VintonCounty

Aurelian and Corriente Shares Down as Equador Suspends Mining Exploration

This illustrates the main risk to mining companies: thieving governments. Mining companies must operate where the minerals are, and they must invest much capital in mine development. If the host government then imposes high royalty/tax or seizes majority interest at dictated price, the miner can't afford to leave. All it can do is avoid that country in the future, but that can cause missed opportunities. A country's government can swing from honest to pirates to honest again to pirates again during the long lifetime of a mine. This can make a small miner insolvent. Conclusion: big miners are safer.