International Commerce

Indonesia Modernizes Its Mining Laws: Many Benefits Will Follow

President Joko Widodo has signed into law a upgrading of Mining Laws for his country. Continuing to show strong leadership, as to many aspects of his government, Mr. Widodo has modernized this industry for his citizens.

Indonesia’s ‘2009 Coal And MIning Law’ was viewed to be obsolete in today’s competitive world. Its requirement of randomized sources of approval for projects, was outdated. Furthermore, its restrictions on site sizes, made projects uneconomical [much of mining profitability is scalar; ‘Volume of recoverable ore’ is a barometer of potential financial success]. The updated law allows for riparian mining. The new regulations will also provide for greater clarity for international investors; an excellent revision.

It is interesting to note that the ‘clamor’ against the new law is provided by ‘non-Miners’ and other ‘outsider’ vested interests. Both, who continually spout off “Environmental Concerns” for their bona-fides.

Since the new law has been reviewed by Indonesian government legal authorities, as lawful, who are these others to criticize? We, as International Businessmen, have heard similar diatribes, over and over again, AGAINST ANY AND ALL MINING, ad nauseum. What is not mentioned by these ‘outliers’ is the fact: The world today, would not exist, as it is, if it were not for previous mined and processed mineralizations. If these same decriers of ‘Mining’, are so resolute, let them live ‘naturally’ in bamboo huts, on some far-off islet.

It takes the decisiveness of a strong leader, as is President Widodo, to make his country even more competitive in the world. This Mining Law upgrade, by advancing mining financial requirements of investors, along with its legal review of projects, should assure growth. With growth, is increased survive-ability.

Reality: A Leader, who listens to opposing views, but pays no heed to their ignorant shouts, will make wise objective decisions.

Reference: https://www.thejakartapost.com/news/2020/06/19/jokowi-signs-controversial-new-mining-law-expert-staff.html

Institute for Management Development [I.M.D.] Has Cyprus As Most Improved Country In World Competitiveness

The latest yearly service of this prestigious ranking entity shows a eleven position improvement for Cyprus. This was in the combination of essential improvement elements rated. Of 63 nations, Cyprus ranks number 30.

In this I.M.D. ranking, Singapore was number one, followed by Denmark as the second most competitive country. Switzerland being number three. They are to be congratulated for their achievements.

The three largest commercial countries, China, Russia, and the United States, each had a declination. This, as should be understood, was due to the current world economy. It is much harder for the largest of commercial populations, even when led by very capable governments, to adjust, to unanticipated health debacles. Smaller Nations can respond quicker; They, which by their mere sizes have less complexity, of macro-operation, can adapt apace.

It behooves all of the report-listed 63 ‘entries’, as well as the remaining 130+ countries, in the world, to evaluate the I.M.D. report. They should do everything possible to raise their rankings higher. This benefits their citizens and makes for a copacetic commercial world, we can all profit by..

Reality: There are many ways to judge a country’s competitiveness; one being: If all the citizens living therein, have smiles on their faces.

Reference: https://www.financialmirror.com/2020/06/16/cyprus-most-improved-country-in-competitiveness-report/

Going For Gold [Au]: Wise Nations’ Leaders See Beyond The Horizon

Russia, is predicted to lead China in mining of Gold, in future years, per Fitch Corporation. In its analysis of Gold Mining Operations, Fitch thinks that the prodigious production rates of Gold mining will increase even further than present rates of production, in Russia.

China has taken a cautious view of Gold mining processes. Cyanide is used extensively in the conversion process. Mining raw ore; crushing and grinding; heap leaching with Cyanide; Carbon processing, to Dore; to smeltered purity is the methodology. Since Chinese populations are near present-day mining operations, a retardation of Au activities, in China, is the result.

China presently, has expanded its Au production desires to South America, where substantial Au mineralizations are located. In a large commercial transaction, the Chinese have wisely accumulated ownership interest in Argentina. Venezuela, with large Gold deposits, are of interest, and one can easily envision others locations of their possible future intentions: Bolivia, Chile, Ecuador, and Peru immediately come to mind by we, who consider such assets.

Russia has a enviable Au environment in which its mining companies deal: that is, large deposits of Gold, many being relatively distant from large populations. Since the cost effectiveness of Gold mining is certainly scalar, going from ‘Shaft’ Mining’ to “Open Pit’ Mining’ will lead to significant cost savings. ‘Up Front’ costs are much greater in the latter; for example, Excavators, Graders, Haulers, Shovels, and the like must be utilized. However, in ‘Shaft Mining’, with its ‘descent’ followed by ‘branching’, followed by ‘descent’, and then again, ‘branching’, is not very efficient. In shaft mining, ore grade quality is of extreme importance; one ‘follows the vein’ Typically, quantities are far less recoverable than in ‘Open Pit’ operations. . Open Pit’ mining, if Au deposits are of significant size, and ‘good’ ore grade quality, wins the scalar-efficiency race.

In Mining, beyond the day-to-day costs, risks and rewards, is the fundamental economic truth: Since the dawn of civilizations, Gold has been revered as of lasting value; ‘Ink printed on paper’ “Fiat Currency” has not. It will not endure as a steadfast measure of value. Even its composition is ‘weak’ compared to Gold. The alleged, 6,000 tons of Gold, said to be held by the U.S. Government, verifies that America also agrees with China and Russia about the inherent worth of Gold.

Reality: Metallic Gold, which came to Earth from outer space, is a ‘Heaven Sent’ enduring-value commodity; It makes ‘Fiat Currencies’ “fodder for fleecing the financial foolish”.

Reference: https://russiabusinesstoday.com/economy/fitch-russia-will-overtake-china-in-gold-production-within-decade/

As Millions Of People Go To The Internet For Commerce And Entertainment, Tax Enforcers Go After Them

The seismic shift of ‘Retail’ consumers going from ‘Pedestrian Shopping’ to ‘Internet Shopping’, steadily increases around the world. This fundamental change in buyers’ techniques is brought about for both convenience and now, due to necessity. The Coronavirus [CV-19] Pandemic, tragic as it is as an Influenza, which can kill, has produced a ‘Commercial Side’. This includes: Increases in retail sales of ‘Pathogen Preventers’ [Sprays, Wipes, et al], Toilet Paper, Vaccine Research Equipment, Pedestrian Control Devices, Bicycles, and Internet Entertainment Contracts.

Many governments, have dwindling revenue streams, caused by negative commercial effects of CV-19. They are now determined to supplement money flows to their Treasury Departments with Value Added Taxes; this, as well as other revenue gaining approaches. We, in International Business, are loathe to see increases in taxes without commensurate increases in benefits to those who pay the taxes. However, we fully understand the needs of governments to sustain themselves; without governments, chaos will surely arise for populations. The ‘fine balance’ that is required: A particular tax to not ‘overburden’ the taxpayer, yet help provide sufficient cash flow towards required treasury needs.

We think there is an even better way to facilitate Treasury Department needs; Close down ‘small’ “Money Launderers” illicit operations of Criminal Enterprises. In particular, by stemming cash ‘outflows’ from a country, a economy is stronger. Also, by carefully examining ‘large’ “legitimate” Corporate investments in other countries, one may detect money laundering on a grander scale. “Piety”,of both behavior and thought, is not evidenced by merely wearing a fine suit and wearing a necktie. Over the years we have met many individuals who have tried to appear, through attire and professional demeanor, as ‘Innocent as Lambs’ but in reality were ‘Black Mambas’, poisonous to their cores. They surely did, do, and will do everything to keep their cash, “Governments’ needs be damned”, is their credo. Fortunately, they are not in great abundance.

The ‘Bottom Line’ is: Treasury Departments need to be aware how, where, and why countries’ cash flows, particularly illicit, are occurring, and then, if criminal, stop them. Also, taxation of the citizens, should be at a level commensurate with the citizens’ gains from their ‘acquisitions’.

Reality: Like superb mechanical Wristwatches, those entities with the greatest accuracy, which endure over the longest time, are of the finest balance.

Reference: https://thefinancialexpress.com.bd/trade/no-more-free-lunch-banks-collecting-vat-on-use-of-foreign-movie-channels-1592452941

Mother Nature’s “Lightning”: A Clear And Present Danger

A Texas rancher, unfortunately, found some of his livestock, which has been standing near a fence, dead from a lightning strike. Each year, world-wide it is estimated that domestic, as well as feral animals, are killed in the hundreds of thousands by lightning strikes. The cost to the owners of the herds is prodigious. The reality of the matter is not much has been done to protect livestock in such weather. If one ‘thinks outside the box’ there is no reason insulated transportable small ‘barns’ could not be designed and inexpensively manufactured for herd shelters.

In the areas, such as Arkhangai Province near Ulaanbaatar, Mongolia, herders lose thousands of their animals yearly due to horrendous lightning storms, snow and wind. In -30C [-22F] temperatures; this loss can be reduced significantly with the aforementioned portable insulated ‘small barns’. Losses from electrical storms, in particular, could be prevented. As for humans, we are better off.

The capacity to kill, from lightning’s electrical energy, is well-known by all. In fact, it kills on average, approximately 6 people per million, per year, world wide. If one presumes there exists approximately 7.8 billion people on Earth, one sees that 46,850+/- people perish yearly from strikes. In agricultural areas around the world, for humans, the death toll is higher, due to lack of effective shelters, than of residents in cities. In urban areas one is safer due to effective housing. Since lightning injuries exceed deaths, by ten times, human suffering is quite vast. Numerically, lightning strikes to humans,and animals, as well damage such as forest fire started from the strikes, are as destructive as many ‘Influenza Pandemics’. As to ‘Flora’ damage, there is no contest.

Having engaged in hard rock mining, many of us are quite familiar with lightning storms causing ignition of blasting caps for dynamite charges. [We are also aware of firearms shots detonating sticks of dynamite; This we have witnessed]. For miners, several thousand feet underground, lightning can kill; as historical evidence in Africa has shown. It behooves executives of mining companies to secure the best of insulation for their miners in remote locales, world-wide.

It is imperative for effectively-insulated building designs to be employed, as the, in-fashion phrase, ‘Climate Change’ [no longer, “Global Warming”] evidences climatic deviance in weather patterns. This evolution in climate may produce more electrical storms in greater varied locations, and of stronger electrical intensities. At present, it appears that Japan is the leader in building fabrications with the fewest lightning strike victims in the world; a fact of which the country’s leaders should be proud.

Reality: For all living creatures and humanity, respect for ‘Mother Nature’ with her powers is essential. Those unaware, or in denial, can pay the price for this lack of acknowledgement.

Reference: https://www.dailymail.co.uk/news/article-7459711/Lightning-strike-kills-23-cows-instantly-bolt-struck-metal-fence.html

“Coral Sea Cable” Brings Wholesale Prices To Papua New Guinea; However, Connections To Nodes Throughout The Country Would Be Even Better

Australia has generously provided the bulk of the funding for the “Coral Sea Cable”, which stretches from Sydney to Honiara and Port Moresby. The transmission line, for a distance of 4,700 kilometers [2,920 statute miles], was supposed to facilitate cheaper data cost for all of Papua New Guinea residents. While the ‘Wholesale’ costs of the data are significantly less expensive, perhaps ‘Retail’ users have not benefitted as much.

Apparently ‘Retail’ users of data have a two-fold situation they confront: [A] While the ‘Wholesale’ price of data has substantially declined, only a portion of the savings appear to have been passed on to residential customers. [B] it appears that connections throughout Papua New Guinea, to additional residences, has barely commenced, if even that. Maybe the ‘game’ of Internet Service Providers [ISP’s] is to wait and hold onto existing cash, if so, then residents throughout the country lose. These losses are due to non-existent services as well as reduced savings per kilobyte not being passed on by ISP’s, as aforementioned.

The leaders of Papua New Guinea should realize that International Businessmen and International Investors hold the Internet in high esteem. ANYONE that curtails the expansion of the Internet in a country, these ‘Outsiders’ might be considering doing business in or with, will be cautiously reviewed. If they detect even a mere scintilla of odor, the ‘Outsiders’ will decline to do business therewith. Their logic is simple: If the leaders of a country, and/or its business leaders, will not attend to the needs of their citizens/customers, how will they treat anyone else entering into commerce with them? It does not take much skill to detect intentions of a ‘executive’ wearing a fancy suit with a lapel pin on his lapel which says: “I want even more, just for myself”. Communications though the Internet are making users more attentive and wiser.

Reality: The Integrity of a conscientious Leader radiates like Uranium; that of a ‘Litter’ appears like Chalcopyrite.

Reference: http://www.cookislandsnews.com/regional/small-world/item/77371-png-s-coral-sea-cable

Cyprus Leads Other Clean Waters European Countries as Beaches Are To Be Enjoyed

Cyprus has lead the way in clean, clear waters for its beaches. Other countries in extremely close rankings are: Austria, Malta, Greece, and Croatia; all are to be congratulated. As International Businessmen, we know from our travels, how enticing is is to swim in clean, clear waters. Additionally, from a commercial point of view: ‘Cleanliness and Purity of Waters’ are sought for man’s psyche [beautiful, compelling, and rewarding].

International visitors, with much cash to spend, will seek out not only ‘Five Star’ hotels, but will also seek out beautiful beaches which are deemed ‘Safe’ in which to swim. Smart businessmen should certainly seek certification of their adjoining waters as an excellent marketing tool.

It behooves all businessmen to do everything possible to make sure their beaches and waters are not only ‘non-polluted’ but of the highest level in ‘cleanliness and clarity’. Clean waters can make for: Clear ‘Selling’ of one’s “ship” to possible ‘passengers’. It can mean more Euros into one’s business bank account.

Reality: A wholesome image, backed by verification, endures for those who want to win.

Reference: https://www.financialmirror.com/2020/06/09/cyprus-has-cleanest-beaches-in-europe/

Australian Bureaucrats, In A Short Span Of Time, Allowed 46,000 Years Of Culture To Be Devastated

When a mining company wanted to engage in site development, it obtained the proper certification from the Australian government. The problem is that the bureaucrats in the government did NOT properly engage in ‘Due Diligence’; this, in assessing the effects of the intended actions of the mining company applicant. Negligently, they approved its permit. The explosives detonated, during site development, collapsed the Aborigines sacred caves; artifacts were destroyed. Unfortunately, 46,000 years of culture went up in smoke, due to the explosives’ forces. .

It appears that the Federal Government of Australia is re-thinking the entire Permit Process on Indigenous lands; this is good. Another large mining company, apparently understood the tragedy of the damage due to ‘Bureaucrat Inefficiency’ and lack of cultural cognizance. This new applicant must now carefully proceed with its intended mining activities. Since mining companies want to engage in resources extractions, with NO intentions of destroying cultures, they ALL must heed the opinions of those who own the land; this, if they want to mine successfully therein.

We love mining and understand the arduous nature of this ‘beast’; one which can be very unforgiving to those ‘plying the ground [above or below]’. It is our opinions that in evaluating a possible site, beyond the topography, core and seismic evaluations, mining executives MUST consider: the flora, fauna, and “Occupant Culture”. That which existed and/or exists, must be entered into the investment equation. This, even if it adds expenses to a potential operation.

Land remediation should also be duly costed into a potential project. It behooves EVERY mining operation to leave a mine site similar to what it was, before even core samples were obtained. Good “Community Will’ is priceless for a successful business. The smell of a bad reputation exceeds the location of the ‘business corpse’.

Reality: There is NO substitute for Integrity, an asset which can only be earned, never purchased.

Reference: https://www.brazilsun.com/news/265435162/australian-indigenous-groups-vow-to-protect-sacred-sites-from-mining

International Investment Bankers Awaken To A 21st Century Tool

‘Teleconferencing’ has been available and widely used for a number of years world-wide. While many businessmen availed themselves the use of such a tool, many International Investment Bankers [I.I.B.s] did not. Apparently, they believed the myths of their predecessors that ‘Eye-To-Eye” contact was necessary to establish a bond of trust with their customers; in fact, many absolutely adhered to this fantasy. An important incentive to this delusion was the fact that five star hotels, limousines, first-class cabins, and other perks were included with each jaunt to a possible customer. With their banks paying for all the costs, and the public picking up a big portion of the expenses, through the banks tax deductions, the I.I.B.’s were happy.

We, in our daily activities have been, over many decades, exposed to such gentlemen, and aware of their mandate. What has escaped us has been that a International Businessman trains continuously in close observations of those with which he or she is in contact. This is especially true as to I.I.B.’s who are offering to control one’s assets. The old adage: “The Eyes Do Not Lie.” is especially applicable to such people. Additionally, much as a “Psychological Stress Evaluator” machine listens and analyzes, so do we. In fact over enough years of practice, this talent is effective even over a mere telephone call. Do not I.I.B.’s understand this?

I.I.B.’s must now stay at home and try to convince customers of the efficiencies and their rewards to possible clients. To seasoned I.I.B.’s, this will not be a problem. To the university-educated novices, who have not been schooled by their professors in such ‘Arts’, this will be a major hurdle. We hope that those I.I.B.’s who wear their arrogance near their cuff-links on their shirts; we have met many, will be humbled by the Internet Technology of Teleconferencing [in trying to close deals]. For those who fail as to the demands of ‘Remote Associations’, they should practice a different profession.

Technology is wonderful, but it is a mere tool which should be used to work for the greatest asset of man [which is located above his eyes and between his ears]. And, at least the I.I.B.’s do not have to sit for hours, inside aircraft with mediocre Environmental Control Systems which do not stop Covid-19 and its many ‘cousins’

Reality: Quick adaptations, to new Business “Environmental” demands, separate ‘Survivors’ from ‘Fatalities’.

Reference: https://www.finews.ch/themen/finews-life/41231-investment-banker-grounding-fliegen-flughafen

Do We Stop The Entire World For Two Weeks For Test Results?

Brazil’s President Mr. Jair Bolsonaro has made the firm choice, as a strong leader of his Country of Brazil, to treat Coronavirus [CV-19] like a Influenza, which it is. He was too smart to fall into the Mainstream Media’s hysterics which were designed to have ‘Planetary Pathos’ be Earthlings fates. He took the high road and largely kept Brazil open to commerce. Perhaps realizing that Medical “Experts” of the world: Did NOT initially know of Coronavirus’s existence; Did NOT see it approaching; Did NOT know when it had initially arrived; Did NOT know how to deal with it when they saw it face to face, President Bolsonaro called Coronavirus for what it is: A Influenza [nothing more].

We as International Businessmen, travel the world, but do so alertly. By consuming certain Herbs, Minerals, and Vitamins, exercising regularly, and avoiding public ‘hot spots’ such as ‘cabarets’, NONE of us have met CV-19. We think that President Bolsonaro, much like Britain’s War Hero, Sir Winston Churchill, knew that ‘Fear is the Enemy’s Game; he will happily provide it to you profusely, for free.’

Are the many critics of ‘Open Commerce’ in favor of “Stopping the entire world for two weeks for test results?”. If so, then these “Doctors” [who know more and more about less and less] should listen to world leaders such as Mr. Bolsonaro who is showing he knows ‘More and more about More and More’. Weak men do NOT make tough decisions, strong Leaders do. In fact, many seek to look over the horizon to see what approaches from afar. If ANY MEMBER of the world medical community had been looking out to the horizon, they may have detected the insidious Influenza CV-19’s existence and approach; apparently none did. Yet now, many of these same medical mavens ridicule President Bolsonaro for not closing down his country to a Influenza. From a business perspective, their feeble logic, has not been shown positively to be correct in ‘corraling’ CV-19, but is much more anecdotal of their ‘successes’ to date.

As International Businessmen, we respect Nations’ men who are Leaders, but have contempt for those outspoken persons who are ‘Litters’.

Reality: The proof of the lethality of CV-19 is to be measured against the populations of the Nations where it is active; Compare those numbers vis a vis earlier Influenzas and other maladies.

Reference: https://www.france24.com/en/20200611-sao-paulo-re-opens-after-lockdown-despite-brazil-s-surging-covid-19-death-toll