mali coup, page-4

Sovereign risk is part and parcel of any share.

This can also be seen in Australia with the change in taxing miners with the Resource Rent Tax.

In developing countries we see Government changes with differing mining strategies, coups, uprisings, local malitias, dispossessed locals and many more issues. Tax rates can change.

Consider a small village happily living a subsidance lifestyle and a mining company starts activities on their grazing land. The mining company have permission from the government but must also act at a local level. We often see in company presentations pictures of schools and infrastructure set up by mining companies.

You must assess the risk and balance that against the reward of your chosen company.