CLR for KGL

Local politic is extremely important but it is a factor that is difficult to calculate. When I spoke to the CEO a long time ago, he was confident the government was keen for the project to get going to show to the world that Kyrgyzstan was serious about investment after the people's revolution. All his words point to a speedier progress for the gold mine.

But the local landholders (ie the rich people) were worried their source of cheap labour would disappear into the mine. Politicians also need to be bribed. So with violence and threats, no effective police supervision, and claim of possible water contamination, etc, etc, the project was virtually killed. So I sold off KGL today and bought into hard coking coal. Thermal coal is everywhere and electricity can be generated by other energy sources but hard coking coal is not replaceable for making steel.

After reading an article yesterday in AFR about CLR with its potential for takeover, I bought it with the money from KGL. I am also tempted to top up CEO but I will wait with the leftover cash.