Tuesday, January 09, 2007

Fiji Military closes Australian Company Mine.

A story released today accnouce that the Fijian goldmine of Emperor Mines Ltd (ASX:EMP) has been appropriated by the Fijian military. The army has taken control of parts of the mine which has resulted in the withdrawal of all seven of Emperor's workers to Australia. The military government had promised an investigation into the announcement of the mine's closure and a spokesperson said that entering the mine complex was done in order to access documents and data pertaining to the investigation.

Emperor's CEO, Brad Gordon, flew to Suva to begin talks with military commanders

This is one of the risks in investing in companies that work in unstable countries. While most people did not think that the coup would have any impact on Austrlaian business working in Fiji, it appears that it has and it could be the start of a worrying trend. At this stage I would be wary of investing in any stock which holds interests in Fijian assets.

Good Luck Investing.

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