Who is going to get a bargain!, page-479

Very important reason what gives RXM a huge avantage - Soverign risk, (from above)

Peru, the second-biggest copper producer behind Chile, has been rocked by a series of mining conflicts over the past two years, as communities empowered by leftist ex-President Pedro Castillo, press their demands. Castillo was impeached in December and replaced by Vice President Dina Boluarte.

A fresh wave of protests hit Peru's major operations in early 2022, including Glencore's Antapaccay Mine, Southern Copper's Cuajone and MMG's Las Bambas, the country's fourth-largest copper mine and the world's ninth biggest. The demonstrations threaten to block access to almost $4 billion worth of copper.

As of Jan. 19, Las Bambas hadn't shipped any copper concentrate since Jan. 3, due to security concerns. Glencore's Antapaccay is also facing restrictions, Bloomberg said, adding the two mines together account for nearly 2% of the world's copper output. They also share highway access to ports.

Earlier this month, the Switzerland-based firm said a group of citizens arrived at the site, demanded that the operation be stopped, and that Glencore issue a communique asking for the resignation of President Boluarte. The people then forced their way into mine facilities, stole workers' belongings and set fire to the housing area. A week earlier, activists broke into the water plant and started a fire. A source said the plant provides drinking water for over 6,000 people in nearby communities.

Antapaccay had only been operating with 38% of its workforce due to protests. Following last Friday's attack, Glencore decided to halt operations.

Bad deal for the DRC

While governments in Peru and Chile are pressured by protestors to either shut down mines, or provide citizens a greater share of resource revenues to address inequality, the DRC government in Africa is criticizing China for failing to meet its end of a resource-for-infrastructure bargain struck in 2008.

That year, then-President Joseph Kabila signed an agreement that mandated Chinese companies invest $3.2 billion in a copper-cobalt mine, and another $3 billion in infrastructure funded by the mine's revenue. (China Moly has an 80% stake in the Tenke Fungurume copper-cobalt mine)

But according to current President Felix Tshisekedi, while China receives most of its minerals, the Congo hasn't even released a third of the infrastructure funds, meant for roads and buildings.

"We're happy to be friends with the Chinese, but the contract was badly drawn up, very badly," Tshisekedi said, via Bloomberg. "Today, the Democratic Republic of Congo has derived no benefit from it. There's nothing tangible, no positive impact, I'd say, for our population."

Tshisekedi also shouted down rebels in Eastern Congo, for taking advantage of Congo's resources for their own gain. There, an offensive by the M23 rebel group allegedly backed by neighboring Rwanda, has displaced nearly half a million people.

More than 100 armed groups are active in the region and some of them profit from illegal trade in natural resources, which often transit through neighboring countries, Bloomberg said, quoting Tshisedeki:

"Rwanda has been at the base of instability in Democratic Republic of Congo for 20 years. It's thanks to this instability that it can create mafia networks of illicit exploitation of gold, coltan and other minerals."

Rwanda denies the accusation and blames the instability in Eastern Congo on the security and governance failures of the Congolese government