Ivanhoe updatePublished by MAC on 2006-04-12
12th April 2006
Do sanctions work?
That's the import of news from the notorious Robert Friedland mining company, Ivanhoe, that its operations in Burma (called "Myanmar" by its military rulers) have stalled, and that the (unnamed) provider of political risk insurance to the Monywa mine had "terminated" its relationships with the company because of US sanctions - as has the bank that earlier backed the project.
However, Ivanhoe now claims to have found a new banking backer, while Daewoo is said to be interested in forming a new joint venture with the Friedland enterprise. Meanwhile, Friedland - as CEO - exercised 1.5 million share options for a gain of $10.9-million during 2005.
Ivanhoe is also a "keen observer" of the Mongolian government's debates over how much the country is to benefit from its mining industry, potentially including partial nationalisation compulsory acquisition of around 30% of all foreign owned mines and an increase in royalty rates.