I think you are 100% correct with your statement re maximising what they get out of this boom.
I have done a fair amount of research into this (refer my previous posts regarding various types of risk) and I will not invest in a company mining in africa unless they are lining up local workforces. My recent punt on CDS has worked so far as they have announced a coal play in SA using a BEE group and SDL is along a similar path in Cameroon.
As I have previously stated there is an excellent article in the Sept issue of Resource Stocks magazine giving countries a risk ranking based on Soverign, Land Access, Green Tape, Land Claims, Red Tape, Social, Infrastructure, Civil Unrest, Natural Disasters and Labour Relations. Rankings are as follows: (Least Risk at 1 to greatest risk at 32) 1. Sweden 2. Namibia 3. Finland 4. Canada 5. Chile 6. US 7. Botswana 8. Australia 9. Ghana 10. China 11. Mauritania 12. Tanzania 13. Zambia 14. Brasil 15. Mongolia 16. Mexico 17. Argentina 18. South Africa 19. Thailand 20. India 21. Laos 22. Peru 23. Russia 24. Columbia 25. DRC 26. Phillipines 27. Venezuela 28. PNG 29. Indonesia 30. Angola 31. Nigeria 32. Pakistan
Whilst no mention of Cameroon is was surpising to see most of the more politically stable african nations ranking quite high due to the fact that soverign risk is not the main risk to take into account (e.g. Australia ranked worse than most of the bottom national on Green Tape (Environmental) and Land Access (Heritage).
If it makes you feel better I am holding CVN as my oil play which are in Thailand as well.
I guess the point I am trying to make is that you cannot blame a government for putting the needs of the nation before selling out to an overseas miner for a few bucks. Hence the need to do heaps of reesearch into the company and the country. I will continue to hold SDL as I do believe that when (not if) they announce a 1Bt resource - the stock price should go up and if it meets my target then I will sell. One of the key ingredients in investing in a company is to believe in that companys goal through plenty of research.
Maxi.
SDL Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
