Canadian mining firms in Eritrea victims of ‘Third
World policy’?
2004-09-23 - The Vancouver Sun reports in a Canadian Press dispatch Thursday
that gold-mining companies whose shares plunged early this month over troubles
at their Eritrean properties say they still have no indication when they can
restart exploration projects in the East African country. CP's Nancy Carr
writes that the government of Eritrea has so far refused to explain why it
ordered Quebec-based Northern Mining and three Vancouver-based miners (Nevsun
Resources and juniors Sanu Resources and Sunridge Gold) to halt their
operations in early September. And despite personal visits by the miners'
executives to the capital, Asmara, the companies have been unable to tell
shareholders what is going on. "I don't think it's [the miners']
fault," said John Ing, president of investment firm Maison Placements
Canada Inc. "It's the problems of dealing in Africa ... and it's
unfortunate for investors, but it's the risk of working in these Third World
countries -- you get Third World policies." Those policies usually revolve
around money and can include everything from bribery to increased taxes after a
contract has been signed. "Investors will, unfortunately, vote with their
feet," Mr. Ing said. Stockwatch.com