ANZ is making a fatal mistake.
Looks like ANZ was very eager to join the action, accepted liberal terms
in order to form JV, now that the gold was confirmed, thought
that it will be easy to push out small CLL by rewriting the agreement. A
FATAL MISTAKE IN THE PRESENT DAY AND AGE.
As soon as there is conflict, sharks will be out to snatch this big pot
of gold. ANZ should immediately rectify it's mistake and not let EGO,
GREED or plain rethinking of the original liberal agreement come into
play or IT WILL BE RUINED.
Some bad scenario possibilties: Kencana pays some money to some Indonesian
friends in public places, they take away the land under false pretenses,
what are you going to do, sue in International court in Hague or the United
Nations. One other possibility is that other Canadian and American mining
companies will get together with Indonesian politicians and try to wiggle
ANZ/CLL out of this lucrative deal.
CLL will not be hurt that much because even if some one else takes away the land,
it will be still more reason for the court to award 500 million dollars
plus interest starting from July 18, 1997.
ANZ should immediately patch up with CLL and never have any violation of
the agreement again. Both ANZ and CLL should make it slightly sweeter
for Kencana in a performance manner i.e. have some clause giving him more
money, if they market gold above a certain amount from Ojalali.
Let ANZ take some lessons from past court cases. Here in Texas, TEXACO
tried to wiggle Penzoil out of a deal they were making, the court slapped
them with a 12 billion damages award.
Any comments! Of course, my observations are based on what we hear and
I hope that is not off track. If what we hear is not right, my apologies
to ANZ. I am sincerely thinking what is right for ANZ and CLL under the
circumstances. I still believe that ANZ is a professional firm and they
will eventually do the right thing.
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