The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Zoros 2 years in Latin America is pretty standard. You should have seen the nonsense we had to go through to get the permits for the port we built in Costa Rica. Was the biggest project in the countries history and a major driver for growth but still took forever.
Working with the locals as you say is key. We did that big time and it really paid off. We started with a turtle rescue center and basically re built a local school as part of it. Was a game changer as we went from being hated (they tried to sabotage the bridge to site) to being loved.
As to Laso let's see if he wants a second term first. I'm pretty sure Boris and Biden would kill for a popularity rate of 51%. Interestingly Laso did worse in terms of votes in 2021 than 2017. I think if he runs he will have a decent chance - especially of things go wrong in Colombia which I expect they will.
So apparently FDI in Ecuador dropped massively in the first 3 quarters of 2021 being about half of the figure for the same period in 2020. They put it down to construction of the Fruta del Nortemine by Lundin Gold being completed.
The Mining Chamber said....
This shows the importance of more mining projects moving towards the construction stage, as it will bring more investment benefits to the country." It should be noted that a mining project that is under construction also increases direct and indirect employment, stimulates (I think this is the wrong word but havent a clue what the word they used means) -even more- the productive chain, stimulates entrepreneurship and local purchase, tax collection, etc.",
I think there is definitely going to be a big focus on getting mines into Construction.
https://www.eluniverso.com/noticias/economia/inversion-extranjera-directa-cae-en-ecuador-al-tercer-trimestre-del-2021-segun-reporte-del-bce-nota/?modulo=related&seccion=Noticias&subseccion=Econom%C3%ADa&origen=/noticias/economia/que-puntos-importantes-tiene-el-decreto-151-que-habla-sobre-el-sector-minero-y-que-la-conaie-quiere-derogar-nota/
The thing I think people miss is everyone talks about electric cars and the need for copper. But no one really talks about the infrastructure boom thats starting in the US and more importantly the projects that are kicking off in Saudi. One of the Projects they are building (NEOM) is the size of Belgium. Then you have Diriyah Gate, Qiddiya, Red Sea Project, Jabal Omar, Amaala. They are going to be spending god only knows how much every year for the next 10 years on some of the biggest projects the world has seen. Where is all the steel and copper going to come from?
https://www.thenationalnews.com/lifestyle/travel/15-mega-projects-shaping-the-future-of-saudi-arabia-1.980698
It's better than that.... when it fails they can't try it again for the remainder of his term.
https://www.elcomercio.com/actualidad/politica/lasso-presento-descargos-asamblea-destitucion.html
"Correismo arrived at this session without securing the 92 votes required for the resolution . The ruling party, the Social Christian Party (PSC) and the Democratic Left (ID) spoke out against it. If it does no suceed, the Assembly will not be able to try to activate this mechanism again in the remainder of Lasso's mandate."
I could never be bothered translating that much- too much like hard work. I did find the Egyptian embassy bit slightly strange. I hope they try and get in the USA one next that will be sorted rather quickly lol.
https://www.elcomercio.com/actualidad/dialogo-gobierno-conaie-fundamento-paro.html
It seems the government have had enough and are going to make use of progressive force to end the protests. This is supported by the business community.
This is a roughly translated quote from the president.
“The National Police and the Armed Forces will act with the necessary means to defend, within the legal framework, through the progressive use of force, public order and democracy, the aspiration of hundreds of thousands of citizens who have demonstrated with their voices in streets and squares throughout the country, their defense in favor of peace and their right to prosper”
The minister of the interior seems to be advocating the use of shot guns as well but I may be translating that wrong. I think it means rubber bullets as talking about pellets.
This one is a bit concerning. The Warintza mining camp which is owned by Solaris was attacked by indigenous groups. The camp was however defended by the local indigenous community who said the miners had their permission to work in tbe area and basically were doing good for the community.
https://www.eluniverso.com/noticias/economia/paro-indigena-ecuador-campamento-minero-warintza-fue-incendiado-nota/
https://www.eluniverso.com/noticias/politica/para-nacional-en-una-carta-de-16-paginas-el-presidente-guillermo-lasso-respondio-a-cada-una-de-las-diez-demandas-de-la-conaie-nota/
The government have responded to the 10 demands made by the protestors . In relation to the demand to in effect ban mining and repeal decree 95 and 151 the government responded by saying.
The Ministry of the Environment, Water and Ecological Transition is carrying out processes to regularise hydrocarbon, mining and electrical projects, as well as their controls and monitoring.
In the hydrocarbon sector, 237 administrative processes have been initiated; In mining, 309 inspections of concessions have been carried out and in some cases activities have been suspended and no new ones have been granted.
A series of actions are also planned for the remediation of environmental liabilities in three cases: Chevron-Texaco, Sinangoe and associated with mining without the legal right. It then goes on to expand on those three.
Nothing mentioned at all in relation to repealing the 2 decrees and can't see it ever happening given the protesters only represent 7% of the population.
In relation to Lasso surviving according to this article some are trying to have him impeached. However for this to happen 92 assembly members would have to vote for it but only 47 are said to support the measure. So I would suggest he is pretty safe.
https://www.eluniverso.com/noticias/politica/activar-la-destitucion-del-presidente-de-la-republica-guillermo-lasso-desde-la-asamblea-nacional-no-tiene-los-votos-nota/
You are a strange fellow. I mean in 2008 when I opened this account I supposedly picked a name similar to some random chap on LinkedIn. So that in 2022 I could pretend I live in the UAE and worked in Costa Rica.... makes perfect sense to me.
I would suggest rather than going to the bottom of your garden you head to a doctor and ask them to assess whether you need treatment under the 1983 MHA.
I'm not really bothered who knows who I am. All I will be sharing on here are news articles that I find (in Spanish language sources) that I feel are relevant. I will post them regardless as to if they could be construed as positive or negative. As I say I have a few shares so obviously I hope the company does well. If it tanks it certainly won't be the end of the world for me.
Oh and if you would like to verify me feel free to put into Google "peter bowden parsons linkedin" I'll be the first result. You will see I currently work in UAE and previously worked in Puerto Limon Costa Rica. (In 3 weeks it will be updated again as my company is transferring me to Saudi). Of course I could have just created a LinkedIn page but getting 1600 connections would, I suggest, take some time. My user name here is Pbow I'm sure you can guess how that's linked to Peter Bowden.....
They have this wonderful thing called the Internet. If you go to Google and type Periodico Ecuador a number of Ecuadorian newspapers come up which you can then read. You can access the Internet in Wigan, Costa Rica, the UAE, Mexico and of course Ecuador. I'm not really sure why you think I would make up that I lived in Costa Rica - I mean if you ever visit Puerto Limon you will understand its not a place you would brag about living in. It's an awful, dangerous port city - though its admittedly nicer than Liverpool (not the one in England) which was about 15 mins down the road.
Hi Darren
I live in the UAE but I'm married to a Mexican and used to live in Costa Rica so can get by in Spanish. I have bought (for me) a lot of shares in Solg. A couple of weeks ago my wife and mother in law went on holiday to Ecuador so I started to read the papers to preempt any issues and saw things that might be relevant. So the other day I thought I may as well keep reading and share what I find. If I sell up I will of course stop reading the newspapers ha.