TOU tlou energy limited

Jindal is the Indian company awarded the 300MW coal power plant,...

  1. GtP
    611 Posts.
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    Jindal is the Indian company awarded the 300MW coal power plant, subsequently increased to 600MW. If my previous post is correct, it isn't hard to understand why 300 was increased to 600MW and who profited therefrom. Minergy was an established operator in Botswana in which the Govt had equity as well as having lent significant convertible debt. About 2 years back, operations ceased because the mining subcontractor stopped haulage because they had not been paid - eventually a deal was done where they got paid, a new operator was appointed and things got going again slowly.

    The classic strategy those in power there have adopted is to delay approvals or cancel licenses without reason or notice on exploration firms or operators in-country. This causes them to suspend activities, seek clarification which end sup wasting inordinate amounts of time. All of this is designed to make the affected parties waste cash - and the Ministers and their cronies wait in the wings to see who can stand the pain inflicted for no real reasons. And those that cannot deal with various redress processes etc, invariably end up walking away as they know any fight will take 2-3 years with no certainty of success.

    By way of further example, who do you think was responsible for appointing the new operator to Minergy Mine in order to get back up and running. How lucky were they to have such a hands-on Minister prepared to 'help' them overcome their production related problems.

    The miracle is that Botswana maintains this illusion of low corruption index ranking. Maybe it is just less bad than everywhere else; in which case everywhere else must be truly shocking.
 
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