Wednesday, December 10, 2008

As if there wasn't enough trouble in the East seems that the sole reliable source of legit mining activity in the D. R. Congo, the southernmost province of Katanga (briefly known as Shaba during the Zaire period) is well on its way to economic collapse. Again.

Helpful hint from this for economists everywhere: When the historical price of a mineral resource sits in the US$ 1 ~ 3 per lbs. (1 lbs. = 454grams), and has done so on an inflation-adjusted basis for the last oh say 100 years... it is pretty safe to presume that you can't count on a US$4+ price as the basis for your investment and development plans.

And believe it, Katanga is one place that could sure use more wise investment and development.

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