Pacific Rim – Scene of Much Cross-Border Minerals Investment

Investment activity in the Pacific Rim of Fire has seen a phenomenal surge from epithermal gold exploration. Individual countries are attractive because of lower up-front minerals lease costs (United States, Canada), better geological prospects (Chile, Indonesia), or cheaper equities (Australia). Since the October 1987 stock market crash, large companies are shedding minority joint venture interests to focus on core businesses. Some vertical integration is evident in Japanese coal investments in the Pacific Rim. This article does not cover the aluminum industry oligopoly, which is multinational in character. Nor does it cover the many Canada to US minerals investments. It will be interesting to see if the new US-Canadian free trade treaty will reverse that investment flow. Cross-border investments The following examples should dispel any doubts about the significance of cross-border investment in the Pacific Rim. BHP, Australia's largest public company, has invested $US 4.5 billion in the JS for the following transactions 1984 $2 billion Utah Minerals 1984 $500 million Energy Resources 1985 $745 million Monsanto Oil 1987 $400 million 50.7% Hamilton Oil 1989 $378 million Pacific Resources Placer Dome, mainly through 76% owned Placer Pacific, has the following gold mine developments in hand including the date the project began, Placer Dome's ownership, project name, its location, and capital expenditures: • 1985, 53.1 %, Kidston, Queensland, $A 139 million; • 1989, 37.9%, Big Bell, Western Australia, $A135 million; • 1989, 60.6%, Misima, Papua New Guinea, $C252 million; • 1990,45.5%, Granny Smith, Western Australia, $A95 million; • 1991, 50%, La Coipa, Chile, $US276 million; and • 1991, 25.3%, Porgera, Papua New Guinea, $C1.1 billion. Australia's Western Mining Corp. (WMC), through a foray of off-market acquisitions in late 1987, acquired con¬trol of five Canadian gold companies for a $A488-million outlay ($C452 million) as follows: