1 / 16

BUSANG: RIVER OF GOLD A

barbara
Download Presentation

BUSANG: RIVER OF GOLD A

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

    1. 13/3/2007 1 BUSANG: RIVER OF GOLD (A)

    2. 13/3/2007 2 ROGUE’S GALLERY: FAMILY & FRIENDS

    3. 13/3/2007 3 ROGUE’S GALLERY: INDONESIAN POLITICAL FIGURES

    4. 13/3/2007 4 ROGUE’S GALLEY: NON-INDONESIAN POLITICAL FIGURES

    5. 13/3/2007 5 CRITICS OF THE DEAL

    6. 13/3/2007 6 TWO POWERFUL CRONIES NOT DIRECTLY INVOLVED

    7. 13/3/2007 7 IN 1996, DAVID WALSH’S BRE-X IS SITTING ON WHAT IS REPUTED TO BE 100-200 MILLION OUNCES OF GOLD. BUT STILL THE COMPANY HAS PROBLEMS. WHAT’S THEIR PROBLEM?

    8. 13/3/2007 8 ISSUES Their extraordinary deposit of gold is about to be seized from them Bre-X has no allies – no personal power Lack of investment capital – does not have the financial resources to bring Busang to full production Bre-X is a junior mining company & it needs to find a better-financed partner before bringing its deposit to production

    9. 13/3/2007 9 HOW DID BRE-X GET ITSELF INTO THIS FIX? WHAT CAUSED ITS PROBLEMS TO OCCUR? Bre-X got greedy & tried to go beyond the normal practice of a junior mining company by choosing to take no partners - & has no allies But, of course, many of its problems come from sources beyond its control – Barrick is aggressively pushing itself in & wielding a lot of infoluence over Indonesian politics

    10. 13/3/2007 10 WHAT IS DAVID WALSH GOING TO NEED TO GET BRE-X OUT OF THIS SITUATION?

    11. 13/3/2007 11 WHAT’S A RELATIONSHIP? Why would you want a relationship? How do you get a relationship? Is it just a bribe? Why are relationships so important in Indonesia? With whom do you want one?

    12. 13/3/2007 12 INDONESIA’S MINING SECTOR

    13. 13/3/2007 13 WOULD YOU GO ALONG WITH THE BARRICK DEAL? WHAT ALTERNATIVES WOULD YOU RECOMMEND?

    14. 13/3/2007 14 DID BRE-X PLAY ITS CARDS CORRECTLY? WAS THE DEAL WORTH IT?

    15. 13/3/2007 15 WHAT HAPPENED? Essentially, the entire discovery at Busang turns out to be a hoax. When Moffett asks Walsh to help reconcile these competing test results, de Guzman flies by helicopter to the Busang site & either jumps or is murdered Tests soon prove conclusively that Bre-X geologists had added gold to test ores to raise the apparent gold content.

    16. 13/3/2007 16 CONCLUSION Lessons of the (A) and (B) cases: In Indonesia it proved critical to see how laws were made & enforced, & what political entities were involved in both processes (private rule makers carried as much weight as their public counterparts) In countries where insitutions are still developing & thus do not have the uathority or sophistication that they do elsewhere, personal relationships fill this institutional gap Last lesson, do your homework – far too many people believed the Busang story just because they wanted to.

    17. 13/3/2007 17 ASSIGNMENT FOR 15/3/2007 Group Case 5: Acer America: Development of the Aspire: Organizing International Operations, Decision Making & Controlling Assignment: Read the case before class

More Related