Agreed.
I have worked in Africa. The geology is great like Western Australia.
However I cannot see how a major Australian company could ever be a serious player there. In the modern world they cannot deal with corruption and it is impossible to function in Africa without being corrupt. I fundamentally don't think it would work for a major Western company listed on the ASX. Africa is corrupt at every level from the local low level employees right up to the highest levels of government.
The Chinese can deal with the corruption because they are prepared to make facilitation payments. Major Australian companies are not able to do that due to the listing requirements, audits etc.
The most recent major foray into Africa I can think of was mineral sands by Iluka in Sierra Leone with SRL. It was a disaster and Iluka is not the big player that FMG is. However Iluka investing in SRL was still a disaster.
I cannot see that FMG would be able to make it work no matter how good the deposit is.
Ann: Exclusivity Period to Study the Belinga Iron Ore Project, page-10
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Last
$21.62 |
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-0.420(1.91%) |
Mkt cap ! $66.56B | |||
| Open | High | Low | Value | Volume |
| $21.61 | $21.78 | $21.48 | $190.2M | 8.611M |
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