The Changing Pattern of World Mining Investment and the Implications for Australia and Her Mining Industry

Unprecedented political, economic, and social change throughout the world will have an increasingly profound effect on the dynamics of the world's mining industry. Analysis of the early financial trends in this development (statistics on exploration expenditure, and investment flows) gives some insight into the magnitude of structural change and its implications for established mining economics and companies.Increasing confidence in the stability of many third world and developing countries is attracting exploration and investment capital that had previously been largely directed to established mining economies in North America, Australia, Europe and Southern Africa. Some of the projects requiring capital and technology in the CIS, Africa and Latin America are technically very attractive. The end of the 'cold war' and the influence of the IMF is gradually changing their risk profile for mining investment.