Sichuan Hanlong Group Founder’s Arrest Places Mining Investment in Jeopardy

Bloomberg reported that Sichuan Hanlong Group’s founder is being held on murder charges, which is casting doubt on the future of the intended mining investment in Sundance Resources Ltd in West Africa and in General Moly Inc. Mt. Hope molybdenum mine.

As quoted in the market report:

Liu’s rise to riches and sudden disappearance aren’t just the makings of a made-for-Hollywood potboiler. They’re a warning of the risks investors take when dealing with opaque private businesses in China, where fortunes depend on political ties and the favors of state entities, and even the wealthiest entrepreneurs can vanish if they lose the patronage of powerful government allies.

To view the whole Bloomberg report, click here.