The Ghost of Snapped Shot

Or, welcome to my low-maintenance heck.

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This is why Africa is Poor

Those that have no security in property rights will never be able to accumulate wealth, since wealth is, by definition, the aggregate collection of "property."

Case in point: Metrorex S A, who is in the process of discovering that the Democratic Republic of the Congo, a sub-Saharan African nation, does not think it deserves to keep the mines that the company paid billions of dollars to build:

JOHANNESBURG (Business Day) -- Although Metorex did not have a piece of paper [Ed.:—This is the biggest mistake that Western companies make, incidentally. No paperwork? No work.] confirming there was no problem with its mining titles, it hoped the fact that it had built mines in Congo would prevent it from losing what had been granted, he said.

Needham’s comments to investors at a Mining Indaba breakfast followed several months of uncertainty about the Congo government’s review of mining licences. According to a document leaked late last year, 61 licences granted before mid-2006 were under review.

The DRC has large copper resources which are being mined by such companies as Metorex, First Quantum and Nikanor. AngloGold Ashanti is also exploring for gold in the northern part of the country and diamond companies including Pangea DiamondFields are exploring for diamonds in the south.

  Daily Fodder


Comments:

#1 captainfish 08-Sep-2008
yep, sounds like a typical Democratlaborsocialist party to me. Allow companies to pay millions to create the market, and then they come in and take it over in order to suck it dry. Of course, that typically ends in economic disaster.
#2 Mongol 08-Sep-2008
How do you say war against "kulaks" in Kongo?
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