Re: Ecuador Wants Community Stakes in Mining Projects
in response to
by
posted on
Apr 27, 2008 05:47AM
The company whose shareholders were better than its management
I do not recall hearing about this one before.
Was that a flip or a flop?
The good.
When people have a personal stake in something they work harder to make it a success and are less likely to put up roadblocks.
The Unknown.
1. How much
How much of a stake do they get?
Will it be set by the state or will they negotiate for how much they want?
How big is the local community?
Will others on the fringe of the community want to be included?
2. Who Pays
Does it come out of our share or the governments?
3. The power structure
Will they be silent partners or active partners?
Will they want a say in how the business is run?
I think this just got more complicated.