Asia Energy - Coal and Power for Bangladesh

Minesite:

Another disaster was Asia Energy’s (AIM: AEN) probable loss of its Phulbari coal project in Bangladesh, which took its shares down 73 per cent to 104.5p. A £2.5 million investment in GVM Metals (AIM: GVM) with coal interests in South Africa is some progress in a new direction, but hardly replaces Phulbari.

The troubles of Oxus and Asia Energy illustrate another of the year’s distinguishing features – real political threats to assets in unstable, faraway places have appeared with some regularity, and have understandably played havoc with the share prices of the company’s affected. What this goes to show is that a well-informed consciousness of political risk is a must for mining investors.