Power or the courts? Look to Exxon

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Crystallex International Corporation is a Canadian-based gold company with a successful record of developing and operating gold mines in Venezuela and elsewhere in South America

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investor101a

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Power or the courts? Look to Exxon

posted on Nov 11, 2008 09:32AM

http://www.economist.com/world/ameri...

Not posting the article however I will talk to it.

When Exxon had it's assets forced into a joint venture they took on Chavez and have been able to freeze up to 12 Billion in Vz assets (belonging to their state oil company).

The settlement (years away :-( ) is estimated to be 6 Billion.

Where does that leave KRY? If we go the international arbitration root we too could have Vz assets frozen. The pressure this puts on Vz is tremendous! Politcal pressure could also cause issues (politics = trade = investment = $$$ = :-) )

So, talk of nationalization has costs...big costs. That's why we heard some back pedaling from Sanz... (We're giving Kry to the Soviets).

The best course of action for Vz is to form NEGOCIATED joint ventures. I really think this is in the works... with multiple players.