GBE 2.94% 3.5¢ globe metals & mining limited

Hi @ralli. Regrettable it is that delays are the only thing the...

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    Hi @ralli. Regrettable it is that delays are the only thing the current govt can guarantee - oh - and corruption. 4 years in office has seen very little progress and what progress that has been achieved has been from international aide regarding Malawi establishing a sustainable well managed mining industry and future electricity supply.

    Paladin placed on care and maintenance it Kaylakeera uranium mine (the only substantial international operating mine in Malawi). This was due to subdued uranium prices after the Fukashima disaster and the very expensive costs associated with diesel generated power supply. Next door in Tanzania they still operate their Langer Hienrich uranium mine as they have grid power.
    The project SVM are looking at has minimal electricity requirements such is the simplicity of the operation. Rail costs are expensive per ton given Malawi's landlocked distance to Nacala port.

    The grid lock with Malawian govt and GBE - the failure to sign off on the MA is for a host of reasons. They could secure off take agreements - spend hundreds of millions to establish a mine only to end up like Paladin in that the profit is minimal for the risk. Because the govt want a 5% royalty for what? For a company to establish a very expensive business with high risk in a country with little to no infrastructure.
    All the international aide assisting Malawi to establish the new mines and minerals bill suggests a duty (royalty) of 5% along with other taxes which would be ok in an advanced nation/economy with infrastructure. I believe pioneers like PDN, GBE, ETC, ETC should be entitled to special rates of taxes and duties - not to rape, pillage and plunder but for risk - for being pioneers in establishing a mining industry in a extremely difficult landscape that will in turn benefit investors and govt and the people of Malawi.
    Then in time - years down the track when infrastructure, skills ensure by all means increase the royalty.

    Nearly 3 years ago a headline in "the nation" stated a politician publicly stating the MA had been agreed.
    The response from GBE was swift and vehemently denied - a lot of the issue was around the 5% royalty and still today no MA signed and strife with locals, etc abates.

    Anyway see what happens but I believe one size does not fit all- why should pioneers of an industry have to pay extravagant royalties under extreme difficulties and obstacles.
 
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