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Ivanhoe Mines Ltd. Message Board

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  • ccerenz2 ccerenz2 Jun 19, 2009 3:54 PM Flag

    Why would any company continue to explore in Mongolia?

    If Ivanhoe hadn't initially trusted the government, they wouldn't have found themselves in this position. This discovery would have never happened. The other companies wouldn't have followed. Now that everyone understands the real investment equation, there's no reason to risk anything more in this country. The upside is limited through taxation policy on top of a proposed 50% base tax, while the companies have all of the risk on the downside. It's an equation for disaster.

    You can rant all you want about neocons and the like...that's not what this is about. It's about trust, ethics and professionalism. And when any entity is found to not possess these three principles, the intelligent and honest will avoid it.

    Now that Mongolia has shown itself to the world, they are going to have difficulty attracting investment. Rightfully so. With the exception of China and Russia, who won't put up with what is happening to Ivanhoe, no CEO worth his salary is going to take on such a high risk, low reward payoff.

    The best thing this Mongolian Prez could do is look at China who charges anywhere from 10% to 25% on corporate taxes, and perhaps the US at 35% and come up with a reasonable tax rate. If they want to start a small account based upon a surcharge to pay for the future rehabilitation of the area, so be it. But let's not confuse the works of mines 50 years ago with the modern era mining corporation. The outlook would change overnight and they would be on the road to economic prosperity. It's that simple for those that get it

    There's no need to address any of your other emotional baggage.