minegate Posted February 26, 2007 Report Share Posted February 26, 2007 Some governments are again going though this silly exercize of either direct expropriation of both mining and O&G operations or major changes to mining law or agreed royalty regimes. At least a dozen countries are now on this track. Three in Africa, three or four in South America, and possibly half a dozen in central Asia including Russia. Best bet for the companies involved is to put their operations into "maintain and hold" status but more important, upload all data via satellite to their head offices and destroy local computer data bases by destroying the hard drives, and repatriate expat staff. Then put "MIGA" on notice under terms of "political risk" and expropriation coverage. Mugabe doesn't care about MIGA and the rest of the Bretton Woods group, but other countries are and realize the potential impact of having the IMF cut them off if MIGA has to swallow a claim. Oddly, few of these countries actually have operating mines that they think could be a cash cow for a couple of years. Most dollars are tied up inside data from exploration programs and the development plans are inside the data and brains of those developing the project. But not all. Zimplats is at risk but for how long? Mugabe is not long for this world and the PMGs are not going to go away. And there is no way the Zimbab gov't could take over that operation. Crystallex in Venezuela is certainly at risk but really has not much to lose after insurance claims and really nothing for the government to seize at Las Cristinas if the data is gone. Just an few thoughts. Regards Jim Eckford CEO Minegate, Inc Link to comment Share on other sites More sharing options...
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