RIV 0.00% $16.20 riversdale mining limited

chinese wild card

  1. DSD
    15,757 Posts.
    It's well recognised by RIV management that India and Brazil are most likely to be the company's main coking coal mkts. I also expect india to import thermal coal as their own coal is so poor it can barely boil water and is very polluting.
    But will China influence events? China has played a big role in Mozambique during and since the civil war in 1975. Today many thousands of Chinese live and work in Mozambique and recently 10,000 chinese families were 'given' farms by the Mozambique government. More importantly Chinese govt officials are closely connected to the highest levels within mozambique govt which obstensively still describes itself as 'marxist'. Is China's influence likely to grow? possibly it will as china provides at reduced cost ALL the weaponary for mozambique govt.... which in turn is exclusively used against the Mozambique people who remain desparately poor.
    China has already pegged claims to many deposits of various minerals incl. coal in mozambique. In itself this does not preclude RIV from developing a successful mine along the Zambezi. Afterall BHP have worked sucessfully in Moz for many years. I can't foresee RIV exporting coal to China. Will China persuade Moz govt. to unilaterally 'grant'the RIV tenements to a chinese operator? Certainly happened during Somora Machel years (1975-late 1980s) but unlikely to re-occur imo. Nevertheless, don't underestimate the massive influence and leverage China exerts on Mozambique... always to the benefit of China and the ruling elite in Moz.
    Meanwhile, it's full-steam-ahead for RIV and the SP continues to climb.
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