The mining industry appears to be operating in South Africa, however.....
What does it deliver to the country?
Where are the profit points? and who benefits atm?
The fledgling industry may have become so sophyticated and morphed into something less than perfect,imo.
The BEE aspect might be one leakage point where valuable assets flow to creditors..
the workforce appears unhappy and not locals and the mine management are under the pump to produce at profits which seem to be more difficult as costs increase and perhaps output is pre sold??
Basically what I am asking after seeing all the different componants of mining....is has the commodity been sold...and is the managment of a mine expected to just break even but deliver employment and associated bee business oportunities?
Add to that idea the start up prospecting costs and legal etc costs and time lapse before production and its a tricky game....especially if you are the support crowd to get to a starting line with no income and just
outgoings. Add to that the difficulty to find financing and established business operators putting in objections and local sentiment not too friendly and I have got to say you are pushing it up a very big hill.
Now overseas speculators what do you offer, what do you bring to the table so that you should benifit and how much do you expect to benefit from doing some ground work?
If you are a weak link you will be replaced by a strong one,imo.
I see our only redeeming feature is being ASX listed and part of Australian investment directed at SA.
I watched the 6 hr You tube Interview of witness Susan Shabangu at the Marikana Inquiry and come away feeling the legal fraternity have a lot of sway as to what direction SA goes....and I would like to some Australian lawyers there amongst the crowd of lawyers. The English language seemed a barrier too.
Meanwhile mines are producing, people are working and new ventures are being created....
The stakeholders ...and there is a long list ...all need payment...but no-one oversees the portions,imo.
Perhaps a job for the government to get statistics...reveal the best scenarios...and aim for something along those lines....without a model, I think the weak stakeholders will suffer...and some holders will be asked too much of...and some middleman might be getting the lions share.
I would be interested to know what stakeholders like nkwe should expect under that ideal model.
NKP Price at posting:
6.1¢ Sentiment: None Disclosure: Held
