Local ownership, oh yes

The question is, why would you want to own this?

The Goro mine owned by Vale is the world’s fourth-largest nickel ore producer and a key economic driver for New Caledonia, employing 3000 people. But it has had a difficult history, benighted by protests, arson attacks and environmental damage. It has also struggled to make money for Vale, despite millions in investment.

We get why you want the mine to exist Jobs, royalties to government and so on. But own it?

A bid for the mine by local company Sofinor, from the northern province of New Caledonia, in partnership with Korea Zinc Co, garnered support from pro-independence parties and Kanak customary leaders who argue majority ownership of the mine should rest with New Caledonians.

Why do you want to own it if it doesn’t make a profit for the people who own it?

7 thoughts on “Local ownership, oh yes”

  1. Because the self appointed representatives of the people will need to kept happy with bribes or sinecures. No money for the plebs, but the well connected can get loads.

  2. But it has had a difficult history, benighted by protests, arson attacks and environmental damage.

    Maybe if the ownership moves to those who’ve been involved with or have been backing the protests etc., they will cease, and with them the costs / production losses..?

    Might be profitable when it’s not under siege?

  3. The way that this happens in an empowerment regime is that you don’t get to pay for ownership. You demand and 51% is given to you as your charge for the privilege of allowing them to do business. Sofinor’s connexion to the French company of that name is only in name and it is in effect an acquisition vehicle for empowerment funds.

  4. So Much For Subtlety

    enighted by protests, arson attacks and environmental damage.

    Be worth a hell of a lot more once all that stops.

    garnered support from pro-independence parties and Kanak customary leaders

    And yep, they are the people who can make it happen

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