Process Beats Country Risk

Mining Investors Should Evaluate Written Statutory Processes Rather Than Broad Country Risk Assessments

Investors in Africa are often given a continent-level judgement, but this is often a poor tool for assessing a mining project. The question is whether the process for acquiring land, paying compensation and holding a licence is actually written down, according to USA News Group News Commentary. Companies mentioned include Lake Victoria Gold Limited (OTCQB: LVGLF) (TSXV: LVG) (FSE: E1K), Harmony Gold Mining Company Limited (NYSE: HMY), Gold Fields Limited (USG), Caledonia Mining Corporation Plc (NYSE) CMCL), and Galiano Gold Inc. (NYSE American: GAU). The disclosure stage of the Phase 3 land valuation and compensation programme at the Imwelo Gold Project in Tanzania has been completed. The final valuation report must be endorsed by the government valuation team within the Ministry of Lands, Housing and Human Settlements Development before any compensation can be paid. The article suggests that Tanzania handles land compensation through a prescribed statutory sequence rather than negotiation rather than through negotiation.