Recent email from MC re land.11 Dec 2022 16:24
Firstly, MC is normally reluctant to allow email responses to be posted online but he has given me permission to post this response from yesterday. I asked around whether the last bit of land will impact negotiations now we are selling the asset. This was his response:
I was at La India yesterday hosting a site visit
The co-operative own a very, very small plot of land in the La India open pit. We have deliberately not purchased this land as the co-operative want to continue to work and earn money until the last moment. There is a detailed co-operative re-location plan which includes 3 different relocation options. Keep in mind this is not just about buying land. it is about “livelihood relocation”, which is an IFC phrase.
Over 50% of the members of the co-operative are no longer involved in artisanal mining, they have either retired or moved on to an easier or less dangerous occupation. We have also weekly contact with the co-operative. Many have worked for Condor over the years as field assistants, for example when we have been drilling with 5 drilling rigs on a 24/7 basis, each rig directly employs 12 local people. The non working members of the co-operative want a cheque ASAP as they get no income when not working.
Condor has run training courses for 120 people this year. jobs for the future mine. Many are artisanal miners or in the families work in artisanal miners.
70% of the local community work in artisanal mining in one way or the other. They support the mine and see it as a way of earning 3 to 5 times more than being an artisanal miner, with heathcare, insurance and meals. The drinking water project cost US$250k and distributes over 900 x 5 gallon water containers to over 450 households weekly. This is mainly to artisanal miners families. The community has voted for the new mine, hence the permits.
The relocation cost are included in the upfront capex number of US$105m.
End of email. It's good to know relocation cost is already incorporated into the capex numbers. The land has never bothered me unlike some posters (particularly over on advfn).
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