This post is replete with contradiction, cynicism, and self-promotion. Yet I am making a genuine attempt to make a serious point, even though I degenerate into foresaid faults. (more…)
Posts Tagged ‘aig’
A light drizzle, the rush of Japanese food, and mining friends at lunch. Almost enough to dispel fall gloom and its election results and predictions.
Until an insighful friend remarked that one of the worst consequences for mining will be the closing and demise of so many small, marginal mines and junior mining companies.
The well-invested investor retorted that they needed to be flushed out so the system can recover and be normal again.
The insightful friend persisted that many a small mine will now be moth-balled, put on stand-by status, maintained, or simply abandoned.
“What’s wrong with that?” the well-heeled questioned.
“The newly-shut-down mines will bear witness to the need to close them; to draw on closure bonds that may be lodged with AIG; the taxpayer will realize they are on the hook for the closure cost of mines left by small Canadian companies now renegotiating their leases in downtown Vancouver.”
The United States Federal government has just bailed out insurance giant AIG. They say the company had to be saved because its activities affected every part of the economy. Currently I am not affected via any known route by AIG. I do recall one interaction with them, however, that left me thinking they must be the silliest bunch of people ever.
My client, a mining company was busy closing their mine site. Seems that many years before, while the mine was in full production, some wise miner went drinking with the local AIG insurance salesman. The miner mentioned they were trying to estimate the cost of closing the mine. The insurance salesman, ever on the lookout for business, offered to insure the mine against any cost over-runs in closing the mine.
(Just for fun, here is a picture of the AIG Board in happier times)