Running discussion on SP, page-45104

To be fair to old Adam Ant, I think he's right that things like slapping export bans on key minerals and tearing up contracts to renegotiate terms does bring about some jitters for outsiders considering the stability of a mining jurisdiction.

Yes the DRC have been rorted with some very uneven contracts, that have potentially been drawn up in suspicious circumstances under previous governments. And yes these bans have been in play off and on for a long time, and are well-meaning in their intent to boost the DRC's domestic industry. Fair one.

Nonetheless, this situation does definitely highlight potential sovereign risk concerns for operating in the region. AVZ is unlikely to be impacted, for sure, and seems to be in a good place with a forward-looking government - but let's call a spade a spade. FT won't be in charge forever, and you'd be a fool to consider that the practical example of sectoral contractual limitations in the host-country is in no way relevant to us.

Sure, this particular instance could ultimately be for the better for both AVZ and the local community, particularly if we can get involved in a nascent upstream processing industry. However I can't yet consider this kind of thing as 'good news', or something I shouldn't bother thinking about, despite what our Happy Buyers Club states.