Why Algy Cluff Won't Put Money into S.Africa
[ NOTE: Algy Cluff is behind Cluff Gold (CLF in London AIM) which is exploring in several West Africa countries. FL ]
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Why Algy Cluff Won't Put More Money into S. Africa
By Tim Wood
31 May 2005 at 10:53 AM EDT
NEW YORK (ResourceInvestor.com) -- Algy Cluff once had a lot of money and pride invested in Cluff Mining, a London listed junior platinum play with assets in South Africa that is now called Ridge Mining. Today he has nothing at risk in South Africa, and considers it less investable than Côte d'Ivoire, Burkina Faso and Sierra Leone
Speaking to Resource Investor on the tail end of an American investor roadshow for the eponymous Cluff Gold [AIM:CLF], Cluff said he had an “unfortunate experience in South Africa,” which is why he has moved his final mineral investment venture to West Africa.
“I raised a lot of money [for Cluff Mining] having advised the South African government that I was raising that money – and for South Africa.
“A week after I closed the successful issue they introduced this raft of legislation. They changed the rules of the game overnight.
“I felt that it was outrageous that they had allowed me to go out and raise money knowing they were going to change the whole basis of investment there. So I was extremely unhappy about that and remain so too,” said Cluff.
He said he had enjoyed a much warmer reception in West Africa. “I question from my experience whether [SA] really does want foreign investment. There’s no question that West Africa needs and wants foreign investment,” Cluff said.
“I judged that South Africa was not a good destination for foreign investors at the present time,” Cluff said, elaborating that the strength of the rand also made it an unattractive destination for exporters. He is also not that enthused about the prospects for junior platinum players in SA.
Asked about the sovereign risk comparisons between the likes of civil war affected Côte d'Ivoire and Sierra Leone with South Africa, Cluff said it was just a matter of national growing pains.
“It’s usually quite ephemeral. It settles down quite quickly. Fiscal terrorism doesn’t,” he added, making his strongest comments about the impact of the SA Mining Charter.
Cluff says the new mining codes in West Africa also provide a competitive world class environment without any restrictions on exporting profits.
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