Club Mulgoa

Friday, March 09, 2012

Sovereign risk... Indonesia

Freeport Moran is not an exemplary miner. Wages are low, profit is not ploughed back into the region and ecological management could be a lot better. Recent strikes have highlighted how dirty the situation is. Corruption in Indonesia is rife.

Now Indonesia has issued new mining rules and it states that it isn't aimed at Freeport Moran... but all miners. It makes me consider divesting out of this country but I expect there will be others planning an exodus as well.

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