The International Mining Industry ù Linking the Upstream Mineralisation With the Downstream Money

Just as Australia is part of the Pacific Rim, so the Pacific Rim should be viewed as part of the whole world. That applies in particular to that scarce commodity û money. There are five main factors of production in any mining development û mineralisation, materials, manpower, management and money. LetÆs focus on the upstream input û mineralisation, and the downstream input û money, especially in the area of communications. Unknown to many, the Competent Person reporting on Mineral Resources and Mineral Reserves has a direct and unavoidable impact on the companyÆs financial statements û the profit and loss account and balance sheet. With respect to reporting of the major asset of most mining companies û the resources/reserves û investors are getting a better deal now than at any time in memory as regards flow and adequacy of information. Australia has been a world leader in this regard. The outlook is for even more informative and useful reporting. The more rigorous reporting requirements for Exploration Results and Mineral Resources/Reserves, which have become a worldwide phenomenon over the last five years, will continue. This will be positive for the mining industry as a whole and for Australia in particular. However competition for the scarce investment dollar will also increase. Put simply, mining has many competitors, unconnected with mining, for the capture of the investment dollar. It behoves all participants to recognise that there are three investment factors which influence strongly the willingness of investors to put money into mining. These are Confidence, Credibility and Consistency. AustraliaÆs investment image stands high in these three respects, but the competition will continue to grow. AustraliaÆs lead must be maintained. However, some investment decisions should not necessarily be based on fundamental, quantifiable facors. Some of these are outlined.