A recent email described to me some of the problems faced by mineral resource project developers in former USSR countries.
The main problem with these former USSR countries is the unknown cost of operation and operational risk which are not taken into account during planning. Unfortunately, professionals from western countries can see these operations through western eyes and can be unaware of the reality of operating in these countries.
One (here unnamed) deposit brought to my attention looked fantastic on paper prior to mining. However, once in operation, anything and everything that was not bolted down was stolen by the workers. This included the copper wires, even those laid out for geophysical surveys!
And then there are all those diesel pipelines you see around industrial sites? Well, it seems that not all of those pipelines are legitimate. I’m not talking about for the mine being at fault here, but, rather, those pipelines made by the locals to siphon fuel off into the bush. That’s right, locals filling up tankers on the sly and selling the fuel elsewhere.
One has to ask how this sort of thing could go unnoticed. Or, perhaps it is being noticed, but only by those who might be prepared to turn a blind eye…. and who drive Mercedes….. powered by diesel?!