KGL kgl resources limited

There will always be potential for political risk/civil unrest,...

  1. 14,880 Posts.
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    There will always be potential for political risk/civil unrest, however, I make the following points in trying to explain why I am not concerned. There will always be small minority groups who are not happy. Happens in every country on the planet.

    1. Despite previous corruption and major civil unrest, the Kumtor mine (Canadian owned) never missed a day's production because of civil unrest. It currently produces at a rate of 700,000 ounces of gold per annum. They did lose some production when the workers went on strike over pay matters. Resolved quickly.

    2. There is now a democratic Govt for the first time. The will of the people for change is very strong. They are sick of living in poverty.

    3. The current democratically elected Govt is very pro economic development and Andash will be the second largest mining project in the country, providing jobs for local people.

    4. The Govt is a 20% shareholder. It's in their interests to see this mine in prooduction.

    5. A petition FOR the Andash mine was signed by 83% of the local Talas population who live close to Andash.

    6. Historically, the major flare ups occur between Uzbeks and Kyrgyz in the south of the country near Osh. I don't see this as an issue for the Andash mine in the far north of the country.
 
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