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02/11/23

03:28

Post #: 70679077
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Originally posted by littleblackduck: ↑

There is one example of a company eventually paying up after pulling a stunt along similar lines in the DRC but it took years of negotiation and didn't involve a ASX listed vehicle or Chinese investors. This is at the time China started making inroads into the DRC.... This case can't be used as a example of wat will happen but there is a precedent set that something of a similar nature has happened and been resolved between the companies themselves before.

Unfortunately, I think too much water has passed under the bridge here to be in such a position. I'm still awaiting the SDL sage to resolve itself in the other Congo in Africa and Cameroon but not holding any hope there.... When investing in Africa there can be riches to be made easily but they can be taken away very quickly. Jurisdictional risk is something not to be underestimated and diversification is something I've leant to factor in my investing philosophies. As with SDL I also have holding in a small copper explorer (ARE) now U focused in Australia, undergoing a similar issue but this time in a more stable African county of Zambia .

ENRC ended up paying FQM a $1.25B settlement to resolve the long-running dispute over ownership of the Kolwezi project in the Democratic Republic of Congo.The company said it will pay $750 million plus a deferred consideration of $500 million as part of the settlement with First Quantum, the former owner of Kolwezi until its licence was revoked by the DR Congo in 2009.ENRC said on Thursday the deal would enable it to start developing copper-cobalt deposits at the Kolwezi Tailings project, while also raising its exposure to DR Congo through the acquisition of additional assets.The London-listed company will hope the deal closes a tumultuous chapter after its controversial acquisition of the disputed Kolwezi project led to repeated reports of internal disagreements and prompted several directors to quit.First Quantum launched legal claims against ENRC after it bought the expropriated asset in 2010. The dispute had been expected to go to trial after a court upheld First Quantum’s $2 billion damage claim for the asset in September.

ENRC settles Congo claim with $1.25 billion deal | Reuters

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That was a good result !

AVZ Price at posting: 78.0¢ Sentiment: None Disclosure: Held
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