The successful mining companies in Africa get the local population involved and sign revenue sharing deals with the government before any development has taken place. Jim Sinclair is using this model and it seems to work elsewhere in Africa as well. Companies that do not adapt to this model will be targets. If as an investor you are not comfortable with this reality then you should not invest in Africa.

As more and more governments become desperate for funds look for this to spread. A bull market draws unwanted attention too.