Mining Company With Big Operations On The Congo

But I’ll show you a perfectly legal way to make a profit in this African country.

German timber companies are plundering the Congo.

At least that’s what the environmental group Greenpeace says.

It has accused international logging companies operating in the Congo of evading taxes on a huge scale.

And it has singled out the German company Danzer in particular. Danzer has big logging operations in the Congo. But Greenpeace says the company has cheated Congo out of enough money to vaccinate seven hundred thousand children.

Danzer has dismissed the allegations as a populist gimmick. In fact, it says that it has lost money on its African operations. And that it has only been profitable in two of the last ten years.

Which makes you wonder what they are still doing there...

The answer is simple. There are huge profits to be made in the Congo right now. Because this country has some of the biggest reserves of natural resources in the world.

It has vast reserves of gold, copper, timber and diamonds. And it has a whole range of rare minerals as well. And that’s where I have spotted a massive profit opportunity.

It is a mining company with big operations on the Congo. And it could soon control almost half the world’s supply of a rare metal that is critical to the global economy...

But investors are nervous because it operates in the Congo. So its share price is still trading well below what it is really worth.

You should ignore mainstream investment advice if you want to make real money

But those fears are totally overblown. This company’s shares are hugely undervalued right now. In fact, I think they could easily gain more than 230% over the next twelve months.

I’m not going to go into all the details again here because I recently wrote a short article explaining why. You can read that over here.

In brief, a key reason this share is trading so cheaply now is that there is still a lot of confusion about the investment rules in the Congo. The country was torn apart by a civil war from 1996 to 2003. Lots of foreign companies moved in to take advantage of the chaos. And they plundered its vast natural resources.

Now the government is cracking down on dodgy mining companies operating in the country. Many of these started operations after signing dubious agreements with the different warring parties during the civil war.

It has launched an official review of the mining industry. Companies that don’t make the cut have had their mining licences revoked. So investors have been nervous about putting money into them. The mining company that I was telling you about is in a totally different league. It is a completely professional operation. And it has extremely close ties to the Congo government as well.

But nervous investors have lumped it together with all those dodgy wildcat miners that are being stripped of their mining permits. So its share price has taken a beating.

But the government has just given this company a clean bill of health. It isn’t going to be stripped of its license. And it is going to be allowed to keep all its mines.

And once the news actually begins to sink in with international investors, I expect them to come charging back in to this company. Because this company owns some of the richest mines in all of Africa.

Congo cracks down on corruption

Now the Greenpeace report has led to a government crackdown in the logging industry.

Greenpeace alleges that the amount of tax lost each year is fifty times Congo's Ministry of Environment's annual operating budget. So you can bet that it won’t be long before heads start to roll...

The government has just launched a review of all timber contracts. They are trying to clean up a business that is rife with corruption. And they want to recoup millions of dollars in lost taxes.

Many of these timber companies began to operate in the country during the civil war from 1996 to 2003. And they’ve been a disaster for the country. Congo is home to more than a quarter of the world’s tropical forest. But logging and land clearance are destroying more than 800,000 hectares of forest each year.

"What I'm hoping for is fewer concessions. What I'm hoping for is more revenues for the state. What I'm hoping for is better management of the forestry sector," Environment Minister Jose Endundu said.

Many contracts are expected to be cancelled outright by a review panel made up of government officials and independent experts.

The Congo is clearly heading in the right direction. They’re clamping down on corruption. And the new measures should help provide the funds they need for development programmes.

This is a fantastic profit opportunity

This huge country in the heart of Africa could become one of the richest places on earth if it can get its act together and stop the plunder of its natural resources. And that’s what we’re seeing happen right now.

They’ve axed the dodgy mining companies. The dodgy logging companies may be next to follow. This country is in the middle of a massive turnaround. Its economy could grow by 9% this year and almost 12% next year. The profit opportunities here are absolutely huge.

That’s why the German logging firms have stayed in there despite all the negative press. And it’s why the Chinese are pouring $9 billion of new investment into this country in return for access to its mineral mines.

The mining sector is at the heart of Congo’s economic boom. And that’s why I believe that mining company I told you about is set to take-off like a rocket.

I’ve just published an in-depth research report explaining how you can position yourself to profit from this outstanding commodity play. Practically no one else is talking about it - but you can view that report by clicking here.

Regards,

Manraaj Singh
Editor
Profit Hunter

Please note: Forecasts are not a reliable indicator of future results. P.S. If you enjoyed this article then we encourage you to sign up for Profit Hunter. Track down exciting opportunities in the worlds’ emerging markets and always stay ahead of the curve.

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Mining Company With Big Operations On The Congo

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