the level of extreme poverty. These are not armed conflicts.
Regarding politics, all decisions are made in the south, in Bamako. Considering the economic situation of the country, most decisions favor the industrial sectors and consequently, the populations in the center and in the north lack consideration. Therefore, inequities create frustrations that sometimes lead to sad events. Otherwise, foreign investors are appreciated for the economic, social and environmental benefits. There is therefore no real problem with the government authorities, whether elected or transitional.
Recently, some companies have worked very hard to enforce their rights with the tax authorities. Sanctions imposed by ECOWAS meant that efforts were made to recover every dollar. Since July 3, these sanctions have been lifted, which should ease relations with companies that make profits and pay taxes.
Given what I have just said, we must be careful before stating that security or political issues have negative impacts on the activities of companies. The reality is that these companies are for the most part, well received. And this is especially true for those who get involved in communities and do more than is required.
Regarding the pressure that the political authorities could exert to promote consolidation, I totally disagree. Mali, like many countries in Africa, is simply more vigilant towards companies that have permits and wait, without developing and without creating wealth. Owning an exploration right is a privilege that comes with responsibilities. There is a lot of excitement around extractive activities and Mali wants to take advantage of this opportunity to develop, which seems completely legitimate to me.
In my opinion, Roscan is a risky bet. It is too early to talk about an offer to purchase or a discovery that has an economic value. Roscan will have to finance the next developments of its license and the challenge will be to create enough wealth to compensate for the dilution of the shareholders. The stories that end well in the world of gold exploration companies are rare so be as vigilant as realistic.