While Sandstorm manages to carve up the bones of what’s left of Colossus Minerals (ex-CSI.to) with sushi-chef-like dexterity in order to dilute the holy fark out of everyone else and leave it with the pie, a more interesting development on the Serra Pelada fiasco is brewing in Brazil’s National Congress. Over there the congress member for Para State, Arnaldo Jordy, has put together the necessary amount of congress member signatures (he needed 171, he got 191) in order to create an official parliamentary inquiry into the ever-louder cries of financial fraud around the mine project. That’s kicking off soon, so expect fun and laughter headlines about this snafu all through 2014.
According to all reports it’s a complete nest of vipers there, but the main bone of contention is the allegation that back in 2009 Colossus bribed the heads of its COOMIGASP partner at Serra Pelada (the local worker cooperative) to the tune of 50 million Reales (call it U$25m, averaging the forex then and now) in order to hand over an extra 24% of the project and make the ownership of the mine 75% CSI and 25% locals. Also, in the words of that Epoca link up there (translated), “The magazine had access to a report of the Board of Financial Activities Control (COAF), linked to the Ministry of Finance, which tracked unusual financial transactions between the cooperative and Colossus.”
Canadian mining companies suspected of bungs to influential South Americans in exchange for mining prospects? Hoodathunkit, eh?
Ari Sussman is not available for comment.