Certainly a kick in the guts to all foreign miners doing business in Tanzania. This is where Pett and Co have to earn their money and position KNL outside the tent of those miners considered predators - not partners - in that nation state. With their long-standing relationships in Tanzania, KNL must have the best chance of ensuring that its mining program goes ahead. There will be some inevitable delays and political posturing, but only a gumby would kill off his mining sector - 16% of nothing is nothing!
Do not forget that China is lurking behind the scenes in Tanzania, building bridges and pouring cash into local pockets. Governance and ethical business principles do not concern them. That is my concern here. They would love inside-rail access to the rich graphite resources of the MNS, KNL etc deposits .
I give AS the chance to tell us what KNL's plan and timeline is to address this speed-bump, or mine-shaft in the worst-case scenario. In my view, it is not yet a deal killer, but an example of the dumb, short-term politics we sometimes see in Africa. I had picked Tanzania because of its relative political stability. If this brazen shakedown occurs, I will never invest in Africa again.
Good luck to all holders.
KNL Price at posting:
14.5¢ Sentiment: Buy Disclosure: Held
