It is my understanding that China loaned Venezuela billions for, among other things, development of the mining sector. For the sake of argument, let's assume that Venezuela wants KRY out and that negotiations are focusing on agreeing on a buyout figure that would make KRY go away. China is already footing the bill to build the mine according to the terms of the binding agreement. Let's say that China agrees to a 50-50 JV with Venezuela while still paying for construction of the mine. Let's also assume that, at this point, Fung wants a higher buyout figure than China wants to pay. If I was China...I might want Venezuela to step up to the plate and throw in a few of the bucks I lent them to "develop the mining sector" to sweeten the pot for KRY and get the deal done. That seems fair....don't it?
