@RedStripes
"1) Yes, MNS in earlier announcements advised that they were complying with Equator Principles. However, in the announcement 25/11/2016 ‘Land Valuation Complete’ there is no mention of Equator principles. Surely any company which has gone to the length and expense of complying with Equator Principles, and subsequent qualification for Western debt finance, would emphasise that in an announcement to the ASX?"
As already mentioned by Riskon22 does the company really need to call out what principles/standards/guidelines are followed every single time they announce something? Earlier announcements including the BFS have called it out. I guess if you need further clarification contact the company and report back with what they say?
"2) Reports that MNS are paying cash compensation to relocated people are at odds with the Equator Principles. Livelihoods have to be maintained by replacing income generating land with other suitable land and for income streams to be re-established. Just rehousing and paying compensation is not allowed."
How do you know that the land that Magnis has purchased for resettlement purposes is not suitable for generating income? For all we know the land might be more fertile and with an improved water source? The Eco village that the company is building certainly looks lovely and (I'm making an assumption here) that the living conditions will be an upgrade which could improve their lives. Maybe they didn't have electricity before but with the Eco village they now have power from Solar etc.
"3) In a 1/12/2016 post on the KNL forum you boasted that MNS had initially used a consultant (Digby Wells) for the RAP but as the compensation cost was huge the company then did it in house, with the aid of a director’s Tanzanian company’s employees, for a fraction of the cost. Maybe you’d been party to some unreleased information? This stuck in my mind as the implications are huge for the prospects of MNS finance. 5 days later you pulled the post. If my wording isn’t correct please feel free to post a screen shot of your original post. Maybe some others remember this post?"
All of that information on the RAP challenges and solutions was from a Magnis director at the UAL AGM. It was essentially about how the original consultants struggled to manage the process (especially around valuing land and counting assets) They were providing ridiculous estimates to Magnis which didn't seem correct as per our Tanzanian staff. Magnis engaged others (who knew what they were doing) to carry out the work. Appears this was a smart move as the company is now moving ahead getting ready to start mine construction after the wet season ends.
Whilst the discussion was with everyone in the room (20+ people) and I think okay to put on a stock forum I later changed my mind in that it might be helping a direct competitor (KNL) For that reason I won't re-post it and let KNL management figure it out for themselves.
Hope the costs don't work out too high for KNL and require another CR if you stay with DW.
Hope that answers your questions?
(20min delay)