Rating Opportunities for Foreign Investment in Gold Mining Concessions in LDCs

INTRODUCTION The purpose of this paper is to assist explorationists and entrepreneurs in deciding whether to invest in gold mining concessions in lesser developed countries (LDCs) and, if so, in deciding which LDCs provide the best opportunity. The first decision is difficult in the face of common notions that foreigners are not welcome - only their money; that the best gold deposits were worked out long ago; that even if you survive the mal- aria, and in spite of 51% control by a national partner, you manage to profit from a new discovery, they will tax your operation to death, or worse yet, nationalize it. Close scrutiny of what happened to foreign investors in LDCs during the “Mexicanizationt” of the 1930's through the "Zambianization" of the 1970's shows that many of these concerns are well-founded historically. But the trend of knowledgeable writers over the past decade seems to be away from this gloomy foreboding, and towards a cautious optimism, based on recently perceptible metamorphoses in certain LDCs' conditions and attitudes. If the explorationist or entrepreneur decides to seize on this apparent opportunity, the second decision -- which of these certain LDCs to invest in -- is doubly difficult, because of the formidable tasks of coming up with a rating system to provide rational comparison, and then gathering enough current, reliable information to apply. To assist in these tasks, a suggested rating system and case studies, respectively, follow a brief review of recent writings on the subject